Document:

Employment Agreement

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into by and between Radian Group Inc. (the “Company”) and S.A. Ibrahim (the
“Executive”) on April 20, 2005. 
  
 WHEREAS, the Company
desires to employ the Executive as its Chief Executive Officer and the Executive desires to serve in such capacity on behalf of the Company. 
  
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements hereinafter set forth, the Company and the Executive hereby
agree as follows: 
  
 1. Employment. 
  
 (a) Term. The term of this Agreement (the “Term”) shall
begin as of May 4, 2005 (the “Effective Date”) and shall continue until May 3, 2008, unless sooner terminated by either party as hereinafter provided. In no event shall the expiration of this Agreement be deemed, in and of itself, a
termination of the Executive’s employment for purposes of this Agreement, including a termination without Cause for purposes of Sections 11 and 12. 
  
 (b) Duties. 
  
 (1) The Executive shall serve as the Chief Executive Officer of the Company with the duties, responsibilities and authority commensurate therewith and
shall report to the Board of Directors of the Company (the “Board”) and the non-executive Chairman of the Board (the “Chairman”). The Executive shall perform all duties and accept all responsibilities incident to such position as
may be reasonably assigned to him by the Board or the Chairman and consistent with his position as the Chief Executive Officer. During the Term, when applicable, the Company shall cause the Executive to be nominated as a member of the Board.

  
 (2) The Executive represents to the Company that he is not
subject to or a party to any employment agreement, non-competition covenant, understanding or restriction which would be breached by or prohibit the Executive from executing this Agreement and performing fully his duties and responsibilities
hereunder. 
  
 (c) Best Efforts. During the Term, the
Executive shall devote his best efforts and full time and attention to promote the business and affairs of the Company and its affiliated companies, and shall be engaged in other business activities only to the extent that such activities do not
materially interfere or conflict with his obligations to the Company hereunder, including, without limitation, obligations pursuant to Section 18 below. The foregoing also shall not be construed as preventing the Executive from (1) serving on civic,
educational, philanthropic or charitable boards or committees, or, with the consent of the Board, in its sole discretion, on corporate boards (2) delivering lectures, fulfilling speaking engagements or lecturing at educational institutions and (3)
managing personal investments, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities hereunder and are 

 permitted under the Company’s Code of Conduct and employment policies; provided, however, that the Executive shall
be permitted to own passively not more than 5% of the stock of those companies whose securities are listed on a national securities exchange or on the NASDAQ system, except that the Executive shall not invest in any business competitive with the
Company or that would otherwise violate the provisions of Section 18 below.  
  
 2. Base Salary and Bonus. As compensation for the services to be rendered hereunder, the Company shall pay to the Executive an annual base salary at the rate of $725,000 (“Base Salary”). This amount may be subject to an
upward adjustment at the beginning of each Company fiscal year, as determined by the Board, in its sole discretion. The Executive’s Base Salary shall be paid in accordance with the Company’s existing payroll policies, and shall be subject
to applicable withholding taxes. As soon as reasonably practicable following the Effective Date, the Executive shall receive a signing bonus of $1,100,000 to replace the bonus to which the Executive would have otherwise been entitled had he remained
employed with his prior employer, in cash or in common stock of the Company (“Company Stock”), or a combination of the two, at the Executive’s election. In addition, the Executive shall be eligible for annual bonus payments
under the Company’s annual incentive plan if certain individual and corporate performance goals and targets, established by the Compensation and Human Resources Committee of the Board (the “Compensation Committee”), in its sole
discretion, are met. The performance goals and targets shall be determined by the Compensation Committee, in its sole discretion, as of the beginning of each such fiscal year. Promptly after the Compensation Committee’s receipt of the financial
information on which the performance goals are based after the end of the fiscal year, the Compensation Committee shall review actual performance against the applicable performance goals and targets and shall notify the Executive of the amount of
his bonus, if any. The Executive’s bonus shall be paid to him after the end of the fiscal year to which it relates, at the same time and under the same terms and conditions as other executives of the Company; provided that the Compensation
Committee shall have the right to claw back all or part of the Executive’s bonus if required by applicable law. For the 2005 and 2006 fiscal years, the Executive’s target annual bonus shall be no less than 1.75 times Base Salary, at the
rate in effect for the applicable fiscal year. For fiscal years after 2006 during the Term, the Executive’s target annual bonus shall be determined by the Compensation Committee, in its sole discretion; provided that total direct compensation
for which the Executive is eligible during a fiscal year (taking into account Base Salary, target annual bonus and target long term incentive compensation (as described in Section 4)) shall not be materially less than the total direct compensation
for which the Executive is eligible during either the 2005 fiscal year or the 2006 fiscal year. 
  
 3. Equity Compensation. 
  
 (a) Contemporaneously with this Agreement, pursuant to the Company’s Equity Compensation Plan (the “Equity Plan”), the Company shall grant to the Executive 40,000 shares of Company Stock, subject to the restrictions and
conditions set forth in the Equity Plan and the Restricted Stock Grant Agreement attached as Exhibit A. The restricted stock shall vest ratably on each of the first three anniversaries of the date of grant. 

 (b) The Executive agrees to comply with the Company’s share ownership guidelines for Company
executives, as in effect from time to time, and agrees to hold a number of shares of Company Stock with a value that is not less than $7,250,000 by December 31, 2010. 
  
 4. Long Term Incentive Compensation. The Executive shall be eligible to participate in any long-term equity incentive programs
established by the Company for its senior level executives generally, including the Equity Plan, at levels determined by the Compensation Committee in its sole discretion, commensurate with the Executive’s position as Chief Executive Officer.
For 2005 and 2006, the target level of long term incentive compensation, in the aggregate, for which the Executive is eligible shall be no less than 3.0 times Base Salary, at the rate in effect for the applicable fiscal year. Subject to the terms of
the last sentence of Section 2, for fiscal years after 2006 during the Term, the target level of long term incentive compensation, in the aggregate, for which the Executive is eligible shall be determined by the Compensation Committee, in its sole
discretion. As soon as reasonably practicable following the Effective Date, pursuant to the Company’s Equity Plan, the Company shall grant to the Executive a nonqualified stock option to purchase a number of shares of Company Stock equivalent
in value to one half of the Executive’s long term incentive compensation target for 2005, subject to the terms and conditions of the Equity Plan and the Nonqualified Stock Option Agreement attached hereto as Exhibit B. The Option shall
vest ratably over the first four anniversaries of the date of grant and shall have a term of seven years. In addition, with respect to the remaining one half of the Executive’s long term incentive compensation target for 2005, pursuant to the
Company’s Performance Share Plan (the “PSP”), the Company shall grant to the Executive a performance share award, subject to the terms and conditions of the PSP and the Performance Share Award Agreement attached hereto as Exhibit
C, with a Target Payout (as defined in the Performance Share Award Agreement) of a number of shares of Company Stock equivalent to one half of the Executive’s long term incentive compensation target for 2005; provided that for purposes of
the PSP and the Performance Share Award Agreement, the Award Term (as defined in the Performance Share Award Agreement) shall commence on the Effective Date. 
  
 5. Retirement and Welfare Benefits. 
  
 (a) The Executive shall be entitled to participate in the Company’s health, life insurance, long and short-term disability, dental, retirement, and
medical programs, if any, pursuant to their respective terms and conditions. Nothing in this Agreement shall preclude the Company or any affiliate of the Company from terminating or amending any employee benefit plan or program from time to time
after the Effective Date. 
  
 (b) The Executive shall be entitled
to participate in the Company’s supplemental executive retirement plan (the “SERP”) pursuant to its terms and conditions (or shall be provided with a benefit with an economically equivalent value); provided, however, that for purposes
of benefit accrual under the SERP only (and not vesting), the Executive shall earn two years of service for every one year of service completed during his first five full years of service with the Company (thereafter the Executive shall earn only
one year of service for each completed year of service) and provided, further, that upon his completion of five full years of service with the Company, the Executive shall be fully vested in the amount of his accrued benefit under the SERP (or
economically equivalent benefit) (in either case, determined based on his years of service with the Company as modified by this Section 5(b)). 

 6. Vacation. The Executive shall be entitled to vacation, holiday and sick leave at levels commensurate with those
provided to other senior executive officers of the Company, in accordance with the Company’s vacation, holiday and other pay for time not worked policies. 
  

7. Expenses. The Company shall reimburse the Executive for all necessary and reasonable travel and other business expenses incurred by the Executive in the
performance of his duties hereunder in accordance with such reasonable accounting procedures as the Company may adopt generally from time to time for executives. 
  
 8. Relocation. 
  
 (a) The Executive agrees that he will relocate to the Philadelphia, Pennsylvania metropolitan area to perform the duties assigned hereunder by March 31,
2006. The Company shall reimburse the Executive for his relocation expenses, which shall include the fees and expenses incurred by the Executive in selling the Executive’s existing principal residence in the San Francisco, California
metropolitan area, purchasing a new principal residence in the Philadelphia metropolitan area and moving the Executive and his family to the Philadelphia metropolitan area; provided that if the Executive decides not to sell his existing principal
residence in San Francisco, California, the Company shall pay to the Executive a lump sum cash payment of $600,000, in lieu of the Company reimbursing the Executive for the cost incurred by the Executive in selling his existing principal residence
in San Francisco, California. All relocation expenses must be approved by the Board and will be reimbursed promptly, subject to applicable withholding taxes, so that the Executive bears no unreasonable out of pocket expenses. 
  
 (b) The Company will provide temporary housing, at its cost, in a suitable
residence in the Philadelphia metropolitan area for the Executive until such time as the Executive’s family relocates to the Philadelphia metropolitan area. 
  
 9. Perquisites. The Executive shall be provided with such other executive perquisites as may be provided to other senior executive
officers of the Company. 
  
 10. Indemnification. The Company agrees to
indemnify the Executive against all claims arising out of actions or omissions during the Executive’s employment by the Company, to the same extent and on the same terms and conditions provided for in the Company’s bylaws or under the
Delaware General Corporation Law, each as in effect on the Effective Date. The Company agrees it will continue to maintain officers’ and directors’ liability insurance to fund the indemnity described above in the same amount and to the
same extent it maintains such coverage for the benefit of its other officers and directors. 
  
 11. Termination Without Cause; Resignation for Good Reason – Prior to a Change of Control. If the Executive’s employment is terminated by the Company without Cause (as defined in Section 16) or the
Executive resigns for Good Reason (as defined below), in either case, at any time prior to a Change of Control (as defined in Section 11 of the Equity Plan) this Section 11 shall apply. 
  
 (a) The Company may terminate the Executive’s employment with the Company at any time without Cause upon not less than
15 days’ prior written notice to the 

 Executive; provided that in the event that such notice is given, the Executive shall be under no obligation to render any
additional services to the Company and shall be allowed to seek other employment. In addition, the Executive may initiate a termination of employment by resigning under this Section 11 for Good Reason. The Executive shall give the Company not less
than 15 days’ prior written notice of such resignation. On the date of termination or resignation, as applicable, specified in such notice, the Executive agrees to resign all positions, including as an officer, and Board memberships related to
the Company and its subsidiaries and affiliates. 
  
 (b) Unless
the Executive complies with the provisions of Section 11(c) below, upon termination or resignation, as applicable, under Section 11(a) above, the Executive shall be entitled to receive only the amount due to the Executive under the Company’s
then current severance pay plan for employees, if any, but only to the extent not conditioned on the execution of a release by the Executive. No other payments or benefits shall be due under this Agreement to the Executive, but the Executive shall
be entitled to any benefits accrued and due in accordance with the terms of any applicable benefit plans and programs of the Company. 
  
 (c) Notwithstanding the provisions of Section 11(b), upon termination or resignation, as applicable, under Section 11(a) above, if the Executive executes
and does not revoke a written release, in a form acceptable to the Company, but substantially in the form attached hereto as Exhibit D (subject to any necessary adjustment reasonably determined by the Company to be necessary to comply with
applicable law at the time of the Executive’s termination) of any and all claims against the Company and all related parties with respect to all matters arising out of the Executive’s employment by the Company, or the termination thereof
(other than claims for any entitlements under the terms of this Agreement or under any plans or programs of the Company under which the Executive has accrued and is due a benefit) (the “Release”), the Executive shall be entitled to
receive, in lieu of the payment described in Section 11(b) and any other payments due under any severance plan or program for employees or executives, the following: 
  
 (1) An amount equal to 2.0 times Executive’s Base Salary (at the rate in effect immediately before the Executive’s
termination or resignation, as applicable), one half of which will be payable in accordance with the Company’s normal payroll practices in twelve equal monthly installments over the twelve-month period following the date of the Executive’s
termination of employment (the “Severance Period”) and the remaining one half of which will be paid in a lump sum on the last day of the Severance Period. 
  
 (2) An amount equal to 2.0 times the Executive’s target annual bonus for the year in which the Executive’s
termination or resignation (as applicable) occurs, one half of which will be payable in accordance with the Company’s normal payroll practices in equal monthly installments over the Severance Period and the remaining one half of which will be
paid in a lump sum on the last day of the Severance Period. 
  
 (3) A pro rata bonus for the year in which the Executive’s termination of employment occurs. The pro rata bonus shall be based on the Executive’s target annual bonus for the year in which the Executive’s termination occurs,
multiplied by a fraction, the numerator of which is the number of days during which the Executive was employed by the Company in the year of his termination and the denominator of which is 365. Payment shall be made at the same time and under the
same terms and conditions as bonuses are paid to other executives of the Company. 

 (4) Medical coverage for the twenty-four month period following the Executive’s termination or
resignation (as applicable) or until the date on which the Executive is eligible for coverage under a plan maintained by a new employer or under a plan maintained by his spouse’s employer, whichever is sooner, at the level in effect at the date
of his termination (or generally comparable coverage) for himself and, where applicable, his spouse and dependents, as the same may be changed by the Company from time to time for employees generally, as if the Executive had continued in employment
during such period; or, as an alternative, the Company may elect to pay to the Executive cash in lieu of such coverage in an amount equal to the Executive’s after-tax cost of continuing such coverage, where such coverage may not be continued
(or where such continuation would adversely affect the tax status of the plan pursuant to which the coverage is provided). The COBRA health care continuation coverage period under section 4980B of the Internal Revenue Code of 1986, as amended (the
“Code”), shall run concurrently with the foregoing twenty-four month period. 
  
 (5) Any other amounts earned, accrued and owing but not yet paid under Section 2 above and any benefits accrued and due under any applicable benefit plans and programs of the Company. 
  
 In no event shall payment of severance described in (c)(1), (2), (3) and (4)
(if applicable) above commence prior to the first day of the seventh month following the effective date of the Executive’s termination or resignation, as applicable, unless earlier commencement would be permissible under section 409A of the
Code. 
  
 (d) For purposes of this Agreement, “Good
Reason” shall be limited to the following (unless the Executive and the Company shall execute a written agreement specifically stating that the occurrence of such event shall not constitute “Good Reason” under this Agreement):

  
 (1) If the scope of the Executive’s duties and
responsibilities as the Chief Executive Officer of the Company are, in the aggregate, materially reduced. 
  
 (2) A requirement by the Company or the Board that the Executive be relocated to a Company office more than fifty (50) miles from the current executive
offices of the Company, or the Company requiring the Executive to be based anywhere other than the principal executive offices of the Company, other than on travel reasonably required to carry out the Executive’s obligations under this
Agreement. 
  
 (3) The Company fails to fulfill its obligations
under Section 25. 
  
 (4) A material breach by the Company of any
of the terms of this Agreement if the breach is not corrected within twenty (20) days after written notice of such breach is given to the Company. Any notice provided under this subsection shall be in writing and shall specifically describe the
Company’s alleged material breach, that such notice is given under this subsection, and that failure to correct such breach will result in the Employee’s resignation for Good Reason under this Agreement. 

 12. Termination Without Cause; Resignation for Good Reason – After a Change of Control. If a Change of
Control occurs and the Executive’s employment is terminated by the Company without Cause, or Executive resigns for Good Reason, in either case, within the 24-month period following a Change of Control, this Section 12 shall apply.

  
 (a) If a Change of Control occurs and the Executive’s
employment terminates as described in Section 11(a) above within the 24-month period following a Change of Control and the Executive executes and does not revoke a Release, the Executive shall be entitled to receive the following, in lieu of the
payments and benefits described in Section 11(c) above: 
  
 (1)
An amount equal to 3.0 times the sum of the Executive’s Base Salary (at the rate in effect immediately before the Executive’s termination or resignation, as applicable) plus target annual bonus for the year in which the Executive’s
termination or resignation occurs, as applicable, payable in a lump sum as soon as reasonably practicable following the date of the Executive’s termination or resignation, as applicable. 
  
 (2) A pro rata bonus for the year in which the Executive’s termination
of employment occurs. The pro rata bonus shall be based on the Executive’s target annual bonus for the year in which the Executive’s termination occurs, multiplied by a fraction, the numerator of which is the number of days during which
the Executive was employed by the Company in the year of his termination and the denominator of which is 365. Payment shall be made at the same time and under the same terms and conditions as bonuses are paid to other executives of the Company.

  
 (3) Medical coverage until the last day of the thirty-six
month period following the Executive’s termination or resignation (as applicable) or until the date on which the Executive is eligible for coverage under a plan maintained by a new employer or under a plan maintained by his spouse’s
employer, whichever is sooner, at the level in effect at the date of his termination (or generally comparable coverage) for himself and, where applicable, his spouse and dependents, as the same may be changed by the Company from time to time for
employees generally, as if the Executive had continued in employment during such period; or, as an alternative, the Company may elect to pay to the Executive cash in lieu of such coverage in an amount equal to the Executive’s after-tax cost of
continuing such coverage, where such coverage may not be continued (or where such continuation would adversely affect the tax status of the plan pursuant to which the coverage is provided). The COBRA health care continuation coverage period under
section 4980B of the Code shall run concurrently with the foregoing thirty-six month period 
  
 (4) All outstanding stock options held by the Executive at the date of the Executive’s termination of employment shall become fully vested and exercisable on the date of termination and all of the restrictions
and conditions on outstanding restricted stock awards held by the Executive at the date of the Executive’s termination of employment shall immediately lapse. 
  
 (5) Any other amounts earned, accrued and owing but not yet paid under Section 2 above and any benefits accrued and due
under any applicable benefit plans and programs of the Company. 

 In no event shall payment of severance described in (a)(1), (2), (3) and (4) (if applicable) above
commence prior to the first day of the seventh month following the effective date of the Executive’s termination or resignation, as applicable, unless earlier commencement would be permissible under section 409A of the Code. 
  
 13. Voluntary Termination. The Executive may voluntarily terminate his employment for
any reason upon 30 days’ prior written notice. In such event, after the effective date of such termination, no payments shall be due under this Agreement, except that the Executive shall be entitled to any amounts earned, accrued and owing but
not yet paid under Section 2 above and any benefits accrued and due under any applicable benefit plans and programs of the Company. 
  
 14. Disability. If the Executive incurs a Disability (as defined below) during the Term, the Executive’s employment shall terminate on the date of Disability.
If the Executive’s employment terminates on account of his Disability, the Executive shall be entitled to receive any amounts earned, accrued and owing but not yet paid under Section 2 above and any benefits accrued and due under any applicable
benefit plans and programs of the Company. For purposes of this Agreement, the term “Disability” shall have the same meaning as under the Company’s long-term disability plan. 
  
 15. Death. If the Executive dies while employed by the Company, the Executive’s
employment shall terminate on the date of death and the Company shall pay to the Executive’s executor, legal representative, administrator or designated beneficiary, as applicable, any amounts earned, accrued and owing but not yet paid under
Section 2 above and any benefits accrued and due under any applicable benefit plans and programs of the Company. Otherwise, the Company shall have no further liability or obligation under this Agreement to the Executive’s executors, legal
representatives, administrators, heirs or assigns or any other person claiming under or through the Executive. 
  
 16. Cause. The Company may terminate the Executive’s employment at any time for Cause (as defined below) upon written notice to the Executive, in which event all payments under this Agreement shall cease,
except for any amounts earned, accrued and owing but not yet paid under Section 2 above and any benefits accrued and due under any applicable benefit plans and programs of the Company. For purposes of this Agreement, “Cause” shall mean any
of the grounds for termination of the Executive’s employment listed below which is not cured by the Executive within the 20-day period following written notice from the Board of the specific grounds that could result in a termination for
“Cause;” provided that the Executive shall only have an opportunity to cure a failure to the extent the failure is curable, as determined by the Board in its sole discretion: 
  
 (a) The Executive shall have been indicted for, convicted of, or pleads 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); 
  
 (b) The Executive’s fraud, dishonesty, theft or misappropriation of funds in connection with his duties hereunder; 

 (c) A breach by the Executive of Section 18 of this Agreement, or a material violation of the
Company’s Code of Conduct or employment policies, as in effect from time to time; 
  
 (d) Gross negligence or willful misconduct in the performance of the Executive’s duties. 
  
 17. Increase in Payments Upon a Change of Control. 
  
 (a) Anything in this Agreement to the contrary notwithstanding, if a Change of Control occurs and it is determined that any payment or distribution by the
Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would constitute an “excess parachute payment” within the
meaning of section 280G of the Code, the Company shall pay to the Executive an additional amount (the “Gross-Up Payment”) such that the net amount retained by the Executive after deduction of any excise tax imposed under section 4999 of
the Code, and any federal, state and local income tax, employment tax and excise tax imposed upon the Gross-Up Payment, shall be equal to the Payment. For purposes of determining the amount of the Gross-Up Payment, unless the Executive specifies
that other rates apply, the Executive shall be deemed to pay federal income tax and employment taxes at the highest marginal rate of federal income and employment taxation in the calendar year in which the Gross-Up Payment is to be made and state
and local income taxes at the highest marginal rate of taxation in the state and locality of the Executive’s residence on the Executive’s termination date, net of the maximum reduction in federal income taxes that may be obtained from the
deduction of such state and local taxes. 
  
 (b) All
determinations to be made under this Section 17 shall be made by the Company’s independent public accountants immediately prior to the Change of Control or by another independent public accounting firm mutually selected by the Company and the
Executive before the date of the Change of Control (the “Accounting Firm”), which firm shall provide its determinations and any supporting calculations both to the Company and the Executive within 20 days after the Executive’s
termination date. Any such determination by the Accounting Firm shall be binding upon the Company and the Executive. Within 10 days after the Accounting Firm’s determination, the Company shall pay the Gross-Up Payment to the Executive.

  
 (c) All of the fees and expenses of the Accounting Firm in
performing the determinations referred to in this Section 17 shall be borne solely by the Company. The Company agrees to indemnify and hold harmless the Accounting Firm from any and all claims, damages and expenses resulting from or relating to its
determinations pursuant to this Section 17, except for claims, damages or expenses resulting from the gross negligence or willful misconduct of the Accounting Firm. 
  
 18. Restrictive Covenants. 
  
 (a) Non-Competition. During the Term, and for the 12 month period beginning on the date the Executive’s employment terminates, for any reason,
other than in the case of the expiration of this Agreement at the end of the Term (the “Restriction Period”), the 

 Executive 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 or is related to (directly or indirectly) providing mortgage insurance or financial guaranty to financial institutions located throughout the United States of America
and the World, or would otherwise conflict with the Executive’s employment by the Company (“Competing Employer”). 
  
 (b) Non-Solicitation and Non-Hire of Company Personnel. During the Term and for the Restriction Period, the Executive hereby agrees that he will
not, either directly or through others, hire or attempt to hire, any employee, consultant or independent contractor of the Company, or solicit or attempt to solicit any such person, to change or terminate his or her relationship with the Company or
otherwise to become an employee, consultant or independent contractor to, for or of any other person or business entity, unless more than twelve months shall have elapsed between the last day of such person’s employment or service with the
Company 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 Executive, such hiring or
solicitation shall be conclusively presumed to be a violation of this subsection (b). 
  
 (c) Non-Solicitation of Customers. During the Term and for the Restriction Period, the Executive hereby agrees that he will not, either directly or through others, solicit, divert or appropriate, or attempt to
solicit, divert or appropriate any customer or actively sought prospective customer of the Company for the purpose of providing such customer or actively sought prospective customer with services or products competitive with those offered by the
Company during the Term. 
  
 (d) Proprietary
Information. At all times, the Executive will hold in strictest confidence and will not disclose, use, lecture upon or publish any of the Company’s Proprietary Information (defined below), except as such disclosure, use or
publication may be required in connection with the Executive’s work for the Company, or unless the Company expressly authorizes such disclosure in writing or it is required by law or in a judicial or administrative proceeding in which event the
Executive shall promptly notify the Company of the required disclosure and assist the Company if it determines to resist the disclosure. “Proprietary Information” shall mean any and all confidential and/or proprietary knowledge, data or
information of the Company, its affiliated entities, any of its portfolio companies, investors, and partners, including but not limited to information relating to financial matters, investments, budgets, business plans, marketing plans, personnel
matters, business contacts, products, processes, know-how, designs, methods, improvements, discoveries, inventions, ideas, data, programs, and other works of authorship. 
  
 (e) Invention Assignment. The Executive agrees that all inventions, innovations, improvements, developments, methods,
designs, analyses, reports, and all similar or related information which relates to the Company’s actual or anticipated business, research and development or existing or future products or services and which are conceived, developed or made by
Executive while employed by the Company (“Work Product”) belong to the Company. The Executive will promptly disclose such Work Product to the Board and perform all actions reasonably requested by the Board (whether during or after the
Term) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorneys and other instruments). 

 (f) Return of Company Property. Upon termination of the Executive’s employment with
the Company for any reason whatsoever, voluntarily or involuntarily, and at any earlier time the Company requests, the Executive will deliver to the person designated by the Company all originals and copies of all documents and property of the
Company in the Executive’s possession, under the Executive’s control or to which the Executive may have access. The Executive will not reproduce or appropriate for the Executive’s own use, or for the use of others, any property,
Proprietary Information or Company Inventions. 
  
 19. Legal and Equitable
Remedies. Because the Executive’s services are personal and unique and the Executive has had and will continue to have access to and has become and will continue to become acquainted with the Proprietary Information of the Company, and
because any breach by the Executive of any of the restrictive covenants contained in Section 18 would result in irreparable injury and damage for which money damages would not provide an adequate remedy, the Company shall have the right to enforce
Section 18 and any of their provisions by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights and remedies that the Company may have for a breach, or threatened breach, of the
restrictive covenants set forth in Section 18. The Executive agrees that in any action in which the Company seeks injunction, specific performance or other equitable relief, the Executive will not assert or contend that any of the provisions of
Section 18 are unreasonable or otherwise unenforceable. The Executive irrevocably and unconditionally (a) 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, (b) consents to the non-exclusive jurisdiction of such court in any such
proceeding, and (c) waives any objection to the laying of venue of any such proceeding in any such court. The Executive also irrevocably and unconditionally consents to the service of any process, pleadings, notices or other papers. 
  
 20. Survival. The provisions of Sections 10, 18 and 19 shall survive the termination
of this Agreement. 
  
 21. No Mitigation or Set Off. In no event shall the
Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced, regardless of whether the
Executive obtains other employment. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including, without limitation, any
set-off, counterclaim, recoupment, defense or other right which the Company may have against the Executive or others. The Company agrees to pay, to the full extent permitted by law, all legal fees and expenses which the Executive may reasonably
incur as a result of any contest by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the
Executive about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code; provided that the Executive prevails on at
least one material issue contested by the Company or other third party, as applicable. 

 22. Notices. All notices and other communications required or permitted under this Agreement or necessary or
convenient in connection herewith shall be in writing and shall be deemed to have been given when hand delivered or mailed by registered or certified mail, as follows (provided that notice of change of address shall be deemed given only when
received): 
  
 If to the Company, to: 
  
 Radian Group Inc. 
 1601 Market Street 
 12th Floor 
 Philadelphia, PA 19103 
 Attention: Chairman

  
 With a required copy to: 
  
 Radian Group Inc. 
 1601 Market Street 
 12th Floor 
 Philadelphia, PA 19103 
 Attention: Secretary

  
 With an additional required copy to: 
  
 Morgan, Lewis & Bockius LLP 
 1701 Market Street 
 Philadelphia, PA
19103-2921 
 Attention: Robert J. Lichtenstein, Esquire 
  
 If to the Executive, to the most recent address on file with the Company. 
  
 With a required copy to: 
  
 Wachtell, Lipton, Rosen & Katz 
 51 West 52nd Street 
 New York, NY 10019

 Attention: Adam Chinn 
  
 or to such other names or addresses as the Company or the Executive, as the case may be, shall designate by notice to each other person entitled to receive notices in the
manner specified in this Section. 
  
 23. Withholding. All payments under
this Agreement shall be made subject to applicable tax withholding, and the Company shall withhold from any payments under this Agreement all federal, state and local taxes as the Company is required to withhold pursuant to 

 any law or governmental rule or regulation. Except as specifically provided otherwise in this Agreement, the Executive
shall bear all expense of, and be solely responsible for, all federal, state and local taxes due with respect to any payment received under this Agreement. 
  
 24. Remedies Cumulative; No Waiver. No remedy conferred upon a party by this Agreement is intended to be exclusive of any other remedy, and each and every such
remedy shall be cumulative and shall be in addition to any other remedy given under this Agreement or now or hereafter existing at law or in equity. No delay or omission by a party in exercising any right, remedy or power under this Agreement or
existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by such party from time to time and as often as may be deemed expedient or necessary by such party in its sole discretion.

  
 25. Assignment. All of the terms and provisions of this Agreement shall
be binding upon and inure to the benefit of and be enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto, except that the duties and responsibilities of the Executive
under this Agreement are of a personal nature and shall not be assignable or delegable in whole or in part by the Executive. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or
otherwise) to all or substantially all of the business or assets of the Company, within 15 days of such succession, expressly to assume and agree to perform this Agreement in the same manner and to the same extent as the Company would be required to
perform if no such succession had taken place and the Executive acknowledges that in such event the obligations of the Executive hereunder, including but not limited to those under Sections 18 and 19, will continue to apply in favor of the
successor. 
  
 26. Entire Agreement. This Agreement sets forth the entire
agreement of the parties hereto and supersedes any and all prior agreements and understandings concerning the Executive’s employment by the Company. This Agreement may be changed only by a written document signed by the Executive and the
Company. 
  
 27. Law Changes. To the extent that any payment under this
Agreement is deemed to be deferred compensation subject to the requirements of section 409A of the Code, the Company and the Executive shall amend this Agreement so that such payments will be made in accordance with the requirements of section 409A
of the Code. 
  
 28. Severability. If any provision of this Agreement or
application thereof to anyone or under any circumstances is adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect any other provision or application of this Agreement which can be given
effect without the invalid or unenforceable provision or application and shall not invalidate or render unenforceable such provision or application in any other jurisdiction. If any provision is held void, invalid or unenforceable with respect to
particular circumstances, it shall nevertheless remain in full force and effect in all other circumstances. 

 29. Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the
substantive and procedural laws of the Commonwealth of Pennsylvania without regard to rules governing conflicts of law. 
  
 30. Counterparts. This Agreement may be executed in any number of counterparts (including facsimile counterparts), each of which shall be an original, but all of
which together shall constitute one instrument. 
  
 [SIGNATURE
PAGE FOLLOWS] 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above
written. 
  

			
	 RADIAN GROUP INC.

		
	 By:
	 	 /s/ Herbert Wender

	 	 	 Lead Director

	
	 EXECUTIVE

	
	 /s/ S.A. Ibrahim

	 S.A. IbrahimWarrant Dated April 19, 2005

 Exhibit 4.1 
  

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS,
AND MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH
REGISTRATION IS NOT REQUIRED. 
  
 WARRANT 
  
 TO PURCHASE 52,083 SHARES OF COMMON STOCK OF 
  
 I2 TELECOM INTERNATIONAL, INC. 
  

			
	 No. D-00105
	 	April 19, 2005

  
 THIS CERTIFIES
THAT, for value received, MIDSOUTH INVESTOR FUND, LP or (subject to the restrictions on transfer contained herein and the provisions of the Registration Rights Agreement (as hereinafter defined)) his registered assigns (the
“Holder”) is entitled to purchase from I2 TELECOM INTERNATIONAL, INC., a Washington corporation (the “Company”), at any time or from time to time after 9:00 a.m., Atlanta, Georgia time, on the date hereof and
prior to 5:00 p.m., Atlanta, Georgia time, on April 19, 2008 (the “Expiration Date”), at the place where the Warrant Agency (as hereinafter defined) is located, at the Exercise Price (as hereinafter defined), the number of shares of
common stock, no par value per share (the “Common Stock”), of the Company specified above, all subject to adjustment and upon the terms and conditions as hereinafter provided. 
  
 Capitalized terms used and not otherwise defined in this Warrant shall have
the meanings set forth in Article V hereof. 
  
 ARTICLE I

  
 EXERCISE OF WARRANT 
  
 1.1. Method of Exercise. To exercise this Warrant in whole or in part,
the Holder shall deliver to the Company at the Warrant Agency: (a) this Warrant; (b) a written notice, substantially in the form of the subscription notice attached hereto as Annex 1, of such Holder’s election to exercise this Warrant,
which notice shall specify the number of shares of Common Stock to be purchased, the denominations of the share certificate or certificates desired and the name or names of the Eligible Holder(s) in which such certificates are to be registered; and
(c) payment of the Exercise Price with respect to such shares of Common Stock. Such payment may be made, at the option of the Holder, by cash, money order, certified or bank cashier’s check or wire transfer. 

 The Company shall, as promptly as practicable and in any event within seven (7) Business Days thereafter,
execute and deliver or cause to be executed and delivered, in accordance with such subscription notice, a certificate or certificates representing the aggregate number of shares of Common Stock specified in said notice. The share certificate or
certificates so delivered shall be in such denominations as may be specified in such notice (or, if such notice shall not specify denominations, one certificate shall be issued) and shall be issued in the name of the Holder or such other name or
names of Eligible Holder(s) as shall be designated in such notice. Such certificate or certificates shall be deemed to have been issued, and such Holder or any other person so designated to be named therein shall be deemed for all purposes to have
become holders of record of such shares, as of the date the aforementioned notice is received by the Company. If this Warrant shall have been exercised only in part, the Company shall, at the time of delivery of the certificate or certificates,
deliver to the Holder a new Warrant evidencing the right to purchase the remaining shares of Common Stock called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. The Company shall pay all expenses
payable in connection with the preparation, issuance and delivery of share certificates and new Warrants as contemplated by Section 2.6 below (other than transfer or similar taxes in connection with the transfer of securities), except that, if share
certificates or new Warrants shall be registered in a name or names other than the name of the Holder, funds sufficient to pay all transfer taxes payable as a result of such transfer shall be paid by the Holder at the time of delivering the
aforementioned notice or promptly upon receipt of a written request of the Company for payment. 
  
 If this Warrant shall be surrendered for exercise within any period during which the transfer books for shares of the Common Stock of the Company or other
securities purchasable upon the exercise of this Warrant are closed for any purpose, the Company shall not be required to make delivery of certificates for the securities purchasable upon such exercise until the date of the reopening of said
transfer books. 
  
 1.2. Shares To Be Fully Paid and
Nonassessable. All shares of Common Stock issued upon the exercise of this Warrant shall be validly issued, fully paid and nonassessable. 
  
 1.3. No Fractional Shares To Be Issued. The Company shall not be required to issue fractions of shares of Common Stock upon exercise of this
Warrant. If any fraction of a share would, but for this Section 1.3, be issuable upon any exercise of this Warrant, in lieu of such fractional share the Company shall pay to the Holder a whole share of Common Stock. 
  
 1.4. Securities Laws; Share Legend. The Holder, by acceptance of this
Warrant, agrees that this Warrant and all shares of Common Stock issuable upon exercise of this Warrant will be disposed of only in accordance with the Securities Act. In addition to any other legend which the Company may deem advisable under the
Securities Act and applicable state securities laws, all certificates representing shares of Common Stock (as well as any other securities issued hereunder in respect of any such shares) issued upon exercise of this Warrant shall be endorsed as
follows: 
  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT
AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED. 
  

 2 

 Any certificate issued at any time in exchange or substitution for any certificate bearing such legend
(except a new certificate issued upon completion of a public distribution pursuant to a registration statement under the Securities Act) shall also bear such legend unless, in the opinion of counsel (in form and substance reasonably satisfactory to
the Company) selected by the Holder of such certificate and reasonably acceptable to the Company, the securities represented thereby need no longer be subject to restrictions on resale under the Securities Act. 
  
 ARTICLE II 
  
 WARRANT AGENCY; TRANSFER, EXCHANGE AND 
 REPLACEMENT OF WARRANT 
  
 2.1. Warrant Agency. Until such time, if any, as an independent agency shall be appointed by the Company to perform services described herein with
respect to this Warrant (the “Warrant Agency”), the Company shall perform the obligations of the Warrant Agency provided herein at its principal office address or such other address as the Company shall specify by prior written
notice to the Holder. 
  
 2.2. Ownership of Warrant. The
Company may deem and treat the person in whose name this Warrant is registered as the holder and owner hereof (notwithstanding any notations of ownership or writing hereon made by any person other than the Company) for all purposes and shall not be
affected by any notice to the contrary, until presentation of this Warrant for registration of transfer as provided in this Article II. 
  
 2.3. Transfer of Warrant. This Warrant may only be transferred to a purchaser subject to and in accordance with this Section 2.3, and any attempted
transfer which is not in accordance with this Section 2.3 shall be null and void and the transferee shall not be entitled to exercise any of the rights of the holder of this Warrant. The Company agrees to maintain at the Warrant Agency books for the
registration of such transfers of Warrants, and transfer of this Warrant and all rights hereunder shall be registered, in whole or in part, on such books, upon surrender of this Warrant at the Warrant Agency in accordance with this Section 2.3,
together with a written assignment of this Warrant, substantially in the form of the assignment attached hereto as Annex 2, duly executed by the Holder or its duly authorized agent or attorney-in-fact, with signatures guaranteed by a bank or
trust company or a broker or dealer registered with the NASD, and with funds sufficient to pay any transfer taxes payable upon such transfer. Upon surrender of this Warrant in accordance with this Section 2.3, the Company (subject to being satisfied
that such transfer is in compliance with Section 1.4) shall execute and deliver a new Warrant or Warrants of like tenor and representing in the aggregate the right to purchase the same number of shares of 

  

 3 

 
Common Stock in the name of the assignee or assignees and in the denominations specified in the instrument of assignment, and this Warrant shall promptly be
canceled. Notwithstanding the foregoing, a Warrant may be exercised by a new holder without having a new Warrant issued. The Company shall not be required to pay any Federal or state transfer tax or charge that may be payable in respect of any
transfer of this Warrant or the issuance or delivery of certificates for Common Stock in a name other than that of the registered holder of this Warrant. 
  
 2.4. Division or Combination of Warrants. This Warrant may be divided or combined with other Warrants, in connection with the partial exercise of
this Warrant, upon surrender hereof and of any Warrant or Warrants with which this Warrant is to be combined at the Warrant Agency, together with a written notice specifying the names and denominations in which the new Warrant or Warrants are to be
issued, signed by the holders hereof and thereof or their respective duly authorized agents or attorneys-in-fact. Subject to compliance with Section 2.3 as to any transfer which may be involved in the division or combination, the Company shall
execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. 
  
 2.5. Loss, Theft, Destruction of Warrant Certificates. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security (in customary form) reasonably satisfactory to the Company, or, in the case of any such mutilation, upon
surrender and cancellation of such Warrant and upon reimbursement of the Company’s reasonable incidental expenses, the Company will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and
representing the right to purchase the same aggregate number of shares of Common Stock. 
  
 2.6. Expenses of Delivery of Warrants. Except as otherwise expressly provided herein, the Company shall pay all expenses (other than transfer taxes as described in Section 2.3) and other charges payable in
connection with the preparation, issuance and delivery of Warrants hereunder and shares of Common Stock upon the exercise hereof. 
  
 ARTICLE III 
  
 ADJUSTMENT PROVISIONS 
  
 3.1. Adjustments Generally. The Exercise Price and the number of shares of Common Stock (or other securities or property) issuable upon exercise of this Warrant shall be subject to adjustment from time to time
upon the occurrence of certain events, as provided in this Article III. 
  
 3.2. Common Share Reorganization and Stock Dividend Payments. If the Company, at any time this Warrant is outstanding, (a) shall subdivide its outstanding shares of Common Stock into a greater number of shares or consolidate its
outstanding shares of Common Stock into a smaller number of shares (any such event being called a “Common Share Reorganization”), or (b) pay a stock dividend (except scheduled dividends paid on preferred stock which contain a stated
dividend rate) or otherwise make a distribution or distributions on shares of its Common Stock or on any other class of capital stock payable in shares of Common 

  

 4 

 
Stock (any such event being called a “Stock Dividend Payment”), then (i) the Exercise Price shall be adjusted, effective immediately after
the record date at which the holders of shares of Common Stock are determined for purposes of a Common Share Reorganization or at which the holders of shares of Common Stock or any other class of capital stock are determined for purposes of a Stock
Dividend Payment, as the case may be, to a price determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding on such
record date before giving effect to such Common Share Reorganization or Stock Dividend Payment, as the case may be, and the denominator of which shall be the number of shares of Common Stock outstanding after giving effect to such Common Share
Reorganization or Stock Dividend Payment, as the case may be, and (ii) the number of shares of Common Stock subject to purchase upon exercise of this Warrant shall be adjusted, effective at such time, to a number determined by multiplying the number
of shares of Common Stock subject to purchase immediately before such Common Share Reorganization or Stock Dividend Payment, as the case may be, by a fraction, the numerator of which shall be the number of shares outstanding after giving effect to
such Common Share Reorganization or Stock Dividend Payment, as the case may be, and the denominator of which shall be the number of shares of Common Stock outstanding immediately before such Common Share Reorganization or Stock Dividend Payment, as
the case may be. 
  
 3.3. Capital Reorganization. If, at
any time this Warrant is outstanding, there shall be any consolidation or merger to which the Company is a party, other than a consolidation or a merger in which the Company is a continuing corporation and which does not result in any
reclassification of, or change (other than a Common Share Reorganization, Stock Dividend Payment or a change in par value) in, outstanding shares of Common Stock, or any sale or conveyance of the property of the Company as an entirety or
substantially as an entirety (any such event being called a “Capital Reorganization”), then, effective upon the effective date of such Capital Reorganization, the Holder shall have the right to purchase, upon exercise of this
Warrant, the kind and amount of shares of stock and other securities and property (including cash) which the Holder would have owned or have been entitled to receive after such Capital Reorganization if this Warrant had been exercised immediately
prior to such Capital Reorganization. As a condition to effecting any Capital Reorganization, the Company or the successor or surviving corporation, as the case may be, shall execute and deliver to the Holder and to the Warrant Agency an agreement
as to the Holder’s rights in accordance with this Section 3.3, providing for subsequent adjustments as nearly equivalent as may be practicable to the adjustments provided for in this Article III. The provisions of this Section 3.3 shall
similarly apply to successive Capital Reorganizations. 
  
 3.4.
Adjustment Rules. 
  
 (a) Any adjustments pursuant to this
Article III shall be made successively whenever an event referred to herein shall occur. 
  
 (b) If the Company shall set a record date to determine the holders of shares of Common Stock or any other class of capital stock, as the case may be, for purposes of a Common Share Reorganization, Stock Dividend
Payment or Capital Reorganization and shall legally abandon such action prior to effecting such action, then no adjustment shall be made pursuant to this Article III in respect of such action. 
  

 5 

 3.5. Notice of Adjustments. The Company shall give notice to the Holder prior to any record date
or effective date, as the case may be, in respect of any Common Share Reorganization, Stock Dividend Payment or Capital Reorganization describing, in each case, such event in reasonable detail and specifying such record date or effective date, as
the case may be. In addition, after the record date or effective date, as the case may be, of any Common Share Reorganization, Stock Dividend Payment or Capital Reorganization, the Company shall promptly give notice to the Holder of such event,
describing such event in reasonable detail and specifying the record date or effective date, as the case may be, and, if determinable, the required adjustment and the computation thereof. If the required adjustment is not determinable at the time of
such notice, the Company shall give notice to the Holder of such adjustment and computation promptly after such adjustment becomes determinable. 
  
 3.6. Adjustment by Board of Directors. If any event occurs as to which, in the opinion of the Board of Directors of the Company, the provisions of
this Article III are not strictly applicable or if strictly applicable would not fairly protect the rights of the holder of this Warrant in accordance with the essential intent and principles of such provisions, then the Board of Directors of the
Company may make, in its discretion, an adjustment in the application of such provisions, in accordance with such essential intent and principles, so as to protect such rights as aforesaid, but in no event shall any adjustment have the effect of
increasing the Exercise Price or decreasing the number of shares of Common Stock into which the Warrant is exercisable as otherwise determined pursuant to any of the provisions of this Article III except in the case of a combination of shares of a
type contemplated in Section 3.2 and then in no event to an amount larger than the Exercise Price as adjusted pursuant to Section 3.2. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES 
  
 4.1 Representations and Warranties of Holder. The Holder represents and warrants to the Company as follows: 
  
 (a) Purchase for Own Account. This Warrant and the shares of Common Stock to be acquired upon exercise of this Warrant by the Holder will be
acquired for investment for the Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the Securities Act, and the Holder has no present intention of selling, granting any
participation in, or otherwise distributing the same. If not an individual, the Holder also represents that the Holder has not been formed for the specific purpose of acquiring this Warrant or the shares of Common Stock to be acquired upon exercise
of this Warrant. 
  
 (b) Disclosure of Information. The
Holder has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant and the underlying shares of Common Stock. The Holder
further has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions to the offering of this Warrant and its underlying shares of Common Stock and to obtain additional information (to the extent the
Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to the Holder or to which the Holder has access. 
  

 6 

 (c) Investment Experience. The Holder understands that the purchase of this Warrant and its
underlying shares of Common Stock involves substantial risk. The Holder: (i) has experience as an investor in securities and acknowledges that the Holder is able to fend for himself or itself, can bear the economic risk of such Holder’s
investment in this Warrant and its underlying shares of Common Stock and has such knowledge and experience in financial or business matters that the Holder is capable of evaluating the merits and risks of the investment in this Warrant and its
underlying shares of Common Stock; and/or (ii) has a preexisting personal or business relationship with the Company and certain of its officers, directors or controlling persons of a nature and duration that enables the Holder to be aware of the
character, business acumen and financial circumstances of such persons. 
  
 (d) Accredited Investor Status. The Holder is an “accredited investor” within the meaning of Regulation D promulgated under the Securities Act. 
  
 ARTICLE V 
  
 DEFINITIONS 
  
 The following terms, as used in this Warrant, have the following respective meanings: 
  
 “Business Days” means each day in which banking institutions in Atlanta, Georgia are not required or
authorized by law or executive order to close. 
  
 “Capital Reorganization” has the meaning set forth in Section 3.3. 
  
 “Common Share Reorganization” has the meaning set forth in Section 3.2. 
  
 “Common Stock” has the meaning set forth in the first paragraph of this Warrant. 
  
 “Company” has the meaning set forth in the first paragraph
of this Warrant. 
  
 “Eligible Holder” means the
Holder and any permitted transferee of the Holder pursuant to and in accordance with this Warrant. 
  
 “Exercise Price” means US $.96 per share of Common Stock, subject to adjustment pursuant to Article III. 
  
 “Expiration Date” has the meaning set forth in the first
paragraph of this Warrant. 
  
 “Holder” has the
meaning set forth in the first paragraph of this Warrant. 
  
 “NASD” means The National Association of Securities Dealers, Inc. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement of even date herewith by and among the Company and the purchasers of the Warrants. 
  
 “Securities Act” means the Securities Act of 1933, as
amended, and any successor Federal statute, and the rules and regulations of the Securities and Exchange Commission (or its successor) thereunder, all as the same shall be in effect from time to time. 
  

 7 

 “Stock Dividend Payment” has the meaning set forth in Section 3.2. 
  
 “Warrant Agency” has the meaning set forth in Section 2.1.

  
 “Warrants” means this Warrant and all other
Warrants of like tenor issued by the Company on or about April 19, 2005. 
  
 ARTICLE VI 
  
 MISCELLANEOUS 
  
 6.1. Governing Law. This Warrant shall be governed in all respects by
the laws of the State of Georgia, without reference to its conflicts of law principles. 
  
 6.2. Covenants To Bind Successor and Assigns. All covenants, stipulations, promises and agreements contained in this Warrant by or on behalf of the Company shall bind its successors and assigns, whether or not
so expressed. 
  
 6.3. Entire Agreement. This Warrant
constitutes the full and entire understanding and agreement between the parties with regard to the subject matter hereof and no party shall be liable or bound to any other party in any manner by any warranties, representations, or covenant except as
specifically set forth herein or therein. 
  
 6.4. Waivers and
Amendments. No failure or delay of the Holder in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Holder are cumulative and not exclusive of any rights or remedies which it would otherwise have. The
provisions of this Warrant may be amended, modified or waived with (and only with) the written consent of the Company and the Holders of a majority in interest of the Warrants then outstanding; provided, however, that no such
amendment, modification or waiver shall, without the written consent of the Holders of any Warrant, (a) change the number of shares of Common Stock subject to purchase upon exercise of such Warrant, the Exercise Price or provisions for payment
thereof or (b) amend, modify or waive the provisions of Section 6.4 or Article III of such Warrant. 
  
 Any such amendment, modification or waiver effected pursuant to this Section shall be binding upon the Holders of all Warrants and upon the Company,
except as provided in the proviso to the last sentence of the preceding paragraph. In the event of any such amendment, modification or waiver the Company shall give prompt notice thereof to all holders of Warrants and, if appropriate, notation
thereof shall be made on all Warrants thereafter surrendered for registration of transfer or exchange. 
  
 6.5. Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be mailed by express, registered or
certified mail, postage prepaid, return receipt requested, sent by telecopy, or by courier service guaranteeing overnight delivery with charges prepaid, or otherwise delivered by hand or by messenger, and shall be conclusively deemed to have been
received by a party hereto and to be effective on the day on which 

  

 8 

 
delivered or telecopied to such party at its address set forth below (or at such other address as such party shall specify to the other parties hereto in
writing), or, if sent by registered or certified mail, on the third business day after the day on which mailed, addressed to such party at such address. 
  
 In the case of the Holder, such notices and communications shall be addressed to its address set forth under its signature below, which shall be the
address shown on the books maintained by the Warrant Agency, until the Holder shall notify the Company and the Warrant Agency in writing that notices and communications should be sent to a different address, in which case such notices and
communications shall be sent to the address specified by the Holder. In the case of the Company, such notices and communications shall be addressed as follows: Attention: Chief Financial Officer, i2 Telecom International, Inc., 1200 Abernathy Road,
Suite 1800, Atlanta, Georgia 30328. 
  
 6.6. Survival of
Agreements; Representations and Warranties, etc. All warranties, representations and covenants made by the Company herein shall be considered to have been relied upon by the Holder and shall survive the issuance and delivery of the Warrant,
regardless of any investigation made by the Holder, and shall continue in full force and effect so long as this Warrant is outstanding. 
  
 6.7. Severability. In case any one or more of the provisions contained in this Warrant shall be held to be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. The parties shall endeavor in good faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
  
 6.8. Section Headings. The section headings used herein are for convenience of reference only, do not constitute a
part of this Warrant and shall not affect the construction of or be taken into consideration in interpreting this Warrant. 
  
 6.9. No Rights as Shareholder; No Limitations on Company Action. This Warrant shall not entitle the Holder to any rights as a shareholder of the
Company. No provision of this Warrant and no right or option granted or conferred hereunder shall in any way limit, affect or abridge the exercise by the Company of any of its corporate rights or powers to recapitalize, amend its certificate of
incorporation, reorganize, consolidate or merge with or into another corporation or to transfer all or any part of its property or assets, or the exercise of any other of its corporate rights or powers. 
  
 [Signature Page Follows] 
  

 9 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized
representative. 
  

			
	I2 TELECOM INTERNATIONAL, INC.
		
	 By:
	 	  

	 Name:
	 	 Paul R. Arena

	 Title:
	 	 Chief Executive Officer

  

	
	ACCEPTED:
	
	HOLDER:
	
	  

	 Lyman O. Heidtke, Manager

	 Midsouth Investor Fund, LP

	 Sun Trust Bank Building

	 201 4th
Ave. N., Suite 1950

	 Nashville, TN 37219

  

 10 

 Annex 1 
  
 SUBSCRIPTION NOTICE 
  
 Dated:
                             
  
 The undersigned hereby irrevocably elects to exercise the right of purchase evidenced by the attached Warrant for, and to
purchase thereunder,              shares of Common Stock of i2 Telecom International, Inc. as provided for therein. The undersigned tenders herewith payment of the Exercise Price (as
defined in the attached Warrant) for such shares in the form of cash, money order, certified or bank cashier’s check or wire transfer. 
  
 Instructions for Registration of Common Stock 
  
 Please issue a certificate or certificates for such shares of Common Stock in the following name or names and denominations: 
  

			
	Name: 	 	  

	 	 	(Please typewrite or print in block letters.)

  

			
	Address: 	 	  

  

			
	Denomination: 	 	  

  
 Representations and
Warranties 
  
 In connection with the exercise of the attached
Warrant, the undersigned hereby represents and warrants that: 
  
 (i) unless registered pursuant to the Registration Rights Agreement (as defined in the attached Warrant) or otherwise, the undersigned recognizes that the shares of Common Stock issuable pursuant to the attached Warrant have not been
registered under the Securities Act of 1933, as amended (the “Securities Act”), or any applicable state securities laws, and may not transferred, sold, or offered for sale unless registered pursuant to the Securities Act and all applicable
state securities laws or unless an exemption from such registration in available and the Company has received an opinion to that effect from counsel reasonably satisfactory to the Company; 

 (ii) the undersigned recognizes that the shares of Common Stock issuable pursuant to the attached Warrant
are subject to, and are transferable only upon compliance with, the provisions of the Registration Rights Agreement and the attached Warrant; 
  
 (iii) if the undersigned is an individual, the undersigned is an “accredited investor” as that term is defined in Rule 501(a)(5) or (6) of
Regulation D promulgated under the Securities Act by reason that the undersigned is an individual (a) having an individual net worth, or a joint net worth with the undersigned’s spouse, at the time of the purchase that exceeds $1,000,000, or
(b) who had an individual income in excess of $200,000 in each of the two most recent years or joint income with the undersigned’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income
level in the current year; or if the undersigned is a corporation or other entity, the undersigned is an “accredited investor” as that term is defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D promulgated under the Securities Act;
and 
  
 (iv) the undersigned is purchasing the shares of Common
Stock for investment and not with a view to resale or distribution or any present intention to resell or distribute, except in compliance with the Securities Act and all applicable state securities laws. 
  
 Issuance of New Warrant 
  
 If said number of shares shall not be all the shares issuable upon exercise
of the attached Warrant, a new Warrant is to be issued in the name of the undersigned for the balance remaining of such shares. 
  

			
	 Signature:
	 	  

	 	 	 Note: The above signature should correspond exactly with the name on the face of the attached Warrant or with the name of the assignee
appearing in the assignment form below.

  

 Page 2 of Annex 1 

 Annex 2 
  
 Assignment 
  
 For value received, the undersigned hereby sells, assigns and transfers unto: 
  

			
	Name: 	 	  

	 	 	(Please type or print in block letters)

  

			
	Address: 	 	  

  
 the right to purchase Common Stock (as
defined in the attached Warrant) represented by the attached Warrant to the extent of                      shares as to which such right is
exercisable and does hereby irrevocably constitute and appoint                     , attorney-in-fact, to transfer said Warrant on the books
of i2 Telecom International, Inc., with full power of substitution in the premises. 
  
 Dated:
                              
  

			
	 Signature:
	 	  

	 	 	Note: The above signature should correspond exactly with the name on the face of the attached Warrant.

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