Document:

linscottemploymentagreem

                                                                                                         EMPLOYMENT AGREEMENT         THIS  EMPLOYMENT  AGREEMENT  (“Agreement”)  is  entered  into effective as  of  November 15, 2019, by  and  between Brian  Linscott (“Employee”)  and Harte Hanks,  Inc. (the  “Company”).                                    RECITALS         WHEREAS,  the  Company  desires  to  employ Employee,  and Employee desires  to  be  employed by the Company, on the terms set forth in this Agreement.                                  AGREEMENTS         NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of  which are hereby acknowledged, the parties hereto agree as follows:      1.    Employment Term.  Subject to the terms and conditions set forth herein, the Company  hereby agrees to employ Employee, and Employee hereby agrees to accept employment with the  Company, to be effective on January 6, 2020 (the “Effective Date”).  Employee’s employment  with  the  Company  shall  continue until  terminated  in  accordance  with  the  provisions  set  forth  below.  The period of Employee’s employment with the Company as set forth in this Section 1 is  referred to herein as the “Employment Term.”        2. Employment Duties.               (a)     During  the Employment Term, Employee shall  be  the Chief Operating      Officer of the Company and shall perform such duties and responsibilities for the Company      as are customarily associated with such position or as may be assigned to Employee, from      time to time, by the Chief Executive Officer of the Company (the “CEO”) and/or the Board      of Directors of the Company (the “Board”).  Employee shall report to the CEO. In addition      to serving as the Chief Operating Officer of the Company, Employee agrees to serve without      additional  compensation,  if  elected  or  appointed  thereto,  in  one  or more  offices  or  as  a      member of the board of directors or board of managers of any of the Company’s Subsidiaries      and/or affiliates.             (b)     Employee will devote substantially all of Employee’s business time, and        Employee will devote his best efforts, to the performance of Employee’s duties hereunder        and will not engage in any other business, profession or occupation for compensation or        otherwise  which  would  conflict  or  interfere  with  the  rendition  of  such  services  either        directly or indirectly, without the prior written consent of the Board. Notwithstanding the        foregoing, during the Employment Term, it shall not be a violation of this Agreement for        Employee to (i) serve on corporate, civic or charitable boards or committees, provided that        service on any corporate board or committee shall be subject to the prior approval of the        Board,  (ii)  deliver  lectures  or  fulfill  speaking  engagements, (iii)  manage  personal        investments, and (iv) serve on the board of directors of and provide services to the entities        set  forth  on Annex  1  hereof,  in  each  case so  long  as  such  activities  do  not  materially        interfere with the performance of Employee’s responsibilities hereunder.                                         1  43938.00000 

 

       (c)   Employee shall perform services at the Company’s various offices, from his   home office in Chicago, IL, and at such other place or places as the Employee’s duties and   responsibilities may require. The Employee understands and agrees that he may be required   to travel in connection with the performance of his duties.       3. Base Salary.  During Employee’s employment hereunder, the Company shall pay  Employee a base salary (“Base Salary”) at the annual rate of $330,000, payable in regular  installments in accordance with the Company’s payment practices as in effect from time to  time,  but  in  no  event  less  frequently  than  twice  a  month.  The  Company will  consider  increases in Base Salary from time to time in a manner consistent with the consideration  given to other similarly-situated executives.       4. Bonuses.         (a) With  respect  to  each  full  calendar  year  of  employment  hereunder beginning  in  calendar year 2020, Employee will be eligible to earn an annual bonus award (an “Annual  Bonus”) with a target Annual Bonus opportunity of 75% of Employee’s Base Salary and a  maximum bonus opportunity of 150% of Employee’s Base Salary, subject to the terms,  conditions and performance goals established by the Board; provided, however, that the  Board may award Employee with additional bonus amounts for outstanding achievement.  Any amount of the Annual Bonus that becomes payable will be paid two-thirds in cash and  one-third in fully-vested Shares (as defined below) granted under the Harte Hanks 2013  Omnibus Incentive Plan (as amended, the “Equity Plan”) as soon as reasonably practicable  following the Board or its designee’s certification of performance, but in no event later than  the 15th day of the third month following the end of the year in which the amount is earned.   The  number  of  Shares  to  be granted under  this  Section  4(a) for  a  given  year will  be  determined by (1) multiplying the cash value of the applicable portion of the Annual Bonus  by 1.10 (the “Equity Value”) and (2) dividing the Equity Value by the average closing price  of a Share on the applicable stock exchange during the 30 days immediately preceding and  including the grant date; provided, however, that if such grant would cause the total number  of Shares granted to Employee in any fiscal year to exceed applicable Equity Plan limits,  such excess amount will be payable in cash.       (b) Employee  will  receive  a  one-time  sign  on  bonus  of  $37,500,  less  applicable  withholding, in consideration for his entry into this Agreement, payable in his first- regularly  scheduled paycheck.        5. Equity.          (a) As soon as reasonably practicable following the Effective Date, the Company will  grant Employee equity-based awards under the Equity Plan (the “Initial Grants”), subject to  the terms and conditions of the applicable award agreements and Board approval of the  Initial Grants.  The Initial Grants will consist of (i) a grant of 50,000 performance-based  restricted stock units that vests on the later of the first anniversary of the date that the Board  approves the Initial Grants and the first business day following the date that the Performance  Condition set forth on Exhibit A hereto is met, in each case subject to Employee’s continued  service as an employee through the applicable vesting date and (ii) an option to purchase  50,000 shares of the Company’s common stock (each, a “Share”) that vests ratably on the                                   2                

 

first three anniversaries of the grant date and has an exercise price equal to the per Share  price on the date of grant.  Employee will be eligible to receive additional equity awards in  future years, consistent with the Company’s regular equity award and review practices.       (b) In addition to the Initial Grants, subject to the terms and conditions of the applicable  award agreement and Board approval, Employee will receive a grant of 14,150 restricted  stock units that vest on the grant date; provided, however, that the number of units will be  subject to reduction in the event that such a grant would cause the total number of Shares  granted to Employee in  the 2019 fiscal year to exceed applicable Equity Plan limits, in  which case, such excess units will be granted to Employee in the next fiscal year in which  such grant would not cause the total Shares granted to Employee (subject to Employee’s  continued employment) in such fiscal year to exceed applicable Equity Plan limits.       6. Benefits.  Employee shall be eligible during the Employment Term to participate  in such employee benefit plans and programs that are maintained from time to time for  senior executives of the Company, to the extent that Employee (and Employee’s spouse and  dependents, as the case may be) meet(s) the applicable eligibility requirements; provided  that Employee will be entitled to healthcare coverage beginning on February 1, 2020.  The  Company does not promise the adoption or continuance of any particular plan or program  during the Employment Term, and Employee’s (and Employee’s spouse’s and dependents’)  participation  in  any  such  plan  or  program  shall  be  subject  to  the  provisions,  rules,  regulations and laws applicable thereto.  Employee will be entitled to four (4) weeks of  vacation in accordance with the Company’s vacation policy as in effect from time to time.         7. Expense  Reimbursement.  Employee shall  be  entitled  to  reimbursement  for  ordinary  and  reasonable  out  of  pocket  documented  business  expenses  which Employee  incurs in connection with performing Employee’s duties under this Agreement, including  travel, lodging and meal expenses in accordance with the Company’s travel and expense  reimbursement policies applicable to other senior Employees of the Company as in effect  from  time  to  time  and  approved  by  the  Board, provided, however, (x) Employee must  comply fully with such travel and expense reimbursement policies and (y) the Company  will not reimburse executive officers for mileage for use of personal vehicles.        8. Termination of Employment.  Employee’s employment with the Company pursuant  to this Agreement:          (a)   shall terminate upon Employee’s death or Employee becoming Permanently   Disabled (as determined pursuant to Section 9(e) hereof), and may be terminated at any   time by Employee for any reason (or no reason), including, without limitation, for Good   Reason, or by the Company, for any reason (or no reason), including, without limitation,   without Cause.  Any termination of Employee’s employment pursuant to the preceding   sentence is referred to herein as an “Employee Termination”;           (b)   shall  terminate  on  the  following  date:  (i) if  terminated  as  a  result  of   Employee’s resignation, with or without Good Reason, on the date specified in a written   notice delivered by Employee to the Company, the effective date of such resignation to be   no less than thirty (30) days from the date such notice is delivered to the Company, which   notice period may be waived by the Company in its sole discretion; (ii) if terminated as a                                   3                

 

result of death, on the date of death; (iii) if terminated as a result of Employee becoming  Permanently Disabled, on the date as of which Employee is determined to be Permanently  Disabled as defined in Section 9(e); and (iv) if terminated by the Company, on the date  specified in a written notice delivered by the Company to Employee.      9. Definitions.  As used in this Agreement:         (a)   “Cause” shall mean:                (i)   Employee’s violation  of  any  material  written  policy  of  the        Company;               (ii)  Employee’s failure to (x) obey the lawful orders of the Board, (y)        timely respond to Board inquiries, or (z) provide the Board with timely updates        regarding material Company business;               (iii) Employee’s gross  negligence  in  the  performance  of,  or  willful        disregard of, Employee’s obligations to the Company;               (iv)  the breach of any of Employee’s obligations under this Agreement,        restrictive covenants agreement (if any), or any other material agreement entered        into with the Company;               (v)   the  commission  of  an  act  by Employee constituting  financial        dishonesty against the Company;               (vi)  Employee’s indictment or other criminal charge for, or conviction        of or entering a plea of guilty or nolo contendere to, a crime constituting a felony;        or                 (vii)  the  commission  of  any  act  of  dishonesty  or  moral  turpitude  by        Employee which is, or is reasonably likely to be, detrimental to the Company.         For  the  purposes  of  this  definition,  “Company”  shall  include  any  affiliate  or        Subsidiary of the Company and any entity with whom Employee holds a position        at  the  request  of  the  Company. The  Company  may  terminate  Employee’s        employment for Cause under this Agreement following issuance to Employee of        written  notice  of  the  circumstances  the  Company  believes  constitute  Cause;        provided, that if the basis for termination is curable, including, without limitation,        Section  9(a)(i),  Section  9(a)(ii),  Section  9(a)(iii),  and  Section  (9)(a)(iv),  then        Employee shall have thirty (30) days after receipt of such written notice to cure        such basis, and if not cured, the Company may terminate Employee’s employment        for Cause.   If, within thirty (30) days  subsequent  to  Employee’s termination of        employment for any reason other than by the Company for Cause, the Company        determines  that Employee’s employment could  have been terminated  for Cause        under  circumstances  that  could  not  be  cured, Employee’s employment  will  be        deemed to have been terminated for Cause for all purposes, and Employee will be        required  to  disgorge  to  the  Company  all  amounts  received  pursuant  to  this                                   4                

 

      Agreement or otherwise on account of such termination that would not have been        payable to Employee had such termination been by the Company for Cause.         (b)   “Change of Control” shall have the meaning set forth in the Equity Plan as  in effect on the date hereof.         (c)   “Change of Control Period” shall mean the period commencing 6 months  prior to a Change of Control and ending on the first anniversary of the Change of Control.          (d)    “Good Reason” shall mean, without Employee’s consent,                (i)   a material diminution in Employee’s duties or position;               (ii)  Employee’s  Base  Salary  is  materially  reduced,  other  than  in        connection with a region-wide or Company-wide pay cut/furlough program;               (iii) the  Company’s  material  breach  of its  obligations  under this        Agreement; or               (iv)  the Company requires that Employee relocate to a location outside        of the Chicago Metropolitan area.          provided, however, that no termination by Employee for Good Reason for any of        the foregoing reasons shall be effective unless and until (A) Employee has given        the Company written notice of the reasons for the termination for Good Reason no        more  than  thirty  (30)  calendar  days  following  the  initial  existence  of  the        condition(s) that constitute(s) Good Reason, and has given the Company at least        thirty (30) calendar days in which to remedy such condition(s), (B) the Company        has  failed  to  remedy  the  same,  and  (C) Employee  actually  terminates  his        employment within thirty (30) calendar days after the expiration of the  remedy        period without remedy of the Good Reason by the Company.         (e)   “Permanently  Disabled”  shall  mean  (i)  Employee  becomes  eligible  to  receive benefits under any long-term disability plan paid for the Company on behalf of  Employee or (ii) if by reason of injury or illness (including mental illness) Employee shall  be unable to perform the essential functions of his position for ninety (90) consecutive days  or one hundred twenty (120) days, whether or not consecutive, in a twelve (12) month  period.          (f)  “Person” shall mean an individual, an entity, a partnership, a corporation, a  limited  liability  company  or  limited  partnership,  an  association,  a  trust,  a  joint  stock  company, a trust, a joint venture, an unincorporated organization, or the United States of  America or any other nation, any state or other political subdivision thereof, any entity  exercising  Employee,  legislative,  judicial,  regulatory  or  administrative  functions  of  government.         (g)    “Subsidiary”  shall  mean  with  respect  to  any  Person,  any  corporation,  partnership, limited liability company, association or other business entity of which (i) if a                                   5                

 

 corporation, a majority of the total voting power of shares of stock entitled (without regard   to the occurrence of any contingency) to vote in the election of directors, managers or   trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or   one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a   partnership, limited liability company, association or other business entity, a majority of   the  partnership  or  other  similar  ownership  interest  thereof  is  at  the  time  owned  or   controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person   or a combination thereof.  For the purposes hereof, a Person or Persons shall be deemed to   have a majority ownership interest in a partnership, limited liability company, association   or  other  business  entity  if  such  Person  or  Persons  shall  be  allocated  a majority  of   partnership, limited liability company, association or other business entity gains or losses   or shall be or control or have the right to appoint, as the case may be, the managing director,   manager, board of advisors, of a company or other governing body of such partnership,   limited  liability  company,  association  or  other  business  entity  by  means  of  ownership   interest, agreement or otherwise.         10. Payments by Virtue of Termination of Employment.  Upon the occurrence of an  Employee Termination:          (a)   if  an Employee Termination  shall  result  from Employee’s  employment   being terminated by the Company without Cause or from Employee’s resignation for Good   Reason, in each case other than during a Change of Control Period, Employee shall be   entitled to:                 (i)   Employee’s unpaid and accrued Base Salary accrued to the effective         date of such termination, payable in accordance with the Company’s regular payroll         practices as in effect from time to time; plus                 (ii)  payment  for  accrued  and  unused  vacation  days  accrued  to  the         effective date of such termination (in accordance with applicable Company policy         or to the extent required by law); plus                (iii) any unpaid expense reimbursement Employee is entitled to pursuant         to Section 7 of this Agreement; plus                 (iv)  any  vested  payment  or benefit  arising  from  Employee’s         participation in, or benefits under, any qualified employee benefit plans, programs,         or  arrangements  under  Section 6 (other  than  severance  plans,  programs,  or         arrangements), which amounts shall be payable in accordance with the terms and         conditions of such employee benefit plans, programs, or arrangements (the amounts         provided for under Subsections 10(a)(i), (ii), (iii) and (iv), together the “Accrued         Amounts”); plus, subject to Section 11(a):                 (v)   as  severance  pay  (“Severance  Pay”), Employee will  continue  to         receive his then Base Salary for a period of twelve (12) months, payable in equal         installments in accordance with the Company’s regular payroll practices as in effect         from time to time; provided, that the first installment of the Severance Pay shall be         made on the next regularly scheduled payroll date of the Company following the                                   6                

 

      sixtieth  (60th)  day  after  the  effective  date  of Employee’s  termination  and  shall        include payment of any amounts that would otherwise be due prior thereto; plus                (vi)  the  Company  will  provide  continued  coverage  under  its  health        insurance  plans  (“Health  Benefits  Continuation”)  to Employee for  a  period  of        twelve (12) months, subject to Employee continuing to make premium payments at        the current applicable employee rate for such coverage; provided, however, that if        the Health Benefits Continuation is not permitted to be provided under the terms of        the Company’s health insurance plans (as in effect from time to time following the        date of Employee Termination), and applicable law, the Company may provide the        Health  Benefits  Continuation  pursuant  to  the  Consolidated  Omnibus  Budget        Reconciliation Act of 1985 by paying an amount equal to the employer’s portion        of  premium  contributions  for  active  employees,  with Employee paying  the        premium  payments  at  the  current  applicable  employee  rate  for  such  coverage;        provided, further, that in any event the coverage provided pursuant to this Section        10(a)(vi)  shall be  counted  towards  the  Company’s  satisfaction  of  its  COBRA        obligations to Employee (clauses (v) and (vi) hereof, collectively, the “Severance        Package”);                        (b)   if an Employee Termination shall result from Employee’s resignation (other  than  for  Good  Reason), Employee’s  death  or  Permanent  Disability or Employee’s  discharge for Cause, Employee shall be entitled only to the Accrued Amounts.         (c)   if  an  Employee  Termination  shall  result  from  Employee’s  employment  being terminated by the Company without Cause or from Employee’s resignation for Good  Reason, in each case during a Change of Control Period, then, subject to Section 11(a),  Employee shall be entitled to the Severance Package, provided that the Severance Pay will  be for a period of eighteen (18) months.      11.      Release of Claims.          (a)   All payments and benefits due to Employee under Sections 10(a) and 10(c)  above, except for the Accrued Amounts, shall be expressly conditioned on, and shall be  payable or continued only if, Employee (or, to the extent applicable, Employee’s personal  representative) delivers to the Company and does not revoke within the Revocation Period  (as defined therein) a customary separation agreement that contains a general release of all  claims.   Such agreement  and general  release  shall  be  executed  and  delivered  to  the  Company  in  accordance  with Section  17(a) within the  time  period  specified  therein.   Failure to timely execute and return such release or the revocation thereof shall be a waiver  of Employee’s  right,  if  any,  to  the  Severance Package.   In  addition,  the  Company’s  obligation  in  respect  of  the  Severance Package,  shall  be  expressly  conditioned  upon  Employee’s continuing compliance with the obligations under Sections 12, 13, and 15 of  this Agreement and the Restrictive Agreements (as defined below).          (b)   Employee hereby acknowledges and agrees that, other than the payments  described in Section 10, upon the effective date of any Employee Termination, Employee  shall not be entitled to any other severance or payments of any kind under any Company                                  7                

 

 benefit  plan,  severance  policy  generally  available  to  the  Company’s  employees  or   otherwise and further, that the treatment of any equity awards granted by the Company to   Employee shall be governed by the terms thereof.       12. Resignation as an Officer and Director.  Upon the effective date of any Employee  Termination, Employee shall be deemed to have resigned, to the extent applicable, as an  officer  of  the  Company,  as  a  member  of  the  board  of  directors  or  similar  body  of  any  Subsidiary  of  the  Company  and  as  a  fiduciary  of  any  Company  benefit  plan.   On  or  immediately following the effective date of any such Employee Termination, Employee  shall  confirm  the  foregoing  by  submitting  to  the  Company  written  confirmation  of  Employee’s resignation(s).         13. Return of Company Property.  Within (a) ten (10) days following the effective date  of an Employee Termination for any reason other than death or Permanent Disability, or  (b) a  reasonable  period  of  time  following  an Employee Termination  due  to  death  or  Permanent  Disability, Employee or Employee’s  personal  representative  shall  return  all  property of the Company in Employee’s possession, custody or control, including but not  limited to all Company-owned computer equipment (hardware and software), telephones,  facsimile machines, cell phones, tablet computer and other communication devices, credit  cards,  office  keys,  security  access  cards,  badges,  identification  cards  and  all  copies  (including  drafts)  of  any  documentation  or  information  (however  stored)  relating  to  the  business of the Company and its Subsidiaries and affiliates, the Company’s customers and  clients or any prospective customers and clients.  Anything to the contrary notwithstanding,  Employee shall be entitled to retain (i) personal papers and other materials of a personal  nature; provided, that such papers or materials do not include Non-Public Information (as  defined in any Restrictive Agreement), (ii) information showing Employee’s compensation  or relating to reimbursement of expenses, and (iii) copies of plans, programs and agreements  relating  to Employee’s  employment,  or  termination  thereof,  with  the  Company which  Employee received in his capacity as a participant.       14. Confidentiality, Non-Solicit and Non-Competition. Employee will enter into and  be subject to a Confidentiality/Non-Disclosure Agreement and a Non-Solicitation and Non- Compete Agreement, each in substantially the form attached hereto as Exhibits B and C (the  “Restrictive Agreements”), which, for the avoidance of doubt, may be revised as required  by law to ensure enforceability.         15. Cooperation.  From and after an Employee Termination, Employee shall provide  Employee’s reasonable cooperation in connection with any legal action or proceeding (or  any  appeal  from  any  action  or  proceeding)  which  relates  to  events  occurring  during  Employee’s employment hereunder, provided, that the Company shall reimburse Employee  for Employee’s reasonable costs and expenses incurred in connection therewith, and such  cooperation shall not unreasonably burden Employee or unreasonably interfere with any  subsequent employment that Employee may undertake.      16. Whistleblower.  Nothing  in  this  Agreement or  the  Restrictive  Agreements will  preclude, prohibit or restrict Employee from (a) communicating with, any federal, state or  local  administrative  or  regulatory  agency  or  authority,  including  but  not  limited  to  the  Securities and Exchange Commission (the “SEC”); (b) participating or cooperating in any                                   8                

 

     investigation conducted by any governmental agency or authority; or (c) filing a charge of       discrimination with the United States Equal Employment Opportunity Commission or any       other federal state or local administrative agency or regulatory authority.  Nothing in this       Agreement, or  any other agreement between the parties,  prohibits  or is  intended in  any       manner to prohibit, Employee from (A) reporting a possible violation of federal or other       applicable law or regulation to any governmental agency or entity, including but not limited       to the Department of Justice, the SEC, the U.S. Congress, and any governmental agency       Inspector General, or (B) making other disclosures that are protected under whistleblower       provisions of federal law or regulation.  This Agreement does not limit Employee’s right to       receive  an  award  (including,  without  limitation,  a  monetary  reward)  for  information       provided to the SEC.  Employee does not need the prior authorization of anyone at the       Company to make any such reports or disclosures, and Employee is not required to notify       the  Company  that Employee has  made  such  reports  or  disclosures.   Nothing  in  this       Agreement or any other agreement or policy of the Company is intended to interfere with       or restrain the immunity provided under 18 U.S.C. §1833(b).  Employee cannot be held       criminally or civilly liable under any federal or state trade secret law for the disclosure of a       trade secret that is made (i) (A) in confidence to federal, state or local government officials,       directly or indirectly, or to an attorney, and (B) for the purpose of reporting or investigating       a suspected violation of law; (ii) in a complaint or other document filed in a lawsuit or other       proceeding, if filed under seal; or (iii) in connection with a lawsuit alleging retaliation for       reporting a suspected violation of law, if filed under seal and does not disclose the trade       secret,  except  pursuant  to  a  court  order.   The  foregoing  provisions  regarding  protected       disclosures  are  intended  to  comply  with  all  applicable  laws.   If  any  laws  are  adopted,       amended or repealed after the execution of this Agreement, this Section 16 shall be deemed       to be amended to reflect the same.                      17. Miscellaneous.                  (a)   Notices.  Any notice required or permitted to be given under this Agreement        shall be in  writing  and shall be deemed to  have  been duly  given (i) when delivered in        person, (ii) upon receipt when mailed by first class certified or registered mail, postage        prepaid,  (iii) one  (1)  business  day  after  being  sent  by  overnight  courier,  or  (iv) upon        confirmation of receipt by facsimile, addressed to the parties at their respective addresses        specified below:         if to Company, to:         Robert T. Wyman        Corporate Counsel        2 Executive Drive        Chelmsford, Massachusetts 01824           with a copy (which shall not constitute notice) to:                                          9   

 

Manan (Mike) Shah  Milbank LLP  55 Hudson Yards  New York, NY 10001-2163    if to Employee, to Employee’s most recent address on file with the Company   with a copy (which shall not constitute notice) to:   James L. Komie  Howard & Howard Attorneys PLLC  200 S. Michigan Ave., Ste. 1100  Chicago, IL 60604                 Any party to this Agreement may change his or its address for notices by notice  given pursuant to this Section 17(a).         (b)   This Agreement shall be binding upon and inure to the benefit of the parties  hereto and their respective heirs, representatives, executors, administrators, distributees,  devisees,  legatees,  successors  and,  solely  with  respect  to  the  Company,  its  assigns,  including without limitation any successor in interest to the Company who acquires all or  substantially all of the Company’s assets.         (c)   In the event of any Employee Termination, Employee shall be under no  obligation to seek other employment or otherwise mitigate the obligations of the Company  under  this  Agreement  and  no  such  substitute  employment  or  mitigation  shall  affect  Employee’s right to receive severance and other benefits hereunder.         (d)   The Company’s obligation to pay Employee the amounts, and to make the  arrangements, provided hereunder shall be subject to set off or recoupment of any amounts  loaned or advanced to Employee by the Company or any Subsidiary of the Company that  are supported by reasonable documentation; provided, that any such set off or recoupment  shall, in each case, be applied to the next dollars due to Employee from the Company during  the applicable period.         (e)   Except as expressly set forth herein, this Agreement, together with any other  agreement entered into between the Company and Employee on the date hereof, contains  the entire agreement between the parties with respect to the subject matter hereof, and this  Agreement supersedes all other agreements and drafts hereof, oral or written, between the  parties  hereto  with  respect  to  the  subject  matter  hereof.   No  promises,  statements,  understandings,  representations  or  warranties  of  any  kind,  whether  oral  or  in  writing,  express or implied, have been made to Employee by any Person to induce Employee to  enter into this Agreement other than the express terms set forth herein, and Employee is  not relying upon any promises, statements, understandings, representations, or warranties  other than those expressly set forth in this Agreement.                                    10                

 

      (f)   No change or modification of this Agreement shall be valid unless the same  shall be in writing and signed by all of the parties hereto.  No waiver of any provisions of  this Agreement shall be valid unless in writing and signed by the party charged with such  waiver.  No waiver of any of the provisions of this Agreement shall be deemed, or shall  constitute, a waiver of any other provision, whether or not similar, nor shall any waiver  constitute a continuing waiver, unless so provided in the waiver.         (g)   If any provision of this Agreement (or portion thereof) shall, for any reason,  be held invalid or unenforceable, such provision (or portion thereof) shall be ineffective  only to the extent of such invalidity or unenforceability, and the remaining provisions of  this Agreement (or portions thereof) shall nevertheless be valid, enforceable and of full  force and effect.  If any court of competent jurisdiction or arbitrator finds that any provision  contained in this Agreement is invalid or unenforceable, then the parties hereto agree that  such invalid or unenforceable provision shall be deemed modified so that it shall be valid  and enforceable to the greatest extent permissible under law, and if such provision cannot  be  modified  so  as  to  make  it  enforceable  or  valid,  such  finding  shall  not  affect  the  enforceability or validity of any of the other provisions contained herein.         (h)   This Agreement may be executed in identical counterparts, both of which  shall  be  considered  one  and  the  same  agreement  and  shall  become  effective  when  counterparts have been signed by each party and delivered to the other party.  In the event  that any signature is delivered by facsimile transmission or by an e-mail which contains a  portable document format (.pdf) file of an executed signature page, such signature page  shall create a valid and binding obligation of the party executing (or on whose behalf such  signature is executed) with the same force and effect as if such signature page were an  original thereof.         (i)   The section or paragraph headings or titles herein are for convenience of  reference only and shall not be deemed a part of this Agreement.  The parties have jointly  participated in the drafting of this Agreement, and the rule of construction that a contract  shall  be  construed  against  the  drafter  shall  not  be  applied.   The  terms  “including,”  “includes,” “include” and words of like import shall be construed broadly as if followed  by the words “without limitation.”  The terms “herein,” “hereunder,” “hereof” and words  of like import refer to this entire Agreement instead of just the provision in which they are  found.           (j)   Notwithstanding anything to the contrary in this Agreement:               (i)   The parties agree that this Agreement shall be interpreted to comply        with or be exempt from Section 409A of the Internal Revenue Code of 1986, as        amended or replaced, and the regulations and authoritative guidance promulgated        thereunder  to  the  extent  applicable  (collectively  “Code  Section  409A”),  and  all        provisions of this Agreement shall be construed in a manner consistent with the        requirements for avoiding taxes or penalties under Code Section 409A.  In no event        whatsoever will the Company be liable for any additional tax, interest or penalties        that may be imposed on Employee under Code Section 409A or any damages for        failing to comply with Code Section 409A.                                   11                

 

            (ii)  A termination of employment shall not be deemed to have occurred        for purposes of any provision of this Agreement providing for the payment of any        amounts or benefits considered “nonqualified deferred compensation” under Code        Section  409A  upon  or  following  a  termination  of  employment  unless  such        termination is also a “separation from service” within the meaning of Code Section        409A and, for purposes of any such provision of this Agreement, references to a        “termination,” “termination of employment” or like terms shall mean “separation        from service.”  If Employee is deemed on the date of termination to be a “specified        employee” within the meaning of that term under Code Section 409A(a)(2)(B), then        with  regard  to  any  payment  or  the  provision  of  any  benefit  that  is  considered        nonqualified deferred compensation under Code Section 409A payable on account        of a “separation from service,” such payment or benefit shall be made or provided        at the date which is the earlier of (A) the expiration of the six (6)-month period        measured from the date of such “separation from service” of Employee, and (B) the        date  of Employee’s  death  (either  such  period,  the  “Delay  Period”).   Upon  the        expiration of the Delay Period, all payments and benefits delayed pursuant to this        Section 17(j)(ii) (whether they would have otherwise been payable in a single sum        or in installments in the absence of such delay) shall be paid or reimbursed on the        first business day following the expiration of the Delay Period to Employee in a        lump sum, and any remaining payments and benefits due under this Agreement        shall be paid or provided in accordance with the normal payment dates specified        for them herein.               (iii) With regard to any provision herein that provides for reimbursement        of  costs  and  expenses  or  in-kind  benefits,  except  as  permitted  by  Code        Section 409A,  (A) the  right  to  reimbursement  or  in-kind  benefits  shall  not  be        subject to liquidation or exchange for another benefit, (B) the amount of expenses        eligible for reimbursement, or in-kind benefits, provided during any taxable year        shall not affect the expenses eligible for reimbursement, or in-kind benefits, to be        provided  in  any  other  taxable  year,  provided, that  this  clause  (B)  shall  not  be        violated with regard to expenses reimbursed under any arrangement covered by        Internal Revenue Code Section 105(b) solely because such expenses are subject to        a limit related to the period the arrangement is in effect and (C) such payments shall        be made on or before the last day of Employee’s taxable year following the taxable        year in which the expense occurred.               (iv)  For purposes of Code Section 409A, Employee’s right to receive        any installment payments pursuant to this Agreement shall be treated as a right to        receive a series of separate and distinct payments.  Whenever a payment under this        Agreement specifies a payment period with reference to a number of days (e.g.,        “payment shall be made within thirty (30) days following the date of termination”),        the  actual  date  of  payment  within  the  specified  period  shall  be  within  the  sole        discretion of the Company.         (k)   This Agreement and any and all claims arising out of, under, pursuant to, or  in  any  way  related  to  this  Agreement,  including  but  not  limited  to  any  and  all  claims  (whether sounding in contract or tort) as to this Agreement’s scope, validity, enforcement,                                   12                

 

interpretation, construction, and effect shall be governed by the laws of the State of New  York (without regard to any conflict of laws rule which might result in the application of  the laws of any other jurisdiction).         (l)   The  Company  may  withhold  from  any  amounts  payable  under  this  Agreement such federal, state and local taxes as may be required to be withheld pursuant  to any applicable law or regulation.         (m)   Notwithstanding  anything  that  may  be  expressed  or  implied  in  this  Agreement, Employee covenants, agrees and acknowledges that this Agreement may only  be enforced against the Company.  All claims or causes of action (whether in contract, tort  or otherwise) arising out of or relating to this Agreement (including without limitation the  negotiation,  execution  or  performance  of  this  Agreement  and  any  representation  or  warranty made in or in connection with this Agreement or as an inducement to enter into  this  Agreement)  may  be  made  only  against  the  Company,  and  no  one  other  than  the  Company  (including  without  limitation  any  person  negotiating  or  executing  this  Agreement on behalf of the Company) shall have any liability or obligation with respect to  same.         (n)   Notwithstanding anything in this Agreement to the contrary, if any payment  or  distribution Employee would  receive  pursuant  to  this Agreement or  otherwise  (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section  280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by  Section 4999 of the Code (the “Excise Tax”), then such Payment shall be delivered as to  such lesser extent which would result in no portion of such Payment being subject to the  Excise Tax.  The accounting firm engaged by the Company for general audit purposes as  of the day prior to the effective date of the change in control shall perform the foregoing  calculation.  The Company shall bear all expenses with respect to the determinations by  such accounting firm required to be made hereunder.  Any good faith determinations of the  accounting firm made hereunder shall be final, binding and conclusive upon the Company  and Employee.  Any reduction in payments and/or benefits pursuant to this paragraph will  occur in the following order: (1) reduction of cash payments; (2) cancellation of accelerated  vesting of equity awards other than stock options; (3) cancellation of accelerated vesting  of stock options; and (4) reduction of other benefits payable to Employee.         (o)   Employee represents,  warrants  and covenants  that (i) that Employee has  read and understands this Agreement, is fully aware of its legal effect, has not acted in  reliance  upon  any  representations  or  promises  made  by  the  Company  other  than  those  contained in writing herein, and has entered into this Agreement freely based on his own  judgment,  (ii) Employee has  the  full  right,  authority  and  capacity  to  enter  into  this  Agreement and perform Employee’s obligations hereunder, (iii) Employee is not bound by  any  agreement  that  conflicts  with  or  prevents  or  restricts  the  full  performance  of  Employee’s  duties  and  obligations  to  the  Company  hereunder  during  or  after  the  Employment Term, and (iv) the execution and delivery of this Agreement shall not result  in any breach or violation of, or a default under, any existing obligation, commitment or  agreement to which Employee is subject. Employee represents that he has informed his  employer as of the date hereof (the “Former Employer”) that he will be working for the  Company, described the scope of his duties hereunder and confirms that his employment                                  13                

 

with  the  Company  will  not  violate  any  agreements  or  obligations  with  the  Former  Employer.  The Company reserves the right to contact the Former Employer if it has any  concerns  regarding  any  non-competition,  confidentiality  or  other  obligations  Employee  may have and to terminate Employee’s employment for Cause if the Company determines  that the representations and warranties in this section are false.           (p) The covenants and obligations of the Company under Sections 7, 10 (to the  extent the Severance Package is payable), and 17 hereof and the covenants and obligations  of Employee under Sections 12, 13, 15, and 17, hereof and in the Restrictive Agreements  (as set forth therein), shall continue and survive any Employee Termination or Employee’s  ceasing to be an officer or employee of the Company or any termination of this Agreement.                            [signature page follows]                                    14                

 

 

                                      Exhibit A                                                                                    The Performance Condition means maintaining a closing price of $6 or greater per Share for 30  consecutive days following the grant date of the Initial Grants, subject to the terms and conditions  provided in the Company’s Restricted Stock Unit Award Agreement, and to Employee’s continued  service as an employee through the vesting date.                                                                       #4827-6397-6050v1 

 

                Exhibit B   Attached                                             - 17 -                 

 

Exhibit C   Attached             - 18 -EX-10.1

 Exhibit 10.1 

Execution Copy 
 EMPLOYMENT
AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into by and between Radian Group Inc. (the
“Company”) and Richard G. Thornberry (the “Executive”) as of November 19, 2019 (the “Effective Date”). 

WHEREAS, the Company desires to continue to employ the Executive as its Chief Executive Officer and the Executive desires to continue to serve
in such capacity on behalf of the Company. 
 WHEREAS, the Company and the Executive are parties to an Employment Agreement dated as of
February 8, 2017 (the “2017 Agreement”), and the parties wish to enter into this Agreement to supersede and replace the 2017 Agreement, effective as of the Effective Date. 

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 shall begin on the Effective Date and shall continue through
December 31, 2023 (or the extended term as described below, if applicable), unless sooner terminated by either party as set forth below, or until the termination of the Executive’s employment, if earlier.    As of
December 31, 2023, the term of this Agreement shall automatically renew for a period of one year, unless either party gives the other party written notice at least 90 days prior to December 31, 2023 that the term of the Agreement shall not
be extended. The period commencing on the Effective Date and ending on the date on which the term of the Agreement terminates is referred to herein as the “Term.” 

(b)    Duties. During the Term, the Executive shall serve as the Chief Executive Officer of the Company with
duties, responsibilities and authority commensurate therewith and shall report to the Board of Directors of the Company (the “Board”). The Executive shall perform all duties and accept all responsibilities incident to such position
as is set forth in the Company’s Guidelines of Corporate Governance (as in effect on the Effective Date or as may be modified thereafter after consultation with the Executive) and as otherwise may be reasonably assigned to the Executive by the
Board, consistent with his position as Chief Executive Officer. The Company shall cause the Executive to be nominated as a member of the Board at each annual meeting of stockholders of the Company during the Term at which the Executive’s Board
seat is up for re-election. The Executive represents to the Company that the Executive is not subject to or a party to any employment agreement, non-competition
covenant, or other agreement that would be breached by, or prohibit the Executive from executing, this Agreement and performing fully the Executive’s duties and responsibilities hereunder. 

(c)     Best Efforts. During the Term, the Executive shall devote his best efforts and all or substantially all of
his full business time and attention to promote the business and affairs of the Company and its affiliated entities, and shall be engaged in other business activities only to the extent that such activities: (1) do not materially interfere or
conflict with the Executive’s obligations to the Company hereunder, including, without limitation, obligations pursuant to Section 14 below, the Restrictive Covenants Agreement (as defined below), the other agreements

  
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described in Section 14 of this Agreement, and the Company’s Code of Conduct and Ethics, as in effect on the Effective Date or as may be modified thereafter after consultation with the
Executive (the “Code of Conduct”), and (2) such other business activities have been reviewed, and if necessary approved, in accordance with the Company’s Guidelines of Corporate Governance. For purposes of clarity,
activities that are in furtherance of the Company’s interest, including serving on representative boards and/or committees of industry trade groups, shall be considered to be in promotion of the business and affairs of the Company and its
affiliated entities. The Executive may, without further review or consent, (i) deliver lectures, fulfil speaking engagements or lecture at educational institutions, (ii) manage personal investments, or (iii) engage in the activities
described in Exhibit A hereto subject to the limitations set forth in Exhibit A; provided that, in the case of (i), (ii) or (iii) above, the Executive complies with his obligations and conditions under Section 14 of this
Agreement, the Restrictive Covenants Agreement, the other agreements described in Section 14, and the Company’s Code of Conduct. 

(d)    Principal Place of Employment. The Executive understands and agrees that his principal place of employment
shall be in the Company’s headquarters offices located in the Philadelphia, Pennsylvania metropolitan area and that the Executive shall be required to travel for business in the course of performing his duties for the Company. 

2.    Compensation. 

(a)    Base Salary. During the Term, the Company shall pay the Executive a base salary (“Base
Salary”), at the annual rate of $900,000, which shall be paid in installments in accordance with the Company’s normal payroll practices. The Executive’s Base Salary shall be reviewed annually by the independent directors of the
Board and may be increased (but not decreased) as the independent directors, upon the recommendation of the Compensation and Human Resources Committee of the Board (the “Compensation Committee”), deem appropriate. 

(b)    Annual Incentive Plan. With respect to each fiscal year of the Company ending during the Term, the Executive
shall be eligible to earn an incentive award under the Radian Group Inc. STI/MTI Incentive Plan for Executive Employees, or any successor plan (the “STI Plan”) pursuant to the terms and conditions of the STI Plan. The
Executive’s incentive award shall be paid at such times and in such manner as set forth in the STI Plan. Prior to or at the beginning of each fiscal year of the Company, the independent directors of the Board (upon the recommendation of the
Compensation Committee) shall determine the Target Incentive Award (as defined in the STI Plan) for the Executive, taking into consideration such factors as the independent directors deem appropriate. The Executive’s Target Incentive Award
under the STI Plan for 2020 shall be $1,500,000. Notwithstanding the terms of the STI Plan, “Cause” as used therein shall be deemed to refer to the definition of Cause contained in this Agreement, and any provision therein relating to the
Executive’s termination of employment by the Company without Cause shall be deemed to include a resignation by the Executive for Good Reason hereunder. 

(c)    Long-Term Incentive Opportunity. The Executive shall be eligible to receive long-term incentive awards in
respect of each fiscal year during the Term (“LTI”) under the Company’s long-term incentive program in an amount and on terms established by the Committee, commensurate with his position as Chief Executive Officer. For the 2020
fiscal year, the Executive shall be granted equity awards in connection with the Company’s regular grant 

  
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cycle having an aggregate grant date value of $3,700,000 on terms established by the Committee, which shall be no less favorable than such terms as established generally for executive officers of
the Company. Without limiting the scope of the foregoing, LTI awards shall contain retirement-based vesting provisions, as determined by the Compensation Committee after consultation with the Executive, that define retirement as termination of
employment after either attainment of age 55 with at least 10 years of service or attainment of age 65 with at least 5 years of service. 

(d)    Target Compensation. The Executive’s Target Incentive Award under the STI Plan and target LTI shall be
reviewed annually by the independent directors pursuant to the normal performance review policies for the CEO, with such targets established by the independent directors in their sole discretion, following a recommendation by the Compensation
Committee. For each full fiscal year of the Term, the total of the Executive’s Base Salary, Target Incentive Award under the STI Plan, and target LTI shall be no less than $6,100,000, with the actual realized pay to the Executive primarily
dependent on performance under the STI Plan and LTI awards to the Executive. 
 3.    Retirement and Welfare Benefits. During the
Term, the Executive shall be eligible to participate in the Company’s health, life insurance (at the CEO level of coverage), long-term disability, retirement, deferred compensation, stock purchase and welfare benefit plans and programs
available to executives of the Company, 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, program or policy
from time to time after the Effective Date. 
 4.    Vacation. During the Term, the Executive shall be entitled to paid time off
each year, as well as Company holidays at levels commensurate with those provided to other executive officers of the Company, in accordance with the Company’s paid time off and holiday policies (which currently provide for 30 days paid time off
for executive officers and one “floating holiday” in addition to regularly scheduled holidays). 
 5.    Expenses. The
Company shall reimburse the Executive for all necessary and reasonable travel (which shall not include commuting) and other business expenses incurred by the Executive in the performance of his duties hereunder in accordance with the Company’s
expense reimbursement policy for executives. 
 6.    Termination without Cause; Resignation for Good Reason. The Company may
terminate the Executive’s employment at any time without Cause upon 15 days’ advance written notice (or pay in lieu of notice). The Executive may initiate a termination of employment by resigning for Good Reason as described below. Upon
termination by the Company without Cause or resignation by the Executive for Good Reason, in either case during the Term and before December 31, 2024, if the Executive executes and does not revoke a written Release (as defined below), the
Executive shall be entitled to receive, in lieu of any payments under any severance plan or program for employees or executives, the following: 

(a)    The Company shall pay the Executive an amount equal to two times the Executive’s annual Base Salary, which
shall be paid as follows: (i) the maximum amount that can be paid under the “separation pay” exception under section 409A of the Internal Revenue Code of 

  
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1986, as amended (the “Code”) shall be paid in 12 equal monthly installments following the Executive’s termination date, in accordance with the Company’s normal payroll
practices, with the first payment to be made within 60 days following such termination of employment, and (ii) the remainder of such benefit shall be paid in a lump sum between March 1 and March 15 of the calendar year following the
year in which the Executive’s termination date occurs. The first payment under clause (i) shall include any payments for the period from the termination date to the commencement date of payments. 

(b)    The Company shall pay the Executive an amount equal to two times the Executive’s Target Incentive Award
established under the STI Plan either (i) for the year in which the termination date occurs (or if it has not yet been established, the Target Incentive Award established for the immediately preceding year), or (ii) the Executive’s
Target Incentive Award under the STI Plan for 2020, whichever is greater, which amount shall be paid in a lump sum between March 1 and March 15 of the calendar year following the year in which the Executive’s termination date occurs.

 (c)    The Company shall pay the Executive a pro-rated Target Incentive Award
under the STI Plan, which shall be paid in a lump sum within 60 days following the Executive’s termination date. The prorated Target Incentive Award shall equal: 

(1)    Either (x) the Executive’s Target Incentive Award established under the STI Plan for the year in which
the termination date occurs (or the immediately preceding year if such Target Incentive Award has not yet been established), or (y) the Executive’s Target Incentive Award under the STI Plan for 2020, whichever is greater, multiplied by

 (2)    A fraction, the numerator of which is the number of full completed days of employment with the Company from
the beginning of the calendar year through the termination date, and the denominator of which is the number of days in such year. 
 Notwithstanding the
foregoing, in the event of a termination on account of non-renewal of the Agreement as of December 31, 2023 under Section 12(c)(4), the amount payable pursuant to this Section 6(c) shall be
calculated based on the greater of (i) Executive’s actual STI payout for the year ending December 31, 2023 as determined in accordance with the STI Plan or (ii) the amount described in clause (1) of this Section 6(c),
multiplied by a fraction determined in accordance with this Section 6(c)(2). Such payment shall be made to Executive at the same time that STI payments for the 2023 performance year are paid to executive officers. 

(d)    During the period beginning on the Executive’s termination date and ending on the first to occur of (i) 18
months after the termination date, (ii) the date on which the Executive becomes eligible for health coverage by a successor employer, or (iii) the date on which the Executive becomes eligible to elect medical coverage under Social Security
Medicare or otherwise ceases to be eligible for continued health coverage under the Company’s group health plan under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) (the “Coverage Period”), if the
Executive elects to receive continued health coverage under the Company’s health plan under COBRA at a level of coverage at or below the Executive’s level of coverage in effect on the date of the Executive’s termination of employment,
and the Executive pays the full monthly COBRA premium cost for such health coverage, the Company shall reimburse the 

  
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Executive monthly an amount equal to the monthly COBRA premium paid by the Executive, less the premium charge that is paid by the Company’s active employees for such coverage as in effect on
the date of the Executive’s termination of employment (the “COBRA Reimbursement”). The payments shall commence on the first payroll date that is administratively practicable after the Executive’s termination date, and
within 60 days after the Executive’s termination date. The first payment shall include any payments for the period from the termination date to the commencement date. The Company shall reimburse the Executive under this subsection only for the
portion of the Coverage Period during which the Executive continues COBRA coverage under the Company’s health plan. The Executive agrees to notify the Company promptly of the Executive’s coverage under an alternative health plan upon
becoming covered by such alternative plan. The COBRA health care continuation coverage period under section 4980B of the Code shall run concurrently with the Coverage Period. 

(e)    The Executive’s outstanding restricted stock units, performance units, stock options and any other equity
grants will vest and be paid as if the Executive had met the requirements for retirement under the applicable grant agreements. 

(f)    Any retirement benefits under the Company’s Benefit Restoration Plan shall be fully vested. 

(g)    The Company shall also pay the Accrued Obligations, regardless of whether the Executive executes or revokes the
Release. 
 (h)    Termination of this Agreement pursuant to its terms on December 31, 2024 shall not constitute a
termination of Executive’s employment for purposes of this Agreement, and no amounts shall be paid under Sections 6(a) through (d) upon termination of employment on or after December 31, 2024. However, in the event of Executive’s
termination of employment for any reason other than by the Company for Cause on or after December 31, 2024, the Executive shall remain eligible to receive any unpaid incentive award under the STI Plan for the fiscal year ended December 31,
2024, based on performance for such year, with such payment to be made to Executive at the same time that STI payments for the 2024 performance year are paid to executive officers. 

7.    Cause. The Company may terminate the Executive’s employment at any time for Cause upon written notice to the Executive,
in which event all payments under this Agreement shall cease, except for the Accrued Obligations. 
 8.    Voluntary Resignation
without Good Reason. The Executive may voluntarily terminate employment without Good Reason for any reason upon 30 days’ prior written notice to the Company. In such event, after the effective date of such termination, no payments shall be
due under this Agreement, except for the Accrued Obligations. 
 9.    Disability. If the Executive incurs a Disability during
the Term, the Company may terminate the Executive’s employment on or after the date of Disability. If the Executive’s employment terminates on account of Disability, the Executive shall receive the Accrued
Obligations.    Otherwise, the Company shall have no further liability or obligation under this Agreement to the Executive. For purposes of this Agreement, the term “Disability” shall mean a physical or mental
impairment of sufficient severity that the Executive is both eligible for and in receipt of benefits under the long-term disability program maintained by the Company. 

  
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 10.    Death. If the Executive dies during the Term, the Executive’s
employment shall terminate on the date of death, the Executive’s executor, legal representative, administrator or designated beneficiary, as applicable, shall receive the Accrued Obligations. 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. 

11.    Resignation of Positions. Effective as of the date of any termination of employment, the Executive shall resign all
Company-related positions, including as an officer and director of the Company and its affiliates. 
 12.    Definitions. For
purposes of this Agreement, the following terms shall have the following meanings: 
 (a)    “Accrued
Obligations” shall mean (i) all accrued but unpaid Base Salary, and all accrued but unused PTO under the terms of the Company’s PTO policy, through the date of termination of the Executive’s employment, (ii) any unpaid
or unreimbursed expenses incurred through the date of such termination in accordance with Section 5 hereof, and (iii) any vested accrued compensation, equity awards or benefits provided under the Company’s employee incentive or
benefit plans upon or following a termination of employment, in accordance with the terms of the applicable plan, including without limitation the STI Plan, but excluding any separate Company severance plan or policy. 

(b)    “Cause” shall mean any of the grounds for termination of the Executive’s employment listed
below, after the Executive has been provided with an opportunity to meet with the Board with respect to the determination of Cause: 

(1)    the Executive’s 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 the use of alcohol or illegal substances); 

(2)    the Executive’s fraud, dishonesty, theft, or misappropriation of funds in connection with the Executive’s
duties with the Company and its affiliates; 
 (3)    the Executive’s material violation of the Company’s Code
of Conduct; 
 (4)    the Executive’s gross negligence or willful misconduct in the performance of the
Executive’s duties with the Company and its affiliates; or 
 (5)    the Executive’s breach of Section 14
of this Agreement or any covenants contained in the Restrictive Covenants Agreement (except any breach relating to the Company’s Code of Conduct, which shall be governed by clause (3) above) or any other agreement described in
Section 14, or the Executive’s material breach of any other provision of this Agreement. 

  
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 (c)    “Good Reason” shall mean: 

(1)    The scope of the Executive’s duties, responsibilities and reporting lines as the Chief Executive Officer of the
Company are, in the aggregate, materially reduced ; 
 (2)    Any material change in the geographic location at which
the Executive must perform the Executive’s duties to the Company and its affiliates, which, for purposes of this Agreement, means the permanent relocation of the Executive’s principal place of employment to any office or location which is
located more than 100 miles from the location where the Executive is based immediately prior to the change in location; 

(3)    Any action or inaction that constitutes a material breach of this Agreement by the Company; or 

(4)    The provision by the Company to the Executive of written notice pursuant to Section 1(a) that the Term of the
Agreement shall not be extended as of December 31, 2023, provided that the Executive is willing and able to continue in employment under the terms of the Agreement, if extended. The Executive shall be deemed to be willing and able to continue
in employment under the terms of the Agreement if he so states in the written notice of termination described in the following sentence. 
 In order to
terminate employment for Good Reason, the Executive must provide a written notice of termination with respect to termination for Good Reason to the Company within 60 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 Executive 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; provided that in the event of a termination on account of
non-renewal of the Agreement as of December 31, 2023 under clause (4) above, the termination date shall not be earlier than the scheduled end of the Term, and such termination shall be treated for
all purposes under this Agreement as having occurred during the Term. Notwithstanding the foregoing, in no event will the Executive have Good Reason for termination if an event described in Section 12(c)(1) occurs in connection with the
Executive’s inability to substantially perform the Executive’s duties on account of short-term or long-term disability. 

(d)    “Release” shall mean a release in the form attached hereto as Exhibit B, with such changes
as the Company deems appropriate to comply with applicable law. 
 13.    Section 409A. 

(a)    This Agreement is intended to comply with section 409A of the Code and its corresponding regulations, or an
exemption, and payments may only be made under this Agreement upon an event and in a manner permitted by section 409A of the Code, to the extent applicable. Severance benefits under this Agreement are intended to be exempt from section 409A of the
Code under the “short-term deferral” exception, to the maximum extent applicable, and then under the “separation pay” exception, to the maximum extent applicable. Notwithstanding anything in this Agreement to the contrary, to the
extent required by section 409A of the Code, if the Executive is considered a “specified employee” for purposes of section 409A 

  
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of the Code and if payment of any amounts under this Agreement is required to be delayed for a period of six months after separation from service pursuant to section 409A of the Code, payment of
such amounts shall be delayed as required by section 409A of the Code, and the accumulated amounts shall be paid in a lump sum payment within ten days after the end of the six-month period. If the Executive
dies during the postponement period prior to the payment of benefits, the amounts withheld on account of section 409A of the Code shall be paid to the personal representative of the Executive’s estate within 60 days after the date of the
Executive’s death. 
 (b)    All payments to be made upon a termination of employment under this Agreement may only
be made upon a “separation from service” under section 409A of the Code. For purposes of section 409A of the Code, each payment hereunder shall be treated as a separate payment and the right to a series of installment payments under this
Agreement shall be treated as a right to a series of separate payments. In no event may the Executive, directly or indirectly, designate the calendar year of a payment. Notwithstanding any provision of this Agreement to the contrary, in no event
shall the timing of the Executive’s execution of the Release, directly or indirectly, result in the Executive designating the calendar year of payment of any amounts of deferred compensation subject to section 409A of the Code, and if a payment
that is subject to execution of the Release could be made in more than one taxable year, payment shall be made in the later taxable year. 

(c)    All reimbursements and in-kind benefits provided under this Agreement shall
be made or provided in accordance with the requirements of section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the period of time specified in this Agreement,
(ii) the amount of expenses eligible for reimbursement, or in kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in kind benefits to be provided, in any other calendar year, (iii) the
reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement or in kind benefits is not subject to liquidation or
exchange for another benefit. 
 14.    Restrictive Covenants. 

(a)    The Executive agrees to comply with the restrictive covenants and agreements set forth in the Restrictive Covenants
Agreement dated February 8, 2017 between the Company and the Executive, which is attached as Exhibit C and is hereby incorporated into this Agreement by this reference (the “Restrictive Covenants
Agreement”), the attached Exhibit A (which is hereby incorporated into this Section 14 by this reference), and all other written agreements between the Company and the Executive containing
non-competition, non-solicitation, confidentiality, inventions assignment, non-disparagement and other restrictive
covenants.    Without limiting the foregoing, all references in this Agreement to Section 14 shall include the provisions of Exhibit A and Exhibit C. 

(b)    Notwithstanding anything in this Agreement to the contrary, if the Executive breaches any of the Executive’s
obligations under this Section 14, the Company shall be obligated to provide only the Accrued Obligations, and all other payments under this Agreement shall cease. In such event, the Company may require that the Executive repay all amounts
theretofore paid to him pursuant to Section 6 hereof (other than the Accrued Obligations), and in such case, the Executive shall promptly repay such amounts on the terms determined by the Company. 

  
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 15.    Legal Action. The Executive irrevocably and unconditionally (1) agrees
that any legal proceeding arising out of this Agreement shall be brought solely in the United States District Court for Eastern District of Pennsylvania, or if such court does not have jurisdiction or will not accept jurisdiction, in any court of
general jurisdiction in general jurisdiction in Philadelphia County, Pennsylvania, (2) consents to the exclusive jurisdiction of such court in any such proceeding, and (3) 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. 

16.    Survival. The respective rights and obligations of the parties under this Agreement (including Sections 14 and 15) shall
survive any termination of the Executive’s employment or termination or expiration of this Agreement to the extent necessary to the intended preservation of such rights and obligations. 

17.    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. 
 18.    Section 280G. In the event of a
change in ownership or control under section 280G of the Code, if it shall be determined that any payment or distribution in the nature of compensation (within the meaning of section 280G(b)(2) of the Code) 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
aggregate present value of the Payments under the Agreement shall be reduced (but not below zero) to the Reduced Amount (defined below) if and only if the Accounting Firm (described below) determines that the reduction will provide the Executive
with a greater net after-tax benefit than would no reduction. No reduction shall be made unless the reduction would provide the Executive with a greater net after-tax
benefit. The determinations under this Section shall be made as follows: 
 (a)    The “Reduced Amount”
shall be an amount expressed in present value which maximizes the aggregate present value of Payments under this Agreement without causing any Payment under this Agreement to be subject to the Excise Tax (defined below), determined in accordance
with section 280G(d)(4) of the Code. The term “Excise Tax” means the excise tax imposed under section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax. 

(b)    Payments under this Agreement shall be reduced on a nondiscretionary basis in such a way as to minimize the
reduction in the economic value deliverable to the Executive. 

  
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Where more than one payment has the same value for this purpose and they are payable at different times, they shall be reduced on a pro rata basis. Only amounts payable under this Agreement shall
be reduced pursuant to this Section. 
 (c)    All determinations to be made under this Section shall be made by an
independent certified public accounting firm selected by the Company and agreed to by the Executive immediately prior to the change in ownership or control transaction (the “Accounting Firm”). The Accounting Firm shall provide its
determinations and any supporting calculations both to the Company and the Executive within ten days of the transaction. Any such determination by the Accounting Firm shall be binding upon the Company and the Executive. All of the fees and expenses
of the Accounting Firm in performing the determinations referred to in this Section shall be borne solely by the Company. 

19.    Legal Fees. The Company will reimburse the Executive for up to $15,000 of documented legal fees that are reasonably related
to the Executive’s review and negotiation of this Agreement. 
 20.    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: 

Anita Scott, SVP Human Resources 

Radian Group Inc. 
 1601 Market
Street 
 Philadelphia, PA 19103 

If to the Executive, to the most recent address on file with the Company 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. 

21.    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 otherwise provided herein, the Executive shall bear all
expense of, and be solely responsible for, all federal, state and local taxes imposed on the Executive with respect to any payment received under this Agreement. 

22.    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. 

  
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 23.    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 Section 14, will continue to apply in favor of the successor.

 24.    Company Policies. Employment with the Company is conditioned on the Executive’s agreement to comply with the Code
of Conduct. The Executive confirms that he has certified to his compliance with the Company’s Code of Conduct pursuant to the certification process required of all executive officers of the Company. The Executive, this Agreement, and the
compensation payable hereunder, as applicable, shall be subject to any applicable clawback or recoupment policies, stock ownership policies, share trading policies, the Code of Conduct, and other written policies that are in place as of the
Effective Date and as may be revised or implemented by the Company from time to time as applicable to officers of the Company, in each case after consultation with the Executive. 

25.    Indemnification. As to any matter occurring or arising during the Executive’s employment with the Company or its
affiliates, the Company hereby covenants and agrees to indemnify the Executive and hold him harmless fully, completely, and absolutely against and in respect to any and all actions, suits, proceedings, claims, demands, judgments, costs, reasonable
expenses (including reasonable attorney’s fees), losses and damages (collectively, “Claims”) resulting from his performance of his duties and obligations as an employee, officer or director of the Company or any of its
affiliates to the extent provided by the bylaws of the Company and its affiliates (as in effect on the date hereof or as may be subsequently modified in consultation with the Executive); provided, however, that this indemnity shall not apply to any
Claims that are a direct result of the Executive’s engaging in conduct that constitutes Cause. The Company will insure the Executive, for the duration of his employment, and thereafter in respect of his acts and omissions occurring during such
employment under a contract of directors and officers liability insurance to the same extent as any such insurance insures members of the Board. 

26.    Entire Agreement. This Agreement sets forth the entire agreement of the parties hereto and supersedes the 2017 Agreement and
any and all other prior agreements and understandings concerning the Executive’s employment by the Company, other than the Restrictive Covenants Agreement. This Agreement may be changed only by a written document signed by the Executive and the
Company. 
 27.    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

  
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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. 
 28.    Governing
Law. This Agreement shall be governed by, and construed and enforced in accordance with, the substantive and procedural laws of Pennsylvania without regard to rules governing conflicts of law. 

29.    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. 
 IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date and year first above written. 
  

			
	Radian Group Inc.
		
		 	 /s/ Anita Scott

	Name:	 	Anita Scott
	Title:	 	Senior Vice President, Chief Human Resources Officer
	
	EXECUTIVE
		
		 	 /s/ Richard G. Thornberry

	Name:	 	Richard G. Thornberry

  
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 Exhibit A 

Permitted Activities 
  

	1.	 St. Louis University John Cook School of Business Executive Advisory Board Member 

 

	2.	 Manager of NexSpring Partners I, LLC (which is an investment partnership that does not, and will not, hold any
interests in NF or NSG (each as defined below). 

  

	3.	 Board Advisor to NexSpring Financial, LLC (“NF”), subject to regular, periodic review by the
Company’s Governance Committee. 

  

	4.	 Investment in the equity of NF and NexSpring Group, LLC (“NSG”) by the Executive (or his
Family, as defined below) at a percentage level of equity ownership no greater than the level in effect as of his original employment date with the Company (February 8, 2017) (the “Investment”) The Executive and the Company acknowledge
that the Investment does not, as of the date hereof, constitute a breach or violation of this Agreement, the Restrictive Covenants Agreement, the Code of Conduct, or any other agreement between the Executive and the Company or any other policy of
the Company that is currently in effect. To the extent that in the future the Executive’s Investment would result in a breach or violation of this Agreement, the Restrictive Covenants Agreement, the Code of Conduct, or any other agreement
between the Executive and the Company, as determined by the Governance Committee following consultation with the Executive, then (i) the Governance Committee will consult with the Executive in considering all available alternatives to address
such potential breach or violation, and (ii) if it is determined by the Governance Committee following consultation with the Executive that the only viable alternative to address such breach or violation is for the Executive to divest his
Investment, the Executive agrees to use his best efforts to divest his Investment pursuant to an arm’s length sale to an unaffiliated third party as soon as practicable after such determination. If, despite the Executive’s best efforts, he
is unable to divest his Investment after a reasonable period of time, any termination of the Executive’s employment by the Company as a result of his failure to divest shall not be treated as a termination for Cause pursuant this Agreement, any
equity plan of the Company or award thereunder, or any other agreement with, or benefit or compensation plan of, the Company; provided, however, that the provisions of Sections 6(a), 6(b) or 6(d) of the Agreement shall not apply with respect to such
termination of employment (and no payments shall be made under Sections 6(a), 6(b) or 6(d) or under any severance plan of the Company), but the provisions of Sections 6(c), 6(e) and 6(f), and all other provisions of the Agreement applicable to a
termination by the Company without Cause, shall apply. For purposes of this Exhibit A, the term “Family” means 

  
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the Executive’s immediate family members (i.e. spouse, descendants, parents, siblings, step-children and people sharing the Executive’s household (other than tenants and employees) and
spouses of any of the foregoing) and any trusts or other entities of which the Executive or his immediate family members are beneficiaries or owners, other than any such trusts or other entities that are controlled by persons independent of the
Executive and members of his immediate family. 

  
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 Exhibit B 

Form of Release 

This Release Agreement (this “Agreement”) is made by and between Richard G. Thornberry
(“Employee”) and Radian Group Inc. (“Radian”). Employee and Radian are parties to this Agreement and are collectively referred to herein as the “Parties.” 

As used in this Agreement, any reference to Employee shall include Employee, and in their capacities as such, Employee’s heirs,
administrators, representatives, executors, legatees, successors, agents and assigns. As used in this Agreement, any reference to the “Company” shall mean Radian and each subsidiary of Radian. 

1.    Release.  

(a)    In further consideration of the compensation provided to Employee pursuant to Section 6 of the Employment
Agreement dated November 19, 2019 between Employee and Radian (the “Employment Agreement”), Employee hereby agrees, subject to and without waiving any rights identified in Paragraph 2, Permitted Conduct, of this
Agreement, to the maximum extent permitted by law, to irrevocably and unconditionally RELEASE AND FOREVER DISCHARGE the Company and each of its and their past or present parents, subsidiaries and affiliates, their past or present officers,
directors, stockholders, employees and agents, their respective successors and assigns, heirs, executors and administrators, the pension and employee benefit plans of the Company and of the Company’s past or present parents, subsidiaries or
affiliates, and the past or present trustees, administrators, agents or employees of all such pension and employee benefit plans (hereinafter collectively included within the term the “Released Parties”), acting in any
capacity whatsoever, of and from any and all manner of actions and causes of actions, suits, debts, claims and demands whatsoever in law or in equity, whether known or unknown, which Employee may have, or which Employee’s heirs, executors or
administrators may have against the Released Parties, by reason of any matter, cause or thing whatsoever from the beginning of Employee’s employment with the Company to and including the date on which Employee executes this Agreement, and
particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to Employee’s employment relationship and/or the termination of Employee’s employment relationship with the Company,
including but not limited to, any claims which have been asserted, could have been asserted, or could be asserted now or in the future, which includes any claim or right based upon or arising under any federal, state or local fair employment
practices or equal opportunity laws, including, but not limited to, any claims under Title VII of the Civil Rights Act of 1964, the Family and Medical Leave Act of 1993, the Equal Pay Act, the Genetic Information
Non-discrimination Act, the Employee Retirement Income Security Act (“ERISA”) (including, but not limited to, claims for breach of fiduciary duty under ERISA), the Americans With
Disabilities Act, Pennsylvania Human Relations Act, Pennsylvania Equal Pay Law, Pennsylvania Whistleblower Law, if applicable, the Pennsylvania Pregnancy, Childbirth and Childrearing Law, if applicable, including all amendments thereto, and any
other federal, state or local statutes or common law under which Employee can waive Employee’s rights, any contracts between the Released Parties and Employee, and all claims for counsel fees and costs. 

  
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 In addition to all other claims released described above, you hereby waive all claims
available against the Company and the directors, officers, employees, employee benefit plans and agents of the Company arising out of your employment with the Company or the termination of that employment under the Age Discrimination in Employment
Act and the Older Workers Benefit Protection Act. 
 (b)    In waiving and releasing any and all claims against the
Released Parties, whether or not now known to Employee, Employee understands that this means that if Employee later discovers facts different from or in addition to those facts currently known by Employee, or believed by Employee to be true, the
waivers and releases of this Agreement will remain effective in all respects, despite such different or additional facts and Employee’s later discovery of such facts, even if Employee would not have agreed to this Agreement if Employee had
prior knowledge of such facts. 
 (c)    Notwithstanding anything in this Agreement to the contrary, Employee does not
waive (i) any entitlements under the terms of Section 6 of the Employment Agreement, (ii) Employee’s existing right to receive vested accrued benefits under any equity grants or other plans or programs of the Company under which
Employee has accrued benefits (other than under any Company separation or severance plan or programs), (iii) any claims that, by law, may not be waived, (iv) any rights or claims that may arise after the date Employee executes this
Agreement, (v) any right to indemnification under the bylaws of the Company, under any directors and officers insurance policy, or under Section 25 of the Employment Agreement, with respect to Employee’s performance of duties as an
employee or officer of the Company, and (vi) any claim or right Employee may have for unemployment insurance benefits, workers’ compensation benefits, state disability and/or paid family leave insurance benefits pursuant to the terms of
applicable state law. 
 2.    Permitted Conduct. Nothing in this Agreement shall prohibit or
restrict Employee from initiating communications directly with, or responding to any inquiry from, or providing testimony before, the Equal Employment Opportunity Commission, the Department of Justice, the Securities and Exchange Commission, or any
other federal, state or local regulatory authority. To the extent permitted by law, upon receipt of any subpoena, court order, or other legal process compelling the disclosure of any confidential information and trade secrets of the Company,
Employee agrees to give prompt written notice to the Company so as to permit the Company to protect its interests in confidentiality to the fullest extent possible. Please take notice that federal law provides criminal and civil immunity to
federal and state claims for trade secret misappropriation to individuals who disclose a trade secret to their attorney, a court, or a government official in certain, confidential circumstances that are set forth at 18 U.S.C.
§§ 1833(b)(1) and 1833(b)(2), related to the reporting or investigation of a suspected violation of the law, or in connection with a lawsuit for retaliation for reporting a suspected violation of the law. 

  
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 3.    Restrictive Covenants. 

(a)    Employee agrees to comply with the restrictive covenants and agreements set forth in the Restrictive Covenants
Agreement between Employee and Radian dated February 8, 2017, and all other written restrictive covenants and agreements with the Company containing non-competition,
non-solicitation, confidentiality, inventions assignment, non-disparagement and other restrictive covenants, including Paragraph 3(b) below (collectively, the
“Restrictive Covenants”). Employee expressly acknowledges that continuing to comply with the terms of the Restrictive Covenants is a material term of this Agreement. Employee acknowledges that in the event that Employee
breaches any of the Restrictive Covenants, Radian shall be obligated to provide only the Accrued Obligations (as defined in the Employment Agreement), and all other payments under Section 6 of the Employment Agreement shall cease. In such
event, Radian may require that the Executive repay all amounts theretofore paid to him pursuant to Section 6 of the Employment Agreement (other than the Accrued Obligations), and in such case, Employee shall promptly repay such amounts on the
terms determined by Radian. 
 (b)    Employee agrees that Employee will not make or authorize any written or oral
statements that are false or defamatory about the Company or the Company’s directors, officers or employees. This clause does not affect Employee’s rights under Section 2 (Permitted Conduct). 

(c)    The Company agrees that it will not, and will instruct its directors and senior officers to not, make or authorize
any written or oral statements that are false or defamatory about the Executive. 
 4.    Controlling
Law. This Agreement and all matters arising out of, or relating to it, shall be governed by, and construed in accordance with, the laws of the Commonwealth of Pennsylvania. 

5.    Jurisdiction. Any action arising out of, or relating to, any of the provisions of this
Agreement shall be brought and prosecuted only 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, Pennsylvania, and the jurisdiction of such court in any such proceeding shall be exclusive. Employee also irrevocably and unconditionally consents to the service of any process, pleadings, notices or other papers. 

6.    Severability. If any provision of this Agreement is construed to be invalid, unlawful or
unenforceable, then the remaining provisions hereof shall not be affected thereby and shall be enforceable without regard thereto, except that, in the event the release in Paragraph 1 is held to be unlawful, invalid or unenforceable, any payments
made pursuant to Section 6 of the Employment Agreement (other than the Accrued Obligations) shall be returned to the Company and no further consideration shall be due. If any covenant or agreement is held to be unenforceable because of the
duration thereof or the scope thereof, then the court making such determination shall have the power to reduce the duration and limit the scope thereof, and the covenant or agreement shall then be enforceable in its reduced form. 

  
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 7.    ACKNOWLEDGEMENT. Employee hereby
acknowledges that: 
 (a)    The Company advises Employee to consult with an attorney before signing this Agreement; 

(b)    Employee has obtained independent legal advice from an attorney of Employee’s own choice with respect to this
Agreement or Employee has knowingly and voluntarily chosen not to do so; 
 (c)    Employee freely, voluntarily and
knowingly entered into this Agreement after due consideration; 
 (d)    Employee had 21 days to review and consider
this Agreement;  
 (e)    If Employee knowingly and voluntarily chooses to do so, Employee may accept the terms
of this Agreement on or after the date of Employee’s termination of employment but before the 21 day consideration period provided for above has expired; 

(f)    Employee is signing this Agreement on or after the date of Employee’s termination of employment; 

(g)    Employee has a right to revoke this Agreement by notifying
                     at the Company in writing within seven days of Employee’s execution of this Agreement. Unless revoked, this Agreement will
become effective on the eighth day following its execution (the “Effective Date”); 

(h)    Changes to this Agreement before its execution, whether material or immaterial, do not restart the consideration
period; 
 (i)    In exchange for Employee’s waivers, releases and commitments set forth herein, including
Employee’s waiver and release of all claims arising under the ADEA, the payments, benefits and other considerations that Employee is receiving pursuant to this Agreement exceed any payment, benefit or other thing of value to which Employee
would otherwise be entitled, and are just and sufficient consideration for the waivers, releases and commitments set forth herein; and 

(j)    No promise or inducement has been offered to Employee, except as expressly set forth herein, and Employee is not
relying upon any such promise or inducement in entering into this Agreement. 
 (k)    EMPLOYEE REPRESENTS THAT EMPLOYEE
HAS READ THE TERMS OF THIS AGREEMENT, THAT THIS AGREEMENT IS WRITTEN IN A MANNER THAT EMPLOYEE CAN UNDERSTAND AND THAT THE COMPANY HAS NOT MADE ANY REPRESENTATIONS CONCERNING THE TERMS OR EFFECTS OF THIS AGREEMENT OTHER THAN THOSE CONTAINED HEREIN.

  
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 EMPLOYEE FREELY AND VOLUNTARILY AGREES TO ALL THE TERMS AND CONDITIONS HEREOF, AND SIGNS THE SAME AS
EMPLOYEE’S OWN FREE ACT. 
 IN WITNESS WHEREOF, and intending to be legally bound, the Parties agree to the terms of this Agreement.

  

									
		 		 		 	Radian Group Inc.
					
	Date:	 	  
	 		 	By:	 	  

		 		 		 	Name:	 	
		 		 		 	Title:	 	Chief Human Resources Officer
					
	Date:	 	  
	 		 	By:	 	  

		 		 		 		 	Richard G. Thornberry

  
 19 

 Execution Copy 
  

 Exhibit C 

Restrictive Covenants Agreement 

  
 20

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