Document:

Fourth Amendment to Credit Agreement

  
 EXHIBIT 10.39

  
 FOURTH AMENDMENT 
  
 FOURTH AMENDMENT (this “Fourth Amendment”), dated as of January 8,
2004, among RADIAN REINSURANCE INC. (f/k/a Enhance Reinsurance Company), a New York stock insurance company (the “Borrower”), the Banks from time to time party to the Credit Agreement referred to below, and DEUTSCHE BANK, AG NEW YORK
BRANCH, as Agent. Unless otherwise defined herein, capitalized terms used herein and defined in the Credit Agreement are used herein as therein defined. 
  
 W I T N E S S E T H : 
  
 WHEREAS, the Borrower, the Banks, and the Agent have entered into Credit Agreement, dated as of November 7, 2001 (as
amended, modified or supplemented through the date hereof, the “Credit Agreement”); and 
  
 WHEREAS, subject to the terms and conditions set forth below, the parties hereto wish to amend and/or modify certain provisions of the Credit Agreement as
provided herein; 
  
 NOW, THEREFORE, it is agreed; 
  

	A.	Amendments to the Credit Agreement 

  
 1. The definition of the term “Loss Threshold Incurrence Date” appearing in Section 1.01 of the Credit Agreement is hereby amended by deleting
the amount “$340,000,000” appearing therein and inserting the amount “$210,000,000” in lieu thereof. 
  
 2. Section 3.04(a) of the Credit Agreement is hereby amended by deleting the date “January 9, 2010” appearing immediately before the text
“(the “Expiry Date”)” in said Section and inserting the new date “January 9, 2011” in lieu thereof. 
  
 3. The Credit Agreement is hereby further amended by deleting Schedule I thereto and inserting Schedule I attached hereto in lieu thereof. 
  

	B.	Miscellaneous Provisions 

  
 1. In order to induce the Banks to enter into this Fourth Amendment, the Borrower hereby represents and warrants to each of the Banks that (i) all of the
representations and warranties contained in the Credit Agreement and in the other Credit Documents are true and correct in all material respects on and as of the Fourth Amendment Effective Date (as defined below), both before and after giving effect
to this Fourth Amendment (unless such representations and warranties relate to a specific earlier date, in which case such representations and warranties shall be true and correct as of such earlier date) and (ii) there exists no Default or Event of
Default on the Fourth Amendment Effective Date, both before and after giving effect to this Fourth Amendment. 
  

 2. All parties hereby acknowledge and agree that Coöperatieve Centrale Raiffeisen-Boerenleenbank,
B.A., “Rabobank Nederland”, New York Branch is hereby released as a party under the Credit Agreement and its commitments thereunder terminated, and is hereby released of any and all obligations thereunder (except for those provisions that
expressly survive termination). 
  
 3. This Fourth Amendment is
limited as specified and shall not constitute a modification, acceptance or waiver of any other provision of the Credit Agreement or any other Credit Document. 
  

4. This Fourth Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which
counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A complete set of counterparts executed by all the parties hereto shall be lodged with, the Borrower and the
Agent. 
  
 5. THIS FOURTH AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. 
  
 6. This Fourth Amendment shall become effective on the date (the “Fourth Amendment Effective Date”) when: 
  
 (i) the Borrower and each Bank shall have signed a
counterpart hereof (whether the same or different counterparts) and shall have delivered (including by way of facsimile transmission) the same to the Agent; and 
  
 (ii) the Borrower shall have paid to the Agent and to the Banks all costs, fees and expenses (including,
without limitation, legal fees and expenses) payable to the Agent and/or the Banks to the extent then due. 
  
 7. From and after the Fourth Amendment Effective Date, all references in the Credit Agreement and in the other Credit Documents to the Credit Agreement
shall be deemed to be referenced to the Credit Agreement as modified hereby. 
  
 *     *     * 
  

 -2- 

 IN WITNESS WHEREOF, the undersigned have caused this Fourth Amendment to be duly executed and delivered
as of the date first above written. 
  

					
	 RADIAN REINSURANCE INC.

		
	 By
	 	 /s/ Ari B. Ginsburg

	 	 	

	 Title: Ari B. Ginsburg – Vice President

  

					
	 WESTLB AG NEW YORK BRANCH

		
	 By
	 	 /s/ Samuel Bridges

	 	 	

	 	 	 Title:
	 	 Samuel Bridges
 Director

  

					
		
	 By
	 	 /s/ David Sellers

	 	 	

	 	 	 Title:
	 	 David Sellers
 Executive Director

  

					
	 NORDDEUTSCHE LANDESBANK
GIROZENTRALE, NEW YORK
BRANCH

  

					
		
	 By
	 	 /s/ Stephen K. Hunter

	 	 	

	 	 	 Title:
	 	 Stephen K. Hunter
 SVP & Deputy General Manager

  

					
		
	 By
	 	 /s/ Stephanie Finnen

	 	 	

	 	 	 Title:
	 	 Stephanie Finnen
 Vice President

  

					
	 COÖPERATIVE CENTRALE
RAIFFEISEN-BOERENLEENBANK,
B.A., “RABOBANK NEDERLAND”,
NEW YORK
BRANCH

  

					
		
	 By
	 	 /s/ Brett Delfino

	 	 	

	 	 	 Title:
	 	 Brett Delfino
 Executive Director

  

					
		
	 By
	 	 /s/ Wing Ng

	 	 	

	 	 	 Title:
	 	 Wing Ng
 Executive Director

  

					
	 DEUTSCHE BANK AG,
NEW YORK BRANCH,
Individually and as Agent

  

					
		
	 By
	 	 /s/ John S. McGill

	 	 	

	 	 	 Title:
	 	 John S. McGill
 Director

  

					
		
	 By
	 	 /s/ Ruth Leung

	 	 	

	 	 	 Title:
	 	 Ruth Leung
 Director

  

 SCHEDULE I 
  

PART A 
  
 Commitments 
  

				
	 Name

	  	Commitment

		
	 Deutsche Bank AG, New York Branch
	  	$	50,000,000
		
	 WestLB AG New York Branch
	  	$	25,000,000
		
	 Norddeutsche Landesbank Girozentrale, New York Branch
	  	$	20,000,000
		
	 Total
	  	$	95,000,000
	 	  	
	

  
 PART B 
  
 Part B Banks 
  
 Deutsche Bank AG New York Branch 
 WestLB AG New York Branch 
 Norddeutsche Landesbank Girozentrale, New York
Branch 
  
 PART C 
  
 Part C Banks/Contingent Commitments 
  
 None.Exempt Employee Short-Term Incentive Plan for 2003

 EXHIBIT 10.13 
  
 D&E COMMUNICATIONS, INC. 
  
 EXEMPT EMPLOYEE SHORT-TERM INCENTIVE PLAN 
  
 Section 1: Purpose 
  
 The Board of Directors of D&E Communications, Inc. (“D&E” or the “Company”) has established this incentive plan (the “Plan”) for all
eligible Exempt employees of the Company and its subsidiaries. The purpose of this plan is to provide incentives for the Plan Participants to meet or exceed the financial goals of the Company. The Plan is intended to achieve this result by providing
the opportunity for Participants to receive the payment of an annual incentive, which complements their base salary. 
  
 Section 2: Plan Year 
  
 A “Plan Year” for purposes of this Plan shall be a calendar year or such other fiscal year as D&E elects to report its financial performance, but only if the Board of Directors has adopted performance
goals for Plan purposes for such year. 
  
 Section 3: Eligibility

  
 An eligible Plan Participant is defined as an Exempt Regular Full-Time
employee of the Company and its subsidiaries, and excludes employees of the Company who are (1) eligible to participate in another comparable incentive plan or receives an incentive or commission payment for sales generation, (2) are eligible
participants in the Premium Pay for Premium Performance Program or (3) are covered by a collective bargaining agreement. 
  
 Employees hired by November 30th of
the current Plan Year and who remain on active status through the date of such award distribution will be eligible to participate in the Plan. Calculation of the incentive award will be based on a proration of 1/12 for each full month of
continuous service following the date of hire. For example, if an employee’s Date of Hire is August 10, then his or her eligible months are September through December or 4/12th of the annual incentive award. 
  
 If a Plan Participant’s employment with the Company is terminated or the Plan Participant resigns his or her employment with the Company during the Plan Year or
thereafter up to and including the date of payment for the Plan Year incentive award, then subject to a determination by the Plan Administrator (as defined below) to the contrary, that employee shall not be eligible to receive an incentive award
payment. 

			
	 D&E Communications, Inc.
	  	 
	 Employee Short-Term Incentive Plan
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 However, if the active service of a
Participant in the Plan is terminated due to death during the Plan Year or a Participant is on a disability(s) or an approved leave of absence(s) for more than 8 weeks during the Plan Year and the Participant otherwise has demonstrated acceptable
performance as outlined in the Company’s appraisal process, then, notwithstanding the language of the proceeding paragraph, the appropriate incentive award as determined by the Board of Directors or a duly appointed committee thereof (the
“Plan Administrator”) will be prorated accordingly and will be paid to the individual or individual’s designated beneficiary. 
  
 If a Participant’s active service is terminated due to death after the conclusion of the Plan Year, but prior to payment of the Participant’s incentive award,
then the Participant’s designated beneficiary will otherwise be eligible to receive payment of the Participant’s full incentive award for the Plan Year. 
  
 The incentives awards will be computed on a full monthly basis (Example: Date of Hire - August 10, Approved Leave Date –
November 3 through December 31, eligible months = September and October or 2/12th of the incentive award).

  
 Section 4: Activating the Plan 
  
 The operation of the Plan is predicated on attaining or exceeding annual performance goals.
The goals will consist of internally measured financial achievements. The goal for each Plan Year will be approved by D&E’s Board of Directors early in the Plan Year. 
  
 Section 5: Calculation of Awards 
  
 The Board of Directors shall establish the goals for D&E’s financial performance early each Plan Year (See Appendix A – Current Plan Year Goals).

  
 In the event the Company exceeds its pre-established financial goals, eligible
Plan Participants may receive an incentive award based upon their position with the Company during the applicable Plan Year (See Appendix B – Current Plan Year Payout Factors and Appendix C – Examples of Payout Calculations).

  
 In addition to exceeding the pre-established financial goals established for
the Plan, a Plan Participant must also meet “Acceptable Performance” standards for the Plan Year in order to be eligible for an incentive award. “Acceptable Performance” standards shall be defined by the Plan Administrator (See
Section 7: Plan Administrator). The Plan Administrator reserves the right to modify awards (increase or decrease) based on individual contributions and conveys this authority to the Company’s Senior Vice Presidents for all levels except at the
Officer level. Adjustments for the Officer level will be at the discretion of the Plan Administrator 

			
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	 Employee Short-Term Incentive Plan
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 If a Plan Participant changes status
within the Plan Year (i.e., Supervisor to Non-Supervisor, Non-Supervisor to Supervisor, or one Payout Level to Another Payout Level), the Participant’s incentive award payout for the Plan Year, if any, will be prorated accordingly by Payout
Levels and/or Eligibility Status. 
  
 Section 6: Distribution of Awards

  
 Distribution of incentive award payments, if any, will be made by March
15 of the following year. In the event of a Plan Participant’s death, any award approved for the deceased Plan Participant will become payable to the Plan Participant’s designated beneficiary. 
  
 Section 7: Plan Administration 
  
 The Board of Directors or the Plan Administrator shall, with respect to the Plan, have full
power and authority to construe, interpret and manage, control and administer this Plan, and to pass and decide upon cases in conformity with the objectives of the Plan under such rules as the Board of Directors may establish. Promptly after the end
of the Plan Year, the Plan Administrator shall determine those eligible Participants and the amount of incentive proposed to be awarded to them. The Plan Administrator shall then report such determinations to the Board of Directors for consideration
and approval. 
  
 Any decision made or action taken by the Plan Administrator,
arising out of, or in connection with the administration, interpretation and effect of the Plan shall be at its absolute discretion and shall be conclusive and binding upon all parties. 
  
 No member of the Board of Directors shall be liable for any act or action hereunder, whether of omission or commission, by a Plan
Participant or employee or by any agent to whom duties in connection with the administration of the Plan have been delegated in accordance with the provision of the Plan. 
  
 Section 8: Amendment, Modification, Suspension, or Termination 
  
 The Company reserves the right, by and through its Board of Directors to amend, modify, suspend, reinstate or terminate all or any part of
the Plan at the end of any Plan Year in any way that does not diminish the right of a Plan Participant to receive payment for achievement of any prior years’ goals. The Plan Administrator shall give prompt written notice to each Participant of
any amendment, suspension, termination or material modification of the Plan. The Board of Directors also reserves the right to withhold or alter incentive award payments based on the individual’s or Company’s performance or circumstances
deemed to be highly unusual at any time prior to payment. 

			
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	 Employee Short-Term Incentive Plan
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 Section 9: Effective Date of the
Plan 
  
 The effective date of the Plan shall be January 1, 2003. 

 
 Section 10: Employer Relation with Participants 
  
 Neither the establishment of the Plan nor its maintenance shall be construed as conferring
any legal rights upon any Plan Participant or any person for a continuation of employment, and they shall not interfere with the right of the Company to discharge any Plan Participant or otherwise deal with him or her without regard to the existence
of the Plan. 
  
 Your employment with D&E or its subsidiaries, as well as all
employment relationships in the Commonwealth of Pennsylvania, is known as an “at will” relationship. “At will” means: An employee’s employment and compensation can be terminated with or without cause, and with or without
notice, at any time by either the company or the employee. 
  
 Section 11:
Governing Law 
  
 Except to the extent pre-empted under federal law, the
provisions of the Plan shall be construed, administered and enforced in accordance with the domestic internal law of the Commonwealth of Pennsylvania. 
  
 In the event of relevant changes to the Internal Revenue Code, related rulings and regulations or changes imposed by other regulatory agencies affecting the continued
appropriateness of the Plan and awards made thereunder, the Board of Directors may, at its sole discretion, accelerate or change the manner of payments of any unpaid incentive awards or amend the provisions of the Plan. 
  
 The Board of Directors approved the Plan on February 26, 2003. 

			
	 D&E Communications, Inc.
	  	 
	 Employee Short-Term Incentive Plan
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 APPENDIX A

 CURRENT PLAN YEAR GOALS 
  
 CORPORATE GOAL – 2003 
  
 The Board of Directors of D&E Communications, Inc., has established the following Corporate Goal for the 2003 Plan Year: 
  
 D&E Communications, Inc., Operating Income*:
D&E Communications, Inc., must exceed its Operating Income goal of $30,000,000 for the period January 1 through December 31, 2003. 

	*	Operating Income is operating revenue less operating expenses as defined by Generally Accepted Accounting Principles (GAAP) and as recorded on the Company quarterly and annual
statements. 

  

	 	Ø	For every dollar that exceeds this Corporate Goal, the Company will contribute fifty cents per dollar to the Plan for the allocation among eligible Participants.

  

	NOTE:	Payouts from this Plan are contingent on exceeding 100% of the Corporate Goal.

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