| · | Executive      Severance Program of Triad Guaranty Inc. (the “Company”) is administered      under the Triad Guaranty Insurance Corporation Severance Pay Plan (“the      Plan”), as amended and restated. |
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| · | Provide      a reasonable amount of financial security during the individual’s      transition to other employment due to an involuntary      separation. |
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| · | Recognize      a combination of the individual’s position / level and length of      service. |
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| · | Provide      clear criteria, guidelines and eligibility schedule to ensure consistent      administration. |
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| · | Executives      in the executive compensation / benefit program who were employed by the      Company as of March 1, 2010 and whose employment is terminated at any time      on or before December 31, 2012, without cause, including job elimination,      reduction in force, and/orrestructuring.* |
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| · | Executives      who have entered into employment agreements providing for severance      payment terms are not eligible for this program unless there is a      cancellation of the existingagreement. |
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| · | Executives      who are terminated for cause are not eligible for this      program. |
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| · | Voluntary      resignations do not qualify under thisprogram. |
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| · | Executive      Vice Presidents and Senior Vice Presidents qualify for the number of      months set forth in Column I below. |
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| · | Vice      Presidents who are members of the Executive Committee (Top Tier) qualify      for the number of months set forth in Column II  below. |
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|                  | Months      of Severance Credit |
|                       | EVP      / SVP | VP      (Top Tier) |
| Years      of Service | Column      I | Column      II |
| less      than 1 year | 12 | 10 |
| 1-3.99      years     | 13 | 11 |
| 4 -      6.99 years   | 15 | 13 |
| 7-8.99      years     | 16 | 14 |
| 9      or more        | 18 | 16 |

| · | Participants      will receive COBRA benefits (provided they are eligible for COBRA of both      medical and dental coverage) at the active employee rate for a number of      months equal to the “Months of Severance Pay Credit” identified in the      above chart or until COBRA otherwiseterminates. |
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| · | In      addition to those benefits specifically provided by the Plan, participants      will also receive twelve months of outplacement services to be paid for by      the Company. |
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