Document:

Employment Agreement

 EXHIBIT 10.1 
 EMPLOYMENT AGREEMENT 
 This EMPLOYMENT AGREEMENT (this “Agreement”), is dated
August 3, 2006 and effective as of March 31, 2006, between Michael Kowalsky (the “Executive”) and Medallion Financial Corporation, a Delaware corporation (the “Company”). 
 WHEREAS, the Company has employed Executive pursuant to an employment agreement dated February 20, 1996 and subsequent agreements dated
March 29, 1999 and February 3, 2003, as amended (collectively, the “Prior Agreements”); and 
 WHEREAS, the Company
wishes to continue the employment of Executive, and Executive wishes to continue to serve the Company, in the capacities and on the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, it is hereby agreed as follows: 
 1. Employment. 
 1.1 Agreement to
Employ. Upon the terms and subject to the conditions of this Agreement, the Company hereby agrees to continue to employ Executive and Executive hereby agrees to continue his employment by the Company. 
 1.2 Employment Period. Unless terminated pursuant to Section 4 hereof, the term of this Agreement shall commence on the date first written above (the
“Commencement Date”) and shall continue until June 30, 2009 (the “Initial Employment Period”). The Initial Employment Period shall be extended automatically without further action by either party by one additional yearly
periods (added to the end of the Initial Employment Period) commencing July 1, 2009, and on each succeeding July 1 thereafter (each a “Subsequent Employment Period”), unless, not later than one hundred eighty (180) days
prior to the end of the then applicable period, either the Company or Executive shall have notified the other in writing of its intention not to renew this Agreement. The Initial Employment Period, together with any extension thereof pursuant to
this Section 1.2, shall be referred to as the “Employment Period.” 
 2. Position; Duties and
Responsibilities. 
 2.1 General. During the Employment Period, Executive shall serve as the Executive Vice President of the Company, President of
the Company’s subsidiary Freshstart Venture Capital Corp. and President of the Company’s subsidiary Medallion Funding Corp. Notwithstanding the titles listed above, Executive shall be the primary executive in charge of the Company’s
taxi medallion loan portfolio within and without the New York area with all persons/functions in the medallion lending area reporting to Executive. Executive shall have such duties and responsibilities as are consistent with and customarily assigned
to his position with the Company. Executive shall also have such other reasonable duties and responsibilities as may from time to time be assigned to him by the Chief Executive Officer, the President, the Board of Directors (the “Board”).
During the Employment Period, Executive shall devote his full attention and time to the business and affairs of the Company and shall carry out such duties and responsibilities faithfully and to the best of his ability. Executive may also be
required to perform such additional duties within his business expertise for the Company’s subsidiaries as may be reasonably requested from time to time by the Chief Executive Officer, the President, the Board. 

 2.2 Exclusivity. During the Employment Period and subject to the Company’s Code of Conduct, Executive shall
not engage in any other business activities that interfere in any material respect with the duties and responsibilities of Executive hereunder. 
 3. Compensation and Related Matters. 
 3.1 Base Salary. For the period between the Commencement Date and
June 30, 2006, the Company shall pay to Executive a base salary (the “Base Salary”) of $245,300. For each twelve-month period during the Employment Period, commencing with the twelve-month period beginning on the July 1, 2006,
the Company shall pay to Executive a Base Salary at a rate of no less than 3% above the then existing Base Salary. The Base Salary shall be payable in accordance with the normal payroll procedures of the Company. The Base Salary shall be reviewed by
the Board not less than once each fiscal year. 
 3.2 Bonus. In addition to his Base Salary, Executive shall be entitled to participate in all bonus
programs or plans maintained by the Company from time to time on the same basis as other similarly situated executive employees of the Company; provided, that Executive’s annual bonus shall be no less than $37,000, or, if less than a full
fiscal year, then payment shall be accrued and payable based on pro rata calculation commencing from date of most recent payment to the date of employee termination (the “Accrued Bonus”), payable on or before March 31 of each year
during the term of this Agreement. Executive agrees that 15% of his annual bonus (not to exceed $10,000) shall be used to purchase the Company’s common stock (NASDAQ: TAXI) in the open market within 90 days of receipt of such bonus, or if
prohibited by law, as soon as reasonably practicable thereafter. 
 3.4 Other Benefits. During the Employment Period, subject to, and to the extent
Executive is eligible under their respective terms, Executive shall be entitled to receive such benefits as are, or are from time to time hereafter, generally provided by the Company to its senior management employees (other than those provided
under or pursuant to separately negotiated individual employment agreements or arrangements) under any retirement plan, group life insurance, medical and dental insurance, accidental death and dismemberment insurance, travel accident insurance or
other similar plan or program of the Company. 
 3.5 Expense Reimbursement. The Company shall reimburse Executive in accordance with its general
reimbursement policies for all ordinary and necessary expenses incurred by Executive on behalf of the Company upon the presentation of appropriate supporting documentation. 
 3.6 Vacations. Executive shall be entitled to 4 weeks paid vacation for each year during the Employment Period, which vacations shall be taken at such time or times as shall not unreasonably interfere with
Executive’s performance of his duties under this Agreement. 
 3.7 Car Allowance. In conjunction with his responsibilities, the Company shall pay
or reimburse the cost of leasing a suitable automobile (equivalent to a Lexus LS 430) for Executive for his use during the Employment Period (or as otherwise set forth herein) of approximately $1,000.00 per month. 
 4. Termination of Employment Period. 
 4.1 Termination Without Cause. The Company may, by notice to Executive at any time during the Employment Period, terminate the Employment Period without Cause (as defined below). 
  

 2 

 4.2 Termination With Cause. The Company may, by notice to Executive at any time during the Employment Period,
terminate the Employment Period with Cause. For purposes of this Agreement, “Cause” shall mean, as determined by the Board: (i) willful acts of gross misconduct or gross negligence by Executive in the performance of his duties
hereunder, (ii) an intentional and material breach of this Agreement by Executive, (iii) substantial and continued failure by Executive to perform his duties hereunder which would be materially injurious to the Company; provided that the
Company’s economic performance or failure to meet any specific projection shall not, in and of itself, constitute “Cause”, (iv) Executive’s illegal use of drugs (including narcotics) which is, or could reasonably be expected
to become, materially injurious to the reputation or business of the Company or which impairs, or could reasonably be expected to impair, the performance of Executive’s duties hereunder, (v) Executive’s conviction by a court of
competent jurisdiction of, or pleading “guilty” or “no contest” to (x) felony fraud, embezzlement or a crime of a similar nature, (y) a felony, or (z) any other criminal charge which has or could reasonably be
expected to have a material adverse impact on the Company’s reputation and standing in the community, or (vi) Executive’s violation of any of the provisions of Sections 6, 7, or 8 herein. Any notice of termination for Cause given by
the Company pursuant to Sections 4.2(ii), (iii) or (iv) above shall specify in writing in reasonable detail the nature of Executive’s action or inaction that is the cause for giving such notice. Executive will have 30 days to cure, to
the reasonable satisfaction of the Board, any action or inaction charged by the Company for Cause under (i), (ii), (iii) or (iv) above. In the event of a termination of the Employment Period for Cause under (i), (iv), (v) or
(vi) above, the Company shall specify in writing in reasonable detail the nature of the Executive’s action that is the cause for such termination and the Employment Period shall terminate immediately upon notice by the Company of
termination for Cause following the Executive’s presentation of his defense to the Board as set forth below. In all other cases of a termination of the Employment Period for Cause, the Employment Period shall terminate 30 days after such notice
of termination for Cause, unless Executive has satisfactorily cured such actions or inactions. In the event termination for Cause is determined pursuant to the discretion of the Company’s Board, the Executive shall be given an opportunity to
defend his actions before the Board. The termination of Executive’s employment hereunder on account of the expiration of this Agreement by way of a notice of non-renewal pursuant to Section 1.2 shall not constitute a termination by the
Company without Cause; provided, however, that if the Company does not offer the Executive a renewal or replacement of this Agreement pursuant to Section 1.2 or offer the Executive a replacement employment agreement, the Executive shall be
entitled to receive the payments set forth in Section 5.6. 
 4.3 Voluntary Termination by Executive with Good Reason. Executive may terminate
his employment with the Company for Good Reason upon thirty (30) days written notice, which notice shall specifically set forth the nature of such Good Reason. The term “Good Reason” shall mean: (i) the substantial and material
diminution in Executive’s duties, responsibilities, reporting relationship or position, (ii) without Executive’s consent, the relocation of Executive’s principal office location more than twenty-five (25) miles from its
current location, or (iii) the Company’s material breach of any provision of this Agreement; provided, however, that the term “Good Reason” shall not include a termination as a result of nonrenewal of this Agreement pursuant to
Section 1.2 hereof or by reason of a Disability pursuant to Section 4.5 hereof. Notwithstanding the occurrence of any such event or circumstance above, such occurrence shall not be deemed to constitute Good Reason hereunder if, within the
thirty-day notice period, the event or circumstance giving rise to Good Reason has been fully corrected by the Company. 
 4.4 Voluntary Termination by
Executive without Good Reason. Executive may, by notice to the Company at any time during the Employment Period, voluntarily resign without Good Reason from employment with the Company and terminate the Employment Period. The effective date of
such termination shall be the date that is thirty (30) days following the date on which such notice is given. 
  

 3 

 4.5 Disability. During the Employment Period, if, as a result of physical or mental incapacity or infirmity,
Executive shall be unable to perform his duties under this Agreement for period of at least 120 continuous days during any employment period of 12 consecutive months (each a “Disability Period”), and at the end of the Disability Period
there is no reasonable probability that Executive can promptly resume his duties hereunder, Executive shall be deemed disabled (the “Disability”) and the Company, by notice to Executive, shall have the right to terminate the Employment
Period for Disability at, as of or after the end of the Disability Period. The existence of the Disability shall be determined by a reputable, licensed physician selected by the Company in good faith, whose determination shall be final and binding
on the parties. Executive shall cooperate in all reasonable respects to enable an examination to be made by such physician. Notwithstanding the foregoing, the Company may conclusively determine Executive to be disabled and terminate the Employment
Period on account of Disability at any time after Executive has commenced receiving benefits under any long-term disability insurance policy established by the Company which policy provides a minimum benefit of 55% of total compensation paid the
executive for the prior 12 months and which is in force at least 24 months from the initial payment of a claim thereunder. 
 4.6 Death. The Employment Period shall end on the date of Executive’s death. 
 5. Termination
Compensation.  
 5.1 Termination Without Cause by the Company, or by Executive with Good Reason. If, prior to a Change in Control, the Employment
Period is terminated by the Company without Cause, or by Executive with Good Reason, the Company (i) will pay to Executive in a lump sum (x) Executive’s accrued but unpaid Base Salary, as in effect immediately prior to such
termination, through the date of termination and (y) the Accrued Bonus (and Executive shall be relieved of any obligation to use such proceeds to purchase Company stock), (ii) will pay to Executive an amount equal to Executive’s Base
Salary until the expiration date of the then applicable Initial Employment Period or Subsequent Employment Period, as the case may be plus Executive’s Accrued Bonus during such applicable periods and (iii) will continue health benefits and
car lease payments for the Executive until the expiration of the then applicable Employment Period. The payments set forth in Section 5.1(ii) and 5.1(iii) shall be payable in accordance with the normal payroll procedures of the Company. In
addition, as of the date of such termination, all options granted to Executive shall become immediately vested and exercisable. The Company shall have no obligation to continue any other benefits provided for hereunder past the date of termination.

 5.2 Termination on account of Death. If, prior to a Change in Control, the Employment Period is terminated by the Company on account of
Executive’s death, the Company will pay to Executive (or his estate) in a lump sum Executive’s Base Salary through the date of termination and any Accrued Bonus. The Company shall have no obligation to continue any other benefits provided
for hereunder past the date of termination. 
 5.3 Termination on account of Disability. If, prior to a Change in Control, the Employment Period is
terminated by the Company on account of Executive’s Disability, the Company (i) will pay to Executive in a lump sum (x) Executive’s accrued but unpaid Base Salary, as in effect immediately prior to such termination, through the
date of termination and (y) any Accrued Bonus (and Executive shall be relieved of any obligation to use such proceeds to purchase Company stock), (ii) will pay to Executive an amount equal to Executive’s Base Salary for six

  

 4 

 months following the termination plus Executive’s Accrued Bonus during such period and (iii) shall provide
health benefit coverage and continue lease payments on Executive’s automobile for six months following the termination. The Company shall have no obligation to continue any other benefits provided for hereunder past the date of termination.

 5.4 Certain Other Terminations. If, prior to a Change in Control, the Employment Period is terminated by the Company for Cause or Executive resigns
voluntarily without Good Reason, the Company shall pay to Executive in a lump sum Executive’s Base Salary plus Executive’s Accrued Bonus through the date of termination. The Company shall have no obligation to continue any other benefits
provided for hereunder past the date of termination. All outstanding options then held by Executive to purchase shares of the Company’s common stock shall be forfeited upon a termination by the Company for Cause or if Executive resigns
voluntarily without Good Reason. 
 5.5 Compensation following a Change in Control. Upon the occurrence of a Change in Control (as defined below) in
the event this Agreement is not assumed by the successor corporation, the Executive shall be entitled to receive the termination payments set forth in Section 5.1. In addition, upon the occurrence of a Change in Control (as defined below) in
the event this Agreement is assumed by the successor corporation, the Executive shall be entitled to receive a lump sum payment representing Executive’s Base Salary as in effect immediately prior to the Change in Control, for the prior twelve
months. For purposes of this Section 5.5, a “Change in Control” shall be deemed to have taken place if (i) any “Person” (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the
“Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) other than Alvin Murstein or Andrew Murstein, or any of their respective affiliates, is or becomes a “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the “Voting
Securities”); provided, however, that the event described above shall not be deemed to be a Change in Control by virtue of any of the following acquisitions: (a) by the Company or any subsidiary of the Company in which the Company owns
more than 50% of the combined voting power of such entity (a “Subsidiary”), (b) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, (c) by any underwriter temporarily holding
the Company’s Voting Securities pursuant to an offering of such Voting Securities, or (d) pursuant to any acquisition by Executive or any group of persons including Executive (or any entity controlled by Executive or any group of persons
including Executive) or (ii) during any period of 24 months or less, the persons who were Continuing Directors (as defined below) immediately before the beginning of such period shall cease, for any reason other than death, to constitute at
least a majority of the Board, provided that any director who was not a director at the beginning of such period shall be deemed to be a Continuing Director if clause (ii) of the definition of “Continuing Director” applies.
“Continuing Director” shall mean any member of the Board who either (i) is a member of the Board on the date hereof, or (ii) was nominated for election to the Board by, or on the recommendation of or with the approval of, at
least two-thirds of the directors who then qualified as Continuing Directors. 
 5.6 Compensation for Non-Renewal. In the event the Company does not
offer the Executive with a renewal of this Agreement pursuant to Section 1.2 or offer the Executive a replacement employment agreement (at no less than Executive’s then current Base Salary) prior to the expiration of the then current
Employment Period, the Company shall provide the Executive with a payment which shall consist of (i) a lump sum payment equal to Executive’s Base Salary, as in effect immediately prior to the expiration of the then current Employment
Period, for the prior six months and (y) shall provide health benefit coverage and continue lease payments on Executive’s automobile for six months following the expiration of the then current Employment Period. 
  

 5 

 6. Confidentiality. 
 Executive acknowledges that he has previously executed and delivered to the Company a Proprietary Invention and Assignment Agreement (“PIIA”) and that the terms of such agreement remain in full force and
effect. 
 7. Noncompetition. 
 Executive agrees that, so long as the Company has paid the salary and benefits as set forth herein, or the termination payments as set forth in Section 5, and is not otherwise in breach of its obligations hereunder, for the period
commencing on the Commencement Date and ending twelve (12) months after Executive’s termination of employment hereunder, Executive shall not, directly or indirectly, individually or jointly, own any interest in, operate, join, control or
participate as a partner, director, principal, officer, or agent of, enter into the employment of, act as a consultant to, or perform any services for any entity which materially competes with the taxi medallion lending business of the Company or
its affiliates. Nothing herein, however, shall prohibit Executive from acquiring or holding any issue of stock or securities of any competitive business, individual, partnership, firm, or corporation (collectively “Entity”) which has any
securities listed on a national securities exchange or quoted in the daily listing of over-the-counter market securities, provided that at any one time he and his spouse do not own more than five percent (5%) of the voting securities of any
such Entity. The obligations of Executive pursuant to this Section 7 shall survive the expiration or termination of this Agreement. 
 8. Nonsolicitation. 
 Executive agrees that, so long as the Company has paid the salary and benefits as set forth
herein, or the termination payments as set forth in Section 5, and is not otherwise in breach of its obligations hereunder, for the period commencing on the Commencement Date and ending twelve (12) months after the termination of
Executive’s employment hereunder, Executive shall not (i) hire (directly or indirectly), solicit (other than by newspaper or other media general solicitation), take away, or otherwise interfere with the relationship of the Company or its
subsidiaries with any person who is, or within the most recent twelve-month period was, employed by or otherwise engaged to perform services for the Company or its subsidiaries or (ii) take away, or otherwise interfere with the relationship of
the Company or its subsidiaries with any person or entity who is, or within the then most recent twelve-month period was, a customer or client of the Company. The obligations of Executive pursuant to this Section 8 shall survive the expiration
or termination of this Agreement. 
 9. Successors; Binding Agreement. 
 This Agreement and all rights of Executive hereunder shall inure to the benefit of and be enforceable by Executive and Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive should die while any amounts would still be payable to him hereunder if he had continued to live, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee, or other beneficiary or, if there be no such beneficiary, to Executive’s estate. 
  

 6 

 10. Survivorship. 
 The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations. 
 11. Waiver. 
 In consideration of the benefits granted hereunder, and
upon receipt of Executives bonus for the year ended December 31, 2005, Executive agrees to release any and all alleged, potential, or actual claims against the Company and any of its affiliates, subsidiaries, officers or directors under the
Prior Agreements. The Company acknowledges that as of the Commencement Date, Executive owes no sums to the Company for salary or bonus overpayments and the Company agrees to release Executive from any and all alleged, potential, or actual claims
against Executive which it may have relating to salary or bonus payments. 
 12. Miscellaneous. 
 12.1 Notices. Any notice, consent or authorization required or permitted to be given pursuant to this Agreement shall be in writing and received by the party for
or to whom intended, at the address of such party set forth below, by registered or certified mail, postage paid or personally delivered or sent by facsimile transmission (deemed given upon receipt), or at such other address as either party shall
designate by notice given to the other in the manner provided herein. 
 If to the Company: 
 Medallion Financial Corporation 
 437 Madison Avenue 
 New York, NY 10022 
 Attn: President 
 Facsimile: 212-328-2121 
 If to Executive: 
 To his most recent address on file with the Company 
 12.2 Taxes. The Company is authorized to withhold (from any compensation or benefits payable hereunder to Executive) such amounts for income tax, social security, unemployment compensation and other taxes as shall be necessary or
appropriate in the reasonable judgment of the Company to comply with applicable laws and regulations. 
 12.3 Governing Law. This Agreement shall be
governed by and construed and enforced in accordance with the laws of the State of New York, without reference to the principles of conflicts of laws therein. Each party hereto irrevocably agrees that any legal action or proceeding to enforce the
provisions of this Agreement shall be brought and determined in the courts of the State and County of New York and each party hereto hereby irrevocably submits with regard to any such action or proceeding for itself and its successors and assigns to
the jurisdiction of the aforesaid courts. 
  

 7 

 12.4 Headings. All descriptive headings in this Agreement are inserted for convenience only and shall be
disregarded in construing or applying any provision of this Agreement. 
 12.5 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. 
 12.6 Severability. If any
provision of this Agreement, or any part thereof, is held to be unenforceable, the remainder of such provision and this Agreement, as the case may be, shall nevertheless remain in full force and effect. 
 12.7 Entire Agreement. This Agreement and the PIIA contain the entire agreement and understanding between the Company and Executive with respect to the subject
matter hereof. This Agreement supersedes any prior agreement between the parties relating to the subject matter hereof. 
 12.8 Validity. If any
covenants or such other provisions of this Agreement are found to be invalid or unenforceable by a final determination of a court of competent jurisdiction (a) the remaining terms and provisions hereof shall be unimpaired and (b) the
invalid or unenforceable term or provision hereof shall be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision hereof. 

12.9 Remedies. Executive acknowledges that the Company’s remedy at law for a breach by Executive of the provisions of Sections 6, 7 or 8 will be
inadequate. Executive further acknowledges that Executive’s agreement to abide by the provisions of Sections 6, 7 and 8 is a material condition precedent to the Company’s willingness to employ Executive and enter into this Agreement.
Accordingly, in the event of a breach or threatened breach by Executive of any provision of Sections 6, 7 or 8, the Company shall be entitled to injunctive relief in addition to any other remedy it may have. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. 
  

			
	MEDALLION FINANCIAL CORP.
		
	By:	 	 /s/ Alvin Murstein

	Name:	 	Alvin Murstein
	Title:	 	Chairman and Chief Executive Officer
	
	MICHAEL KOWALSKY
	
	 /s/ Michael Kowalsky

  

 8Letter Agreement by and between C.Edward Chaplin and MBIA Inc

 Exhibit 10.0 
  

			
		  	 Gary C. Dunton
 President and Chief Executive Officer

	 

  
	  	
	 Capital Strength. Triple-A Performance. 
	  	 MBIA Inc.
 113 King Street, Armonk, NY
10504
 Tel 914-765-3883 Fax 914-765-3200
 gary.dunton@mbia.com    www.mbia.com

  

	 May 17, 2006 
	 Revised May 19, 2006 

 Mr. C. Edward Chaplin 
 17 Ridge Road 
 Summit, NJ 07901 
 Dear Chuck: 
 We are excited by the prospect
of you joining the MBIA team in the key leadership position we have discussed. We are unanimous in our belief that you possess the professional skills, experience and interpersonal characteristics required to help MBIA achieve its goals. As such, we
are pleased to extend to you an offer of employment under the terms and conditions outlined below: 
  

	I.	Title, Department and Reporting Relationship - As Vice Chair, Chief Financial Officer and a member of the EPC, you will report directly to Gary Dunton.

  

	II.	Compensation - We have tailored a compensation program to reflect both your responsibilities as a CFO and our expectation of your future contributions to MBIA. Your
compensation package will include a base salary, performance bonus, long-term incentive award and a cash sign-on, a restricted stock sign-on award and a stock option sign-on award. All payments under this letter are subject to applicable tax
withholding obligations. 

  

	 	a)	Base Salary - As a full-time employee you will earn $20,833.33 semi-monthly, which is an annualized base salary of $500,000. Future adjustments to your base salary will be a
function of personal performance in your position, MBIA’s financial and operational performance and other related factors. 

  

	 	b)	Performance Bonus Awards - Bonus awards are made at MBIA’s discretion and will be based foremost upon the Company’s financial performance and upon individual
performance factors. This payment will be made in the first quarter of calendar year 2007 when bonuses are paid to employees at MBIA. Any future bonus awards are subject to individual and company performance and will be awarded relative to other
executives with similar individual performance and can vary from year to year. You must be an active employee at the time bonuses are paid to receive the payment. 

	 	c)	Long-term Incentive (LTI) - MBIA’s current LTI program consists of a grant of performance-based restricted shares that are subject to time vesting and growth in modified
book value (‘MBV restricted stock’). Your MBV restricted stock award will vest three years after the grant date. The number of shares that vest will depend on growth in MBIA’s modified book value (MBV) over a three-year performance
period. All awards are set relative to peers and are naturally affected by the company’s performance in any given year. MBIA’s LTI program is reviewed periodically and is subject to change. You are also eligible to participate in prior LTI
awards as described below. 

 Prior LTI Awards 
 As a new hire, you will be integrated into previously granted and outstanding MBV cash and MBV restricted stock awards on a pro rata basis. This will
allow you to receive vested MBV awards from prior grants beginning in 2007. You must be an active MBIA employee at the time of MBV award vesting in order to receive it. With respect to your 2007 payout, the target cash award is $225,000. The 2008
and 2009 payouts will be in the form of MBV restricted stock and the target shares payable are projected to be 5,000 and 7,500 shares respectively. 
 Your full formula annual LTI opportunity for your position ranges from 100% to 140% of annual run rate cash compensation, which consists of annual base salary and year-end cash performance bonus (excludes special one-time cash awards).
Actual LTI awarded in any given year will be adjusted from formula based on company performance and individual performance for that given year. All compensation is subject to CEO and compensation committee discretion. The company also reserves the
right to change its compensation program in the future. Awards under the program are approved annually by the Compensation and Organization Committee of the MBIA Inc. Board of Directors and are granted during the year-end process. 
 Additionally as an EPC member, you will be provided with guidance which will help you manage your long term incentive in a manner that will create a stock
ownership position in MBIA. EPC members are given the goal of achieving a minimum holding position of owning MBIA stock. In your case the minimum holding target is 3 times your base salary. Kevin Silva and I would be happy to review the
Company’s ownership guidelines with you. 
  

	 	d)	Cash Sign-On – You will be awarded a cash sign-on of $500,000 (less withholdings and deductions) which will be payable on the payroll following your date of hire. Should
your employment with MBIA Insurance Corporation terminate as the result of voluntary resignation or termination for cause within one year from your start date, you will be required to repay the net amount of the sign-on bonus. Please see attached
definition of “Cause.” 

  

 2 

	 	e)	Restricted Stock Sign-On Award – You will receive a sign-on restricted stock award on date of hire with a value of $1,800,000 at the time of the grant. The actual number
of shares you will be awarded will be determined by the share price on the close of business on your hire date, the effective date of the grant. This restricted stock grant will vest 50% on the second anniversary and the remaining 50% on the fourth
anniversary of the grant date in accordance with the terms of your agreement. 

  

	 	f)	Sign-On Stock Option Award – You will receive a special one time sign-on grant of 37,500 stock options which will have an estimated present value of $700,000 with the
stock price at $60. This option grant will have a five-year cliff vesting period (the options shall become 100% vested on the fifth anniversary) and will expire ten years from the date of grant. 

  

	 	g)	Contingent Buyout of Prudential Vested Options - You agree to exercise any vested Prudential stock options that you hold as of the date of this letter (“Prudential
Options”) as soon as practicable after your acceptance of this letter. To the extent that Prudential prevents you from exercising any Prudential Options, you agree to use reasonable efforts to pursue your rights to exercise such Prudential
Options. Reasonable efforts shall not require you to commence litigation against Prudential. To the extent that, after using such reasonable efforts, you are not able to exercise all of your Prudential Options or you are not otherwise compensated by
Prudential for the loss of any unrealized gains (the difference between strike price and fair market value) on your Prudential determined, MBIA will issue to you 3 year cliff vesting restricted stock with a value, as of the grant date, equal to the
unrealized gains (determined using the closing price of Prudential stock as of date of your termination of employment) on the number of Prudential Options that you are not able to exercise less any other compensation that you receive from
Prudential in respect of such Prudential Options. The aggregate value of any restricted stock issued in respect of any Prudential Options shall not to exceed $1.5 million. 

  

	 	h)	Severance - If within the first 18 months of your employment, MBIA terminates your employment for any reason other than “cause”, or “constructive termination
without cause” MBIA will compensate you with a severance payment valued at $500,000 at the time of separation provided that, at that time, you sign an agreement and general release in a form that is acceptable to MBIA. The severance
payment could be in the form of cash, vesting of restricted stock, options, or a combination of these and will be determined at the time of separation. In addition to the aforementioned severance payment, your restricted stock and stock options
awarded at the time of hire will immediately vest on the date of your termination and the options from such award must be exercised within one year from the date of termination. Any options unexercised after one year from the termination date will
be forfeited. Severance payments are subject to applicable law. 

  

 3 

	 	i)	Relocation – As previously discussed, MBIA will provide relocation services and assistance through GMAC Relocation Services in accordance with the enclosed program
summary, providing that you initiate your relocation within 12 months of employment. Should your employment with MBIA Insurance Corporation terminate as the result of voluntary resignation or termination for cause within one year from your start
date, you will be required to repay the cost of relocation services which MBIA has expended on your behalf. Please see attached definition of “Cause”. In addition, the Company will reimburse housing and related lodging expenses up to
$2,500 per month for one year following the start date. Upon the one year anniversary of your hire date, the company will review the reimbursement arrangement for housing/lodging expenses and determine whether it will continue for another year based
on the situation at that time and your relocation needs. 

  

	IV.	Benefits - You will receive the benefits as outlined on the attached summary. In addition, the Company will support Executive Leadership Council membership.

  

	 	a)	To the extent that additional and unique retirement guidelines are developed and adopted in order to govern the members of the EPC, you shall be governed by those guidelines. Such a
program is presently scheduled for review and adoption by the compensation committee of the board June 27, 2006. 

  

	 	b)	With respect to your 2006 company pension contribution (to be made in early 2007), you will receive a pension contribution that will be based on your full 2006 salary and your 2006
cash performance bonus (which is paid in early 2007). The incremental pension contribution will be credited to the company’s non-qualified retirements plan. 

  

	 	c)	You will receive five annual credits to the MBIA Inc. Deferred Compensation and Excess Benefit (non-qualified retirement) Plan in the amount of $140,000 per year. The retirement
credits will be made in years 2007, 2008, 2009, 2010 and 2011 and will be made at the same time as the annual pension contribution each year. 

  

	V.	Change in Control - To the extent that a change of control (also known as KEEPA) program exists for members of the senior team (i.e. the EPC), you shall be covered by that
same program. Such a program is presently scheduled for revision and review and adoption by the compensation committee of the board June 27, 2006. 

  

	VI.	Mission and Values – Provided for your review is MBIA’s Mission and Values statement which captures our core ideology and guides our behavior. Please familiarize
yourself with MBIA’s Mission and Values as they should serve as a guide in accomplishing the goals of your job going forward. 

  

	VII.	Indemnifications - As an officer of MBIA and its subsidiaries you shall be entitled to the indemnification provided to other officers of MBIA in accordance with MBIA’s
and its subsidiaries’ respective charters and by laws and with applicable law. 

  

	VIII.	Board Service - You will be required to step down from your current role on the MBIA Board upon acceptance of this position. Upon resignation from the Board, the Compensation
Committee will be asked to approve the waiver of any restrictions on restricted shares awarded for previous MBIA board service. You will have the opportunity to join another company’s board with the concurrence of MBIA’s CEO.

  

 4 

	IX.	Terms of Employment - Either you or MBIA may terminate your employment at any time, with or without cause. 

  

	X.	Pre-Employment Screening - This offer of employment is contingent upon the successful completion of the Company’s total pre-employment screening process which includes
previous employment and education verification, the procurement of a consumer report, satisfactory reference checks as well as negative results of a drug screening. 

  

	XI.	Starting Date – To be determined. 

 Again, we are delighted at
the prospect of you joining MBIA. Please confirm your acceptance by signing and returning one copy of this letter to Kevin Silva. 
 Sincerely, 
  

			
	 /s/ Gary Dunton
	 	 /s/ Kevin Silva

	Gary Dunton	 	Kevin Silva
	President & Chief Executive Officer	 	Chief Administrative Officer

  

							
	Accepted:	 	 /s/ C. Edward Chaplin
	 	Date:	 	 May 24, 2006

		 	C. Edward Chaplin	 		 	

  

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]