Document:

EX-10.1

 Exhibit 10.1 
 EXECUTION COPY 
  
  

 
 LOAN AGREEMENT 

between 
 MBIA INSURANCE CORPORATION,

 as Borrower 
 and

 BLUE RIDGE INVESTMENTS, L.L.C., 
 as Lender 
 Dated as of May 6, 2013 

 
  

 

 Table of Contents 

 

							
	 	 	 	  	Page	 
	ARTICLE I	  
	DEFINITIONS	  
			
	1.1	 	 Certain Defined Terms
	  	 	1	  
	1.2	 	 Other Interpretive Provisions
	  	 	21	  
	
	ARTICLE II	  
	THE LOANS	  
			
	2.1	 	 Amounts and Terms of Commitments
	  	 	23	  
	2.2	 	 Evidence of Debt
	  	 	23	  
	2.3	 	 Procedure for Borrowing
	  	 	23	  
	2.4	 	 Prepayments and Commitment Reductions
	  	 	24	  
	2.5	 	 Scheduled Repayment
	  	 	26	  
	2.6	 	 Interest
	  	 	26	  
	2.7	 	 Computation of Interest
	  	 	27	  
	2.8	 	 Payments Generally
	  	 	28	  
	2.9	 	 Conversion/Continuation
	  	 	28	  
	2.10	 	 [reserved]
	  	 	29	  
	2.11	 	 Fees
	  	 	29	  
	2.12	 	 Increased Costs
	  	 	29	  
	
	ARTICLE III	  
	TAXES, YIELD PROTECTION AND ILLEGALITY	  
			
	3.1	 	 Taxes
	  	 	31	  
	3.2	 	 Funding Losses
	  	 	35	  
	3.3	 	 Illegality, Etc.
	  	 	35	  
	3.4	 	 Survival
	  	 	37	  
	
	ARTICLE IV	  
	CONDITIONS PRECEDENT	  
			
	4.1	 	 Conditions Precedent to Effectiveness of this Agreement
	  	 	37	  
	4.2	 	 Conditions Precedent to the Making of each Loan
	  	 	40	  
	
	ARTICLE V	  
	REPRESENTATIONS AND WARRANTIES	  
			
	5.1	 	 Corporate Existence and Power
	  	 	42	  
	5.2	 	 Corporate Authorization; Non-Contravention
	  	 	42	  
	5.3	 	 Execution; Binding Effect
	  	 	42	  
	5.4	 	 No Injunction
	  	 	42	  
	5.5	 	 No Potential Event Default or Event Default
	  	 	43	  

  
 i 

 Table of Contents 
 (continued) 
  

							
	 	 	 	  	Page	 
			
	5.6	 	 Ownership of Property
	  	 	43	  
	5.7	 	 Environmental Compliance
	  	 	43	  
	5.8	 	 Insurance
	  	 	43	  
	5.9	 	 Taxes
	  	 	43	  
	5.10	 	 Compliance with Law
	  	 	44	  
	5.11	 	 USA PATRIOT Act; OFAC
	  	 	44	  
	5.12	 	 Margin Stock; Investment Company Act
	  	 	44	  
	5.13	 	 Governmental Authorization; Other Consents
	  	 	44	  
	5.14	 	 Financial Statements; No Material Adverse Effect
	  	 	45	  
	5.15	 	 Litigation
	  	 	46	  
	5.16	 	 ERISA Compliance
	  	 	46	  
	5.17	 	 Subsidiaries; Equity Interests
	  	 	47	  
	5.18	 	 Disclosure
	  	 	48	  
	5.19	 	 Intellectual Property; Licenses, Etc.
	  	 	48	  
	5.20	 	 Solvency
	  	 	48	  
	5.21	 	 Casualty, Etc.
	  	 	48	  
	5.22	 	 Labor Matters
	  	 	49	  
	5.23	 	 Security Documents
	  	 	49	  
	5.24	 	 Insurance Licenses
	  	 	49	  
	5.25	 	 Commutation
	  	 	49	  
	
	ARTICLE VI	  
	AFFIRMATIVE COVENANTS	  
			
	6.1	 	 Financial Statements and Reports
	  	 	49	  
	6.2	 	 Payments of Obligations
	  	 	53	  
	6.3	 	 Further Assurances
	  	 	53	  
	6.4	 	 Maintenance of Existence
	  	 	54	  
	6.5	 	 Maintenance of Properties
	  	 	54	  
	6.6	 	 Maintenance of Insurance
	  	 	54	  
	6.7	 	 Compliance with Laws
	  	 	54	  
	6.8	 	 Books and Records
	  	 	55	  
	6.9	 	 Inspection Rights
	  	 	55	  
	6.10	 	 Compliance with Environmental Laws
	  	 	55	  
	6.11	 	 Material Contracts
	  	 	55	  
	
	ARTICLE VII	  
	NEGATIVE COVENANTS	  
			
	7.1	 	 Liens
	  	 	56	  
	7.2	 	 Indebtedness
	  	 	57	  
	7.3	 	 Investments
	  	 	59	  
	7.4	 	 Dissolution
	  	 	59	  

  
 ii 

 Table of Contents 
 (continued) 
  

							
	 	 	 	  	Page	 
			
	7.5	 	 Consolidations, Mergers and Sales of Assets
	  	 	59	  
	7.6	 	 Dispositions
	  	 	59	  
	7.7	 	 Restricted Payments
	  	 	61	  
	7.8	 	 Use of Proceeds
	  	 	61	  
	7.9	 	 Change in Fiscal Year; Accounting Policies
	  	 	61	  
	7.10	 	 Transactions with Affiliates
	  	 	61	  
	7.11	 	 Burdensome Agreements
	  	 	61	  
	7.12	 	 Financial Covenants
	  	 	62	  
	7.13	 	 Prepayments of Indebtedness
	  	 	62	  
	7.14	 	 Amendments of Organization Documents
	  	 	62	  
	7.15	 	 Change of Business
	  	 	62	  
	7.16	 	 Commutations
	  	 	62	  
	
	ARTICLE VIII	  
	EVENTS OF DEFAULT/REMEDIES	  
			
	8.1	 	 Events of Default
	  	 	63	  
	8.2	 	 Rights Not Exclusive
	  	 	65	  
	
	ARTICLE IX	  
	MISCELLANEOUS	  
			
	9.1	 	 Amendments and Waivers
	  	 	65	  
	9.2	 	 Notices
	  	 	67	  
	9.3	 	 No Waiver; Cumulative Remedies
	  	 	68	  
	9.4	 	 Costs and Expenses
	  	 	69	  
	9.5	 	 Indemnity
	  	 	69	  
	9.6	 	 Payments Set Aside
	  	 	70	  
	9.7	 	 Successors and Assigns
	  	 	70	  
	9.8	 	 Counterparts
	  	 	73	  
	9.9	 	 Severability
	  	 	73	  
	9.10	 	 No Third Parties Benefited
	  	 	73	  
	9.11	 	 Governing Law; Waiver of Jury Trial
	  	 	74	  
	9.12	 	 Submission to Jurisdiction, Etc.
	  	 	74	  
	9.13	 	 Entire Agreement
	  	 	75	  
	9.14	 	 Independence of Covenants
	  	 	75	  
	9.15	 	 No Partnership, Etc.
	  	 	75	  
	9.16	 	 Treatment of Certain Information; Confidentiality
	  	 	76	  
	9.17	 	 USA PATRIOT Act
	  	 	77	  
	9.18	 	 Collateral Agent
	  	 	77	  
	9.19	 	 Survival of Representations and Warranties
	  	 	77	  

  
 iii 

 Table of Contents 
 (continued) 
  

 EXHIBITS 

 

			
	EXHIBIT A	  	Form of Note
	EXHIBIT B	  	Form of Notice of Borrowing
	EXHIBIT C	  	[Intentionally Omitted]
	EXHIBIT D	  	Form of Collateral Calculation Certificate
	EXHIBIT E	  	Form of Conversion/Continuation Notice
	EXHIBIT F	  	Form of Compliance Certificate

  
 iv 

 LOAN AGREEMENT (this “Agreement”) dated as of May 6, 2013, between MBIA
INSURANCE CORPORATION, a stock insurance corporation organized under the laws of the State of New York (the “Borrower”), and BLUE RIDGE INVESTMENTS, L.L.C., a Delaware limited liability company, as a lender (the
“Lender”). Unless otherwise defined herein, all capitalized terms used herein and defined in Section 1.1 are used herein as so defined. 
 PRELIMINARY STATEMENTS 
 A. In connection with the Settlement Agreement and as part of the
consideration for releases contemplated thereunder, the Lender has agreed to provide revolving credit loans to the Borrower in an aggregate amount of up to $500,000,000, to be made available by the Lender in one or more disbursements during the
Commitment Period, upon the terms and conditions set forth in this Agreement. 
 B. Beginning on the first Business Day to occur after the
Closing Date, the Borrower intends to use the proceeds of such loans for general corporate purposes. 
 C. On or prior to the Closing
Date, the New York State Department of Financial Services shall have been given the requisite notice of the Borrower entering into this Agreement and shall have approved the Borrower pledging the Collateral pursuant to the Security Agreement,
repaying the amounts outstanding under the NPFGC Loan Agreement and entering into the Settlement Agreement and consummating the transactions contemplated thereby. 
 NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 

ARTICLE I 
 DEFINITIONS

 1.1 Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings:

 “Additional Amounts” shall have the meaning set forth in Section 3.1(b)(i). 

“Adjusted LIBOR Rate” shall mean, a rate per annum determined by the Lender pursuant to the following formula: (i) for any
Interest Period on any Interest Rate Determination Date with respect to a LIBOR Rate Loan, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially
available source providing quotations of BBA LIBOR as designated 

 
by the Lender from time to time) at approximately 11:00 a.m., London time, on such Interest Rate Determination Date, for Dollar deposits (for delivery on the first day of such Interest Period)
with a term equivalent to such Interest Period. If such rate is not available at such time for any reason, then the “Adjusted LIBOR Rate” for such Interest Period shall be the rate per annum determined by the Lender to be the rate at which
deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate Loan being made, continued or converted by Bank of America and with a term equivalent to such Interest
Period would be offered by Bank of America’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period
divided by (ii) an amount equal to (a) 1.00, minus (b) the Applicable Reserve Requirement. 

“Affiliate” shall mean, with respect to a specified Person, another Person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 
 “Applicable Law”
shall mean any applicable statute, law, regulation, ordinance, rule, judgment, rule of common law, order, decree, Governmental Approval, approval, concession, grant, franchise, license, agreement, directive, guideline, policy, requirement or other
governmental restriction or any similar form of decision of, or determination by (or any interpretation or administration of any of the foregoing by), any Governmental Authority, whether in effect as of the date of this Agreement or thereafter.

 “Applicable Margin” shall mean (i) with respect to Loans that are LIBOR Rate Loans, a percentage per annum equal
to 7.50%, and (ii) with respect to Loans that are Base Rate Loans, a percentage per annum equal to 6.50%. 
 “Applicable
Reserve Requirement” shall mean, at any time, for any LIBOR Rate Loan, the maximum rate, expressed as a decimal, at which reserves (including any basic marginal, special, supplemental, emergency or other reserves) are required to be
maintained with respect thereto against “Eurocurrency Liabilities” (as such term is defined in Regulation D) under regulations issued from time to time by the Board of Governors of the Federal Reserve System or other applicable banking
regulator. A LIBOR Rate Loan shall be deemed to constitute Eurocurrency liabilities and as such shall be deemed subject to reserve requirements without benefits of credit for proration, exceptions or offsets that may be available from time to time
to the applicable Lender. The rate of interest on LIBOR Rate Loans shall be adjusted automatically on and as of the effective date of any change in the Applicable Reserve Requirement. 

“Attributable Indebtedness” means, on any date, (a) in respect of any Capitalized Lease of any Person, the capitalized amount
thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with US GAAP, (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease or similar

  
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payments under the relevant lease or other applicable agreement or instrument that would appear on a balance sheet of such Person prepared as of such date in accordance with US GAAP if such
lease or other agreement or instrument were accounted for as a Capitalized Lease and (c) all Synthetic Debt of such Person. 

“Audited Financial Statements” means (i) the audited balance sheet of the Borrower and its Subsidiaries on a consolidated
basis, prepared in accordance with US GAAP, (ii) the audited balance sheet of the Borrower, prepared in accordance with the Regulated Accounting Principles, (iii) the audited balance sheet of MBIA UK prepared in accordance with
UK GAAP and (iv) the audited balance sheet of UK Insurance, prepared in accordance with UK GAAP, in each case, for the fiscal year ended December 31, 2012, and, in the case of each of clauses (i) through (iv), the related
statements of income or operations and shareholders’ equity for such fiscal year, and in the case of clauses (i) and (ii) only, cash flows for such fiscal year, of each of the Borrower and its Subsidiaries, the Borrower, MBIA UK or UK
Insurance, as applicable, including the notes thereto, prepared in accordance with US GAAP, Regulated Accounting Principles or UK GAAP, as applicable. 
 “Available Commitment” shall mean, at any time, an amount equal to the excess, if any, of (a) the amount of the Commitment Amount over (b) the principal amount of all
Loans made by the Lender. 
 “Bank of America” shall mean Bank of America, N.A., a national banking association.

 “Base Rate” shall mean, for any day, a rate per annum equal to the greatest of (i) the Prime Rate in effect on
such day, (ii) the Federal Funds Effective Rate in effect on such day plus 0.5% and (iii) the rate set forth in clause (i) of the definition of Adjusted LIBOR Rate for a one month Interest Period determined as of such date or, if such
date is not a Business Day, on the immediately preceding Business Day plus 1.00%. Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective on the effective day of such change in the Prime
Rate or the Federal Funds Effective Rate, respectively. As used in this definition “Prime Rate” shall mean the rate of interest per annum publicly announced from time to time by Bank of America as its “prime rate” in
effect at its principal office in New York, New York; each change in the Prime Rate shall be effective on the date such change is publicly announced. The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate
actually charged to any customer. The Lender may make commercial loans or other loans at rates of interest at, above or below the Prime Rate. 
 “Base Rate Loan” shall mean a Loan bearing interest at a rate determined by reference to the Base Rate. 
 “Borrower” shall have the meaning assigned thereto in the preamble hereof. 

  
 3 

 “Borrowing Date” shall mean any date on which a Loan is made (or, as applicable, is
requested to be made) hereunder. 
 “Business Day” shall mean (i) any day excluding Saturday, Sunday and any day
which is a legal holiday under the laws of the State of New York or is a day on which banking institutions located in such state are authorized or required by law or other governmental action to close, or are in fact closed, and (ii) with
respect to all notices, determinations, fundings and payments in connection with the Adjusted LIBOR Rate or any LIBOR Rate Loans, the term “Business Day” shall mean any day which is a Business Day described in clause (i) and which is
also a day for trading by and between banks in Dollar deposits in the London interbank market. 
 “Capitalized Leases”
shall mean all leases that have been or should be, in accordance with US GAAP, recorded as capitalized leases. 

“CERCLA” shall mean the Comprehensive Environmental Response, Compensation and Liability Act of 1980. 

“CERCLIS” shall mean the Comprehensive Environmental Response, Compensation and Liability Information System maintained by the
U.S. Environmental Protection Agency. 
 “Change in Law” shall mean (a) the adoption or taking effect of any law,
treaty, rule or regulation after the date of this Agreement, (b) any change in any law, treaty, rule or regulation or in the administration, interpretation, implementation or application thereof by any Governmental Authority after the date of
this Agreement or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority after the date of this Agreement; provided that notwithstanding anything herein to
the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives
promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case
be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued. 
 “Change of Control”
means an event or series of events by which: 
 (a) any “person” or “group” (as such terms are used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan)
other than (i) MBIA Inc. or a direct or indirect Subsidiary thereof, (ii) Warburg Pincus Private Equity X, L.P., Warburg Pincus Equity Partners, L.P., any of their Affiliates or (iii) Fairholme Funds, Inc., Fairholme

  
 4 

 
Capital Management, L.L.C., any of their Affiliates becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person
or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option
right”)), directly or indirectly, of 25% or more of the equity securities of the Borrower entitled to vote for members of the board of directors or equivalent governing body of the Borrower on a fully-diluted basis (and taking into account all
such securities that such “person” or “group” has the right to acquire pursuant to any option right); or 
 (b) during
any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Borrower or MBIA Inc. ceases to be composed of individuals (i) who were members of that board or equivalent
governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above
constituting at the time of such election or nomination at least a majority of that board or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, or assumption of
office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation
for the election of one or more directors by or on behalf of the board of directors); or 
 (c) MBIA Inc. shall cease, directly or
indirectly, to own and control legally and beneficially all of the Equity Interests in the Borrower; or 
 (d) a “change of
control” or any comparable term under, and as defined in any Indebtedness of the Borrower or any of its Subsidiaries in an aggregate principal amount in excess of the Threshold Amount shall have occurred. 

“Closing Date” shall mean the first Business Day when all the conditions precedent in Section 4.1 are satisfied or waived
(provided, that, the Closing Date shall not occur on a date after May 10, 2013). 
 “Code” means the Internal
Revenue Code of 1986. 
 “Collateral” shall have the meaning assigned thereto in Section 2.1 of the Security
Agreement. 
 “Collateral Calculation Certificate” shall mean a certificate substantially in the form of Exhibit D signed
by the Chief Financial Officer, Treasurer or Controller of the 

  
 5 

 
Borrower (together with detailed supporting calculations and underlying data in a form satisfactory to the Lender) (i) including the Borrower’s good faith calculation of the notional
amount of the Subject Collateral as of the last date of the most recently ended fiscal quarter of the Borrower in the case of a Collateral Calculation Certificate delivered pursuant to Section 6.1(b), and as of the date of the proposed Loan, in
the case of a Collateral Calculation Certificate delivered pursuant to Section 4.2(g), calculated by adding (w) the notional amount of the Excess Spread Salvage Collateral reflected in the Borrower’s Statutory Financial Statements,
(x) the notional amount of the Installment Premium Collateral calculated in a manner consistent with the manner in which the Borrower calculates the present value of future installment premiums on a stand-alone basis for inclusion in MBIA
Inc.’s periodic reports filed under the Securities Exchange Act of 1934, as amended and (y) the notional amount of the Put-Back Recoveries, net of any expected set-offs against the Subject Collateral determined by the Borrower in good
faith consistent with the estimates used in determining its loss reserves reflected in its Statutory Financial Statements (provided that such Collateral Calculation Certificate shall also include (a) the notional amount of Put-Back Recoveries
gross of any set-offs described in this clause (y) and (b) the amount of Put-Back Recoveries recorded as a contra-liability on the Borrower’s Statutory Financial Statements), and (ii) certifying that since the last date of such
fiscal quarter, no event or circumstance has occurred that would reasonably be expected to have a material adverse effect on the notional amount of any component of the Subject Collateral as reflected on such Collateral Calculation Certificate,
except as otherwise disclosed on such Certificate. 
 “Commitment Amount” shall mean (i) prior to the last day of
the Commitment Period $500,000,000, as such amount may be reduced pursuant to the terms hereof, and (ii) on and after the last day of the Commitment Period, zero. 
 “Commitment Period” shall mean the period from and including the first Business Day after the Closing Date to but excluding the Maturity Date (provided that the Commitment Amount at such time is
greater than zero pursuant to the terms hereof). 
 “Compliance Certificate” shall mean a certificate substantially in
the form of Exhibit F. 
 “Connection Income Taxes” means Other Connection Taxes that are imposed on or measured
by pre-tax income (however denominated) or that are franchise Taxes or branch profits Taxes. 
 “Contractual Obligation”
shall mean, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 

“Control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 

  
 6 

 “Conversion/Continuation Date” shall mean the effective date of a continuation or
conversion, as the case may be, as set forth in the applicable Conversion/Continuation Notice. 
 “Conversion/Continuation
Notice” shall mean a Conversion/Continuation Notice substantially in the form of Exhibit E. 
 “Debtor Relief
Laws” means all rehabilitation, dissolution, impairment, liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or other debtor relief laws of
the United States or other applicable jurisdictions, including the State of New York, from time to time in effect and affecting the rights of policyholders or creditors generally, including Article 74 and Section 1310 of the New York Insurance
Law and Title 11 of the United States Code. 
 “Default Rate” shall mean an interest rate (before as well as after
judgment) equal to (a) with respect to overdue principal, the applicable interest rate plus 2.00% per annum and (b) with respect to any other overdue amount (including overdue interest), the interest rate
applicable to Base Rate Loans plus 2% per annum. 
 “Disposition” or “Dispose”
means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction) of any property by any Person (or the granting of any option or other right to do any of the foregoing), including any sale, assignment,
transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith. 

“Dollar” and “$” shall mean the lawful currency of the United States. 

“Eligible Assignee” shall mean (i) any Affiliate of the Lender, and (ii) any other Person (other than a natural Person
or the Borrower or any of the Borrower’s Affiliates or Subsidiaries). 
 “Environmental Laws” shall mean any and all
Applicable Laws now or hereafter in effect and in each case as amended, and any judicial or administrative interpretation thereof, relating to pollution and the protection of the environment or of human health (as it relates to the exposure to
Hazardous Materials) or to the presence, release or threatened release, or the manufacture, use, transportation, treatment, storage, disposal or recycling of Hazardous Materials, or the arrangement for any such activities. 

“Equity Interests” shall mean, with respect to any Person, all of the shares of capital stock of (or other ownership or profit
interests in) such Person, all of the warrants, options 

  
 7 

 
or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other
ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of
determination. 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974. 

“ERISA Affiliate” shall mean any trade or business (whether or not incorporated) under common control with the Borrower within the
meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code). 
 “ERISA Event” shall mean (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of
ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial
withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination
under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007
of ERISA, upon the Borrower or any ERISA Affiliate. 
 “Event of Default” shall have the meaning set forth in
Section 8.1. 
 “Excess Spread Salvage Collateral” shall have the meaning assigned thereto in Section 2.1(c) of
the Security Agreement. 
 “Excluded Taxes” means any of the following Taxes imposed on or with respect the Lender or
required to be withheld or deducted from a payment to the Lender: (i) Taxes imposed on or measured by its pre-tax income (however denominated), franchise Taxes and branch profits Taxes, in each case, (A) imposed as a result of the Lender
being organized under the laws of, or having its principal office or its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (B) that are Other Connection Taxes, (ii) U.S.
federal withholding Taxes imposed on amounts payable to or for the account of the Lender with respect to an applicable interest in a Loan 

  
 8 

 
pursuant to a law in effect on the date on which (A) the Lender acquires such interest in the Loan or (B) the Lender changes its applicable lending office, except in each case to the
extent that, pursuant to Section 3.1(a)(ii) or (c), amounts with respect to such Taxes were payable either to the Lender’s assignor immediately before the Lender became a party hereto or to the Lender immediately before it changed its
applicable lending office, (iii) Taxes attributable to the Lender’s failure to comply with Section 3.1(e) and (iv) any U.S. federal withholding Taxes imposed pursuant to FATCA. 

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that
is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof. 
 “Federal Funds Effective Rate” shall mean for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the next higher one-hundredth of one percent (1/100 of 1%))
equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day
next succeeding such day; provided, that (i) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day,
and (ii) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average of the quotations on such day received by the Lender from three federal funds brokers of recognized standing
selected by it. 
 “Fiscal Quarter” shall mean, for any Fiscal Year, each three-month fiscal period commencing on
(i) January 1, (ii) April 1, (iii) July 1 and (iv) October 1 of such Fiscal Year. As used herein, references to the First Fiscal Quarter, the Second Fiscal Quarter, the Third Fiscal Quarter and the Fourth
Fiscal Quarter shall mean the Fiscal Quarter referred to in clauses (i), (ii), (iii) and (iv), respectively. 
 “Fiscal
Year” shall mean the fiscal year of the Borrower ending on December 31 of each calendar year. As used herein, references to a Fiscal Year followed by a given calendar year (e.g., Fiscal Year 2012) shall mean the Fiscal Year ended on
December 31 of such calendar year. 
 “Governmental Approval” shall mean any action, order, authorization, consent,
approval, license, lease, ruling, permit, certification, exemption, filing or registration by or with any Governmental Authority. 

“Governmental Authority” shall mean any nation, government, state or any political subdivision of any thereof, any central bank
(or similar monetary or regulatory authority) of any thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government (including any supranational or multi-national entity), and
any corporation or other entity owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing. 

  
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 “Guarantee” shall mean, as to any Person, any (a) any obligation, contingent or
otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property,
securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any
other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into for the purpose of assuring in any
other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person
securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).
The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term “Guarantee” as a verb has a corresponding meaning. 

“Hazardous Materials” shall mean (i) any petroleum or petroleum product, radioactive material, asbestos in any form that is
or could become friable, urea formaldehyde foam insulation and polychlorinated biphenyls; and (ii) any chemical, materials waste, pollutant, contaminant or substance in any form that is defined by Environmental Law as “toxic,”
“hazardous,” a “pollutant” a “contaminant” or words of similar meaning and regulatory effect. 

“Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as
indebtedness or liabilities in accordance with US GAAP: 
 (a) all obligations of such Person for borrowed money and all obligations of
such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments; 
 (b) the maximum amount of all direct
or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments; 

  
 10 

 (c) net obligations of such Person under any Swap Contract; 

(d) all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the ordinary
course of business and not past due for more than 30 days after the due date therefor); 
 (e) indebtedness (excluding prepaid interest
thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or
is limited in recourse; 
 (f) all Attributable Indebtedness in respect of Capitalized Leases and Synthetic Lease Obligations of such
Person and all Synthetic Debt of such Person; 
 (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise make
any payment in respect of any Equity Interest in such Person or any other Person or any warrant, right or option to acquire such Equity Interest, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary
liquidation preference plus accrued and unpaid dividends; and 
 (h) all Guarantees of such Person in respect of any of the foregoing.

 For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than
a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under
any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date. 
 “Indemnified
Taxes” means (i) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (ii) to the extent not otherwise described in clause
(i) above, Other Taxes. 
 “Insolvency Proceeding” shall mean, with respect to any Person (a) any case, action
or proceeding with respect to such Person before or by any court or other Governmental Authority relating to bankruptcy, rehabilitation, liquidation, dissolution, winding-up, relief of debtors, debt arrangement or reorganization in a bankruptcy,
rehabilitation, liquidation or receivership proceeding, or (b) any general assignment for the benefit of creditors, composition, debt arrangement, marshaling of assets for creditors or other similar arrangement in respect of its creditors
generally or any substantial portion of its creditors, in any case undertaken under Applicable Law. 

  
 11 

 “Installment Premium Collateral” shall have the meaning assigned thereto in
Section 2.1(b) of the Security Agreement. 
 “Insurance Licenses” has the meaning assigned to such term in
Section 5.24. 
 “Insurance Subsidiary” shall mean any Subsidiary of the Borrower that is authorized or admitted by
a Supervisory Authority to carry on or transact one or more aspects of the business of selling, issuing or underwriting insurance or reinsurance. 
 “Interest Payment Date” shall mean, with respect to (i) any Base Rate Loan, the last day of each Fiscal Quarter, commencing on the first such date to occur after the Closing Date,
(ii) any LIBOR Rate Loan having an Interest Period of less than three (3) months, the last day of each Interest Period applicable to such Loan and (iii) any LIBOR Rate Loan having an Interest Period of three (3) months or longer,
the last day of each Fiscal Quarter and, without duplication, the last day of such Interest Period. 
 “Interest Period”
shall mean, in connection with a LIBOR Rate Loan, an interest period of one (1), two (2), three (3) or six (6) months (or such other period as may be agreed by the Lender), as specified by the Borrower in the applicable Notice of Borrowing
or Conversion/Continuation Notice, (i) initially, commencing on the Borrowing Date or Conversion/Continuation Date thereof, as the case may be; and (ii) thereafter, commencing on the day on which the immediately preceding Interest Period
expires; provided, that (a) if an Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day unless no further Business Day occurs in such
month, in which case such Interest Period shall expire on the immediately preceding Business Day; (b) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such Interest Period) shall, subject to clause (c) of this definition, end on the last Business Day of a calendar month; (c) no Interest Period with respect to any portion of any Loan shall extend beyond
the Maturity Date. 
 “Interest Rate Determination Date” shall mean, with respect to any Interest Period, the date that
is two Business Days prior to the first day of such Interest Period. 
 “Investment” shall mean, as to any Person, any
direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt
or any obligations of, or purchase or other acquisition of any other debt or interest in, another Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute a
business unit or all or a substantial part of the business of, such Person. For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the
value of such Investment. 

  
 12 

 “IRS” shall mean the United States Internal Revenue Service. 

“Lender” shall have the meaning assigned thereto in the preamble hereof. 

“LIBOR Rate Loan” shall mean a Loan bearing interest at a rate determined by reference to the Adjusted LIBOR Rate. 

“Lien” shall mean any security interest, mortgage, deed of trust, pledge, hypothecation, assignment, claim, charge or deposit
arrangement, encumbrance, lien (statutory or other) or preferential arrangement of any kind or nature whatsoever in respect of any property (including those created by, arising under or evidenced by any conditional sale or other title retention
agreement), the interest of a lessor under a capital lease, or any financing lease (such as a synthetic lease) having substantially similar economic effect as any of the foregoing, but not including the interest of a lessor under an operating lease
(other than a synthetic lease) as defined under US GAAP. 
 “Loan Documents” shall mean this Agreement, the Note, the
Security Documents, each Notice of Borrowing and each Conversion/Continuation Notice, and any other document, instrument or agreement designated as a “Loan Document” by the Borrower and the Lender. 

“Loans” shall have the meaning set forth in Section 2.1. 

“Margin Stock” shall mean “margin stock” as such term is defined in Regulation U of the Board of Governors of the
Federal Reserve System as amended, or any successor regulation. 
 “Material Adverse Effect” shall mean any of (a) a
material adverse change in, or a material adverse effect upon the condition (financial or otherwise), business, properties or results of operations of the Borrower, (b) a material impairment on the ability of the Borrower to fulfill any of its
obligations under this Agreement or any of the other Loan Documents or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against the Borrower of any Loan Document or the rights and remedies of the
Lender under any of the Loan Documents. 
 “Maturity Date” shall mean the earliest of (i) the third anniversary of
the Closing Date, and (ii) the date that all Loans shall become due and payable in full hereunder, whether by acceleration or otherwise. 
 “MBIA UK” shall mean MBIA UK (Holdings) Limited, a limited company organized under the laws of England and Wales. 

  
 13 

 “MBIA UK Pledge Agreement” shall mean the pledge agreement under the laws of the
laws of England and Wales, relating to the pledge of the Equity Interests of MBIA UK as Collateral to secure the Obligations. 

“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto. 

“Multiemployer Plan” shall mean any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the
Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions. 
 “Note” shall mean the promissory note, substantially in the form of Exhibit A, issued by the Borrower pursuant to Section 2.2. 

“Notice of Borrowing” shall mean a notice substantially in the form of Exhibit B. 

“NPFGC Loan Agreement” shall mean that certain Loan Agreement dated as of December 12, 2011 between the Borrower and National
Public Finance Guarantee Corporation, as lender, as the same may be amended, restated, supplemented or otherwise modified from time to time. 
 “NPFGC Loan Documents” shall mean (i) the NPFGC Loan Agreement, (ii) that certain Security Agreement dated as of December 12, 2011 between the Borrower and National Public Finance
Guarantee Corporation, as secured party, and (iii) any other document, agreement or instrument entered into in connection with the foregoing, in each case as the same may be amended, restated, supplemented or otherwise modified from time to
time. 
 “NPL” shall mean the National Priorities List under CERCLA. 

“Obligations” shall mean all indebtedness (including interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) and other monetary obligations of the Borrower to the Lender or any other Person, individually or collectively, existing on the Closing Date or
arising thereafter (direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured) arising or incurred under this Agreement or any of the other Loan Documents (including under
any of the Loans made or reimbursement or other monetary obligations incurred or other instruments at any time evidencing any thereof), in each case whether now existing or hereafter arising, whether all such obligations arise or accrue before or
after the commencement of any bankruptcy, insolvency or receivership proceedings (and whether or not such claims, interest, costs, expenses or fees are allowed or allowable in any such proceeding). 

  
 14 

 “Organization Documents” shall mean, (a) with respect to any corporation, the
certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation
or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any
agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate
or articles of formation or organization of such entity. 
 “Other Connection Taxes” means, with respect to the Lender,
Taxes imposed as a result of a present or former connection between the Lender and the jurisdiction imposing such Tax (other than connections arising from the Lender having executed, delivered, become a party to, performed its obligations under,
received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document). 

“Other Prepayment Collateral” shall mean (a) Installment Premium Collateral, (b) Excess Spread Salvage Collateral and
(c) all Collateral described in clause (f) of Section 2.1 of the Security Agreement to the extent derived from Installment Premium Collateral or Excess Spread Salvage Collateral. 

“Other Taxes” shall mean any present or future stamp, court or documentary, intangible, recording, filing or similar Taxes or any
other excise or property taxes, charges or similar levies that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise
with respect to, any Loan Document. 
 “Permitted Investments” means any of the following types of Investments, to the
extent owned by the Borrower or any of its Subsidiaries free and clear of all Liens (other than Liens created under the Security Documents): 
 (a) readily marketable obligations issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof having maturities of not more than 360 days from the
date of acquisition thereof; provided that the full faith and credit of the United States of America is pledged in support thereof; 
 (b)
time deposits with, or insured certificates of deposit or bankers’ acceptances of, any commercial bank that (i) (A) is a Lender or (B) is organized under the laws of the United States, any state thereof or the District of
Columbia or is the principal banking subsidiary of a bank holding company organized under the laws of the United States, any state thereof or the District of Columbia, and is a member of the Federal Reserve System, (ii) issues (or the parent of
which issues) commercial paper rated as 

  
 15 

 
described in clause (c) of this definition and (iii) has combined capital and surplus of at least $500,000,000, in each case with maturities of not more than 180 days from the date of
acquisition thereof; 
 (c) commercial paper issued by any Person organized under the laws of any state of the United States of America
and rated at least “P-1” (or the then equivalent grade) by Moody’s or at least “A-1” (or the then equivalent grade) by S&P, in each case with maturities of not more than 180 days from the date of acquisition thereof;

 (d) Investments in fixed income securities rated at least “A” by S&P or “A2” by Moody’s on the date of
acquisition, other than those issued by Affiliates of the Borrower; and 
 (e) Investments, classified in accordance with US GAAP as
current assets of the Borrower or any of its Subsidiaries, in money market investment programs registered under the Investment Company Act of 1940, which are administered by financial institutions that are rated AAA (or the equivalent thereof) or
better by S&P or Aaa3 (or the equivalent thereof) or better by Moody’s, and the portfolios of which are limited solely to Investments of the character, quality and maturity described in clauses (a), (b) and (c) of this definition.

 “Permitted Lien” shall have the meaning set forth in Section 7.1. 

“Person” shall mean an individual, sole proprietorship, partnership, corporation, association, institution, entity, limited
liability company, business trust, joint stock company, trust, unincorporated association, joint venture or Governmental Authority. 

“Pension Plan” shall mean any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA),
including a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any ERISA Affiliate contributes or has an obligation to contribute, or in the case
of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years. 
 “Plan” shall mean any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by the Borrower or, with respect to any such plan that is subject to
Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate. 
 “Potential Event of Default” shall mean any
event or circumstance that, with the giving of notice, the passage of time or both, would (if not cured, waived or otherwise remedied during such time) constitute an Event of Default. 

  
 16 

 “Put Back Prepayment Collateral” shall mean Put-Back Recoveries, as well as all
Collateral described in clause (f) of Section 2.1 of the Security Agreement to the extent derived from Put Back Prepayment Collateral. 
 “Put-Back Recoveries” shall have the meaning assigned thereto in Section 2.1(a) of the Security Agreement. 
 “Register” shall have the meaning set forth in Section 9.7(c). 

“Regulated Accounting Principles” shall mean the statutory accounting principles permitted or prescribed by the New York State
Department of Financial Services. 
 “Regulation D” shall mean Regulation D of the Board of Governors of the Federal
Reserve System, as in effect from time to time. 
 “Regulation X” shall mean Regulation X of the Board of Governors of
the Federal Reserve System, as in effect from time to time. 
 “Related Parties” means, with respect to any Person, such
Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates. 

“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day
notice period has been waived. 
 “Required Coverage” shall mean $1,000,000,000. 

“Responsible Officer” means the chief executive officer, president, chief financial officer, treasurer, assistant treasurer or
controller of the Borrower or any of its Subsidiaries, as the context may require. Any document delivered hereunder that is signed by a Responsible Officer of the Borrower or any of its Subsidiaries shall be conclusively presumed to have been
authorized by all necessary corporate, partnership and/or other action on the part of such Person and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Person. 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any
capital stock or other Equity Interest of any Person or any of its Subsidiaries, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
defeasance, acquisition, cancellation or termination of any such capital stock or other Equity Interest, or on account of any return of capital to any Person’s stockholders, partners or members (or the equivalent of any thereof), or any option,
warrant or other right to acquire any such dividend or other distribution or payment. 

  
 17 

 “S&P” means Standard & Poor’s Financial Services LLC, a subsidiary
of The McGraw-Hill Companies, Inc., and any successor thereto. 
 “SEC” means the Securities and Exchange Commission, any
successor thereto and any analogous Governmental Authority succeeding to any of its principal functions. 
 “Securities
Act” shall mean the Securities Act of 1933, as amended from time to time, and any successor statute. 
 “Security
Agreement” shall mean the Security Agreement, dated as of the date hereof, between the Borrower and the Lender, as the same may from time to time be amended, modified or supplemented. 

“Security Documents” shall mean the Security Agreement, the MBIA UK Pledge Agreement, and all other instruments, agreements,
certificates and documents (including Uniform Commercial Code financing statements and fixture filings) delivered to the Lender in connection with any Collateral or to secure the Obligations under the Loan Documents. 

“Settlement Agreement” shall mean the Settlement Agreement and Release, dated as of the date hereof, among, inter alios,
the Borrower and the Lender, as the same may be amended, modified or supplemented from time to time. 
 “Settlement
Documents” shall mean (i) the Settlement Agreement, (ii) the Termination Agreement (as defined in the Settlement Agreement), (iii) the Investment Agreement (as defined in the Settlement Agreement) and (iv) the Warrant
Issuance (as defined in the Settlement Agreement). 
 “Solvent” and “Solvency” shall mean, with respect
to any Person on any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair salable
value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it
will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature, (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which
such Person’s property would constitute an unreasonably small capital, and (e) such Person is able to pay its debts and liabilities, contingent obligations and other commitments as they mature in the ordinary course of business. The amount
of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

  
 18 

 “Statutory Capital” shall mean the policyholders’ surplus, plus
contingency reserves of the Borrower, determined in a manner consistent with that used in preparing the Audited Financial Statements described in clause (ii) of the definition thereof. 

“Statutory Financial Statements” shall have the meaning set forth in Section 6.1(a)(iii). 

“Subject Collateral” shall mean the Collateral described in clauses (a), (b) and (c) of Section 2.1 of the Security
Agreement. 
 “Subsidiary” of a Person shall mean a corporation, partnership, joint venture, limited liability company or
other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the
happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise specified, all references
herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower. 

“Supervisory Authority” shall mean , with respect to the Borrower or any Insurance Subsidiary, (a) the department of
insurance or similar Governmental Authority of the state or other jurisdiction of domicile of the Borrower or such Insurance Subsidiary, as the case may be, or (b) to the extent asserting regulatory jurisdiction over the Borrower or such
Insurance Subsidiary, as the case may be, the insurance department, authority or agency in each state or jurisdiction (domestic or foreign) in which the Borrower or such Insurance Subsidiary, as the case may be, is licensed, and shall include any
federal or national insurance regulatory department, authority or agency that may be created and that asserts insurance regulatory jurisdiction over the Borrower or such Insurance Subsidiary, as the case may be. 

“Surplus Notes” shall mean the Borrower’s 14% Fixed to Floating Rate Surplus Notes due 2033. 

“Swap Contract” shall mean (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions,
interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any
kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any 

  
 19 

 
form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such
master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement. 
 “Swap Termination Value” shall mean, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts,
(a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the
amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include the Lender
or any Affiliate of the Lender). 
 “Synthetic Debt” shall mean, with respect to any Person as of any date of
determination thereof, all obligations of such Person in respect of transactions entered into by such Person that are intended to function primarily as a borrowing of funds (including any minority interest transactions that function primarily as a
borrowing) but are not otherwise included in the definition of “Indebtedness” or as a liability on the consolidated balance sheet of such Person and its Subsidiaries in accordance with US GAAP. 

“Synthetic Lease Obligation” shall mean the monetary obligation of a Person under (a) a so-called synthetic, off-balance
sheet or tax retention lease, or (b) an agreement for the use or possession of property (including sale and leaseback transactions), in each case, creating obligations that do not appear on the balance sheet of such Person but which, upon the
application of any Debtor Relief Laws to such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment). 
 “Taxes” shall mean any and all present and future taxes, levies, assessments, imposts, duties, deductions, fees, withholdings (including backup withholding) or other charges imposed by any
Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 
 “Threshold Amount”
shall mean $10,000,000. 
 “Type of Loan” shall mean either a Base Rate Loan or a LIBOR Rate Loan. 

“UK GAAP” shall mean generally accepted accounting principles in the United Kingdom that are applicable to the circumstances as of
the date of determination, consistently applied. 

  
 20 

 “UK Insurance” shall mean MBIA UK Insurance Limited, a limited company organized
under the laws of England and Wales. 
 “Unfunded Pension Liability” shall mean the excess of a Pension Plan’s
benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the
applicable plan year. 
 “Uniform Commercial Code” shall have the meaning assigned thereto in the Security Agreement.

 “United States” shall mean the United States of America. 

“US GAAP” shall mean generally accepted accounting principles in the United States set forth in the opinions and pronouncements of
the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied. 
 “USA PATRIOT Act” shall mean the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. 107-56, Oct. 26,
2001). 
 1.2 Other Interpretive Provisions. 
 Except as otherwise expressly provided herein, the rules of interpretation set forth below shall apply to this Agreement and the other Loan Documents: 

(a) any term defined herein or in any other Loan Document by reference to another document, instrument or agreement shall continue to have the
meaning assigned thereto whether or not such other document, instrument or agreement remains in effect; 
 (b) words imparting the
singular include the plural and vice versa; 
 (c) words imparting a gender include any gender; 

(d) within a Loan Document, each reference to a part, clause, section, paragraph, article, party, annex, appendix, exhibit, schedule or other
attachment shall be deemed to be a reference to a part, clause, section, paragraph, or article of, or a party, annex, appendix, exhibit, schedule or other attachment to, the Loan Document in question unless, in any such case, otherwise expressly
provided in any such Loan Document; 

  
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 (e) a reference to any statute, regulation, proclamation, ordinance or law includes all statutes,
regulations, proclamations, ordinances or laws varying, consolidating or replacing the same from time to time, and a reference to a statute includes all regulations, policies, protocols, codes, proclamations and ordinances issued or otherwise
applicable under that statute unless, in any such case, otherwise expressly provided in any such statute or in the applicable Loan Document; 
 (f) a definition of or reference to any document, schedule, exhibit, instrument or agreement includes any amendment or supplement to, or restatement, replacement, modification or novation of, any such document,
schedule, exhibit, instrument or agreement (other than any such amendment, supplement, restatement, replacement, modification or novation in violation of the Loan Documents) unless otherwise specified in such definition or in the context in which
such reference is used; 
 (g) a reference to a particular section, paragraph or other part of a particular statute shall be deemed to be
a reference to any other section, paragraph or other part of a statute substituted therefor from time to time; 
 (h) if a capitalized
term describes, or shall be defined by reference to, a document, instrument or agreement that has not as of any particular date been executed and delivered and such document, instrument or agreement is attached as an exhibit to any Loan Document,
such reference shall be deemed to be to such form and, following such execution and delivery and subject to paragraph (f) above, to the document, instrument or agreement as so executed and delivered; 

(i) a reference to any Person (as hereinafter defined) includes such Person’s successors and permitted assigns, whether by way of merger or
otherwise; 
 (j) any reference to “days” shall mean calendar days unless “Business Days” are expressly specified;

 (k) unless otherwise provided herein, if the date as of which any right, option or election is exercisable is stated to be on a day
that is not a Business Day, such right, option or election may be exercised on the next succeeding Business Day with the same effect as if the same was exercised or made on such date or day; 

(l) words such as “hereunder,” “hereto,” “hereof” and “herein” and other words of similar import shall,
unless the context requires otherwise, refer to the whole of the applicable document and not to any particular article, section, subsection, paragraph or clause thereof; 
 (m) a reference to “including” means including without limiting the generality of any description preceding such term, and for purposes hereof and of each Loan Document the rule of ejusdem generis
shall not be applicable to limit a general statement, followed by or referable to an enumeration of specific matters, to matters similar to those specifically mentioned; 

  
 22 

 (n) except where expressly provided otherwise, whenever any matter is required to be satisfactory to,
or determined or approved by, the Lender, or the Lender is required or permitted to exercise any discretion (including any discretion to waive, select, require, deem appropriate, deem necessary, permit, determine or approve any matter), the
satisfaction, determination or approval of the Lender, or the exercise by the Lender of such discretion, shall be in its sole and absolute discretion; and 
 (o) the word “or” shall be non-exclusive and shall be construed to include the word “and.” 
 ARTICLE II 
 THE LOANS 

2.1 Amounts and Terms of Commitments. 
 (a) Subject to and upon the terms and conditions set forth herein, the Lender agrees to make loans (each a “Loan”) to the Borrower from time to time, on any Business Day, during the Commitment
Period in an aggregate principal amount not to exceed at any time outstanding the Commitment Amount. Loans may be Base Rate Loans or LIBOR Loans, as further provided herein. 
 (b) Except as otherwise provided herein, the Borrower may borrow, repay and reborrow Loans until the Maturity Date. 
 2.2 Evidence of Debt. 
 (a) The entries made in the Lender’s accounts in respect of
(i) the amount of the Loans made hereunder, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to the Lender hereunder and (iii) the amount of any sum received by the Lender
hereunder from the Borrower shall be prima facie evidence of the existence and amounts of the obligations therein recorded; provided that the failure of the Lender to maintain such accounts or any error therein shall not in any manner affect the
obligations of the Borrower to repay the Loans in accordance with the terms specified herein. 
 (b) Upon request by the Lender, the
Borrower will duly execute and deliver the Note to the Lender to evidence the Loans made hereunder. 
 2.3 Procedure for
Borrowing. 
 From time to time during the Commitment Period, the Borrower may request the Lender to make a Loan by delivering an
irrevocable written notice to the Lender in the 

  
 23 

 
form of a Notice of Borrowing (to be confirmed promptly by telephone), specifying (i) the aggregate principal amount of the Loan to be made on the Borrowing Date, (ii) the
requested Borrowing Date, which shall be a Business Day, (iii) whether the requested Loan is to consist of Base Rate Loans or LIBOR Loans, and (iv) if the requested Loan is to consist of LIBOR Loans, the initial Interest
Periods selected by the Borrower for such LIBOR Loans. The Borrower shall give each Notice of Borrowing to the Lender not later than 12:00 p.m. (New York City time) at least three Business Days before the date of the requested Loan borrowing in the
case of a Loan consisting of LIBOR Loans and not later than 12:00 p.m. (New York City time) at least one Business Day before the date of the requested Loan borrowing in the case of a Loan consisting of Base Rate Loans. Each Notice of Borrowing shall
be delivered by first-class mail, fax or by e-mail containing such signed and completed Notice of Borrowing to the Lender at the office or facsimile number (or e-mail address, as the case may be) specified by the Lender (and such telephonic notice
shall be given to the telephone number specified by the Lender). Unless the Lender determines that any applicable condition set forth in Article IV has not been satisfied by not later than 2:00 p.m. New York City time on the requested Borrowing
Date, the Lender will make the requested Loan by wire transfer of immediately available funds to such account of the Borrower or its designee as specified in the applicable Notice of Borrowing. Each borrowing of Loans shall be in a principal amount
of (i) $5,000,000 or a whole multiple of $1,000,000 in excess thereof, in the case of LIBOR Rate Loans and (ii) $2,000,000 or a whole multiple of $500,000 in excess thereof, in the case of Base Rate Loans. 

2.4 Prepayments and Commitment Reductions. 
 (a) Optional Prepayments and Commitment Reductions. 
 (i) Subject to
Section 3.2, the Borrower may, from time to time, prepay the Loans, in whole or in part, without premium or penalty, by giving the Lender irrevocable written notice of its intent to prepay the Loans and the amount of such prepayment, which
notice shall be given at or before 12:00 noon (New York City time) on (x) the date of such prepayment, if such Loans being prepaid are Base Rate Loans, or (y) on the date that is three Business Days prior to the date of repayment, in the
case of any LIBOR Rate Loan. Any such prepayment (other than any prepayment of all Loans then outstanding) shall be in a principal amount of (A) $5,000,000 or a whole multiple of $1,000,000 in excess thereof, in the case of LIBOR Rate Loans, or
(B) $500,000 or a whole multiple of $100,000 in excess thereof, in the case of Base Rate Loans. If such notice is given by the Borrower, the Borrower shall make such prepayment (and the payment amount specified in such notice shall be due and
payable) on the date specified therein, together with accrued interest to such date on the amount prepaid and any amounts required pursuant to Section 3.2. 
 (ii) The Borrower may, upon notice to the Lender, from time to time permanently reduce the Commitment Amount; provided that (x) any such notice 

  
 24 

 
shall be received by the Lender not later than 11:00 a.m. five Business Days prior to the date of termination or reduction, (y) any such partial reduction shall be in an aggregate amount of
$5,000,000 or any whole multiple of $1,000,000 in excess thereof and (z) the Borrower shall not terminate or reduce the Commitment Amount if, after giving effect thereto and to any concurrent prepayments hereunder, the Loans outstanding would
exceed the Commitment Amount. 
 (b) Mandatory Prepayments and Mandatory Commitment Reductions. 

(i) Promptly upon (and in no event later than 5 p.m. New York City time on the date of, or in the case of cash proceeds received
after noon New York City time, no later than 5 p.m. New York City time on the following Business Day) receipt of any cash proceeds by the Borrower or any Subsidiary from or in respect of any Put Back Prepayment Collateral, the Borrower shall
(A) notify the Lender in writing thereof and (B) prepay the Loans (with a corresponding automatic and permanent reduction of the Commitment Amount) in an amount of principal that, together with accrued interest thereon as of the date of
prepayment, is equal to the amount of such cash proceeds, and automatically, without any further action by the Borrower, the Commitment Amount shall be permanently reduced by an amount that is equal to the amount of such cash proceeds in excess of
any Loans then outstanding. 
 (ii) On and after the date that is one year after the Closing Date, promptly upon (and in no
event later than 5 p.m. New York City time on the date of, or in the case of cash proceeds received after noon New York City time, no later than 5 p.m. New York City time on the following Business Day) receipt of any cash proceeds by the Borrower or
any Subsidiary from or in respect of any Other Prepayment Collateral, the Borrower shall (A) notify the Lender in writing thereof and (B) prepay the Loans (with a corresponding automatic and permanent reduction of the Commitment Amount) in
an amount of principal that, together with accrued interest thereon as of the date of prepayment, is equal to (x) prior to the date that is two years after the Closing Date, 50% or (y) from and after the date that is two years after the
Closing Date, 100% of the amount of such cash proceeds, and automatically, without any further action by the Borrower, the Commitment Amount shall be permanently reduced by an amount that is equal to the amount by which (x) prior to the date
that is two years after the Closing Date, 50% or (y) from and after the date that is two years after the Closing Date, 100% of such cash proceeds exceeds the amount of any Loans then outstanding. 

(iii) Promptly upon (and in no event later than 5 p.m. New York City time on the date of, or in the case of cash proceeds received
after noon New York City time, no later than 5 p.m. New York City time on the following Business Day) receipt by the Borrower or any Subsidiary of any cash proceeds from any Disposition made pursuant to Section 7.6(m), the Borrower shall
(A) notify the 

  
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Lender in writing thereof and (B) prepay the Loans (with a corresponding automatic and permanent reduction of the Commitment Amount) in an amount of principal that, together with accrued
interest thereon as of the date of prepayment, is equal to the amount of such cash proceeds, and automatically, without any further action by the Borrower, the Commitment Amount shall be permanently reduced by an amount that is equal to the amount
of such cash proceeds in excess of any Loans then outstanding, provided that, notwithstanding anything herein to the contrary, the Borrower shall not be required to make any prepayment pursuant to this Section 2.4(b)(iii) so long as the
aggregate amount of such Dispositions made from and after the Closing Date and as to which prepayments have not been made under this Section 2.4(b)(iii) is not greater than $1,000,000. 

(iv) In the event that the Borrower is required, in connection with any borrowing of Loans, to represent and
warrant to the Lender pursuant to Section 4.2(h) that the proceeds of such borrowing of Loans are to be used by the Borrower to meet the Borrower’s ordinary course liquidity needs within 30 days of such Borrowing Date, then, to the extent
that any portion of the proceeds of such Loans are not so used within such 30 day period, the Borrower shall, on the 30th
day of such period, (A) notify the Lender in writing thereof and (B) prepay the Loans (but not, for the avoidance of doubt, reduce the Commitment Amount) in an amount of principal that
is equal to the amount of Loans borrowed as part of such borrowing which were not so used in such period to meet the Borrower’s ordinary course liquidity needs or to make voluntary prepayments of the Loans in accordance with
Section 2.4(a). 
 (c) Application of Prepayments of Loans to Base Rate Loans and LIBOR Rate Loans. Any prepayment of Loans
shall be applied first to Base Rate Loans to the full extent thereof before application to LIBOR Rate Loans, in each case in a manner which minimizes the amount of any payments required to be made by the Borrower pursuant to Section 3.2.

 2.5 Scheduled Repayment. 
 The Borrower shall repay the full amount of principal outstanding of the Loans, and all accrued and unpaid interest thereon, all accrued and unpaid fees due under any Loan Documents and all other Obligations, on
the Maturity Date. The Borrower shall also make the mandatory prepayments required by Section 2.4(b). 
 2.6 Interest.

 (a) The Loans shall accrue interest for each day from, and including, the first day of each Interest Period to, but excluding, the last
day of such Interest Period on the outstanding principal amount thereof commencing on the Borrowing Date thereof: (i) in the case of a Base Rate Loan, at the Base Rate plus the Applicable Margin, and (ii) in the case of a LIBOR Rate Loan,
at the Adjusted LIBOR Rate plus the Applicable Margin. 

  
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 (b) Interest on each Loan shall be paid in arrears on each Interest Payment Date and at such other
times as may be specified herein. Accrued interest also shall be paid on the date of any prepayment of Loans under Section 2.4 for the portion of the Loans so prepaid. 
 (c) [Reserved] 
 (d) Notwithstanding paragraphs (a) and (b), while any Event of Default exists,
(i) the Borrower shall pay interest (after as well as before entry of judgment thereon to the extent permitted by Applicable Law) on the principal amount of all outstanding Loans and, to the extent permitted by Applicable Law, on any
other amount payable under any Loan Document, at a rate per annum equal to the Default Rate, and (ii) all such interest shall be due and payable on demand of the Lender. 

(e) The basis for determining the rate of interest with respect to any Loan, and the Interest Period with respect to any LIBOR Rate Loan, shall be
selected by the Borrower and notified to the Lender pursuant to the applicable Notice of Borrowing or Conversion/Continuation Notice, as the case may be. If on any day a Loan is outstanding with respect to which a Notice of Borrowing or
Conversion/Continuation Notice has not been delivered to the Lender in accordance with the terms hereof specifying the applicable basis for determining the rate of interest, then for that day such Loan shall be a Base Rate Loan. 

2.7 Computation of Interest. 
 Interest payable hereunder shall be computed on the basis of a 360-day year with respect to LIBOR Rate Loans and 365/366-day year with respect to Base Rate Loans, in each case for the actual number of days elapsed
in the period during which it accrues. In computing interest on any Loan, the date of the making of such Loan or the first day of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan being converted from a LIBOR Rate Loan,
the date of conversion of such LIBOR Rate Loan to such Base Rate Loan, as the case may be, shall be included, and the date of payment of such Loan or the expiration date of an Interest Period applicable to such Loan or, with respect to a Base Rate
Loan being converted to a LIBOR Rate Loan, the date of conversion of such Base Rate Loan to such LIBOR Rate Loan, as the case may be, shall be excluded; provided, that if a Loan is repaid on the same day on which it is made, one (1) day’s
interest shall be paid on that Loan. 

  
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 2.8 Payments Generally. 

(a) All payments (including prepayments) to be made by the Borrower hereunder shall be made without condition, defense, set-off, deduction,
withholding, recoupment or counterclaim, except as required by Applicable Law, and shall be made prior to 12:00 noon, New York City time, on the due date thereof to the Lender in Dollars by wire transfer of immediately available funds to such
account of the Lender as the Lender may notify the Borrower. Any payment received by the Lender later than such time on the specified payment date shall be deemed to have been received on the following Business Day, and any applicable interest or
fees shall continue to accrue. 
 (b) Whenever any payment is due on a day other than a Business Day, such payment shall be made on the
next Business Day, provided that, should such next Business Day fall in the next calendar month, such payment shall be due on the preceding Business Day, and such extension of time shall in such event be included in, and such reduction of
time shall in such event be excluded from, the computation of interest or fees. 
 (c) Payments in respect of Loans received by the Lender
from the Borrower shall be applied: first, to accrued interest and fees due on such Loans (including on any amount of deferred interest); second, to payments of principal due on such Loans; and third, to all other amounts due
under this Agreement and the other Loan Documents and all Obligations. 
 2.9 Conversion/Continuation. 

(a) Subject to Section 3.3 and so long as no Event of Default shall have occurred and then be continuing, the Borrower shall have the option:

 (i) to convert at any time all or any part of any Loan (equal to (x) in the case of a conversion to LIBOR Rate
Loans, $5,000,000 and integral multiples of $1,000,000 in excess thereof and (y) in the case of a conversion to Base Rate Loans, $500,000 and integral multiples of $100,000 in excess thereof) from one Type of Loan to another Type of Loan;
provided, that a LIBOR Rate Loan may only be converted on the expiration of the Interest Period applicable to such LIBOR Rate Loan unless the Borrower shall pay all amounts due under Section 3.2 in connection with any such conversion; or

 (ii) upon the expiration of any Interest Period applicable to any LIBOR Rate Loan, to continue all or any portion of
such Loan equal to $5,000,000 and integral multiples of $1,000,000 in excess of that amount as a LIBOR Rate Loan. 
 (b) The Borrower
shall deliver a Conversion/Continuation Notice to the Lender no later than 12:00 p.m. (New York City time) at least one Business Day in advance 

  
 28 

 
of the proposed conversion date (in the case of a conversion to a Base Rate Loan) and at least three (3) Business Days in advance of the proposed Conversion/Continuation Date (in the case of
a conversion to, or a continuation of, a LIBOR Rate Loan). If for any reason a conversion or continuation of a LIBOR Rate Loan does not occur on a date specified therefor in a Conversion/Continuation Notice or telephonic request for conversion or
continuation, the Borrower shall make any payments required pursuant to Section 3.2. 
 (c) Notwithstanding anything herein to the
contrary, the Borrower may not borrow LIBOR Loans, or convert to or continue LIBOR Loans, in each case unless such resulting LIBOR Loans shall have an Interest Period ending on or prior to the Maturity Date. 

2.10 [reserved] 
 2.11
Fees. 
 (a) Commitment Fee. The Borrower shall pay to the Lender a commitment fee equal to 2.00% times the actual daily
amount by which the Commitment Amount exceeds the sum of the outstanding amount of the Loans. The commitment fee shall accrue at all times during the Commitment Period. The commitment fee shall be payable in arrears on the last day of March, June,
September and December of each year and on the Maturity Date, commencing on the first such date to occur after the date hereof. The commitment fee shall be computed on the basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day). 
 (b) Other Fees. The Borrower agrees to pay to the Lender fees
payable in the amounts and at the times separately agreed upon between the Borrower and the Lender. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever. 

2.12 Increased Costs. 

(a) If any Change in Law shall: 
 (i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, the Lender (except any reserve requirement
which is reflected in the determination of Adjusted LIBOR Rate); 
 (ii) subject the Lender to any Taxes (other than
(A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, commitments, or other obligations, or its deposits,
reserves, other liabilities or capital attributable thereto; or 
 (iii) impose on the Lender or the London interbank
market any other condition, cost or expense affecting this Agreement or LIBOR Rate Loans made by such Lender or any LIBOR Rate Loan or participation therein; 

  
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 and the result of any of the foregoing shall be to increase the cost to the Lender of making, converting to,
continuing or maintaining any LIBOR Rate Loan or of maintaining its obligation to make any such LIBOR Rate Loan, or to reduce the amount of any sum received or receivable by the Lender hereunder, whether of principal, interest or otherwise, then,
upon the request of the Lender, the Borrower will pay to the Lender such additional amount or amounts as will compensate the Lender for such additional costs incurred or reduction suffered. 

(b) If the Lender determines that any Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on
the Lender’s capital or on the capital of the Lender’s holding company, if any, as a consequence of this Agreement or the Loans made by the Lender, to a level below that which the Lender or the Lender’s holding company could have
achieved but for such Change in Law (taking into consideration the Lender’s policies and the policies of the Lender’s holding company with respect to capital adequacy), then from time to time, upon the request of the Lender, the Borrower
will pay to the Lender such additional amount or amounts as will compensate the Lender or the Lender’s holding company for any such reduction suffered. 
 (c) A certificate of the Lender setting forth the amount or amounts necessary to compensate the Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and
delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay the Lender the amount shown as due on any such certificate within ten (10) days (or such later date as may be agreed by the Lender) after receipt
thereof. 
 (d) Failure or delay on the part of the Lender to demand compensation pursuant to this Section shall not constitute a waiver
of the Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate the Lender pursuant to this Section for any increased costs or reductions incurred more than nine months prior to the date that
the Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of the Lender’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased
costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof. 

  
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 ARTICLE III 
 TAXES, YIELD PROTECTION AND ILLEGALITY 
 3.1 Taxes. 

(a) Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes. Any and all payments by or on account of any obligation
of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Law. If any Applicable Law (as determined in the good faith discretion of the Borrower) requires the deduction or
withholding of any Tax from any such payment by the Borrower, then the Borrower shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance
with Applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to
additional sums payable under this Section 3.1) the Lender receives an amount equal to the sum it would have received had no such deduction or withholding been made. 
 (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of subsection (a) above, the Borrower shall timely pay to the relevant Governmental Authority in accordance with Applicable
Law any Other Taxes. 
 (c) Tax Indemnifications. 

(i) Without limiting the provisions of subsection (a) or (b) above, the Borrower shall, and does hereby, indemnify the
Lender, and shall make payment in respect thereof within thirty days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this
Section 3.1) payable or paid by the Lender or required to be withheld or deducted from a payment to the Lender, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes
were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by the Lender shall be conclusive absent manifest error. 

(ii) Without limiting the provisions of subsection (a) or (b) above, the Lender shall, and does hereby, indemnify the
Borrower, and shall make payment in respect thereof within thirty days after demand therefor, (x) against any Taxes attributable to the Lender’s failure to comply with the provisions of Section 9.7(d) relating to the maintenance of a
Participant Register and (y) against any Excluded Taxes attributable to the Lender, in each case, that are payable or paid by the Borrower in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect
thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Lender by the Borrower shall be conclusive absent
manifest error. The Lender hereby authorizes the Borrower to set off and apply any and all amounts at any time owing to the Lender under this Agreement or any other Loan Document against any amount due to the Borrower under this clause (ii).

  
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 (d) Evidence of Payments. Upon request by the Borrower or the Lender, as the case may be, after any
payment of Taxes by the Borrower or the Lender to a Governmental Authority as provided in this Section 3.1, the Borrower shall deliver to the Lender or the Lender shall deliver to the Borrower, as the case may be, the original or a certified
copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of any return required by Applicable Law to report such payment or other evidence of such payment reasonably satisfactory to the Borrower or the Lender, as the
case may be. 
 (e) Status of Lender; Tax Documentation. 

(i) If the Lender is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan
Document, the Lender shall deliver to the Borrower, at the time or times reasonably requested by the Borrower, such properly completed and executed documentation reasonably requested by the Borrower as will permit such payments to be made without
withholding or at a reduced rate of withholding. In addition, the Lender, if reasonably requested by the Borrower, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower as will enable the
Borrower to determine whether or not the Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such
documentation (other than such documentation set forth in Sections 3.1(e)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject the Lender to any
material unreimbursed cost or expense or would materially prejudice the legal or commercial position of the Lender. 

(ii) Without limiting the generality of the foregoing: 

(A) if the Lender is a “United States person” as defined in Section 7701(a)(30) of the Code, the Lender shall
deliver to the Borrower on or prior to the date on which the Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower), executed copies of IRS Form W-9 certifying that the Lender is
exempt from U.S. federal backup withholding tax; 

  
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 (B) if the Lender is not a “United States person” as defined in
Section 7701(a)(30) of the Code, the Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower on or prior to the date on which the Lender becomes a Lender under this Agreement (and from time to time thereafter upon
the reasonable request of the Borrower), whichever of the following is applicable: 
 (1) if the Lender claims the
benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal
withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal
withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty; 

(2) executed copies of IRS Form W-8ECI; 
 (3) if the Lender claims the benefits of the exemption for portfolio interest under Section 871(h) or 881(c) of the Code, (x) a certificate to the effect that the Lender is not a “bank” within
the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in
Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form W-8BEN; or 
 (4) to the extent the Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other
certification documents from each beneficial owner, as applicable; provided that if the Lender is a partnership and one or more direct or indirect partners of the Lender are claiming the portfolio interest exemption, the Lender may provide a U.S.
Tax Compliance Certificate on behalf of each such direct and indirect partner; 
 (C) if the Lender is not a “United
States person” as defined in Section 7701(a)(30) of the Code, the Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower on or prior to the date on which the Lender becomes a Lender under this Agreement (and
from time to time thereafter upon the reasonable request of the Borrower), executed originals of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed,
together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower to determine the withholding or deduction required to be made; and 

  
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 (D) if a payment made to the Lender under any Loan Document would be subject to U.S.
federal withholding Tax imposed by FATCA if the Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), the Lender shall deliver to
the Borrower at the time or times prescribed by Applicable Law and at such time or times reasonably requested by the Borrower such documentation prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and
such additional documentation reasonably requested by the Borrower as may be necessary for the Borrower to comply with its obligations under FATCA and to determine that the Lender has complied with the Lender’s obligations under FATCA or to
determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement. 

(iii) The Lender agrees that if any form or certification it previously delivered pursuant to this Section 3.1 expires or
becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower in writing of its legal inability to do so. 
 (f) Treatment of Certain Refunds. If the Lender determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified by the Borrower or
with respect to which the Borrower has paid additional amounts pursuant to this Section 3.1, it shall pay to the Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the
Borrower under this Section 3.1 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) incurred by the Lender, and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund), provided that the Borrower, upon the request of the Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority)
to the Lender in the event the Lender is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this subsection, in no event will the Lender be required to pay any amount to the Borrower pursuant to
this subsection the payment of which would place the Lender in a less favorable net after-Tax position than the Lender would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or
otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This subsection shall not be construed to require the Lender to make available its tax returns (or any other information relating
to its taxes that it deems confidential) to the Borrower or any other Person. 
 (g) Survival. Each party’s obligations under this
Section 3.1 shall survive any assignment of rights by, or the replacement of, the Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document. 

  
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 3.2 Funding Losses. If the Borrower: 

(a) fails to make on a timely basis any payment of principal of any Loan; 
 (b) fails to make any prepayment of any Loan in accordance with Section 2.4 (including, without limitation, an optional prepayment after having given notice of such prepayment in accordance with
Section 2.4(a)); 
 (c) fails to borrow any Loan on the date indicated in a Notice of Borrowing delivered in accordance with
Section 2.3 (in each case except if such failure is due solely to the fault of the Lender); or 
 (d) makes an optional prepayment,
conversion or continuation of a Loan on a day other than the last day of the applicable Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration or otherwise); 

the Borrower shall promptly compensate the Lender and hold such Lender harmless from any loss, cost or expense incurred, including any loss of anticipated profits
and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained. The Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing. 
 3.3 Illegality, Etc. 

(a) In the event that on any date the Lender shall have determined that the making, maintaining or continuation of its LIBOR Rate Loans
(i) has become unlawful as a result of compliance by the Lender in good faith with any law, treaty, governmental rule, regulation, guideline or order (or would conflict with any such treaty, governmental rule, regulation, guideline or order not
having the force of law even though the failure to comply therewith would not be unlawful), or (ii) has become impracticable, as a result of contingencies occurring after the date hereof which materially and adversely affect the London
interbank market or the position of the Lender in that market, then, and in any such event, the Lender shall give notice (by telecopy or by telephone confirmed in writing) to the Borrower of such determination. Thereafter (1) the obligation of
the Lender to make Loans as, or to convert Loans to, LIBOR Rate Loans shall be suspended until such notice 

  
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shall be withdrawn by the Lender, (2) to the extent such determination by the Lender relates to a LIBOR Rate Loan then being requested by the Borrower pursuant to a Notice of Borrowing or a
Conversion/Continuation Notice, the Lender shall make such Loan as (or continue such Loan as or convert such Loan to, as the case may be) a Base Rate Loan, (3) the Lender’s obligation to maintain its outstanding LIBOR Rate Loans (the
“Affected Loans”) shall be terminated at the earlier to occur of the expiration of the Interest Period then in effect with respect to the Affected Loans or when required by law, and (4) the Affected Loans shall automatically
convert into Base Rate Loans on the date of such termination. Upon any such conversion, the Borrower shall also pay accrued interest on the amount so converted. Notwithstanding the foregoing, to the extent a determination by the Lender as described
above relates to a LIBOR Rate Loan then being requested by the Borrower pursuant to a Notice of Borrowing or a Conversion/Continuation Notice the Borrower shall have the option to rescind such Notice of Borrowing or Conversion/Continuation Notice by
giving notice (by telecopy or by telephone confirmed in writing) to the Lender of such rescission on the date on which the Lender gives notice of its determination as described above. 

(b) In the event that the Lender shall have determined, on any Interest Rate Determination Date with respect to any LIBOR Rate Loans, that by
reason of circumstances affecting the London interbank market, adequate and fair means do not exist for ascertaining the interest rate applicable to such LIBOR Rate Loans on the basis provided for in the definition of Adjusted LIBOR Rate, the Lender
shall give notice (by telecopy or by telephone confirmed in writing) to the Borrower of such determination, whereupon (i) no Loans may be made as, or converted to, LIBOR Rate Loans until such time as the Lender notifies the Borrower that the
circumstances giving rise to such notice no longer exist, and (ii) any Notice of Borrowing or Conversion/ Continuation Notice given by the Borrower with respect to the Loans in respect of which such determination was made shall be deemed, as
applicable, to be a Notice of Borrowing for Base Rate Loans or a Conversion/Continuation Notice to convert or continue, as the case may be, such Loans as Base Rate Loans. 
 (c) Calculation of all amounts payable to the Lender hereunder shall be made as though the Lender had actually funded each of its relevant LIBOR Rate Loans through the purchase of a LIBOR deposit bearing interest
at the rate obtained pursuant to clause (i) of the definition of Adjusted LIBOR Rate in an amount equal to the amount of such LIBOR Rate Loan and having a maturity comparable to the relevant Interest Period and through the transfer of such
LIBOR deposit from an offshore office of the Lender to a domestic office of the Lender in the United States of America; provided, however, that the Lender may fund each of its LIBOR Rate Loans in any manner it sees fit and the
foregoing assumptions shall be utilized only for the purposes of calculating amounts payable under this Section 3.3. 

  
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 3.4 Survival. All of the Borrower’s obligations under this Article III shall
survive termination of this Agreement and the commitments hereunder and repayment of all other obligations hereunder. 
 ARTICLE IV

 CONDITIONS PRECEDENT 
 4.1 Conditions Precedent to Effectiveness of this Agreement. The effectiveness of this Agreement is subject to the satisfaction (or waiver in accordance with the terms hereof) of the following
conditions precedent: 
 (a) Loan Documents. The Lender shall have received all of the following documents, duly executed and
delivered by the parties thereto and in form and substance satisfactory to the Lender: 
 (i) this Agreement; 

(ii) the Security Agreement; 
 (iii) the MBIA UK Pledge Agreement; and 
 (iv) the Note (if requested). 

(b) Other Deliverables. The Lender shall have received the following, each of which shall be originals or .pdf (or other electronic) copies
unless otherwise specified, each properly executed by an officer of the Borrower and each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date): 

(i) appropriate financing statements (Form UCC-1 or such other financing statements or similar notices as shall be required by
Applicable Law) authorized for filing under the Uniform Commercial Code or other Applicable Law of each jurisdiction in which the filing of a financing statement or giving of notice may be required to perfect the security interests intended to be
created by the Security Agreement; 
 (ii) a copy of the Organization Documents of the Borrower, including all amendments
thereto, certified as of a recent date by the Secretary of State or other applicable Governmental Authority of its respective jurisdiction of organization, together with: 

(A) a certificate as to the good standing of the Borrower, as of a recent date, from the Secretary of State or other applicable
Governmental Authority of its jurisdiction of organization; 

  
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 (B) a certificate of the Secretary or Assistant Secretary of the Borrower dated the
Closing Date and certifying (1) that attached thereto is a true and complete copy of the Organization Documents of the Borrower as in effect on the Closing Date and at all times since a date prior to the date of the resolutions described in
clause (2) below; (2) that attached thereto is a true and complete copy of resolutions duly adopted by the board of directors of the Borrower authorizing the execution, delivery and performance of the Loan Documents to which it is to be a
party and the borrowings hereunder, and that such resolutions have not been modified, rescinded or amended and are in full force and effect; and (3) as to the incumbency and specimen signature of each officer executing any Loan Document or any
other document delivered in connection herewith on behalf of the Borrower; and 
 (C) a certificate of another officer as
to the incumbency and specimen signature of the Secretary or Assistant Secretary of the Borrower executing the certificate pursuant to clause (B) above; 
 (iii) a customary written legal opinion of (A) Weil, Gotshal & Manges LLP, special counsel to the Borrower, and (B) in-house counsel to the Borrower, in each case as to matters of New York and
United States federal law, addressed to the Lender, dated as of the Closing Date, and in form and substance reasonably satisfactory to the Lender. 
 (c) The Borrower shall have provided the financial statements described in Sections 5.14(a), (c) and (d). 
 (d) Representations and Warranties. The representations and warranties of the Borrower set forth in the Loan Documents shall be true and correct in all material respects (except that, to the extent that any
representation and warranty is qualified by materiality, such representation and warranty shall be true and correct in all respects), on and as of the date of the date hereof, except as they relate to an earlier date, in which case they shall have
been true and correct in all material respects as of such earlier date. 
 (e) No Event of Default. No Potential Event of Default
or Event of Default shall exist or shall result from the consummation of the transactions contemplated hereby or any of the other Loan Documents. 
 (f) Governmental Approvals. 
 (i) All Governmental Approvals required for the
execution and delivery hereof by each of the Lender and the Borrower and performance of their respective obligations hereunder shall have been obtained and remain in full force and effect; 

  
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 (ii) without limiting the generality of the foregoing, the Borrower shall have given
the New York State Department of Financial Services the requisite notice of the Borrower entering into this Agreement and the Borrower and the Lender shall have obtained the approval of the New York State Department of Financial Services to this
Agreement (including, without limitation, the assignment provisions hereof), the other Loan Documents and the transactions contemplated thereby, including without limitation the granting of Liens on the Collateral by the Borrower to the Lender to
secure the Obligations and the making of Loans, and such approval shall be in form and substance reasonably satisfactory to the Lender; 
 (iii) without limiting the generality of the foregoing, the Borrower and the Lender shall have obtained all necessary approvals and consents of the regulators of MBIA UK to the granting of Liens on the Equity
Interests thereof in favor of the Secured Party (as defined in the Security Agreement) and all such approvals and consents shall be in form and substance reasonably satisfactory to the Lender; and 

(iv) all conditions required to be satisfied as of the effective date hereof pursuant to such Governmental Approvals shall have been
satisfied. 
 (g) Value of Collateral. The Lender shall have received a Collateral Calculation Certificate, evidencing that as of
the Closing Date, the value of the Subject Collateral is in excess of Required Coverage. 
 (h) NPFGC Loan Documents. On or prior
to the Closing Date and the initial incurrence of Loans hereunder, (i) the NPFGC Loan Agreement shall have been repaid in full and (ii) duly executed UCC-3 termination statements evidencing, and any other documents necessary or desirable
to evidence, the release of all security interests and Liens granted pursuant to the NPFGC Loan Documents shall have been delivered to the Lender. 
 (i) Effectiveness of the Settlement. On or prior to the Closing Date, there shall have been delivered to the Borrower and the Lender true and correct copies of the final Settlement Documents. All Settlement
Documents shall have been duly executed and delivered by the parties thereto and shall be in full force and effect, and the terms and conditions of such documents, as well as the transactions contemplated by them, shall have been duly approved by
the board of directors (or equivalent) of each of the Borrower, the Lender and each of the other parties thereto. 
 (j) USA PATRIOT
Act. The Borrower shall, prior to the Closing Date, have provided the documentation and other information to the Lender that are required by regulatory authorities under applicable “know your customer” rules and regulations, including
the USA PATRIOT Act, to the extent requested at least one Business Day prior to the Closing Date. 

  
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 (k) Solvency Certificate. The Lender shall have received a certificate from the chief
financial officer of the Borrower attesting that the Borrower, individually, and the Borrower and its Subsidiaries, taken as a whole, are Solvent on the Closing Date, after giving effect to the transactions contemplated hereby and pursuant to the
Settlement Agreement. 
 (l) Pro Forma Compliance. The Borrower shall be in pro forma compliance with the covenants set forth in
Sections 7.12(a) and (b) after giving effect to the transactions contemplated by the Settlement Agreement and hereby. 
 (m)
Officer’s Certificate. The Borrower shall have provided the Lender with a certificate signed by a Responsible Officer of the Borrower certifying that the conditions specified in clauses (d), (e), (f), (g), (h), (i) and (l) of
this Section 4.1 have been satisfied. 
 (n) Lien Searches. The Borrower shall have delivered to the Lender customary lien
searches reasonably satisfactory thereto, evidencing the absence of Liens (other than Permitted Liens) on the property of the Borrower. 

4.2 Conditions Precedent to the Making of each Loan. The obligation of the Lender to make each Loan hereunder is subject to the
satisfaction (or waiver in accordance with the terms hereof) of the following conditions on and as of the requested Borrowing Date: 
 (a)
Effective Date. The Agreement shall have become effective in accordance with Section 4.1. 
 (b) Representations and
Warranties. At the time of and immediately after giving effect to such Loan, the representations and warranties of the Borrower set forth in the Loan Documents shall be true and correct in all material respects (except that, to the extent that
any representation and warranty is qualified by materiality, such representation and warranty shall be true and correct in all respects), on and as of the applicable Borrowing Date as if made on and as of such date, except as they relate to an
earlier date, in which case they shall have been true and correct in all material respects as of such earlier date. 
 (c) No Event of
Default. At the time of and immediately after giving effect to such Loan, no Potential Event of Default or Event of Default shall have occurred and be continuing. 
 (d) Notice of Borrowing. The Lender shall have received a duly completed and executed Notice of Borrowing from the Borrower, as required by Section 2.3. Such Notice of Borrowing shall constitute a
representation and warranty by the Borrower that, as of the date of such notice and as of the requested Borrowing Date, the conditions in this Section are satisfied and will be satisfied on the requested Borrowing Date. 

  
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 (e) Commitment Availability. On the applicable Borrowing Date, the aggregate principal amount
of all Loans, after giving effect to any Loan borrowed on such Borrowing Date, shall not exceed the Available Commitment. 
 (f)
Governmental Approvals. 
 (i) All Governmental Approvals required for the execution and delivery hereof by each of
the Lender and the Borrower and performance of their respective obligations hereunder, including the making of the requested Loan, shall have been obtained and remain in full force and effect; 

(ii) without limiting the generality of the foregoing, all of the approvals described in Section 4.1(f)(ii) and
(iii) shall be in full force and effect and shall not have been revoked or amended in any manner; and 
 (iii) all
conditions required to be satisfied as of the requested Borrowing Date pursuant to such Governmental Approvals shall have been satisfied. 

(g) Coverage. On the applicable Borrowing Date, the Borrower shall have delivered to the Lender a Collateral Calculation Certificate (dated
as of such Borrowing Date), evidencing that as of the Borrowing Date, after giving effect to the borrowing of the requested Loan, the value of the Subject Collateral is in excess of Required Coverage. 

(h) Proceeds. In the event that, after giving effect to such Borrowing, the aggregate principal amount of the Loans outstanding will be
greater than $50,000,000, the Borrower shall, as of the applicable Borrowing Date, represent and warrant to the Lender (in the executed Notice of Borrowing) that the proceeds of such Borrowing are to be used by the Borrower to meet the
Borrower’s ordinary course liquidity needs within 30 days of such Borrowing Date. 
 (i) Pro Forma Compliance. On the
applicable Borrowing Date and after giving effect to the applicable borrowing and the use of the proceeds thereof, the Borrower shall be in pro forma compliance with the covenants set forth in Section 7.12(a) and (b). 

ARTICLE V 
 REPRESENTATIONS
AND WARRANTIES 
 The Borrower makes all of the following representations and warranties to and in favor of the Lender as of the date
of this Agreement and each Borrowing Date, except to the extent that any of such representations or warranties specifically relate to an earlier date (in which case they shall have been true and correct on such date). All of the following
representations and warranties shall survive the execution and delivery of this Agreement. 

  
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 5.1 Corporate Existence and Power. The Borrower and each of its Subsidiaries:

 (a) is duly organized and validly existing and in good standing under the laws of the jurisdiction of its organization, 

(b) has, in the case of the Borrower, the full power and authority to enter into and perform the obligations undertaken by it pursuant to the Loan
Documents, 
 (c) has, in the case of the Borrower, taken all necessary action whatsoever required and obtained all necessary consents and
licenses required to authorize its entry into, delivery and performance of the Loan Documents and the terms hereof, and to ensure that the obligations of the Borrower thereunder are legal, valid and binding on it, 

(d) is duly authorized, qualified and licensed under the laws of each jurisdiction in which its ownership, lease or operation of property or the
conduct of its business requires such qualification or license except as the failure to be so authorized or qualified (individually or in the aggregate) could not reasonably be expected to have a Material Adverse Effect, and 

(e) has not taken any corporate action nor have any other steps been taken or legal proceedings been started or threatened against it for its
winding-up, dissolution, administration or reorganization or the appointment of a receiver, administrator, liquidator or similar officer of it or of any or all of its assets or revenues. 

5.2 Corporate Authorization; Non-Contravention. The execution, delivery and performance by it of the Loan Documents does not
(a) contravene (i) its Organization Documents, (ii) any Applicable Law, (iii) any material Contractual Obligation to which it is a party or binding on or affecting it or its property other than any Contractual Obligations that
have been waived, or (iv) any order, judgment, award, injunction or decree binding on or affecting it or its property or (b) result in, or require the creation or imposition of, any Lien upon or with respect to any of the properties now
owned or hereafter acquired by it, except pursuant to the Security Documents. 
 5.3 Execution; Binding Effect. The Loan
Documents have been duly executed and delivered and constitute legal, valid and binding obligations of the Borrower enforceable against it in accordance with their terms subject to any applicable bankruptcy, insolvency or similar laws affecting
creditors’ rights generally. 
 5.4 No Injunction. No injunction, writ, temporary restraining order or any order of any
nature has been issued by any court or other Governmental Authority purporting to enjoin or restrain the execution, delivery or performance of the Loan Documents, or directing that the transactions provided for therein not be consummated as therein
provided. 

  
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 5.5 No Potential Event Default or Event Default. The Borrower and each of its
Subsidiaries is not in default under or with respect to any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Potential Event Default or Event of Default has
occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document. 
 5.6 Ownership of Property. 
 (a) The Borrower and each of its Subsidiaries has good
record and title in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of its business. 
 (b) Schedule 5.6(b) sets forth a complete and accurate list of all Liens on the property or assets of the Borrower and each of its Subsidiaries, showing as of the date hereof the lienholder thereof, the principal
amount of the obligations secured thereby and the property or assets of the Borrower or such Subsidiary subject thereto. The property of the Borrower and each of its Subsidiaries is subject to no Liens, other than Liens set forth on Schedule 5.6(b),
and as otherwise permitted by Section 7.1. 
 5.7 Environmental Compliance. Except as could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, the Borrower and each of its Subsidiaries is and has been in compliance with applicable Environmental Laws. 

5.8 Insurance. The properties of the Borrower and its Subsidiaries are insured with financially sound and reputable insurance
companies which are not Affiliates of the Borrower, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the applicable
company operates. 
 5.9 Taxes. The Borrower and its Subsidiaries have filed all Tax returns and reports required to be
filed, and have paid all Federal, state and other material Taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except those which are being contested in
good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with the US GAAP. There is no proposed tax assessment against the Borrower or any Subsidiary that would, if made, reasonably
be expected to have a Material Adverse Effect. 

  
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 5.10 Compliance with Law. The Borrower and its Subsidiaries are in compliance in all
material respects with the requirements of all Applicable Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (i) such requirement of law or order, writ, injunction or
decree is being contested in good faith by appropriate proceedings diligently conducted or (ii) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

 5.11 USA PATRIOT Act; OFAC. 
 (a) USA PATRIOT Act. To the extent applicable, the Borrower and its Subsidiaries is in compliance in all material respects with (i) the Trading with the Enemy Act, as amended, and each of the foreign
assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended), and any other enabling legislation or executive order relating thereto, and (ii) the USA PATRIOT Act. 

(b) Sanctioned Persons. None of the Borrower, any Subsidiary nor, to the knowledge of the Borrower, any director or officer of the Borrower
or any Subsidiary is subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Borrower will not directly or indirectly use the proceeds of the Loans or
otherwise make available such proceeds to any Person, for the purpose of financing the activities of any Person subject to any United States sanctions administered by OFAC. 
 5.12 Margin Stock; Investment Company Act. 
 (a) The Borrower is not engaged and will
not engage, principally, or as one of its important activities, in the business of purchasing or carrying any Margin Stock or extending credit for such purpose, and no part of the proceeds of any Loan will be used to purchase or carry any Margin
Stock, or be used for any purpose which violates, or which is inconsistent with, the provisions of Regulation U or X. 
 (b) None of the
Borrower, any Person Controlling the Borrower, or any Subsidiary is or is required to be registered as an “investment company” under the Investment Company Act of 1940. 

5.13 Governmental Authorization; Other Consents. No approval, consent, exemption, authorization, or other action by, or notice to, or
filing with, any Governmental Authority or any other Person is necessary or required in connection with (a) the execution, delivery or performance by, or enforcement against, the Borrower of this Agreement or any other Loan Document,
(b) the grant by the Borrower of the Liens granted by it pursuant to the Security Documents, (c) the perfection or maintenance of the Liens created under the Security Documents (including the first priority nature thereof) or (d) the
exercise by the Lender of its rights under the Loan Documents or the remedies in respect of the Collateral 

  
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pursuant to the Security Documents, except for (i) the authorizations, approvals, actions, notices and filings listed on Schedule 5.13, all of which have been duly obtained, taken,
given or made and are in full force and effect and (ii) consents required to enforce the pledge of shares in MBIA UK. 
 5.14
Financial Statements; No Material Adverse Effect. 
 (a) The Audited Financial Statements (i) were prepared in accordance
with US GAAP, Regulated Accounting Principles or UK GAAP, as applicable, consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; (ii) fairly present the financial condition of the
Borrower, the Borrower and its Subsidiaries, MBIA UK or UK Insurance, as applicable, in each case as of the date thereof and their results of operations for the period covered thereby in accordance with US GAAP, Regulated Accounting Principles
or UK GAAP, as applicable consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and (iii) show all material indebtedness and other liabilities, direct or contingent, of the Borrower, the
Borrower and its Subsidiaries, MBIA UK or UK Insurance, as applicable, in each case as of the date thereof, including liabilities for taxes, material commitments and Indebtedness. 

(b) Since the date of the Audited Financial Statements, there has been no event or circumstance, either individually or in the aggregate, that has
had or could reasonably be expected to have a Material Adverse Effect. 
 (c) The forecasted cash flows, shown on a monthly basis for each
of the six months beginning with the month ending May 31, 2013, of (A) the Borrower, prepared in accordance with Regulated Accounting Principles, (B) the Borrower and its Subsidiaries on a consolidated basis, prepared in accordance
with US GAAP, (C) UK Insurance, prepared in accordance with UK GAAP and (D) UK Insurance, in the form prepared by the Borrower and delivered to the Lender on the Closing Date, were prepared in good faith on the basis of the
assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such forecasts, and represented, at the time of delivery, the Borrower’s reasonable estimate of its (or its and its
Subsidiaries, or UK Insurance’s, as applicable) future financial condition and performance, it being recognized by the Lender that such forecasts are not to be viewed as facts and are subject to significant uncertainties and contingencies, many
of which are beyond the control of the Borrower and its Subsidiaries, that no assurances can be given that any particular forecast will be realized, that actual results may vary from projected results and that such differences may be material.

 (d) The consolidated pro forma balance sheet (i) of the Borrower and its Subsidiaries as at March 31, 2013, prepared in
accordance with US GAAP, and (ii) of the Borrower as at March 31, 2013, prepared in accordance with Regulated Accounting Principles, each certified by the chief financial officer or treasurer of the Borrower, copies

  
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of which have been furnished to the Lender, fairly present the consolidated pro forma financial condition of the Borrower and its Subsidiaries or the Borrower, as applicable, as at such date, in
each case giving effect to the transactions contemplated by the Settlement Agreement, all in accordance with US GAAP or Regulated Accounting Principles, as applicable. 
 5.15 Litigation. (x) Except as set forth on Schedule 5.15, there are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrower after due and diligent
investigation, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against the Borrower or any of its Subsidiaries or against any of their properties or revenues that (a) purport to affect
or pertain to this Agreement or any other Loan Document, or (b) either individually or in the aggregate, if determined adversely, could reasonably be expected to have a Material Adverse Effect and (y) since the Closing Date, there have
been no developments, events or other changes in the actions, suits, proceedings, claims or disputes set forth on Schedule 5.15 that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 5.16 ERISA Compliance. (a) Each Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other Applicable Laws. Each Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the IRS or an application for such a letter is currently being processed by the
IRS with respect thereto and, to the best knowledge of the Borrower, nothing has occurred which would prevent, or cause the loss of, such qualification. The Borrower and each ERISA Affiliate have made all required contributions to each Plan subject
to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan. 

(b) There are no pending or, to the best knowledge of the Borrower, threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan sponsored by the Borrower or any ERISA Affiliate that could reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules
with respect to any Plan sponsored by the Borrower or any ERISA Affiliate that has resulted or could reasonably be expected to result in a Material Adverse Effect. 
 (c) Except as could not reasonably be expected to have a Material Adverse Effect, (i) no ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension
Liability; (iii) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under
Section 4007 of ERISA); (iv) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the 

  
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giving of notice under Section 4219 of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither the Borrower
nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or 4212(c) of ERISA. 
 (d) With respect
to each scheme or arrangement mandated by a government other than the United States (a “Foreign Government Scheme or Arrangement”) and with respect to each employee benefit plan maintained or contributed to by the Borrower or any
Subsidiary of the Borrower that is not subject to United States law (a “Foreign Plan”): 
 (i) any
employer and employee contributions required by law or by the terms of any Foreign Government Scheme or Arrangement or any Foreign Plan have been made, or, if applicable, accrued, in accordance with normal accounting practices; 

(ii) the fair market value of the assets of each funded Foreign Plan, the liability of each insurer for any Foreign Plan funded
through insurance or the book reserve established for any Foreign Plan, together with any accrued contributions, is sufficient to procure or provide for the accrued benefit obligations, as of the date hereof, with respect to all current and former
participants in such Foreign Plan according to the actuarial assumptions and valuations most recently used to account for such obligations in accordance with applicable generally accepted accounting principles; and 

(iii) each Foreign Plan required to be registered has been registered and has been maintained in good standing with applicable
regulatory authorities. 
 5.17 Subsidiaries; Equity Interests. The Borrower has no Subsidiaries other than those
specifically disclosed in Part (a) of Schedule 5.17 (as may be updated from time to time in accordance with the terms of this Agreement), and all of the outstanding Equity Interests in such Subsidiaries have been validly issued, are fully paid
and non-assessable and are owned by the Borrower in the amounts specified on Part (a) of Schedule 5.17 (as may be updated from time to time in accordance with the terms of this Agreement) free and clear of all Liens except those created under
the Security Documents. The Borrower has no equity investments in any other corporation or entity other than those specifically disclosed in Part (b) of Schedule 5.17 (as may be updated from time to time in accordance with the terms of this
Agreement). All of the outstanding Equity Interests in the Borrower have been validly issued, are fully paid and non-assessable and are owned by MBIA Inc. in the amounts specified on Part (c) of Schedule 5.17 free and clear of all Liens except
those created under the Security Documents. Part (d) of Schedule 5.17 shows, as of the Closing Date, the jurisdiction of the Borrower’s incorporation, the address of the Borrower’s principal place of business and the Borrower’s
U.S. taxpayer identification number. The copy of the charter of the Borrower and each amendment thereto provided pursuant to Section 4.1(b)(ii)(B) is a true and correct copy of each such document, each of which is valid and in full force and
effect. 

  
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 5.18 Disclosure. The Borrower has disclosed to the Lender all agreements, instruments
and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. No report,
financial statement, certificate or other information furnished (whether in writing or orally) by or on behalf of the Borrower to the Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered
hereunder or under any other Loan Document (in each case as modified or supplemented by other information so furnished) contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading in any material respect; provided that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based
upon assumptions believed to be reasonable at the time; it being recognized by the Lender that such projections are not to be viewed as facts and are subject to significant uncertainties and contingencies, many of which are beyond the control of the
Borrower and its Subsidiaries, that no assurances can be given that any particular financial projections will be realized, that actual results may vary from projected results and that such differences may be material. 

5.19 Intellectual Property; Licenses, Etc. The Borrower and each of its Subsidiaries own, or possess the right to use, all of the
material trademarks, service marks, trade names, copyrights, patents, patent rights, franchises, licenses and other intellectual property rights (collectively, “IP Rights”) that are reasonably necessary for the operation of their
respective businesses as currently being conducted, without conflict with the rights of any other Person, and Schedule 5.19 sets forth a complete and accurate list of all registered IP Rights owned or used by the Borrower and each of its
Subsidiaries. To the knowledge of the Borrower, no slogan or other advertising device, product, process, method, substance, part or other material now employed, or now contemplated to be employed, by the Borrower or any of its Subsidiaries infringes
upon any rights held by any other Person. No claim or litigation regarding any of the foregoing is pending or, to the knowledge of the Borrower, threatened, which, either individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect. 
 5.20 Solvency. The Borrower is, individually and together with its Subsidiaries on a
consolidated basis, Solvent. 
 5.21 Casualty, Etc. Neither the businesses nor the properties of the Borrower or any of its
Subsidiaries are affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not covered by insurance) that, either
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

  
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 5.22 Labor Matters. Other than national collective bargaining or similar agreements in
the case of non-U.S. employees, there are no collective bargaining agreements or Multiemployer Plans covering the employees of the Borrower or any of its Subsidiaries and neither the Borrower nor any Subsidiary has suffered any strikes, walkouts,
work stoppages or other material labor difficulty within the last five years. 
 5.23 Security Documents. The provisions of
the Security Documents are effective to create in favor of the Lender a legal, valid and enforceable first priority Lien (subject to Liens permitted by Section 7.1) on all right, title and interest of the Borrower in the Collateral described
therein. Except for filings completed prior to the Closing Date and as contemplated hereby and by the Security Documents, no filing or other action will be necessary to perfect or protect such Liens, other than consents required to enforce the
pledge of shares in MBIA UK. 
 5.24 Insurance Licenses. The Borrower and each Insurance Subsidiary holds all material
licenses (including licenses or certificates of authority from applicable Supervisory Authorities), permits or authorizations necessary or otherwise required to transact insurance and reinsurance business (collectively, the “Insurance
Licenses”). There is (i) no Insurance License that is the subject of a proceeding for suspension, revocation or limitation or any similar proceedings, (ii) no sustainable basis for such a suspension, revocation or limitation, and
(iii) to the knowledge of the Borrower, no such suspension, revocation or limitation threatened by any Supervisory Authority, that, in each instance under clauses (i), (ii) and (iii) above and either individually or in the aggregate,
has had, or could reasonably be expected to have, a Material Adverse Effect. 
 5.25 Commutation. Schedule 5.25 sets forth a
list that is complete and accurate in all material respects of matters with respect to which the Borrower or any of its Subsidiaries is engaged in remediation efforts, including, without limitation, amendments, compromises or commutations with
respect to its insurance obligations and settlements of litigation, whether or not they effect the Subject Collateral. 
 ARTICLE VI

 AFFIRMATIVE COVENANTS 
 The Borrower hereby agrees that it shall perform and comply with the covenants set forth in this Article until the irrevocable payment in full in cash of all of the Obligations (other than contingent Obligations
related to indemnification payments not then due and owing). 
 6.1 Financial Statements and Reports. The Borrower shall
furnish to the Lender: 
 (a) such information regarding the condition or operations, financial or otherwise, of the Borrower as the
Lender may from time to time reasonably request, including, 

  
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 (i) as soon as available, but in any event within 120 days after the end of each
Fiscal Year of the Borrower, a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or operations, changes in shareholders’ equity, and cash flows
for such Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all in reasonable detail and prepared in accordance with US GAAP, audited and accompanied by a report and opinion of an independent
certified public accountant of nationally recognized standing reasonably acceptable to the Lender (it being agreed that any of the so-called “Big-4” accounting firms is acceptable to the Lender), which report and opinion shall be prepared
in accordance with US GAAP. 
 (ii) as soon as available, but in any event within 60 days after the end of each of the
first three Fiscal Quarters of each Fiscal Year of the Borrower, a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal quarter, and the related consolidated statements of income or operations, changes in
shareholders’ equity, and cash flows for such fiscal quarter and for the portion of the Borrower’s Fiscal Year then ended, setting forth in each case in comparative form the figures for the corresponding Fiscal Quarter of the previous
fiscal year and the corresponding portion of the previous Fiscal Year, all in reasonable detail, certified by the chief executive officer, chief financial officer, treasurer or controller of the Borrower as fairly presenting the financial condition,
results of operations, shareholders’ equity and cash flows of the Borrower and its Subsidiaries in accordance with US GAAP, subject only to normal year-end audit adjustments and the absence of footnotes; 

(iii) as soon as available, but in any event not later than the earlier of (x) the date that such statements are required to be
filed with the New York State Department of Financial Services, (y) the date that is five days after the date such statements are actually filed with the New York State Department of Financial Services and (z) the date that is 45 days
after the end of each Fiscal Quarter, the financial statements of the Borrower prepared in accordance with Regulated Accounting Principles (the “Statutory Financial Statements”) in the form required to be filed with the New York
State Department of Financial Services; 
 (iv) as soon as available, but in any event within 120 days after the end of
each Fiscal Year of each of MBIA UK and UK Insurance, a balance sheet of each of MBIA UK and UK Insurance as at the end of such fiscal year, and the related statements of income or operations and changes in shareholders’ equity for such Fiscal
Year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all in reasonable detail and prepared in accordance with UK GAAP, audited and accompanied by a report and opinion of an independent certified public
accountant of nationally recognized standing reasonably acceptable 

  
 50 

 
to the Lender (it being agreed that any of the so-called “Big 4” accounting firms is acceptable to the Lender), which report and opinion shall be prepared in accordance with generally
accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit; 

(b) concurrently with the delivery of the financial statements referred to in Sections 6.1(a)(i) and (ii), (X) a duly completed Compliance
Certificate and a duly completed Collateral Calculation Certificate, in each case, signed by a Responsible Officer of the Borrower and (Y) a copy of management’s discussion and analysis with respect to such financial statements;

 (c) as soon as available, but in any event not more than 60 days after the end of each Fiscal Year of the Borrower, an annual business
plan and budget of the Borrower and its Subsidiaries on a consolidated basis, including forecasts prepared by management of the Borrower, in form reasonably satisfactory to the Lender, of (i) projected consolidated balance sheets for the end of
each Fiscal Quarter of such Fiscal Year, (ii) statements of income or operations on a quarterly basis and (iii) cash flows on a monthly basis, in each case of the Borrower and its Subsidiaries for the immediately following fiscal year
(including the fiscal year in which the Maturity Date occurs), it being recognized by the Lender that such business plans, budgets and forecasts are not to be viewed as facts and are subject to significant uncertainties and contingencies, many of
which are beyond the control of the Borrower and its Subsidiaries, that no assurances can be given that any particular business plan, budget or forecast will be realized, that actual results may vary from projected results and that such differences
may be material; 
 (d) promptly after any request by the Lender, (x) copies of any detailed audit reports, management letters or
recommendations submitted to the board of directors (or the audit committee of the board of directors) of the Borrower or any of its Subsidiaries by independent accountants in connection with the accounts or books of the Borrower or any of its
Subsidiaries, or any audit of any of them and (y) any other information or materials reasonably requested by the Lender; 
 (e)
promptly after the same are available, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders of the Borrower, and copies of all annual, regular, periodic and special reports and
registration statements which the Borrower may file or be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, or with any national securities exchange, and in any case not otherwise required to be
delivered to the Lender pursuant hereto; 
 (f) promptly after the furnishing thereof, copies of any statement or report furnished to any
holder of debt of the Borrower or any of its Subsidiaries pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be furnished to the Lender pursuant to Section 6.1; 

  
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 (g) promptly, and in any event within five Business Days after receipt thereof by the Borrower or any
Subsidiary thereof, copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by such agency regarding
financial or other operational results of the Borrower or any Subsidiary thereof or any parent entity of the Borrower; 
 (h) not later
than five Business Days after receipt thereof by the Borrower or any Subsidiary thereof, copies of all notices, requests and other documents (including amendments, waivers and other modifications) so received under or pursuant to any instrument,
indenture, loan or credit or similar agreement and, from time to time upon request by the Lender, such information and reports regarding the such instruments, indentures and loan and credit and similar agreements as the Lender may reasonably
request; 
 (i) promptly, and in any event within five Business Days after any material discussion relating to the Borrower or any
Subsidiary thereof between the Borrower and/or any Subsidiary thereof, on the one hand, and any Governmental Authority exercising regulatory authority thereof, on the other hand, a reasonably detailed summary of all substantive aspects of such
discussion; 
 (j) not more than fifteen days prior to, and not less than five days prior to the first day of each calendar month ending
after the Closing Date, projections of the cash flows and cash balances, shown on a monthly basis for each of the six months beginning with such month, of (A) the Borrower, prepared in accordance with Regulated Accounting Principles,
(B) the Borrower and its Subsidiaries on a consolidated basis, prepared in accordance with US GAAP, (C) UK Insurance, prepared in accordance with UK GAAP and (D) UK Insurance, prepared in substantially the form of forecasted
cash flows prepared by the Borrower and delivered to the Lender on the Closing Date, it being recognized by the Lender that such projections are not to be viewed as facts and are subject to significant uncertainties and contingencies, many of which
are beyond the control of the Borrower and its Subsidiaries, that no assurances can be given that any particular projection will be realized, that actual results may vary from projected results and that such differences may be material; 

(k) Prompt notice of: 
 (i) the occurrence of any Potential Event of Default or Event of Default; 

  
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 (ii) any matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including (i) breach or non-performance of, or any default under, a Contractual Obligation of the Borrower or any Subsidiary thereof; (ii) any dispute, litigation, investigation, proceeding or suspension between
the Borrower or any Subsidiary and any Governmental Authority; or (iii) the commencement of, or any material development in, any litigation or proceeding affecting the Borrower or any Subsidiary, including pursuant to any applicable
Environmental Laws; 
 (iii) the occurrence of any ERISA Event that could reasonably be expected to have or result in a
Material Adverse Effect; and 
 (iv) any material change in accounting policies or financial reporting practices by the
Borrower or any Subsidiary thereof. 
 Each notice pursuant to Section 6.1(k) shall be accompanied by a statement of a
Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what action the Borrower has taken and proposes to take with respect thereto. Each notice pursuant to Section 6.1(k)(i) shall
describe with particularity any and all provisions of this Agreement and any other Loan Document that have been breached. 
 6.2
Payments of Obligations. The Borrower shall, and shall cause its Subsidiaries to pay and discharge as the same shall become due and payable, all its material obligations and liabilities, including (a) all material tax liabilities,
assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with US GAAP are being
maintained by the Borrower or such Subsidiary; (b) all lawful claims which, if unpaid, would by law become a Lien upon its property (other than a Permitted Lien); and (c) all Indebtedness, as and when due and payable, in excess of the
Threshold Amount, but subject to any subordination provisions contained in any instrument or agreement evidencing such Indebtedness; provided, however, that the Borrower and its Subsidiaries shall not be required to pay any such tax,
assessment, charge, levy, claim or Indebtedness which is being contested in good faith by appropriate proceedings and as to which adequate reserves have been established in accordance with GAAP, unless the failure to make any such payment could give
rise to an immediate right to foreclose on a Lien securing such amounts. 
 6.3 Further Assurances. (x) The Borrower
shall, and shall cause its Subsidiaries to do and perform, from time to time, any and all acts (and execute any and all documents) as may be necessary or as may be reasonably requested by the Lender in order to effect the purposes of the Loan
Documents, including, without limitation, to: (a) correct any material defect or error that may be discovered in any Loan Document or in the execution, acknowledgment, filing or recordation thereof, and (b) do, execute, acknowledge,
deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, 

  
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certificates, assurances and other instruments as the Lender may reasonably require from time to time in order to (i) carry out more effectively the purposes of the Loan Documents,
(ii) to the fullest extent permitted by applicable law, subject any the Borrower’s or any of its Subsidiaries’ properties, assets, rights or interests to the Liens now or hereafter intended to be covered by any of the Security
Documents, (iii) perfect and maintain the validity, effectiveness and priority of any of the Security Documents and any of the Liens intended to be created thereunder and (iv) assure, convey, grant, assign, transfer, preserve, protect and
confirm more effectively unto the Lender the rights granted or now or hereafter intended to be granted to the Lender under any Loan Document or under any other instrument executed in connection with any Loan Document to which the Borrower or any of
its Subsidiaries is or is to be a party. The Borrower shall, within ten Business Days after the Closing Date, deliver to the Lender documentation evidencing the perfection under the laws of England and Wales of the Lender’s security interest in
the capital stock of MBIA UK and (B) customary legal opinions of English counsel to the Lender related to the foregoing, in each case in form and substance reasonably satisfactory to the Lender. 

6.4 Maintenance of Existence. The Borrower shall, and cause each of its Subsidiaries to: (a) maintain in full force and effect
its legal existence and good standing under the Applicable Laws of its jurisdiction of organization and carry on its business in substantially the same manner and in substantially the same fields as such business is now carried on and maintained;
(b) take all reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect. 

6.5 Maintenance of Properties. The Borrower shall, and shall cause each of its Subsidiaries to: (i) maintain, preserve and
protect all of its material properties and equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear excepted; (ii) make all necessary repairs thereto and renewals and replacements thereof
except where the failure to do so could not reasonably be expected to have a Material Adverse Effect; and (iii) use the standard of care typical in the industry in the operation and maintenance of its facilities. 

6.6 Maintenance of Insurance. The Borrower shall, and shall cause each of its Subsidiaries to: maintain with financially sound and
reputable insurance companies not Affiliates of the Borrower insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by similarly sized Persons engaged in the same or similar business, of
such types and in such amounts as are customarily carried under similar circumstances by such other Persons. 
 6.7 Compliance
with Laws. The Borrower shall, and shall cause each of its Subsidiaries to comply in all material respects with the requirements of all Applicable 

  
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Law, except, as to matters which have been disclosed publicly or to the Lender in the financial statements of the Borrower prior to the Closing Date, where the failure to comply therewith could
not reasonably be expected to have a Material Adverse Effect. 
 6.8 Books and Records. The Borrower shall, and shall cause
each of its Subsidiaries to: (a) maintain proper books of record and account, in which full, true and correct entries in conformity with US GAAP consistently applied shall be made of all financial transactions and matters involving the
assets and business of the Borrower or such Subsidiary, as the case may be, and (b) maintain such books of record and account in material conformity with all applicable requirements of any Governmental Authority having regulatory jurisdiction
over the Borrower or such Subsidiary, as the case may be. 
 6.9 Inspection Rights. Permit representatives and independent
contractors of the Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors,
officers, and independent public accountants, all at the expense of the Borrower and at such reasonable times during normal business hours and upon reasonable advance notice to the Borrower (provided that the Lender shall give the Borrower an
opportunity to participate in any and all such discussions), but no more frequently than four times per year unless an Event of Default has occurred and is continuing; provided, however, that when an Event of Default exists the Lender (or any
of its representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice. 

6.10 Compliance with Environmental Laws. Except as could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, the Borrower shall, and shall cause each of its Subsidiaries to use commercially reasonable efforts to comply and cause all lessees and other Persons operating or occupying its properties to comply, in all material respects,
with all applicable Environmental Laws; obtain and renew all Environmental Permits necessary for its operations and properties; and conduct any investigation, study, sampling and testing, and undertake any cleanup, removal, remedial or other action
necessary to remove and clean up all Hazardous Materials from any of its properties, in accordance with the requirements of all Environmental Laws, if required; provided, however, that neither the Borrower nor any of its Subsidiaries shall be
required to undertake any such cleanup, removal, remedial or other action to the extent that its obligation to do so is being contested in good faith and by proper proceedings and appropriate reserves are being maintained with respect to such
circumstances in accordance with US GAAP. 
 6.11 Material Contracts. The Borrower shall, and shall cause each of its
Subsidiaries to perform and observe all the terms and provisions of each material Contractual Obligation to be performed or observed by it, maintain each such material Contractual Obligation in full force and effect, enforce each such material
Contractual Obligation in accordance with its terms. 

  
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 ARTICLE VII 
 NEGATIVE COVENANTS 
 Until the irrevocable payment in full in cash of all of the Obligations
(other than contingent Obligations related to indemnification payments not then due and owing), the Borrower hereby agrees that it shall not, nor shall it permit any of its Subsidiaries to, directly or indirectly: 

7.1 Liens. Create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, or sign or file or suffer to exist under the Uniform Commercial Code of any jurisdiction a financing statement that names the Borrower or any of its Subsidiaries as debtor, or assign any accounts or other right to receive income,
other than the following (each a “Permitted Lien”): 
 (a) Liens created pursuant to any Security Document; 

(b) Liens existing on the date hereof and listed on Schedule 5.6(b) and any modifications, replacements, renewals or extensions thereof, provided
that (i) the property covered thereby is not changed, (ii) the amount secured or benefited thereby is not increased except as contemplated by Section 7.2(c), (iii) the direct or any contingent obligor with respect thereto is not
changed, and (iv) any renewal, modification or extension of the obligations secured or benefited thereby is permitted by Section 7.2(c); 
 (c) Liens for taxes not yet due or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the
applicable Person in accordance with US GAAP; 
 (d) carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s, landlord’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 30 days or which are being contested in good faith and by appropriate proceedings diligently conducted,
if adequate reserves with respect thereto are maintained on the books of the applicable Person; 
 (e) pledges or deposits in the ordinary
course of business in connection with workers’ compensation, unemployment insurance and other social security legislation, other than any Lien imposed by ERISA; 
 (f) Liens (A) of a collecting bank arising under Section 4-208 of the Uniform Commercial Code on items in the course of collection, and (B) in favor of a banking institution arising as a matter of
law encumbering deposits (including the right of set-off) and which are within the general parameters customary in the banking industry; 

  
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 (g) pledges or deposits of cash and Permitted Investments securing deductibles, self-insurance,
co-payment, co-insurance, retentions and similar obligations to providers of insurance in the ordinary cause of business consistent with past practice; 
 (h) deposits to secure the performance of leases, licenses, subleases or sublicenses (other than Indebtedness) incurred in the ordinary course of business consistent with past practice which do not interfere in any
material respect with the business of the Borrower or any of its Subsidiaries; 
 (i) Liens arising from precautionary Uniform Commercial
Code financing statements regarding, and any interest or title of a licensor, lessor or sublessor under, operating leases; 
 (j)
[reserved]; 
 (k) pledges or deposits of cash and Permitted Investments of any Subsidiary securing obligations to landlords under
operating leases where such Subsidiary is the tenant, securing performance by the tenant, in each case in the ordinary course of business consistent with past practice; 
 (l) deposits to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature
incurred in the ordinary course of business; 
 (m) easements, rights-of-way, restrictions and other similar encumbrances affecting real
property which, in the aggregate, are not substantial in amount, and which do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable
Person; 
 (n) Liens securing judgments for the payment of money not constituting an Event of Default under Section 8.1(h); and

 (o) other Liens affecting property with an aggregate fair value not to exceed $1,000,000, provided that no such Lien shall extend to or
cover any Collateral. 
 7.2 Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except: 

(a) Indebtedness of any Subsidiary of the Borrower owed to the Borrower or another Subsidiary of the Borrower, which Indebtedness is otherwise
permitted under the provisions of Section 7.3, provided that all such Indebtedness which is owed by the Borrower shall be subordinated to the Obligations on terms satisfactory to the Lender in its sole discretion; 

(b) Indebtedness under the Loan Documents; 

  
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 (c) [reserved]; 
 (d) Guarantees by the Borrower or any of its Subsidiaries of Indebtedness of any of their respective officers and employees in respect of moving and relocation and travel expenses of such Persons, in each case in
the ordinary course of business consistent with past practice; 
 (e) [reserved]; 

(f) [reserved]; 
 (g) Indebtedness
arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business; provided that such Indebtedness is extinguished within five Business Days
of its incurrence; 
 (h) Indebtedness representing deferred compensation to employees of the Borrower and its Subsidiaries in the
ordinary course of business consistent with past practice; 
 (i) [reserved]; 

(j) [reserved]; 
 (k) Indebtedness
outstanding on the date hereof and listed on Schedule 7.2 and any refinancings, refundings, renewals or extensions thereof; provided that the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or
extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and the direct or any contingent obligor with respect thereto is not changed,
as a result of or in connection with such refinancing, refunding, renewal or extension; and provided, further, that the terms relating to principal amount, amortization, maturity, collateral (if any) and subordination (if any), and other material
terms taken as a whole, of any such refinancing, refunding, renewing or extending Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith, are no less favorable in any material respect to the Borrower and
its Subsidiaries or the Lender than the terms of any agreement or instrument governing the Indebtedness being refinanced, refunded, renewed or extended and the interest rate applicable to any such refinancing, refunding, renewing or extending
Indebtedness does not exceed the then applicable market interest rate, provided that all such Indebtedness under this clause (k) which is owed by the Borrower to any Affiliate of the Borrower shall be subordinated to the Obligations on terms
satisfactory to the Lender in its sole discretion; and 
 (l) Indebtedness of the Borrower and its Subsidiaries not otherwise permitted by
this Section 7.2 incurred after the Closing Date in an aggregate principal amount not to exceed $1,000,000 at any time outstanding; provided that no Potential Event of Default or Event of Default shall have occurred and be continuing
immediately before and immediately after giving effect to such incurrence. 

  
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 7.3 Investments. Make or hold any Investments, except: 

(a) Investments held by the Borrower and its Subsidiaries in the form of Permitted Investments; 

(b) advances to officers, directors and employees of the Borrower and Subsidiaries in the ordinary course of business consistent with past
practice, for travel, entertainment, relocation and analogous ordinary business purposes; 
 (c) Investments by any of the Subsidiaries of
the Borrower in the Borrower or any of its wholly owned Subsidiaries; 
 (d) Guarantees permitted by Section 7.2; 

(e) [reserved]; 
 (f) Investments
consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from
financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss; and 
 (g) Investments existing
on the date hereof and set forth on Schedule 7.3. 
 7.4 Dissolution. Suffer or permit dissolution or liquidation of
itself either in whole or in part. 
 7.5 Consolidations, Mergers and Sales of Assets. Consolidate or merge with or into, or
sell, lease or otherwise transfer all or any substantial part of their assets to, any other Person, provided that any Subsidiary of the Borrower may consolidate or merge with or into, or sell, lease or otherwise transfer all or any substantial part
of their assets to the Borrower or any Subsidiary of the Borrower. 
 7.6 Dispositions. Make any Disposition or enter into
any agreement to make any Disposition, except: 
 (a) Dispositions of obsolete or worn out property, whether now owned or hereafter
acquired, in the ordinary course of business; 
 (b) Dispositions of inventory in the ordinary course of business; 

  
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 (c) licenses of IP Rights in the ordinary course of business and consistent with past practice;

 (d) the Borrower and its Subsidiaries may liquidate or sell Permitted Investments; 

(e) leases, subleases, licenses or sublicenses of property in the ordinary course of business consistent with past practice and which do not
materially interfere with the business of the Borrower and its Subsidiaries; 
 (f) [reserved]; 

(g) Dispositions in the ordinary course of business consistent with past practice consisting of the abandonment of IP Rights which, in the
reasonable good faith determination of the Borrower, are not material to the conduct of the business of the Borrower or any of its Subsidiaries; 
 (h) [reserved]; 
 (i) Dispositions of equipment or real property to the extent that (i) such
property is exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds of such Disposition are reasonably promptly applied to the purchase price of such replacement property; 

(j) Dispositions of property by any Subsidiary to the Borrower or to a wholly-owned Subsidiary; 

(k) Dispositions of (i) immaterial Subsidiaries of the Borrower organized in Mexico or (ii) Investments owned by MBIA UK and its
Subsidiaries for fair market value; 
 (l) Dispositions permitted by Section 7.5; and 

(m) Dispositions by the Borrower and its Subsidiaries not otherwise permitted under this Section 7.6; provided that (A) the
consideration therefor is at least 75% cash and is paid at the time of the closing of such Disposition; (B) each such Disposition is in an arms’-length transaction; (C) no portion of the assets or property subject to such Disposition
shall consist of Collateral; (D) no Potential Event of Default or Event of Default shall have occurred and be continuing immediately before or immediately after giving effect to such transaction; and (E) the Borrower shall use the proceeds
of such Dispositions in compliance with Section 2.4(b)(iii) hereof; 
 provided, however, that any Disposition pursuant to
Section 7.6(a) through Section 7.6(m) shall be for no less than fair market value. 

  
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 7.7 Restricted Payments. Declare or make, directly or indirectly, any Restricted
Payment, or incur any obligation (contingent or otherwise) to do so, or issue or sell any Equity Interests, except that, so long as no Potential Event of Default shall have occurred and be continuing at the time of any action described below or
would result therefrom: 
 (a) each Subsidiary of the Borrower may make Restricted Payments to the Borrower and any Subsidiaries of the
Borrower, ratably according to their respective holdings of the type of Equity Interest in respect of which such Restricted Payment is being made; 
 (b) the Borrower and each Subsidiary may declare and make dividend payments or other distributions payable solely in the common stock or other common Equity Interests of such Person. 

7.8 Use of Proceeds. Use proceeds of the Loans (i) directly or indirectly, for the purpose, whether immediate, incidental or
ultimate, of purchasing or carrying any Margin Stock, or (ii) for any purpose in violation of any Applicable Law or regulation. 

7.9 Change in Fiscal Year; Accounting Policies. (a) Permit the last day of its Fiscal Year to end on a day other than
December 31 or change its method of determining its Fiscal Quarters; or (b) make any change in accounting policies or reporting practices, except as required by US GAAP, Regulated Accounting Principles or UK GAAP, as applicable.

 7.10 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate thereof (other than, in the
case of any Subsidiary of the Borrower (including MBIA UK and its Subsidiaries), with any other Subsidiary of the Borrower), whether or not in the ordinary course of business. 
 7.11 Burdensome Agreements. Enter into or permit to exist any Contractual Obligation (other than this Agreement or any other Loan Document) that (a) limits the ability (i) of any Subsidiary
of the Borrower to make Restricted Payments to the Borrower or any Subsidiary thereof or to otherwise transfer property to or invest in the Borrower or any Subsidiary thereof, except for any agreement in effect on the date hereof and set forth on
Schedule 7.11 or (ii) of the Borrower or any Subsidiary thereof to create, incur, assume or suffer to exist Liens on property of such Person; or (b) requires the grant of a Lien to secure an obligation of such Person if a Lien is granted
to secure another obligation of such Person, except in each case for prohibitions or restrictions existing under or by reason of: 
 (a)
this Agreement, and the other Loan Documents; 
 (b) Applicable Law; and 

(c) customary non-assignment provisions pursuant to leases (other than Indebtedness) or licensing agreements entered into by the Borrower or any of
its Subsidiaries, in each case entered into in the ordinary course of business and consistent with past practices. 

  
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 7.12 Financial Covenants. 

(a) Required Coverage. At all times, the value of the Subject Collateral (as calculated in a manner described with the definition of
Collateral Calculation Certificate) shall be in excess of the Required Coverage. 
 (b) Minimum Statutory Capital. Permit the
Statutory Capital of the Borrower to be less than an amount equal to $750,000,000. 
 7.13 Prepayments of Indebtedness.
Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, or make any payment of principal, interest or fees or any other payment on, any Indebtedness (including the Surplus Notes), except
(a) the payment of the Loans in accordance with the terms of this Agreement and (b) refinancings and refundings of Indebtedness set forth in Schedule 7.2 in compliance with Section 7.2(c). 

7.14 Amendments of Organization Documents. Amend any of its Organization Documents in any manner or to any extent that would
reasonably be expected to be adverse to the Lender, or any of the Lender’s rights hereunder. 
 7.15 Change of
Business. Engage in any material extent in any business other than those businesses conducted by it on the date hereof or any business reasonably related or incidental thereto. 

7.16 Commutations. Other than with respect to (a) insurance obligations and settlements of insurance with such counterparties as
the Borrower and Lender may agree, as to which no such limitation shall apply, and (b) with respect to MBIA UK and its Subsidiaries, consummate any remediation efforts, including, without limitation, amendments, compromises or commutations with
respect to its insurance obligations and settlements of litigation, whether or not they effect the Subject Collateral, to the extent that any amounts paid or transferred by the Borrower and its Subsidiaries as consideration therefor or in connection
therewith since the Closing Date would exceed $500,000,000 in the aggregate, provided that, notwithstanding the foregoing, the Borrower may not, without the written consent of the Lender, consummate any remediation efforts, including, without
limitation, amendments, compromises or commutations with respect to its insurance obligations and settlements of litigation, whether or not they effect the Subject Collateral, if, (x) after giving effect thereto and to any borrowings of Loans
in connection therewith, the aggregate principal amount of Loans outstanding would exceed $200,000,000 or (y) after giving effect thereto, all remediation efforts, including, without limitation, amendments, compromises or commutations with
respect to its insurance obligations and settlements of litigation, taken as a whole since the Closing Date, would, cumulatively, have reduced the Statutory Capital of the Borrower by $100,000,000 or more. 

  
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 ARTICLE VIII 
 EVENTS OF DEFAULT/REMEDIES 
 8.1 Events of Default. If any of the following
events (each an “Event of Default”) shall occur and be continuing: 
 (a) the Borrower fails to (i) pay when and as
required to be paid herein any amount of principal of any Loan, (ii) pay within three Business Days after the same becomes due, any interest on any Loan or any fee due hereunder when and as required to be paid pursuant to the terms hereof, or
(iii) pay within five Business Days after the same becomes due any other amount due from it hereunder or any other Loan Document; 

(b) any representation or statement made or deemed to be made by the Borrower in any Loan Document or in any notice, certificate or other document
to be delivered thereunder shall have been incorrect or misleading when made; 
 (c) the Borrower fails to perform or observe any term,
covenant or agreement contained in any of Section 6.1, 6.4, 6.7, 6.9 or Article VII; 
 (d) the Borrower fails duly to perform
or comply with any other covenant or agreement (not specified in Section 8.1(a) or (c) above) contained in any Loan Document and such failure continues for fifteen days; 

(e) (i) the Borrower or any Subsidiary thereof (A) fails to make any payment when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise) in respect of any Indebtedness (other than Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount (including un-drawn committed or available amounts and including
amounts owing to all creditors under any combined or syndicated credit arrangement) of more than the Threshold Amount, or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness or Guarantee or
contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or
beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be re-purchased,
prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to
be demanded; or (ii) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which the Borrower

  
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or any Subsidiary thereof is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as defined in such Swap Contract) under such Swap Contract as to which the
Borrower or any Subsidiary thereof is an Affected Party (as defined in such Swap Contract) and, in either event, the Swap Termination Value owed by the Borrower or such Subsidiary as a result thereof is greater than the Threshold Amount; 

(f) the Borrower or any Subsidiary thereof becomes unable or admits in writing its inability or fails generally to pay its debts as they become
due, or any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of the Borrower or any of its Subsidiaries and is not released, vacated or fully bonded within 30 days
after its issue or levy; 
 (g) the Borrower or any Subsidiary thereof institutes or consents to the institution of any proceeding under
any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any
material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for
30 calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for 30 calendar days;
or an order for relief is entered in any such proceeding; or 
 (h) there is entered against the Borrower or any Subsidiary thereof
(i) one or more final judgments or orders for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding the Threshold Amount (to the extent not covered by independent third-party insurance as to which the
insurer is rated at least “A” by A.M. Best Company, has been notified of the potential claim and does not dispute coverage), or (ii) any one or more non-monetary final judgments that have, or could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 10 consecutive days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or 
 (i) an ERISA Event occurs with respect
to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in a Material Adverse Effect; or 

(j) any provision of any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder
or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or the Borrower or any other Person contests in any manner the validity or enforceability of any provision of any Loan Document; or the Borrower
denies that it has any further liability or obligation under any provision of any Loan Document, or purports to revoke, terminate or rescind any provision of any Loan Document; or 

  
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 (k) any of the Security Documents (or any Lien on any Collateral purported to be created or perfected
thereunder) shall, for any reason, cease to be in full force and effect (or, in the case of any Lien on any Collateral, cease to be a perfected first priority Lien) or be declared to be null and void, or the validity or enforceability thereof shall
be contested by the Borrower or the Borrower shall deny that it has any or further liability or obligation thereunder (or with respect thereto); 
 (l) there occurs any Change of Control; or 
 (m) any one or more Insurance Licenses of the Borrower or
any Insurance Subsidiary shall be suspended, limited or terminated or shall not be renewed, or any other action shall be taken by any Governmental Authority, and such suspension, limitation, termination, non-renewal or action, either individually or
in the aggregate, has had, or could reasonably be expected to have, a Material Adverse Effect; 
 the Lender may, in its sole discretion, by notice to the
Borrower terminate its obligation to make Loans hereunder or declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other Obligations owing or payable under the Loan Documents to be immediately
due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower; provided that, upon the occurrence of any event specified in paragraph (f) or (g), the
obligation of the Lender to make Loans automatically shall terminate and the unpaid principal amount of all outstanding Loans and all interest and other Obligations owing or payable under the Loan Documents automatically shall become due and payable
without further act of the Lender. 
 8.2 Rights Not Exclusive. The rights provided for in the Loan Documents are cumulative
and are not exclusive of any other rights, powers, privileges or remedies provided by Applicable Law or in equity, or under any other document now existing or hereafter arising. 

ARTICLE IX 
 MISCELLANEOUS

 9.1 Amendments and Waivers. None of the terms or provisions of this Agreement or any other Loan Document may be
waived, amended, supplemented or otherwise modified except by a written instrument executed by the Borrower and the Lender, or, in the event that, at any time, there is more than one Lender, a written instrument executed by the Borrower and the
Required Lenders (as defined below) with such prior approval, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided that no such amendment, waiver or consent shall:

 (a) waive any condition set forth in Article IV without the written consent of each Lender; 

  
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 (b) extend or increase the Commitment Amount or Loans of any Lender (or reinstate any Commitment
Amount or Loans terminated pursuant to this Agreement) without the written consent of such Lender; 
 (c) postpone any date fixed by this
Agreement or any other Loan Document for (i) any scheduled payment (which, for the avoidance of doubt, excludes mandatory prepayments) of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under such
other Loan Document without the written consent of each Lender entitled to such payment or (ii) any scheduled reduction of the aggregate Commitment Amount hereunder or under any other Loan Document without the written consent of each Lender;

 (d) reduce the principal of, or the rate of interest specified herein on, any Loan, or any fees or other amounts payable hereunder or
under any other Loan Document without the written consent of each Lender entitled to such amount; provided, however, that only the consent of the Required Lenders shall be necessary to amend the definition of “Default Rate”; 

(e) change Section 9.7(f) in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each
Lender; 
 (f) change any provision of this Section 9.1, including the definition of “Required Lenders”, or any other
provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder; or 

(g) release all or substantially all of the Collateral in any transaction or series of related transactions, without the written consent of each
Lender. 
 For purposes of this Section 9.1, “Required Lenders” means, as of any date of determination,
Lenders holding more than 50% of the sum of the total used and unused Commitment Amount then outstanding (after giving effect to any reductions thereto from time to time pursuant to the terms of this Agreement). 

Notwithstanding anything to the contrary set forth in this Agreement, including this Section 9.1, or any other Loan Document, in connection
with, or in order to facilitate, any assignments of the rights or benefits of the Lender hereunder, Blue Ridge Investments, L.L.C. may in its sole discretion, amend this Agreement and any other Loan Document

  
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without the consent of any other Person, including the Borrower, in order to (i) provide for customary agency and defaulting lender provisions, including without limitation to address the
transfer of any rights, obligations and duties of the Lender to one or more agents, and (ii) reflect the appointment of such agent(s) and the assignment of the Loans to more than one Lender, such provisions to be generally consistent with the
provisions of Blue Ridge Investments, L.L.C.’s or, at Blue Ridge Investments L.L.C.’s option, Bank of America, N.A.’s standard documentation for syndicated loan facilities. In the event of such amendment, the Borrower agrees to pay
Blue Ridge Investments, L.L.C. an annual administrative agent fee in an amount consistent with that charged by Blue Ridge Investments, L.L.C. or Bank of America, N.A. to borrowers of similar creditworthiness pursuant to similar credit facilities.
Within three Business Days of any such amendment, Blue Ridge Investments, L.L.C. shall provide the Borrower with a copy thereof, and such amendment shall automatically be effective, conclusive and binding on the Borrower and each other party to the
amended Loan Documents in all respects. 
 9.2 Notices. 

(a) All notices and other communications in connection with this Agreement and the other Loan Documents shall, unless otherwise stated herein, be
in writing (including facsimile or other electronic transmission) and mailed, faxed or delivered to the address or facsimile number of each of the parties hereto as set out below or at such other address as shall be designated by such party in a
written notice to the Borrower or the Lender, as the case may be: 
 (i) If to the Lender (in the case of notices described in
Section 2.3, 2.4, 2.8 and 2.9): 
 Global Credit Operations 
 Bank of America Merrill Lynch 
 101 N Tryon Street 

Charlotte, NC 28255 
 Telephone
No.: 980-386-7891 
 Attention: Nora Moss 
 E-mail: nora.a.moss@baml.com 
 (ii) If to the Lender (in all other cases): 

Blue Ridge Investments, L.L.C. 

214 N Tryon Street 
 Charlotte, NC
28255 
 NC1-027-14-01 

Attention: John Hiebendahl 

Facsimile: 704-208-1210 

  
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 With a copy to (which shall not constitute notice) to: 

Bank of America Corporation 
 50 Rockefeller Plaza, 7th Floor 

New York, NY 10020-1605 

Attention: Christopher J. Garvey 

Associate General Counsel and Senior Vice President 
 (iii) If to the Borrower: 
 MBIA Insurance Corporation 

113 King Street 
 Armonk, New York
10504 
 Attention: Chief Financial Officer 
 Telephone No: 914-765-3925 
 Facsimile No: 914-765-3393 

E-mail: chuck.chaplin@mbia.com 

With a Copy to: 
 MBIA
Insurance Corporation 
 113 King Street 
 Armonk, New York 10504 
 Attention: General Counsel 

Telephone No: 914-765-3945 

Facsimile No: 914-765-3919 

E-mail: ram.wertheim@mbia.com 
 (b)
All such notices, requests and communications shall be effective (i) if transmitted by fax or other electronic communication, when transmitted in legible form upon confirmation of receipt, and (ii) if sent by an internationally-recognized
overnight courier service or otherwise delivered, with courier or delivery costs prepaid, upon receipt thereof by the recipient thereof; provided that if notices or other communication sent to an e-mail address is not sent during the normal business
hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient. 
 9.3 No Waiver; Cumulative Remedies. No delay, indulgence, omission or other act of the Lender shall be deemed to be a waiver of any right, remedy, power or privilege of the Lender under this Agreement
nor shall the Lender by any such act be deemed to have acquiesced in any Potential Event of Default or Event of Default or in any breach of any of the terms and conditions of this Agreement. No single or partial exercise of any right, 

  
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remedy, power or privilege hereunder or under any other Loan Document shall preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. A waiver
by the Lender of any right, remedy, power or privilege under this Agreement or any other Loan Document on any one occasion shall not be construed as a bar to any right or remedy which the Lender would otherwise have on any future occasion. The
rights, titles, interests, liens, securities and remedies provided in this Agreement and the other Loan Documents are cumulative, may be exercised singly or concurrently and are not exclusive of any rights or remedies provided by law. 

9.4 Costs and Expenses. 
 (a) All costs and expenses of the parties hereto, including fees, charges and disbursements of counsel, incurred in connection with preparing for, negotiating, entering into and carrying out this Agreement and
performing and consummating the transactions contemplated by this Agreement shall be paid by the Person incurring such costs and expenses. 
 (b) All costs and expenses, including fees and disbursements of counsel, incurred in connection with the enforcement or protection of the Lender’s rights (A) in connection with this Agreement and the
other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans,
shall be paid by the Borrower. 
 9.5 Indemnity. 
 (a) The Borrower shall indemnify the Lender and each Related Party thereof (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses,
claims, damages, liabilities and related out-of-pocket expenses (including the reasonable fees, charges and disbursements any counsel for any Indemnitee), incurred by or asserted against any Indemnitee arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement or any agreement or instrument contemplated hereby, the performance by the parties hereto of their respective obligations hereunder or the consummation of the transactions contemplated
hereby, (ii) any Loan or the use of the proceeds therefrom or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and
regardless of whether any Indemnitee is a party thereto and whether brought by the Borrower, its equityholders, its directors, its creditors or any third party; provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee. Without
limiting the provisions of Section 3.1(c), this Section 9.5(a) shall not apply with respect to Taxes. 

  
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 (b) To the fullest extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other
Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof. No Indemnitee referred to in subsection (a) above shall be liable for any damages
arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this
Agreement or the other Loan Documents or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable
judgment of a court of competent jurisdiction. 
 (c) All amounts due under this Section 9.5 shall be payable not later than ten
Business Days after demand therefor. 
 (d) The agreements in this Section shall survive the termination of the commitments and the
repayment, satisfaction or discharge of all the other Obligations. 
 9.6 Payments Set Aside. If the Borrower (or another
Person on the Borrower’s behalf) makes a payment on its Obligations under the Loan Documents, or the Lender exercises its right of set-off, and such payment or the proceeds of such set-off or any part thereof subsequently is invalidated,
declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Lender in its discretion) to be repaid to the Borrower, a trustee, receiver or any other Person in connection with any
Insolvency Proceeding or otherwise, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such set-off
had not occurred. 
 9.7 Successors and Assigns. 
 (a) Assignments Generally. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective authorized successors and assigns; provided that the Borrower may
not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of the Lender; provided that Optinuity Alliance Resources Corporation may act as the Borrower’s agent hereunder, to do and
perform, on behalf of the Borrower, any and every act and thing required or necessary to be done hereunder; provided further that the Borrower shall remain solely responsible for compliance with its obligations hereunder 

(b) Assignments by Lender. The Lender may at any time assign or transfer any of its rights or benefits under this Agreement to an Eligible
Assignee. On the effective 

  
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date of such assignment: (i) the assignee thereunder shall have the rights and obligations of a “Lender” hereunder to the extent such rights and obligations hereunder have been
assigned to it pursuant to an assignment agreement and shall thereafter be a party hereto and a “Lender” for all purposes hereof; (ii) the assigning Lender thereunder shall, to the extent that rights and obligations hereunder have
been assigned thereby pursuant to such assignment agreement, relinquish its rights (other than any rights which survive the termination hereof) and be released from its obligations hereunder; (iii) if any such assignment occurs after the
issuance of the Note hereunder, the assigning Lender shall, upon the effectiveness of such assignment or as promptly thereafter as practicable, surrender its Note for cancellation, and thereupon the Borrower shall issue and deliver new Note, if so
requested by the assignee and/or assigning Lender, to such assignee and/or to such assigning Lender, with appropriate insertions, to reflect the new outstanding Loans of the assignee and/or the assigning Lender. Notwithstanding anything to the
contrary in this Agreement, the Lender shall not assign or transfer (including by way of participation) any of its rights or benefits under this Agreement to a Person who is not a “United States person” within the meaning of
Section 7701(a)(3) of the Code. The Borrower shall maintain a register for the recordation of the name and address of the Lender, and principal amounts (and stated interest) of the Loans owing to, the Lender pursuant to the terms hereof from
time to time (the “Register”). The entries in the Register shall be conclusive absent manifest error, and the Borrower and the Lender shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Lender at any reasonable time and from time to time upon reasonable prior notice. In addition, at any time that a request for a consent for a
material or other substantive change to the Loan Documents is pending, the Lender may request and receive from the Borrower a copy of the Register. 
 (c) Security Interests. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under the Note, if any) to secure obligations of
such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee
for such Lender as a party hereto. 
 (d) Participations. Any Lender may at any time, without the consent of, or notice to, the
Borrower, sell participations to any Person (other than a natural person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries ) (each, a “Participant”) in all or a portion of such Lender’s rights and/or
obligations under this Agreement (including all or a portion of its Commitment Amount and/or the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower and any other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights
and obligations under 

  
 71 

 
this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or
other modification described in the first proviso to Section 9.1 that affects such Participant. Subject to the following paragraph (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 2.11 and 3.1 to the same extent as if it were a Lender. Each Participant also agrees to be subject to paragraph (f) of this Section as though it were a Lender. Each Lender that sells a participation shall, acting solely
for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other
obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any
information relating to a Participant’s interest in any commitments, loans or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan or other
obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and the Lender shall treat each Person whose name is
recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Borrower shall have no responsibility for maintaining a
Participant Register. 
 (e) Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater payment under
Section 3.1 or 3.3 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior
written consent. 
 (f) Sharing of Payments. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise,
obtain payment in respect of (a) Obligations due and payable to such Lender hereunder and under the other Loan Documents at such time in excess of its ratable share of payments on account of the Obligations due and payable to all Lenders
hereunder and under the other Loan Documents at such time obtained by all the Lenders at such time or (b) Obligations owing (but not due and payable) to such Lender hereunder and under the other Loan Documents at such time in excess of its
ratable share (according to the proportion of (i) the amount of such Obligations owing (but not due and payable) to such Lender at such time to (ii) the aggregate amount of the Obligations owing (but not due and payable) to all Lenders
hereunder at such time) of payment on account of the Obligations owing (but not due and payable) to all Lenders hereunder and under the other Loan Documents at such time obtained by all of the Lenders at such time, then the

  
 72 

 
Lender receiving such greater proportion shall (a) notify the other Lenders of such fact, and (b) purchase (for cash at face value) participations in the Loans of the other Lenders, or
make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of Obligations then due and payable to the Lenders or owing (but not due and
payable) to the Lenders, as the case may be, provided that: 
 (i) if any such participations or subparticipations are
purchased and all or any portion of the payment giving rise thereto is recovered, such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and 

(ii) the provisions of this Section shall not be construed to apply to (A) any payment made by the Borrower pursuant to and in
accordance with the express terms of this Agreement or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than to the Borrower or any
Affiliate thereof (as to which the provisions of this Section shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against the Borrower setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. 

9.8 Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument. Delivery of an executed counterpart of this Agreement by facsimile or other electronic transmission shall be as effective as delivery of a manually executed counterpart.

 9.9 Severability. The holding by any court of competent jurisdiction that any remedy pursued by the Lender hereunder is
unavailable or unenforceable shall not affect in any way the ability of the Lender to pursue any other remedy available to it. In the event any provision of this Agreement shall be held illegal, invalid or unenforceable by any court of competent
jurisdiction, the parties hereto agree that such provision shall be ineffective only to the extent of such illegality, invalidity or unenforceability without invalidating the remainder of such provision or any other provisions of this Agreement and
shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 9.10 No Third Parties Benefited.
This Agreement is made and entered into for the sole protection and legal benefit of the parties hereto, and their permitted successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, or have any direct or
indirect cause of action or claim in connection with, this Agreement. 

  
 73 

 9.11 Governing Law; Waiver of Jury Trial. 

(a) THIS AGREEMENT AND, EXCEPT AS OTHERWISE SET FORTH THEREIN, THE OTHER LOAN DOCUMENTS, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
AND THEREUNDER, SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE RULES OF CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW). 
 (b) EACH OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY IRREVOCABLY WAIVES (TO THE
EXTENT PERMITTED BY APPLICABLE LAW) ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE BORROWER. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
 9.12 Submission to Jurisdiction, Etc. By execution and delivery of this
Agreement, the Borrower irrevocably and unconditionally: 
 (a) submits for itself and its property in any legal action or proceeding
against it arising out of or in connection with this Agreement or any other Loan Document, or for recognition and enforcement of any judgment in respect thereof, to the exclusive jurisdiction of the Supreme Court of the State of New York and the
United States District Court for the Southern District of New York, in each case sitting in the Borough of Manhattan, and appellate courts from any thereof; 
 (b) consents that any such action or proceeding may be brought in or removed to such courts, and waives any objection, or right to stay or dismiss any action or proceeding, that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 
 (c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the
Borrower at its address specified in Section 9.2 or at such other address of which the Lender shall have been notified pursuant thereto; 

  
 74 

 (d) agrees that nothing herein shall (i) affect the right of the Lender to effect service
of process in any other manner permitted by law or (ii) limit the right of the Lender to commence proceedings against or otherwise sue the Borrower or any other Person in any other court of competent jurisdiction nor shall the
commencement of proceedings in any one or more jurisdictions preclude the commencement of proceedings in any other jurisdiction (whether concurrently or not) if, and to the extent, permitted by the Applicable Law; and 

(e) agrees that judgment against it in any such action or proceeding shall be conclusive and may be enforced in any other jurisdiction within or
without the United States by suit on the judgment or otherwise as provided by law, a certified or exemplified copy of which judgment shall be conclusive evidence of the fact and amount of the Borrower’s obligation. 

9.13 Entire Agreement. The Loan Documents embody the entire agreement and understanding among the parties hereto, and supersede all
prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof and thereof. 
 9.14 Independence of Covenants. All covenants under this Agreement and the other Loan Documents shall be given independent effect so that if a particular action or condition is not permitted by any of
such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Potential Event of Default or an Event of Default if such action is taken
or condition exists. 
 9.15 No Partnership, Etc. The Lender and the Borrower intend that the relationship between them
shall be solely that of creditor and debtor and the Lender does not have any fiduciary relationship with or duty to the Borrower arising out of or in connection with this Agreement or the other Loan Documents. In connection with all aspects of each
transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates’ understanding, that:
(i) (A) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (B) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and
conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Lender is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not,
and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates, or any other Person and (B) the Lender has no obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated
hereby except those obligations 

  
 75 

 
expressly set forth herein and in the other Loan Documents; and (iii) the Lender and its respective Affiliates may be engaged in a broad range of transactions that involve interests that
differ from those of the Borrower and its Affiliates, and the Lender has no obligation to disclose any of such interests to the Borrower or any of its Affiliates. To the fullest extent permitted by law, the Borrower hereby waives and releases any
claims that it may have against the Lender with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby. Nothing contained in this Agreement or any other Loan Document
shall be deemed or construed to create a partnership, tenancy-in-common, joint tenancy, joint venture or co-ownership by or between the Lender and the Borrower or any other Person. The Lender shall not in any way be responsible or liable, under the
Loan Documents, for the debts, losses, obligations or duties of the Borrower or any other Person. Nothing in the Loan Documents shall be deemed to modify in any way any other agreements between the Borrower and the Lender. 

9.16 Treatment of Certain Information; Confidentiality. The Lender agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed: (i) to its Affiliates and to it and its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential); (ii) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory
authority, such as the National Association of Insurance Commissioners); (iii) to the extent required by Applicable Law or regulations or by any subpoena or similar legal process; (iv) to any other party hereto; (v) in connection with
the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; (vi) subject to an agreement
containing provisions substantially the same as those of this Section, to any assignee of any of the Lender’s rights and obligations under this Agreement or any Eligible Assignee invited to be a Lender; (vii) with the consent of the
Borrower or (viii) to the extent such Information (A) becomes publicly available other than as a result of a breach of this Section or (B) becomes available to the Lender or any of its Affiliates on a non-confidential basis from a
source other than the Borrower or its Affiliates that is not to the knowledge of the Lender subject to confidentiality obligations owed to the Borrower or any of its Affiliates. For purposes of this Section, “Information” means all
information received from the Borrower or any of its Affiliates relating to the Borrower or any of its Affiliates or any of their respective businesses, other than any such information that is available to the Lender on a non-confidential basis
prior to disclosure by the Borrower or such Affiliate. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 

  
 76 

 9.17 USA PATRIOT Act. The Lender hereby notifies the Borrower that pursuant to the
requirements of the USA PATRIOT Act it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow the Lender to identify
the Borrower in accordance with the USA PATRIOT Act. The Borrower shall, promptly following a request by the Lender, provide all documentation and other information that the Lender requests in order to comply with its ongoing obligations under
applicable “know your customer” an anti-money laundering rules and regulations, including the USA PATRIOT Act. 
 9.18
Collateral Agent. Each Lender hereby irrevocably appoints Blue Ridge Investments, L.L.C. to act on its behalf as the collateral agent (and Blue Ridge Investments, L.L.C. hereby accepts such appointment) under the Security Documents for
purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by the Borrower to secure any of the Obligations, together with such powers and discretion as are reasonably incidental thereto, and authorizes such collateral
agent to take such actions on its behalf and to exercise such powers as are delegated to such collateral agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this
Section 9.18 are solely for the benefit of each Lender and such collateral agent, and the Borrower shall not have rights as a third party beneficiary of any of such provisions. In this connection, such collateral agent and any co-agents,
sub-agents and attorneys-in-fact appointed by such collateral agent for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Security Documents, or for exercising any rights and remedies thereunder
at the direction of the Lender, shall be entitled to the benefits of all provisions of Section 9.5, as though such collateral agent, co-agents, sub-agents and attorneys-in-fact were a Lender under the Loan Documents) as if set forth in
full herein with respect thereto. 
 9.19 Survival of Representations and Warranties. All representations and warranties
made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties have been or
will be relied upon by the Lender, regardless of any investigation made by the Lender or on its behalf and notwithstanding that the Lender may have had notice or knowledge of any Default at the time it extended any credit hereunder, and shall
continue in full force and effect as long as any Loan or any other obligation hereunder shall remain unpaid or unsatisfied. 

[THE REMAINDER OF THIS PAGE IS
INTENTIONALLY BLANK] 

  
 77 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered
by their proper and duly authorized officers as of the day and year first above written. 
  

			
	MBIA INSURANCE CORPORATION,
	as Borrower
		
	By:	 	 /s/ C. Edward Chaplin

	Name:	 	C. Edward Chaplin
	Title:	 	Chief Financial Officer
	
	 BLUE RIDGE INVESTMENTS, L.L.C.

as Lender

		
	By:	 	 /s/ Neil Cotty

	Name:	 	Neil Cotty
	Title:	 	Executive Vice President

  
 78 

 EXHIBIT A 
 TO LOAN AGREEMENT 
 FORM OF NOTE 

 

			
	$500,000,000	 	Dated: —,
2013

 FOR VALUE RECEIVED, the undersigned, MBIA Insurance Corporation, a stock insurance company organized under the laws
of the State of New York (the “Borrower”), HEREBY PROMISES TO PAY to Blue Ridge Investments, L.L.C. or its registered assigns (the “Lender”) the principal sum of $500,000,000 or, if less, the aggregate principal
amount of the Loans (as defined below) made by the Lender to the Borrower pursuant to the Loan Agreement outstanding on the Maturity Date (as defined in the Loan Agreement). 
 The Borrower promises to pay interest on the unpaid principal amount of each Loan from the date of such Loan until such principal amount is paid in full, at such interest rates, and payable at such times, as are
specified in the Loan Agreement. 
 Each Loan owing to the Lender by the Borrower pursuant to the Loan Agreement, and all payments made on
account of principal thereof, shall be recorded by the Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note. 
 This promissory note is the Note referred to in, and is entitled to the benefits of, the Loan Agreement dated as of May 6, 2013 (the “Loan Agreement”) between the Borrower and the Lender. The
Loan Agreement, among other things, (i) provides for the making of Loans by the Lender to the Borrower from time to time in an aggregate amount not to exceed the Dollar amount first above mentioned, the indebtedness of the Borrower
resulting from each such Loan being evidenced by this note, and (ii) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events and also for prepayments on account of principal hereof prior to
the maturity hereof upon the terms and conditions therein specified. 
  

			
	MBIA INSURANCE CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 A - 1 

 LOANS AND PAYMENTS OF PRINCIPAL 

 

			          		          		          		          
	 Date
	  	Amount of
Loan	  	Amount of
Principal Paid	  	Unpaid
Principal
Balance	  	Notation Made
by
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  
 A - 2 

 EXHIBIT B 
 TO LOAN AGREEMENT 
 FORM OF  

NOTICE OF BORROWING 
 Date: — 

To: Blue Ridge Investments, L.L.C. (“Blue Ridge”) 

Ladies and Gentlemen: 
 The undersigned refers to
the Loan Agreement, dated as of May 6, 2013 (as amended from time to time, the “Loan Agreement”), between MBIA Insurance Corporation (“MBIA”), as Borrower, and Blue Ridge, as Lender (terms defined therein being
used herein as therein defined) and hereby gives you notice irrevocably, pursuant to Section 2.3 of the Loan Agreement, of the request of the Loan specified below: 

(a) The aggregate amount of the requested Loan is $—. 
 (b) The requested
Loan is to consist of [Base Rate][LIBOR] Loans. 
 (c) If the requested Loan is to consist of LIBOR Loans, the initial
Interest Rate Period for such Loans will be[one (1)] [three (3)] [six (6)] months. 
 (d) The Business Day for the making
of the requested Loan is — (the “Borrowing Date”). 

(e) The Loan shall be made by deposit to [INCLUDE DISBURSEMENT INSTRUCTIONS]. 

The Borrower certifies that the following statements are true on the date hereof, and will be true on the Borrowing Date, both before and after
giving effect to the Loan and to the application of the proceeds therefrom: 
 (i) the representations and warranties of
the Borrower contained in Article V of the Loan Agreement and each other Loan Document are true and correct in all material respects as if made on and as of the date hereof and will be true and correct in all material respects on the Borrowing Date
as if made on and as of that date (except to the extent such representations and warranties expressly relate to an earlier date, in which case they are true and correct as of such date), and 

(ii) no Potential Event of Default or Event of Default exists or will result from such Borrowing. 

[(iii) the proceeds of such Borrowing are to be used by the Borrower to meet the Borrower’s ordinary course liquidity needs
within 30 days of such Borrowing Date.] 
 As of the date hereof and as of the Borrowing Date the conditions set forth in Section 4.2
will be satisfied. 

  
 B - 1 

 [This Space Intentionally Left Blank] 

 

					
	MBIA INSURANCE CORPORATION
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  
 B - 2 

 EXHIBIT C 
 TO LOAN AGREEMENT 
 [INTENTIONALLY OMITTED] 

  
 C - 1 

 EXHIBIT D 
 TO LOAN AGREEMENT 
 FORM OF 

COLLATERAL CALCULATION CERTIFICATE 
 Date: — 

To: Blue Ridge Investments, L.L.C. (“Blue Ridge”) 

Ladies and Gentlemen: 
 The undersigned refers to
the Loan Agreement, dated as of May 6, 2013 (as amended from time to time, the “Loan Agreement”), between MBIA Insurance Corporation (“MBIA”), as Borrower, and Blue Ridge, as Lender (terms defined therein being
used herein as therein defined). 
 I,
—, hereby certify that I am the duly elected, qualified and acting [Chief Financial
Officer/Treasurer/Controller] of MBIA. I further certify to Blue Ridge that (i) set forth below is MBIA’s good faith calculation of the notional amount of the Subject Collateral as of
—,
20—, calculated as required by the Loan Agreement, and (ii) since such date, no
event or circumstance has occurred that would reasonably be expected to have a material adverse effect on any of the amounts reflected below. 
  

				          	
	($ in thousands)	  	 	 
		
	 Excess Spread Salvage Collateral
	  	$	            	  
		  	  
	  
	 
	 Installment Premium Collateral
	  	$	            	  
		  	  
	  
	 
		
	 Put-Back Recoveries (Net of Other Reserves)
	  	$	            	  
		  	  
	  
	 
	 (Gross: $            )
	  			
	 (Reflected on Statutory Balance Sheet as a
	  			
	 Contra-liability: $            )
	  			
		  	  
	  
	 
	 Total
	  	$	            	  
		  	  
	  
	 

  

					
	MBIA INSURANCE CORPORATION
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  
 D - 1 

 EXHIBIT E 
 TO LOAN AGREEMENT 
 FORM OF  

CONVERSION/CONTINUATION NOTICE  
 Date: — 

To: Blue Ridge Investments, L.L.C. (“Blue Ridge”) 

Ladies and Gentlemen: 
 The undersigned refers to
the Loan Agreement, dated as of May 6, 2013 (as amended from time to time, the “Loan Agreement”), between MBIA Insurance Corporation (“MBIA”), as Borrower, and Blue Ridge, as Lender (terms defined therein being
used herein as therein defined) and hereby gives you notice irrevocably, pursuant to Section 2.9 of the Loan Agreement, of the request to convert a Loan as follows: 

(a) The Loan to be converted consist of [Base Rate][LIBOR] Loans in the aggregate principal amount of
$                     which were initially advanced to the Borrower on
                    . 

(b) Such borrowing is to be converted into a Loan consisting of the following Interest Period:
                    . 

(c) The date of the requested conversion is to be
                    . 
 For each
conversion of a Loan consisting of Base Rate Loans to LIBOR Loans, the Borrower hereby certifies to the Lender that, on the date of this Conversion/ Continuation Notice, and after giving effect to the requested conversion no Potential Event of
Default or Event of Default exists or will result from such requested conversion. 
  

					
	MBIA INSURANCE CORPORATION
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  
 E - 1 

 EXHIBIT F 
 TO LOAN AGREEMENT 
 FORM OF 
 COMPLIANCE CERTIFICATE 
 Date:
— 
 To: Blue Ridge Investments, L.L.C. (“Blue Ridge”) 
 Ladies and Gentlemen: 

The undersigned refers to the Loan Agreement, dated as of May 6, 2013 (as amended from time to time, the “Loan Agreement”),
between MBIA Insurance Corporation (“MBIA”), as Borrower, and Blue Ridge, as Lender (terms defined therein being used herein as therein defined). 
 The undersigned Responsible Officer of the Borrower hereby certifies as of the date hereof that he/she is the
                     of the Borrower, and that, as such, he/she is authorized to execute and deliver this Certificate to the Lender on behalf of the
Borrower, and that: 
 [Use following paragraphs for fiscal year-end financial statements] 

1. Attached hereto as Schedule 1 are the year-end audited financial statements required by Section 6.1(a)(i) of the Loan Agreement for the fiscal year of the
Borrower and its Subsidiaries ended as of the above date, together with the report and opinion of its independent certified public accountant required by Section 6.1(a) of the Loan Agreement. 

2. Attached hereto as Schedule 2 are the year-end audited financial statements required by Section 6.1(a)(iv) of the Loan Agreement for the fiscal year of
each of MBIA UK and UK Insurance ended as of the above date, together with the report and opinion of its independent certified public accountant required by Section 6.1(a)(iv) of the Loan Agreement. 

[Use following paragraphs for interim financial statements] 

1. Attached hereto as Schedule 1 are the unaudited financial statements required by Section 6.1(a)(ii) of the Loan Agreement for the fiscal quarter of the
Borrower ended as of the above date. Such financial statements fairly present the consolidated financial condition, results of operations and cash flows of the Holdings and its Subsidiaries in accordance with US GAAP as at such date and for
such period, subject only to normal year-end audit adjustments and the absence of footnotes. 
 2. [reserved] 

[Use following paragraphs for all financial statements] 

  
 F - 1 

 EXHIBIT F 
 TO LOAN AGREEMENT 
  

 3. The undersigned has reviewed and is familiar with the terms of the Loan Agreement and has made, or has caused
to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements. 

4. A review of the activities of the Borrower and its Subsidiaries during such fiscal period has been made under the supervision of the undersigned with a view to
determining whether during such fiscal period the Borrower performed and observed all their respective obligations under the Loan Documents, and 
 [select one:] 
 [to the best knowledge of the undersigned during such fiscal period, the Borrower and its Subsidiaries
performed and observed each covenant and condition of the Loan Documents applicable to them, and no Default or Event of Default has occurred and is continuing.] 
 —or— 
 [the following covenants or conditions have not been performed or observed and the following is a
list of each such Default or Event of Default and its nature and status:] 
 5. The financial covenant analyses and information set forth on Schedule 3 as
of, and for, the period referred to therein attached hereto are true and accurate on and as of the date of this Certificate. 
 IN WITNESS WHEREOF, the
undersigned has executed this Certificate as of             ,         . 

 

			
	MBIA INSURANCE CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	

 For the Fiscal Quarter / Year 
 ended                      
 Schedule 3 
 to the Compliance Certificate 

($ in thousands) 
  

	I.	Section 7.12(a)—Required Coverage Covenant 

  

				          	
	 A. Subject Collateral
	  			
	 1. Excess Spread Salvage Collateral
	  	$	            	  
		  	  
	  
	 
	 2. Installment Premium Collateral
	  	$	            	  
		  	  
	  
	 
	 3. Put-Back Recoveries (Net of Other Reserves)
	  	$	            	  
		  	  
	  
	 
	 (Gross: $            )
	  			
	 (Reflected on Statutory Balance Sheet as a
	  			
	 Contra-liability: $            )
	  			
		
	 Subject Collateral
	  	$	            	  
		  	  
	  
	 
	 (Lines I.A.1 + 2 + 3)
	  			
		
	 B. Required Coverage
	  			
	 $1,000,000,000
	  	$	            	  
		  	  
	  
	 

 Section 7.12(a) Covenant: Subject Collateral must be greater than Required Coverage. 

	II.	Section 7.12(b)—Minimum Statutory Capital Covenant 

  

				          	
	 A. Statutory Capital
	  			
	 1. Policyholders’ surplus
	  	$	            	  
		  	  
	  
	 
	 2. Contingency
reserves1
	  	$	            	  
		  	  
	  
	 
		
	 Statutory Capital
	  	$	            	  
		  	  
	  
	 
	 (Lines II.A.1 + 2)
	  			
		
	 B. Minimum Statutory Capital
	  	$	            	  
		  	  
	  
	 

 Section 7.12(b) Covenant: Statutory Capital must be greater than or equal to Minimum Statutory Capital. 

 

	1 	Both policyholders’ surplus and contingency reserves must be determined in a manner consistent with that used in preparing the Audited Statutory Financial StatementsEX-10.2

 Exhibit 10.2 
 EXECUTION VERSION 
  
  

 
 SECURITY AGREEMENT 

between 
 MBIA INSURANCE
CORPORATION, 
 as Borrower 
 and 
 BLUE RIDGE INVESTMENTS, L.L.C., 

as Secured Party 
 Dated as
of May 6, 2013 
  
  

 

 Table of Contents 

 

							
	 	 	 	  	Page	 
		
	 Article I DEFINITIONS
	  	 	1	  
			
	 1.1
	 	 Certain Defined Terms
	  	 	1	  
		
	 Article II GRANT OF SECURITY INTEREST
	  	 	2	  
			
	 2.1
	 	 Grant of Security Interest
	  	 	2	  
	 2.2
	 	 Exceptions
	  	 	3	  
		
	 Article III REPRESENTATIONS OF THE BORROWER
	  	 	4	  
			
	 3.1
	 	 Representations Concerning the Borrower
	  	 	4	  
	 3.2
	 	 Representations Concerning the Collateral
	  	 	4	  
	 3.3
	 	 Survival of Representations and Warranties
	  	 	5	  
	 3.4
	 	 As to Capital Securities of the Subsidiaries, Investment Property
	  	 	5	  
		
	 Article IV COVENANTS
	  	 	6	  
			
	 4.1
	 	 Covenants Relating to Collateral
	  	 	6	  
		
	 Article V REMEDIAL PROVISIONS
	  	 	11	  
			
	 5.1
	 	 Notice to Account Debtors
	  	 	11	  
	 5.2
	 	 Proceeds
	  	 	12	  
	 5.3
	 	 Remedies Generally
	  	 	13	  
	 5.4
	 	 Deficiency
	  	 	14	  
		
	 Article VI SECURED PARTY’S RIGHTS AND SECURED OBLIGATIONS
	  	 	15	  
			
	 6.1
	 	 Secured Party’s Appointment as Attorney-in-Fact
	  	 	15	  
	 6.2
	 	 Performance in Lieu of Borrower
	  	 	16	  
	 6.3
	 	 No Duty on the Part of Secured Party
	  	 	17	  
	 6.4
	 	 Authorization to File Financing Statements
	  	 	17	  
	 6.5
	 	 Limitation on Duties Regarding Preservation of Collateral
	  	 	17	  
	 6.6
	 	 Performance by Secured Party of Borrower’s Obligations
	  	 	18	  
	 6.7
	 	 Powers Coupled with an Interest
	  	 	18	  

  
 i 

							
	 Article VII MISCELLANEOUS
	  	 	18	  
			
	 7.1
	 	 Amendments in Writing; No Waiver
	  	 	18	  
	 7.2
	 	 Notices
	  	 	18	  
	 7.3
	 	 No Waiver; Cumulative Remedies
	  	 	18	  
	 7.4
	 	 Successors and Assigns
	  	 	19	  
	 7.5
	 	 Counterparts
	  	 	19	  
	 7.6
	 	 Severability
	  	 	19	  
	 7.7
	 	 [Reserved]
	  	 	19	  
	 7.8
	 	 Further Assurances and Corrective Instruments
	  	 	19	  
	 7.9
	 	 Section Headings
	  	 	20	  
	 7.10
	 	 Integration
	  	 	20	  
	 7.11
	 	 Governing Law; Waiver of Jury Trial
	  	 	20	  
	 7.12
	 	 Submission to Jurisdiction, Etc.
	  	 	20	  
	 7.13
	 	 No Partnership; Etc.
	  	 	21	  
	 7.14
	 	 Additional Security
	  	 	21	  
	 7.15
	 	 Benefits of Agreement
	  	 	22	  
	 7.16
	 	 Independence of Covenants
	  	 	22	  
	 7.17
	 	 Release of Collateral and Termination
	  	 	22	  

 Schedules 
  

	
	Schedule A—Collateral Description
	Schedule B—Borrower’s Name
	Schedule C—Liens
	Schedule D—Collateral Disclosure
	Schedule E—Pledged Equity Interest

  
 ii 

 SECURITY AGREEMENT (this “Agreement”) dated as of May 6, 2013, between MBIA
INSURANCE CORPORATION, a stock insurance corporation organized under the laws of the State of New York (the “Borrower”), and BLUE RIDGE INVESTMENTS, L.L.C., a Delaware limited liability company, as collateral agent for the Loan
Agreement Secured Parties (as hereinafter defined) (the “Secured Party”). 
 PRELIMINARY STATEMENTS 

A. In connection with the Settlement Agreement, the Loan Agreement Secured Parties and the Borrower agreed to enter into the Loan Agreement.

 B. Pursuant to the Loan Agreement, the Lender has agreed to make loans to the Borrower from time to time upon the terms and subject to
the conditions set forth in the Loan Agreement. 
 C. It is a condition precedent to the obligation of the Lender under the Loan Agreement
to make loans to the Borrower that (i) the Borrower shall agree to secure the prompt and complete payment and performance when due of the Secured Obligations pursuant to the Security Documents and (ii) the Borrower and the
Secured Party shall execute and deliver this Agreement. 
 NOW, THEREFORE, in consideration of the foregoing premises and other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower hereby agrees with the Secured Party as follows: 
 ARTICLE I 
 DEFINITIONS 

1.1 Certain Defined Terms. 

(a) All capitalized terms used herein but not otherwise defined herein shall have the respective meanings given to such terms in Article I of the
Loan Agreement. The rules of construction set forth in Article I of the Loan Agreement shall govern this Agreement. 
 (b) The following
terms have the meanings assigned to them in Article 9 of the UCC in effect on the date of this Agreement: Account, Chattel Paper, Commercial Tort Claim, Deposit Account, Document, Electronic Chattel Paper, Equipment, Fixtures, General
Intangible, Goods, Instrument, Inventory, Investment Property, Letter of Credit, Letter-of-Credit Right, Payment Intangible, Proceeds, Registered Organization, Securities Account, Software and Supporting Obligation. 

 (c) In addition to the terms defined in the Loan Agreement, the preamble and the preliminary
statements, the following terms used herein shall have the respective meanings set forth below: 
 “Agreement” has the
meaning assigned thereto in the preamble. 
 “Collateral” has the meaning assigned thereto in Section 2.1.

 “Excess Spread Salvage Collateral” has the meaning assigned thereto in Section 2.1(c). 

“Excluded Agreement” has the meaning assigned thereto in Section 2.2(a)(i). 

“Installment Premium Collateral” has the meaning assigned thereto in Section 2.1(b). 

“Loan Agreement” means the Loan Agreement dated as of the date hereof, among the Borrower and the Loan Agreement Secured Parties,
as the same may from time to time be amended, modified or supplemented. 
 “Loan Agreement Secured Parties” means each
Lender from time to time party to the Loan Agreement and any agent appointed thereunder on behalf of such Lender. 
 “Put-Back
Recoveries” has the meaning assigned to it in Section 2.1(a). 
 “Secured Obligations” means the
Obligations (as defined in the Loan Agreement). 
 “Secured Party” shall have the meaning assigned thereto in the
preamble hereof. 
 “Uniform Commercial Code” or “UCC” means the Uniform Commercial Code as adopted and
in effect in the State of New York, unless the context requires a reference to a different jurisdiction. 
 ARTICLE II 

GRANT OF SECURITY INTEREST 

2.1 Grant of Security Interest. The Borrower, to secure the payment and performance of the Secured Obligations, grants to the Secured Party
a security interest in all of the following property, whether now or hereafter existing, owned or acquired by the Borrower (collectively, the “Collateral”): 
 (a) the Borrower’s right to be reimbursed for all claims paid or payable on any insured residential mortgage backed securities (including, without limitation, those which

 
are identified in Section 1 of Schedule A) as a result of recoveries arising from satisfaction by various originators of such securities of their obligations to buy back ineligible loans,
whether effected in the ordinary course or through any legal enforcement action, including any settlements of any such action (“Put-Back Recoveries”); 
 (b) all installment premiums received after the date hereof by the Borrower, or that the Borrower now is or hereafter becomes entitled to receive, in respect of all of the Borrower’s financial guaranty
insurance policies outstanding (“Installment Premium Collateral”); 
 (c) all of the Borrower’s salvage or
subrogation recoveries that the Borrower now owns or hereafter acquires that result from excess interest or other income generated in any residential mortgage backed securities insured by the Borrower (including, without limitation, those more
particularly identified in Section 2 of Schedule A) (“Excess Spread Salvage Collateral”); 
 (d) Investment Property
comprised of 65% of the voting capital stock in MBIA UK (Holdings) Limited; 
 (e) all books and records, in whatever form or medium, that
evidence or contain information relating to all other items of Collateral or that are otherwise necessary or helpful in the collection thereof or realization thereon in the possession or under the control of the Borrower, and 

(f) Proceeds and products of the foregoing, including, but not limited to, all rents, profits, income and benefits, and all accessions to,
substitutions for and replacements of all or any part of any Collateral. 
 2.2 Exceptions. 

(a) The Borrower does not grant any security interest in, and the term “Collateral” does not include, the following property to the
extent relating to the Collateral: 
 (i) each Instrument, Chattel Paper, General Intangible, copyright license, patent license, trademark
license and other contract or agreement that is with, or issued by, a Person that is not an affiliate of the Borrower, but only while, and only to the extent that, the grant of a security interest pursuant to this Agreement would result in a default
or penalty under, or a breach or termination of, such Instrument, Chattel Paper, General Intangible, copyright license, patent license, trademark license or contract or agreement, except, in each case, to the extent that, pursuant to the UCC or
other applicable law, the grant of a security interest therein can be made without resulting in a default or penalty thereunder or breach or termination thereof (each, an “Excluded Agreement”); 

 (ii) property that is held in the nature of a security deposit by or on behalf of the Borrower in the
ordinary course of business and that must be held for or returned to the applicable counterparty under applicable law or pursuant to a contractual obligation; 
 (iii) property to the extent a security interest in such assets would result in material adverse tax consequences as reasonably determined by the Borrower; and 

(iv) any property to the extent that such grant of a security interest is prohibited by any Applicable Law of a Governmental Authority; provided
that this clause (iv) shall not exclude the pledge of the capital stock in MBIA UK (Holdings) Limited. 
 ARTICLE III

 REPRESENTATIONS OF THE BORROWER 
 3.1 Representations Concerning the Borrower. The Borrower represents as of the Closing Date that: 
 (a) Borrower’s Name. 
 (i) Schedule B attached hereto correctly sets forth the
Borrower’s full and correct legal name, type of organization, jurisdiction of organization, organizational identification number, if any, chief executive office and principal place of business and mailing address as of the Closing Date.

 (ii) During the five year period preceding the Closing Date, the Borrower has not, except as set forth in Schedule B or to the extent
permitted pursuant to the terms hereof, (v) changed its location (as defined in Section 9-307 of the Uniform Commercial Code); (w) changed its name, or used any other name; (x) been the surviving entity in a merger;
(y) acquired any business or (z) become a “new debtor” (as defined in the Uniform Commercial Code) with respect to a currently effective security agreement entered into by another Person. 

3.2 Representations Concerning the Collateral. The Borrower represents that: 

(a) Title; No Other Liens. The Borrower owns each item of the Collateral free and clear of Liens, except for Permitted Liens and Liens
created under this Agreement and the other Loan Documents. There is not, on file or of record in any public office, any security agreement, financing statement, form of Lien or other public notice similar in effect, with respect to any of the
Collateral, except such as may have been filed or are of record with respect to Permitted Liens and Liens created under this Agreement and the other Loan Documents, filings and records listed on Schedule C and filings with respect to which
termination statements and other necessary releases shall be filed on the Closing Date or promptly thereafter. The Borrower has full power and authority to grant the security interests in and to the Collateral under this Agreement. 

 (b) Perfected, First Priority Liens. 

(i) This Agreement is effective to create a valid and enforceable security interest in the Collateral in favor of the Secured Party, for the
benefit of the Loan Agreement Secured Parties, to secure the payment and performance of the Secured Obligations. 
 (ii) The security
interest created pursuant to this Agreement (A) will be a perfected security interest in the Collateral in favor of the Secured Party, for the benefit of the Loan Agreement Secured Parties, and (B) will be prior to all other Liens of all
other Persons other than Permitted Liens, and enforceable as such as against all other Persons. 
 (c) Certain Collateral
Disclosures. Except in each case as set forth on Schedule D, as of the Closing Date, none of the Collateral constitutes Chattel Paper, Letter-of-Credit Rights, Commercial Tort Claims or Documents. 

3.3 Survival of Representations and Warranties. All representations and warranties made hereunder and in any document, certificate or
statement delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery of this Agreement and the making of the Loans under the Loan Agreement. 

3.4 As to Capital Securities of the Subsidiaries, Investment Property. 

(a) As of the Closing Date, the capital stock and equity interests required to be pledged hereunder by the Borrower consist of the number and type
of shares of capital stock (in the case of issuers that are corporations) or the percentage and type of other equity interests (in the case of issuers other than corporations) as described in Schedule E. All of such capital stock and equity
interests have been duly and validly issued and are fully paid and nonassessable (or, in the case of partnership, limited liability company or similar equity interests, not subject to any capital call or other additional capital requirement) and not
subject to any preemptive rights, warrants, options or similar rights or restrictions in favor of third parties or any contractual or other restrictions upon transfer. As to each issuer thereof, the capital stock or equity interests pledged
hereunder constitute 100% of the outstanding capital stock of or other equity interests in such issuer, except as set forth in Schedule E. 
 (b) The Borrower shall deliver all certificated securities constituting Collateral held by the Borrower to the Secured Party on, or within 7 Business Days after, the Closing Date, together with duly executed
undated blank stock powers, or other equivalent instruments of transfer reasonably acceptable to the Secured Party. 

 (c) With respect to uncertificated securities constituting Collateral in excess of $100,000 owned by
the Borrower, the Borrower has caused the issuer thereof either to (i) register the Secured Party as the registered owner of such security or (ii) agree in an authenticated record with the Borrower and the Secured Party that, if an Event
of Default has occurred and is continuing, such issuer will comply with instructions with respect to such security originated by the Secured Party without further consent of the Borrower. 

ARTICLE IV 
 COVENANTS

 4.1 Covenants Relating to Collateral. From the Closing Date until the payment in full of the Secured Obligations, the
Borrower covenants and agrees as follows: 
 (a) Preservation and Protection of Security Interests. 

(i) The Borrower shall maintain the security interests created by this Agreement as first priority perfected security interests and shall take all
further action that may be necessary or that the Secured Party may request in order to perfect, preserve, protect and defend such security interests against the claims and demands of all Persons or to enable the Secured Party to exercise and enforce
its rights and remedies hereunder. 
 (b) Further Documentation; Pledge of Instruments and Chattel Paper. 

(i) In addition to the authorizations granted to the Secured Party under Section 6.4, the Borrower authorizes the Secured Party to file any
financing or continuation statements under the Uniform Commercial Code in effect in any jurisdiction with respect to the Liens created hereby that it deems appropriate for the purpose of establishing or maintaining the perfection of such Liens.

 (ii) All Instruments and tangible Chattel Paper now owned or hereafter acquired by the Borrower that constitute part of the Collateral
shall be promptly delivered to and held by the Secured Party pursuant hereto and shall be in suitable form for transfer by delivery to the Secured Party, and the Secured Party shall, promptly upon request of the Borrower, make appropriate
arrangements for making any such Instrument delivered by the Borrower available to the Borrower for purposes of presentation, collection or renewal (any such arrangement to be effected, to the extent deemed appropriate to the Secured Party, against
trust receipt or like document); provided that so long as no Potential Event of Default or Event of Default shall have occurred and be continuing, the Borrower may retain for collection any Instrument not exceeding $100,000 in principal
amount received by it in the ordinary course of business that constitutes part of the Collateral. At any time 

 
while a Potential Event of Default or Event of Default is continuing, the Secured Party shall have the right, at any time in its discretion and without notice to the Borrower, to transfer to or
to register in its name or in the name of any of its nominees any or all of the Collateral so delivered. 
 (c) Electronic Chattel
Paper and Transferable Records. 
 If the Borrower at any time holds or acquires an interest in any Electronic Chattel Paper, or any
“transferable record,” as that term is defined in Sections 201 of the federal Electronic Signatures in Global and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant
jurisdiction, that constitutes part of the Collateral, the Borrower shall promptly notify the Secured Party thereof and, at the request and option of the Secured Party, shall take such action as the Secured Party may reasonably request to vest in
the Secured Party control of such electronic chattel paper under Section 9-105 of the UCC, or control of such transferable record under Section 201 of the federal Electronic Signatures in Global and National Commerce Act, or
Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction. The Secured Party agrees with the Borrower that the Secured Party will arrange, pursuant to procedures satisfactory to the Secured Party and so long as
such procedures will not result in the Secured Party’s loss of control, for the Borrower to make alterations to the electronic chattel paper or transferable record that it is permitted to make as a party in control under Section 9-105 of
the UCC as the case may be, Section 201 of the federal Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party without loss of control, unless an Event of Default has
occurred and is continuing or would occur after taking into account any action by the Borrower with respect to such electronic chattel paper or transferable record. 
 (d) Letter-of-Credit Rights. If the Borrower is at any time a beneficiary under a Letter-of-Credit now or hereafter issued in favor of the Borrower that constitutes part of the Collateral, the Borrower shall
promptly notify the Secured Party thereof and, at the request and option of the Secured Party, the Borrower shall, pursuant to an agreement in form and substance satisfactory to the Secured Party, either (x) arrange for the issuer and
any confirmer of such Letter-of-Credit to consent to an assignment to the Secured Party of the proceeds of any drawing under the Letter-of-Credit or (y) arrange for the Secured Party to become the transferee beneficiary of the
Letter-of-Credit, with the Secured Party agreeing, in each case, that the proceeds of any drawing under the Letter-of-Credit are to be paid to the Borrower unless a Potential Event of Default or Event of Default has occurred or is continuing, in
which case they shall be deposited into an account designated by the Secured Party and held as part of the Collateral. 
 (e)
Maintenance of Records. The Borrower shall keep and maintain at its own cost and expense satisfactory and complete records of the Collateral, including a record of all payments received and all credits granted with respect to the Accounts
constituting part of the Collateral. 

 (f) Compliance with Contractual Obligations. The Borrower shall perform and comply with all its
obligations under any agreement, contract, policy, instrument or document evidencing or related to any part of the Collateral. 
 (g)
Limitation on Liens on Collateral. The Borrower shall not create, incur or permit to exist, will defend the Collateral against, and will take such other action as is necessary to remove, any Lien on any part of the Collateral, other than the
Liens created hereby or by the other Loan Documents and Permitted Liens, and will defend the right, title and interest of the Secured Party in and to any part of the Collateral against the claims and demands of all persons whomsoever. 

(h) Limitations on Dispositions of Collateral. The Borrower may make Dispositions of any part of the Collateral to the extent and solely to
the extent it is not expressly prohibited from doing so in the Loan Agreement. 
 (i) Further Identification of Collateral. The
Borrower shall keep and maintain at its own cost and expense satisfactory and complete records of the Collateral and furnish to the Secured Party from time to time such statements and schedules further identifying and describing the Collateral, and
such other reports in connection with the Collateral, as the Secured Party may reasonably request, all in reasonable detail. 
 (j)
Changes in Locations, Name, etc. The Borrower shall neither change its type of organization, jurisdiction of organization, change the location of its chief executive office (or, if applicable, its sole place of business), cease to be a
Registered Organization nor change its name, identity, organizational identification number or corporate structure unless, in any such case, the Borrower (i) shall have given the Secured Party at least 30 days’ prior written notice thereof
and (ii) prior to effecting any such change, shall have taken such actions as may be necessary or, upon the request of the Secured Party, advisable to continue the validity, perfection and priority of the Liens granted pursuant hereto.

 (k) Governmental Obligors. The Borrower shall use its commercially reasonable efforts to obtain any required consents which may
be necessary to establish the validity or perfection of the Secured Party’s security interest in the Collateral the obligor of which is a Governmental Authority. 
 (l) Deposit Accounts. At any time an Event of Default has occurred and is continuing, the Borrower shall deposit into an account designated by the Secured Party all cash proceeds from any part of the
Collateral, to be held as additional Collateral. 

 (m) Investment Property. If the Borrower holds any certificated securities that constitute part
of the Collateral, the Borrower shall promptly endorse, assign and deliver the same to the Secured Party, accompanied by such instruments of transfer or assignment duly executed in blank as the Secured Party may from time to time specify. If any
securities now or hereafter acquired by the Borrower that constitute part of the Collateral are uncertificated and are issued to the Borrower or its nominee directly by the issuer thereof, the Borrower shall immediately notify the Secured Party
thereof and, at the Secured Party’s request, pursuant to an agreement, in form and substance satisfactory to the Secured Party, either (i) cause the issuer to agree to comply with instructions from the Secured Party as to such securities,
without further consent of the Borrower or such nominee or (ii) arrange for the Secured Party to become the registered owner of the securities. If any securities, whether certificated or uncertificated, or other Investment Property now or
hereafter acquired by the Borrower that are part of the Collateral are held by the Borrower or its nominee through a securities intermediary (as defined in Section 8 102 of the UCC) or commodity intermediary (as defined in Section 9 102 of
the UCC), the Borrower shall immediately notify the Secured Party thereof and, at the Secured Party’s request, cause such securities intermediary or (as the case may be) commodity intermediary to enter into a control agreement with the Secured
Party, in form and substance satisfactory to the Secured Party, and take all other steps deemed necessary by the Secured Party to perfect the security interest of the Secured Party in such securities or other Investment Property, all pursuant to
Sections 9 106 and 9 314 of the UCC or other applicable law governing the perfection of the Secured Party’s security interest in such securities or other Investment Property. 

(n) Voting Rights; Dividends, etc. The Borrower agrees: 
 (i) promptly upon receipt of notice of the occurrence and continuance of an Event of Default from the Secured Party and without any request therefor by the Secured Party, so long as such Event of Default shall
continue, to deliver (properly endorsed where required hereby or requested by the Secured Party) to the Secured Party all dividends and distributions with respect to Investment Property constituting Collateral, all interest, principal, other cash
payments on Payment Intangibles, and all Proceeds of the Collateral, in each case thereafter received by the Borrower, all of which shall be held by the Secured Party as additional Collateral; and 

(ii) with respect to Collateral consisting of general partnership interests or limited liability company interests, to promptly modify its
Organization Documents to admit the Secured Party as a general partner or member, as applicable, promptly upon the occurrence and continuance of an Event of Default and so long as the Secured Party has notified the Borrower of the Secured
Party’s intention to exercise its voting power under this clause, 
 (A) that the Secured Party may exercise (to the exclusion of the
Borrower) the voting power and all other incidental rights of ownership with respect to any Investment 

 
Property constituting Collateral and the Borrower hereby grants the Secured Party an irrevocable proxy, exercisable under such circumstances, to vote such Investment Property; and 

(B) to promptly deliver to the Secured Party such additional proxies and other documents as may be necessary to allow the Secured Party to exercise
such voting power. 
 All dividends, distributions, interest, principal, cash payments, Payment Intangibles and Proceeds that may at any
time and from time to time be held by the Borrower, but which the Borrower is then obligated to deliver to the Secured Party, shall, until delivery to the Secured Party, be held by the Borrower separate and apart from its other property in trust for
the Secured Party. The Secured Party agrees that unless an Event of Default shall have occurred and be continuing and the Secured Party shall have given the notice referred to in clause (ii), the Borrower will have the exclusive voting power with
respect to any Investment Property constituting Collateral and the Secured Party will, upon the written request of the Borrower, promptly deliver such proxies and other documents, if any, as shall be reasonably requested by the Borrower which are
necessary to allow the Borrower to exercise that voting power; provided that no vote shall be cast, or consent, waiver, or ratification given, or action taken by the Borrower that would impair any such Collateral or be inconsistent with or violate
any provision of any Loan Document. 
 (o) Expenses. 
 (i) Without limiting the Borrower’s obligations under the Loan Documents or other documents, the Borrower hereby agrees to promptly pay all fees, costs and expenses (including reasonable documented
attorneys’ fees and expenses) incurred in connection with (x) enforcing or preserving any of the Secured Party’s or the Loan Agreement Secured Parties’ rights under this Agreement or any other Security Document and the Liens in
favor of the Secured Party, for the benefit of the Loan Agreement Secured Parties, and (y) collecting, enforcing, retaking, holding, preparing for disposition, processing and disposing of the Collateral. The Borrower agrees to pay, and to save
the Secured Party and the Loan Agreement Secured Parties harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable
with respect to any of the Collateral or in connection with any of the transactions contemplated by this Agreement. 
 (ii) If the
Borrower fails to promptly pay any portion of the above costs, fees and expenses when due or to perform any other obligation of the Borrower under this Agreement, the Secured Party may, at its option, but shall not be required to, pay or perform the
same and charge the Borrower’s account for all fees, costs and expenses incurred therefor, and the Borrower agrees to reimburse the Secured Party therefor on demand. All sums so paid or incurred by the Secured Party for any of the foregoing,
any 

 
and all other sums for which the Borrower may become liable under this Agreement and all fees, costs and expenses (including attorneys’ fees, legal expenses and court costs) incurred by the
Secured Party in enforcing or protecting the security interests or any of their rights or remedies under this Agreement shall be payable on demand, shall constitute Secured Obligations, shall bear interest until paid at the highest rate provided in
the Loan Agreement and shall be secured by the Collateral. The agreements in this Section 4.1(o) shall survive repayment of the Secured Obligations and all other amounts payable under the Loan Agreement and the other Loan Documents. 

(p) Accounts. Except as otherwise provided in this Section 4.1, the Borrower shall continue to collect, at its own expense, all amounts
due or to become due to the Borrower with respect to Accounts that constitute part of the Collateral and, at any time an Event of Default has occurred and is continuing, deposit all such amounts in a deposit account designated by the Secured Party
to be held as Collateral. In connection with such collections, the Borrower may take (and, at the Secured Party’s direction during the continuance of any Potential Event of Default or Event of Default, shall take) such action as the Borrower or
the Secured Party may deem necessary or advisable to enforce collection of the Accounts that are part of the Collateral. The Borrower shall not give any account debtor any deduction in respect of the amount due under any such Account, except in the
ordinary course of business or as the Borrower may otherwise advise the Secured Party in writing. 
 (q) General Intangibles. The
Borrower shall use commercially reasonable efforts to obtain any consents, waivers or agreements necessary to enable the Secured Party to exercise remedies under this Agreement with respect to any of the Borrower’s rights under any General
Intangibles that constitute part of the Collateral. 
 ARTICLE V 

REMEDIAL PROVISIONS 
 5.1
Notice to Account Debtors. 
 (a) Notice of Assignment. Upon the request of the Secured Party at any time after the
occurrence and during the continuance of an Event of Default, the Borrower shall notify the account debtors on the Accounts that constitute part of the Collateral and the obligors of any other Collateral that the applicable Accounts and other
Collateral have been assigned to the Secured Party and that payments in respect thereof shall be made directly to the Secured Party. At any time and from time to time after the occurrence and during the continuance of an Event of Default, the
Secured Party may in its own name or in the name of others communicate with account debtors on the Accounts and the obligors of any other Collateral to verify with such debtors, to the Secured Party’s satisfaction, the existence, amount and
terms of any Accounts or obligations of such obligors. 

 (b) No Liability of Secured Party under Accounts or other Collateral. The Borrower shall remain
liable under each of the Accounts to observe and perform all the conditions and obligations to be observed and performed by it thereunder, in accordance with the terms of any agreement giving rise thereto. The Secured Party does not have any
obligation or liability under any Account that constitutes part of the Collateral (or any agreement giving rise thereto) or any other agreement, contract, instrument or document related to the Collateral by reason of or arising out of this Agreement
or the receipt by the Secured Party of any payment relating to such Account or Collateral pursuant hereto. The Secured Party is not obligated hereunder in any manner: (i) to perform any of the obligations of the Borrower under or pursuant to
any Account (or any agreement giving rise thereto) or any agreement, contract, instrument or other document related to the Collateral, (ii) to make any payment, (iii) to make any inquiry as to the nature or the sufficiency of any payment
received by it or as to the sufficiency of any performance by any party under any Account (or any agreement giving rise thereto) or any agreement, contract, instrument or other document related to the Collateral, (iv) to present or file any
claim, (v) to take any action to enforce any performance or (vi) to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time. 

5.2 Proceeds. If an Event of Default occurs and is continuing, (a) all Proceeds of any Collateral received by the Borrower consisting
of cash, checks and other near-cash items shall be held by the Borrower in trust for the Secured Party, segregated from other funds of the Borrower, and at the request of the Secured Party shall, forthwith upon receipt by the Borrower, be turned
over to the Secured Party in the exact form received by the Borrower (duly endorsed by the Borrower to the Secured Party, if required by the Secured Party), and (b) any and all such Proceeds received by the Secured Party (whether from the
Borrower or otherwise) may, in the sole discretion of the Secured Party, be held by the Secured Party as collateral security for the Secured Obligations (whether matured or unmatured), and at any time thereafter when an Event of Default has occurred
and is continuing may be applied by the Secured Party against all of the Obligations then due and owing in accordance with the provisions of Section 2.8(c) of the Loan Agreement. Any balance of such Proceeds remaining after the payment in full
of the Loans and all of the other Secured Obligations then due and owing shall be paid over to the Borrower or to whomsoever may be lawfully entitled to receive the same. 
 5.3 Remedies Generally. 
 (a) If an Event of Default occurs and is continuing, the Secured
Party may exercise all rights and remedies provided for herein or otherwise available to it, by law, in equity or otherwise, including all rights and remedies of a secured party under the UCC and, to the extent permitted by Applicable Law and
subject to any required Governmental Approval, all other rights and remedies granted to it in this Agreement or in any other Loan Document, including, but not limited to, the right, to the maximum extent permitted

 
by Applicable Law, to exercise all voting, consensual and other powers of ownership pertaining to the Collateral as if the Secured Party were the sole and absolute owner of the Collateral (and
the Borrower agrees to take all such action as may be necessary to give effect to such right). 
 (b) Without limiting the generality of
Section 5.3(a), the Secured Party, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon the Borrower or any other person (all
and each of which demands, defenses, advertisements and notices are hereby waived), may if an Event of Default occurs and is continuing promptly (i) collect, receive, appropriate and realize upon the Collateral, or any part thereof;
(ii) require the Borrower to, and the Borrower shall, assemble the Collateral and make it available to the Secured Party at such place or places designated by the Secured Party’s request; (iii) take possession of the Borrower’s
original books and records, obtain access to the Borrower’s data processing equipment, computer hardware and software relating to the Collateral and use all of the foregoing and the information contained therein in any manner the Secured Party
deems appropriate; (iv) make any compromise or settlement it deems appropriate with respect to any of the Collateral and may extend the time of payment, arrange for payment in installments, or otherwise modify the terms of, all or any part of
the Collateral; (v) in its name or in the name of the Borrower or otherwise, demand, sue for, collect and receive any money or property at any time payable or receivable on account of or in exchange for all or any part of the Collateral, but
shall be under no obligation to do so; or (vi) sell, lease, assign, grant an option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels
at a public or private sale(s), at any exchange, broker’s board or office of the Secured Party or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future
delivery without assumption of any credit risk. The Secured Party shall have the right, upon any such sale, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in the Borrower, which right or equity
is hereby waived and released. The Secured Party may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for the sale, and such sale may
be made at any time or place to which the sale may be so adjourned. 
 (c) If any notice of a proposed sale or other disposition of
Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least 10 days before such sale or other disposition. The Secured Party shall not be obligated to make any sale of Collateral regardless of notice of
sale having been given. The Secured Party may disclaim any warranties that might arise in connection with the sale, lease, license or other disposition of the Collateral and shall have no obligation to provide any warranties at such time. The
Secured Party may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, 

 
without further notice, be made at the time and place to which it was so adjourned. To the extent permitted by Applicable Law, the Borrower waives all claims, damages and demands it may acquire
against the Secured Party arising out of the Secured Party’s exercise of any rights hereunder 
 (d) For purposes of this Agreement,
a written agreement to purchase the Collateral or any portion thereof will be treated as a sale thereof; the Secured Party will be free to carry out such sale pursuant to such agreement and the Borrower will not be entitled to the return of the
Collateral or any portion thereof subject thereto, notwithstanding the fact that after the Secured Party enters into such an agreement all Events of Default were remedied and the Secured Obligations paid in full. As an alternative to exercising the
power of sale conferred upon it in this Agreement, the Secured Party may proceed by a suit or suits at law or in equity to foreclose on the Collateral under this Agreement and to sell the Collateral or any portion thereof pursuant to a judgment or
decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. Any sale pursuant to the provisions of this Section is deemed to conform to the commercially reasonable standards as provided in
Section 9-610(b) of the New York UCC or its equivalent in other jurisdictions. 
 (e) The Borrower acknowledges and agrees that a
breach of any of the covenants contained in Article III, Article IV and Article VI of this Agreement will cause irreparable injury to the Secured Party and that the Secured Party has no adequate remedy at law in respect of such breaches and
therefore agrees, without limiting the right of the Secured Party to seek and obtain specific performance of other obligations of the Borrower contained in this Agreement, that the covenants of the Borrower contained in the Articles referred to in
this Section shall be specifically enforceable against the Borrower, and the Borrower waives and agrees not to assert any defenses against an action for specific performance except for a defense that no default has occurred giving rise to the
Secured Obligations becoming due and payable prior to their stated maturities. 
 5.4 Deficiency. The Borrower shall remain liable
for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient to pay all of the then outstanding Secured Obligations, including the reasonable fees and disbursements of any attorneys employed by the Secured
Party to collect such deficiency. 

 ARTICLE VI 
 SECURED PARTY’S RIGHTS AND SECURED OBLIGATIONS 
 6.1 Secured Party’s Appointment
as Attorney-in-Fact. 
 (a) Powers. The Borrower hereby irrevocably constitutes and appoints the Secured Party and any officer
or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of the Borrower and in the name of the Borrower or in its own name, from time to time in the
Secured Party’s discretion at any time when an Event of Default has occurred and is continuing, for the purpose of carrying out and, in accordance with, the terms of this Agreement, to take any and all appropriate action and to execute any and
all documents and instruments the Secured Party may deem necessary or desirable to accomplish the purposes of this Agreement to the extent permitted by Applicable Law. Without limiting the generality of the foregoing, the Borrower hereby gives the
Secured Party the power and right, on behalf of the Borrower at any time when an Event of Default has occurred and is continuing, without notice to or assent by the Borrower: 
 (i) in the name of the Borrower or its own name, or otherwise, to take possession of and endorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under any
Account, Instrument, Investment Property or General Intangible that are part of the Collateral or with respect to any other Collateral and to file any claim or to take any other action or institute any proceeding in any court of law or equity or
otherwise deemed appropriate by the Secured Party for the purpose of collecting any and all such moneys due under any such Account, Instrument, Investment Property or General Intangible or with respect to any such other Collateral whenever payable;

 (ii) to assert, either directly or on behalf of the Borrower, any claims the Borrower may have against any other party to any contract,
agreement, instrument or other document that is part of the Collateral or to otherwise exercise any right or remedy of the Borrower under any such contract, agreement, instrument or other document (including, without limitation, the right to enforce
directly against any obligor of any Collateral all of the Borrower’s rights thereunder, to make all demands, to give all notices, and to make all requests required or permitted to be made by the Borrower thereunder) as the Secured Party may
deem proper; 
 (iii) to pay or discharge Taxes and Liens other than Permitted Liens levied or placed on or threatened against the
Collateral; and 
 (iv) (A) to direct any party liable for any payment under any of the Collateral to make payment of any and all moneys
due or to become due thereunder directly to the Secured Party or as the Secured Party shall direct; (B) to ask for or demand, collect, and 

 
receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral; (C) to sign and endorse any
invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices and other documents in connection with any of the Collateral; (D) to commence and prosecute any
suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any part thereof and to enforce any other right in respect of any Collateral; (E) to defend any suit, action or proceeding
brought against the Borrower with respect to any of the Collateral; (F) to settle, compromise or adjust any suit, action or proceeding described in clause (E) above and, in connection therewith, to give such discharges or releases as the
Secured Party may deem appropriate; and (G) generally, to sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Secured Party were the absolute owner
thereof for all purposes, and to do, at the Secured Party’s option and the Borrower’s expense, at any time, or from time to time, all acts and things which the Secured Party deems necessary to protect, preserve or realize upon the
Collateral and the Secured Party’s Liens thereon and to effect the intent of this Agreement, all as fully and effectively as the Borrower might do. 

The Borrower hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue of this Agreement. All powers of attorney, authorizations and
agencies contained in this Agreement are coupled with an interest and shall be irrevocable until the payment in full of the Loans and all of the other Secured Obligations then due and owing and all the security interests in the Collateral of the
Borrower created hereby are released. 
 (b) Other Powers. The Borrower also authorizes the Secured Party, from time to time to
execute, in connection with any sale provided for in Article V hereof, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral. 

6.2 Performance in Lieu of Borrower. Upon the occurrence and during the continuance of an Event of Default, the Secured Party, without
releasing the Borrower from any obligation, covenant or condition hereof, itself may (but shall not be obligated to) make any payment or perform, or cause the performance of, any such obligation, covenant, condition or agreement or any other action
in such manner and to such extent as it may deem necessary to protect, perfect or continue the perfection of the security interest granted under this Agreement. Any reasonable costs or expenses incurred by the Secured Party in connection with the
foregoing shall be payable by the Borrower to the Secured Party on demand and shall constitute Secured Obligations secured hereby. 
 6.3
No Duty on the Part of Secured Party. The powers conferred on the Secured Party under this Agreement are solely to protect the Secured Party’s interests in the Collateral and shall not impose any duty upon the Secured Party to exercise
any such powers. The Secured Party shall be accountable only for amounts that it actually receives 

 
as a result of the exercise of such powers, and neither it nor any of its officers, directors, employees or agents shall be responsible to the Borrower for any act or failure to act under this
Agreement. 
 6.4 Authorization to File Financing Statements. 

(a) The Borrower hereby irrevocably authorizes the Secured Party at any time and from time to time, to file such financing statements, continuation
statements and other documents in such offices as are or shall be necessary or as the Secured Party may determine to be reasonably appropriate to (i) create, perfect and establish the priority of the Liens granted by this Agreement in any and
all of the Collateral, (ii) preserve the validity, perfection or priority of the Liens granted by this Agreement in any and all of the Collateral, (iii) enable the Secured Party to exercise its remedies, rights, powers and privileges under
this Agreement, (iv) indicate the Collateral as being of an equal or lesser scope or with greater detail than that included in this Agreement and (v) provide any other information required by Part 5 of Article 9 of the UCC or the
Uniform Commercial Code of such other jurisdiction, for the sufficiency or filing office acceptance of any financing statement or amendment, including whether the Borrower is an organization, the type of organization and any organizational
identification number issued to the Borrower. The Borrower agrees to furnish any such information to the Secured Party promptly upon the Secured Party’s request. 
 (b) The Borrower acknowledges that it is not authorized to file any amendment or termination statement with respect to any financing statement relating to any security interest granted hereunder without the prior
written consent of the Secured Party and agrees that it shall not do so without the prior written consent of the Secured Party, subject to the Borrower’s rights under Section 9-509(d)(2) of the UCC. 

6.5 Limitation on Duties Regarding Preservation of Collateral. The Secured Party’s sole duty with respect to the custody, safekeeping
and physical preservation of the Collateral in its possession, under Section 9-207 of the UCC or otherwise, shall be to deal with it in the same manner as the Secured Party deals with similar property for its own account. Neither the Secured
Party, nor any of its directors, officers, employees or agents shall be liable for failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise
dispose of any Collateral upon the request of the Borrower or any other person or, except as otherwise provided in this Agreement, to take any other action whatsoever with regard to the Collateral or any part thereof, except for willful misconduct.

 6.6 Performance by Secured Party of Borrower’s Obligations. If the Borrower fails to perform or comply with any of its
obligations contained in this Agreement and the Secured Party, as provided for by the terms of this Agreement, shall itself perform or comply, or otherwise cause performance or compliance with this Agreement (it being understood that the Secured
Party shall be under no obligation to perform or comply or 

 
cause performance of compliance with this Agreement), the reasonable expenses of the Secured Party incurred in connection with such performance or compliance and action, together with interest
thereon at a rate per annum equal to the Default Rate, shall be payable to the Secured Party on demand and shall constitute Secured Obligations secured hereby. 
 6.7 Powers Coupled with an Interest. All authorizations and agencies contained in this Agreement with respect to the Collateral are powers coupled with an interest and are irrevocable until payment in full
of the Loans and any other Secured Obligations then due and owing. 
 ARTICLE VII 

MISCELLANEOUS 
 7.1
Amendments in Writing; No Waiver. None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except by a written instrument executed by the Borrower and the Secured Party with the prior
approval of the Superintendent of the New York State Department of Financial Services. 
 7.2 Notices. Any notice, approval,
request, demand, communication, or distribution shall be sufficiently given and effective if given in accordance with the provisions of Section 9.2 of the Loan Agreement. 
 7.3 No Waiver; Cumulative Remedies. No delay, indulgence, omission or other act of the Secured Party or any Loan Agreement Secured Party shall be deemed to be a waiver of any right or remedy of the Secured
Party or such Loan Agreement Secured Party under this Agreement nor shall the Secured Party or such Loan Agreement Secured Party by any such act be deemed to have acquiesced in any Potential Event of Default or Event of Default or in any breach of
any of the terms and conditions of this Agreement. No single or partial exercise of any right, remedy, power or privilege under this Agreement shall preclude any other or further exercise thereof or the exercise of any other right, remedy power or
privilege. A waiver by the Secured Party or any Loan Agreement Secured Party of any right, remedy, power or privilege under this Agreement on any one occasion shall not be construed as a bar to any right or remedy which the Secured Party or such
Loan Agreement Secured Party would otherwise have on any future occasion. The rights, titles, interests, liens, securities and remedies provided in this Agreement are cumulative, may be exercised singly or concurrently and are not exclusive of any
rights or remedies provided by law. The application of the Collateral to satisfy the Secured Obligations pursuant to the terms hereof shall not operate to release the Borrower from its obligations hereunder until payment in full of any deficiency
has been made in cash. 

 7.4 Successors and Assigns. This Agreement shall be binding upon the successors and assigns of
the Borrower and shall inure to the benefit of the Secured Party and each Loan Agreement Secured Party and its successors and assigns, except that the Borrower may not assign, transfer or delegate any of its rights or obligations under this
Agreement without the prior written consent of the Secured Party; provided that Optinuity Alliance Resources Corporation may act as the Borrower’s agent hereunder, to do and perform, on behalf of the Borrower, any and every act and thing
required or necessary to be done hereunder; provided further that the Borrower shall remain solely responsible for compliance with its obligations hereunder. No sales of participations, other sales, assignments, transfers or other
dispositions of any agreement governing or instrument evidencing the Secured Obligations or any portion thereof or interest therein shall in any manner impair the Lien granted to the Secured Party, for the benefit of the holders of such Secured
Obligations, under this Agreement. 
 7.5 Counterparts. This Agreement may be signed in any number of counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of an executed counterpart of this Agreement by facsimile or other electronic transmission shall be as effective as delivery
of a manually executed counterpart. 
 7.6 Severability. The holding by any court of competent jurisdiction that any remedy pursued
by the Secured Party hereunder is unavailable or unenforceable shall not affect in any way the ability of the Secured Party to pursue any other remedy available to it. In the event any provision of this Agreement shall be held invalid or
unenforceable by any court of competent jurisdiction, the parties hereto agree that such provision shall be ineffective only to the extent of such invalidity or unenforceability without invalidating the remainder of such provision or any other
provisions of this Agreement and shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 7.7
Effectiveness. Notwithstanding anything to the contrary provided herein, this Agreement shall become effective upon the Closing Date and shall not be effective prior thereto. 

7.8 Further Assurances and Corrective Instruments. To the extent permitted by Applicable Law, Borrower shall, upon the written request of
the Secured Party, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, within a reasonable period after such request, such amendments or supplements hereto, and such further instruments, and take
such further actions, as may be necessary in the Secured Party’s reasonable judgment to effectuate the intention, performance and provisions hereof. 
 7.9 Section Headings. The section headings used in this Agreement are for convenience of reference only and are not to affect the construction of this Agreement or be taken into consideration in the
interpretation of this Agreement. 

 7.10 Integration. This Agreement and the other Loan Documents constitute the entire agreement
and understanding among the parties hereto and supersede any and all prior agreements and understandings, oral or written, relating to the subject matter of this Agreement. 
 7.11 Governing Law; Waiver of Jury Trial. 
 (a) THIS AGREEMENT, AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER, SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE RULES OF CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE NEW
YORK GENERAL OBLIGATIONS LAW), EXCEPT AS REQUIRED BY MANDATORY PROVISIONS OF LAW AND TO THE EXTENT THE VALIDITY OR PERFECTION OF THE SECURITY INTERESTS HEREUNDER, OR THE REMEDIES HEREUNDER, IN RESPECT OF ANY COLLATERAL ARE GOVERNED BY THE LAW OF A
JURISDICTION OTHER THAN NEW YORK. 
 (b) EACH OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES (TO THE
EXTENT PERMITTED BY APPLICABLE LAW) ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE BORROWER. THIS PROVISION IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. 

7.12 Submission to Jurisdiction, Etc. By execution and delivery of this Agreement, the Borrower irrevocably and unconditionally: 

(a) submits for itself and its property in any legal action or proceeding against it arising out of or in connection with this Agreement, or for
recognition and enforcement of any judgment in respect thereof, to the exclusive jurisdiction of the Supreme Court of the State of New York and the United States District Court for the Southern District of New York, in each case sitting in the
borough of Manhattan and appellate courts from any thereof; 
 (b) consents that any such action or proceeding may be brought in or
removed to such courts, and waives any objection, or right to stay or dismiss any action or proceeding, that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought
in an inconvenient court and agrees not to plead or claim the same; 

 (c) agrees that service of process in any such action or proceeding may be effected by mailing a copy
thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the Borrower at its address specified in the Loan Agreement or at such other address of which the Secured Party shall have been notified
pursuant thereto; 
 (d) agrees that nothing herein shall (i) affect the right of the Secured Party to effect service of process in
any other manner permitted by law or (ii) limit the right of the Secured Party to commence proceedings against or otherwise sue the Borrower or any other Person in any other court of competent jurisdiction nor shall the commencement of
proceedings in any one or more jurisdictions preclude the commencement of proceedings in any other jurisdiction (whether concurrently or not) if, and to the extent, permitted by the Applicable Law; and 

(e) agrees that judgment against it in any such action or proceeding shall be conclusive and may be enforced in any other jurisdiction within or
without the United States by suit on the judgment or otherwise as provided by law, a certified or exemplified copy of which judgment shall be conclusive evidence of the fact and amount of the Borrower’s obligation. 

7.13 No Partnership; Etc. The Secured Party and the Borrower intend that the relationship between them shall be solely that of creditor and
debtor, and the Secured Party does not have any fiduciary relationship with or duty to the Borrower arising out of or in connection with this Agreement. Nothing contained in this Agreement shall be deemed or construed to create a partnership,
tenancy-in-common, joint tenancy, joint venture or co-ownership by, between the Secured Party and the Borrower or any other Person. The Secured Party shall not be in any way responsible or liable, under the Loan Documents, for the indebtedness,
losses, obligations or duties of the Borrower or any other Person. Nothing in the Loan Documents shall be deemed to modify in any way any other agreements between the Secured Party and the Borrower. 

7.14 Additional Security. Without notice to or consent of the Borrower, and without impairment of the security interest and rights granted
pursuant to this Agreement, the Secured Party may accept from the Borrower or from any other person, additional security for the Secured Obligations. Neither the granting of the security interest in the Collateral pursuant to this Agreement nor the
acceptance of any such additional security shall prevent the Secured Party from resorting, first to such additional security, or, first to the Collateral, in either case without affecting the Secured Party’s security interest in the Collateral
and the other rights granted to it pursuant to this Agreement. 
 7.15 Benefits of Agreement. Nothing in this Agreement, express or
implied, shall give to any Person, other than the parties hereto and thereto and their successors and permitted assigns hereunder, any benefit or any legal or equitable right or remedy under this Agreement. 

 7.16 Independence of Covenants. All covenants under this Agreement and the other Loan Documents
shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall
not avoid the occurrence of a Potential Event of Default or an Event of Default if such action is taken or condition exists. 
 7.17
Release of Collateral and Termination. 
 (a) At such time as (i) the payment in full of the Loans and all of the other
Secured Obligations then due and owing shall have occurred and (ii) the Lenders’ obligation to make loans under the Loan Agreement shall have been terminated, the Collateral shall be released from the Liens created hereby, and this
Agreement and all obligations (other than those expressly stated to survive such termination) of the Secured Party and the Borrower under this Agreement shall terminate and all rights to the Collateral shall revert to the Borrower. Upon request of
the Borrower following any such termination, the Secured Party shall deliver (at the sole cost and expense of the Borrower) to the Borrower any Collateral held by the Secured Party under this Agreement, and execute and deliver (at the sole cost and
expense of the Borrower) to the Borrower such documents (including without limitation UCC termination statements) as the Borrower shall reasonably request to evidence such termination. 

(b) Upon the sale or other disposition of all or any portion of the Collateral to any Person in a transaction permitted by the Loan Documents
(including pursuant to any consent to such sale or disposition or release of the security interest in such Collateral pursuant to the terms thereof), and as long as no Event of Default has occurred and is continuing, the security interests created
by the Security Documents in such Collateral shall terminate and such Collateral shall be automatically released from the Lien created by the Security Documents; provided that, the Secured Party shall continue to have a security interest in
the Proceeds of such sold Collateral, which Proceeds shall be treated in accordance with the terms of the Security Documents. Upon any such sale or disposition and release and receipt by the Secured Party of a certificate from the Borrower stating
that such sale is permitted by (or the relevant consent has been received under) the Loan Documents, the Secured Party will promptly at the Borrower’s request and expense execute and deliver such documents as the Borrower shall reasonably
request to evidence the termination of such security interest and the release of such Collateral. 
 (c) Notwithstanding the foregoing, if
at any time a payment of the Loans or any of the other Secured Obligations is rescinded or must otherwise be returned upon the insolvency, bankruptcy or reorganization of the Borrower or otherwise, the provisions of this Agreement and the security
interest created hereby shall continue to be effective or be reinstated, as the case may be, all as though such payment had not been made. 

 IN WITNESS WHEREOF, the Borrower and the Secured Party have caused this Agreement to
be duly executed and delivered as of the date first above written. 
  

			
	MBIA INSURANCE CORPORATION,
	as the Borrower
		
	By:	 	 /s/ C. Edward Chaplin

	Name:	 	C. Edward Chaplin
	Title:	 	Chief Financial Officer
	
	 BLUE RIDGE INVESTMENTS, L.L.C.,

as the Secured Party

		
	By:	 	 /s/ Neil Cotty

	Name:	 	Neil Cotty
	Title:	 	Executive Vice President

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