Document:

Fifth Amendment to Second Amended and Restated Credit Agreement

 Exhibit 10.1 
 Execution Version 
 FIFTH AMENDMENT 
 TO 
 SECOND AMENDED AND RESTATED 
 SENIOR REVOLVING CREDIT AGREEMENT 
 among 
 PETROHAWK ENERGY CORPORATION, 
 as the Borrower, 
 BNP PARIBAS, 
 as Administrative Agent, 
 BANK OF AMERICA, N.A. and 
 BMO CAPITAL MARKETS FINANCING, INC., 
 as Co-Syndication Agents, 
 JPMORGAN CHASE BANK, N.A., 
 WELLS FARGO BANK, N.A. and 
 FORTIS CAPITAL CORP. 
 as Co-Documentation Agents, 
 and

 THE LENDERS PARTY HERETO 
 Effective as of February 5, 2008 

 FIFTH AMENDMENT TO 
 SECOND AMENDED AND RESTATED SENIOR REVOLVING CREDIT AGREEMENT 
 This FIFTH AMENDMENT TO SECOND
AMENDED AND RESTATED SENIOR REVOLVING CREDIT AGREEMENT (this “Fifth Amendment”) executed effective as of February 5, 2008 (the “Fifth Amendment Effective Date”) is among PETROHAWK ENERGY CORPORATION, a
corporation duly formed and existing under the laws of the State of Delaware (the “Borrower”); each of the Guarantors signatory hereto (the “Guarantors”); each of the Lenders from time to time party hereto; BNP
PARIBAS (in its individual capacity, “BNP Paribas”), as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”); Bank of America, N.A. and
BMO Capital Markets Financing, Inc., as co-syndication agents for the Lenders (in such capacity, together with their successors in such capacity, the “Co-Syndication Agents”); and JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A.
and Fortis Capital Corp. as co-documentation agents for the Lenders (in such capacity, together with their successors in such capacity, the “Co-Documentation Agents”). 
 Recitals 
 A. The Borrower, the Administrative Agent, the other Agents and Lenders
named and defined therein as lenders and agents, are parties to that certain Second Amended and Restated Senior Revolving Credit Agreement dated as of July 12, 2006, as amended by the First Amendment to Second Amended and Restated Senior
Revolving Credit Agreement, dated as of July 24, 2006, the Second Amendment to Second Amended and Restated Senior Revolving Credit Agreement, dated as of May 8, 2007, the Third Amendment to Second Amended and Restated Senior Revolving
Credit Agreement, dated as of July 25, 2007 and the Fourth Amendment to Second Amended and Restated Senior Revolving Credit Agreement, dated as of October 15, 2007, pursuant to which such lenders and agents provided certain loans and
extensions of credit to the Borrower (as amended, the “Credit Agreement”). 
 B. The Administrative Agent has requested, and
the Borrower, the Administrative Agent, the Co-Syndication Agents, the Co-Documentation Agents and Lenders have agreed to amend certain provisions of the Credit Agreement. 
 C. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 Section 1. Defined Terms. Each capitalized
term which is defined in the Credit Agreement, but which is not defined in this Fifth Amendment, shall have the meaning ascribed such term in the Credit Agreement. Unless otherwise indicated, all section references in this Fifth Amendment refer to
sections in the Credit Agreement. 
 Section 2. Amendments to Credit Agreement. 
 2.1 Certain Defined Terms. The following defined terms in Section 1.02 are hereby amended and restated in their entirety as follows:

 “Agreement” means this Second Amended and Restated Senior Revolving Credit Agreement, as amended by the First Amendment to
Second Amended and Restated Senior Revolving Credit Agreement, dated as of July 24, 2006, the Second Amendment to Second Amended and Restated Senior Revolving Credit Agreement, dated as of May 8, 2007, the Third Amendment to Second Amended
and Restated Senior Revolving Credit Agreement dated as of July 25, 2007, the Fourth Amendment to Second Amended and Restated Senior Revolving Credit Agreement, dated as of October 15, 2007 and the Fifth Amendment to Second Amended and
Restated Senior Revolving Credit Agreement dated as of February 5, 2008, as the same may from time to time be further amended, modified, supplemented or restated. 
  

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 “Applicable Margin” means, for any day, with respect to any ABR Loan or Eurodollar Loan,
or with respect to the Commitment Fee Rate, as the case may be, the rate per annum set forth in the Borrowing Base Utilization Grid below based upon the Borrowing Base Utilization Percentage then in effect: 
  

																
	 Borrowing Base Utilization Percentage
	  	<50%	 	 	350 %
<75 %	 	 	375 %
<90 %	 	 	390 %
<100%	 	 	3100%	 
	 LIBOR Margin
	  	1.000	%	 	1.250	%	 	1.500	%	 	1.750	%	 	2.00	%
						
	 ABR Margin
	  	0.000	%	 	0.000	%	 	0.250	%	 	0.500	%	 	0.750	%
						
	 Commitment Fee Rate
	  	0.250	%	 	0.375	%	 	0.375	%	 	0.375	%	 	0.375	%

 Each change in the Applicable Margin or Commitment Fee Rate shall apply during the period
commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change, provided, however, that if at any time the Borrower fails to deliver a Reserve Report pursuant to
Section 8.12(a), then the “Applicable Margin” or “Commitment Fee Rate” means the rate per annum set forth on the grid when the Borrowing Base Utilization Percentage is at its highest level. 
 “Borrowing Base Equalization Date” means February 5, 2009. 
 “Borrowing Base Utilization Percentage” means, as of any day, the fraction expressed as a percentage, the numerator of which is the sum
of the Revolving Credit Exposures of the Lenders on such day, and the denominator of which is (a) prior to the Borrowing Base Equalization Date, the Conforming Borrowing Base in effect on such day and (b) on and after the Borrowing Base
Equalization Date, the Borrowing Base in effect on such day. 
 “Conforming Borrowing Base” means at any time an amount equal
to the amount determined in accordance with Section 2.07, as the same may be adjusted from time to time pursuant to Section 8.13(c) or Section 9.13. 
  

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 “Fifth Amendment Effective Date” shall mean February 5, 2008. 
 2.2 Section 2.03. Section 2.03(v) shall be amended and restated in its entirety as follows: 
 “(v) the amount of the then effective Borrowing Base and the then effective Conforming Borrowing Base (if applicable), the current total Revolving
Credit Exposures (without regard to the requested Borrowing) and the pro forma total Revolving Credit Exposures (giving effect to the requested Borrowing); and” 
 2.3 Section 2.07. Section 2.07 is hereby amended and restated in its entirety as follows: 
 “Section 2.07 Borrowing Base. 
 (a) Initial Borrowing Base. For the period from and including the Fifth Amendment Effective Date to but excluding the next Redetermination Date, the amount of the Borrowing Base shall be $1,000,000,000 and the amount of the
Conforming Borrowing Base shall be $900,000,000. Notwithstanding the foregoing, the Borrowing Base and the Conforming Borrowing Base may be subject to further adjustments from time to time pursuant to Section 8.13(c) or Section 9.13. As of
the Borrowing Base Equalization Date, the Borrowing Base shall equal the Conforming Borrowing Base and all references to the “Conforming Borrowing Base” in this Agreement shall mean the Borrowing Base. 
 (b) Scheduled and Interim Redeterminations. The Borrowing Base (and, if applicable, the Conforming Borrowing Base) shall be redetermined
semi-annually in accordance with this Section 2.07 (a “Scheduled Redetermination”), and, subject to Section 2.07(d), such redetermined Borrowing Base (and, if applicable, Conforming Borrowing Base) shall become effective
and applicable to the Borrower, the Agents, the Issuing Bank and the Lenders on May 1st and November 1st of each year. In addition, the Borrower may, by notifying the Administrative Agent thereof, and the Administrative Agent may, at the
direction of the Majority Lenders, by notifying the Borrower thereof, one time during any 12-month period, each elect to cause the Borrowing Base to be redetermined between Scheduled Redeterminations (an “Interim Redetermination”)
in accordance with this Section 2.07. 
 (c) Scheduled and Interim Redetermination Procedure. 
 (i) Each Scheduled Redetermination and each Interim Redetermination shall be effectuated as follows: Upon receipt by the Administrative Agent of
(A) the Reserve Report and the certificate required to be delivered by the Borrower to the Administrative Agent, in the case of a Scheduled Redetermination, pursuant to Section 8.12(a) and (c), and, in the case of an Interim
Redetermination, pursuant to Section 8.12(b) and (c), and (B) such other reports, data and supplemental information, including, without limitation, 

  

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the information provided pursuant to Section 8.12(c), as may, from time to time, be reasonably requested by the Majority Lenders (the Reserve Report,
such certificate and such other reports, data and supplemental information being the “Engineering Reports”), the Administrative Agent shall evaluate the information contained in the Engineering Reports and shall, in its sole
discretion, propose a new Borrowing Base and which shall, prior to the Borrowing Base Equalization Date, also specify a new Conforming Borrowing Base (the “Proposed Borrowing Base”) based upon such information and such other
information (including, without limitation, the status of title information with respect to the Oil and Gas Properties as described in the Engineering Reports and the existence of any other Debt) as the Administrative Agent deems appropriate and
consistent with its normal oil and gas lending criteria as it exists at the particular time. In no event shall the Proposed Borrowing Base exceed the Aggregate Maximum Credit Amounts. 
 (ii) The Administrative Agent shall notify the Borrower and the Lenders of the Proposed Borrowing Base (the “Proposed Borrowing Base
Notice”): 
 (A) in the case of a Scheduled Redetermination (1) if the Administrative Agent shall have received
the Engineering Reports required to be delivered by the Borrower pursuant to Section 8.12(a) and (c) in a timely and complete manner, then on or before April 15th and October 15th of such year following the date of delivery or
(2) if the Administrative Agent shall not have received the Engineering Reports required to be delivered by the Borrower pursuant to Section 8.12(a) and (c) in a timely and complete manner, then promptly after the Administrative Agent
has received complete Engineering Reports from the Borrower and has had a reasonable opportunity to determine the Proposed Borrowing Base in accordance with Section 2.07(c)(i); and 
 (B) in the case of an Interim Redetermination, promptly, and in any event, within fifteen (15) days after the Administrative Agent
has received the required Engineering Reports. 
 (iii) Any Proposed Borrowing Base that would increase the Borrowing Base (or, if applicable,
the Conforming Borrowing Base) then in effect must be approved or deemed to have been approved by the Required Lenders as provided in this Section 2.07(c)(iii); and any Proposed Borrowing Base that would decrease or maintain the Borrowing Base
(or, if applicable, the Conforming Borrowing Base) then in effect must be approved or be deemed to have been approved by the Majority Lenders as provided in this Section 2.07(c)(iii). Upon receipt of the Proposed Borrowing Base Notice, each
Lender shall have fifteen (15) days to agree with the Proposed Borrowing Base or disagree with the Proposed Borrowing Base by proposing an alternate Borrowing Base (which proposal must also propose, if applicable, a Conforming Borrowing Base).
If at the end of such fifteen (15) days, any Lender has not communicated its approval or disapproval in writing to the Administrative Agent, such silence shall be 

  

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deemed to be an approval of the Proposed Borrowing Base. If, at the end of such 15-day period, the Required Lenders, in the case of a Proposed Borrowing Base
that would increase the Borrowing Base (or, if applicable, the Conforming Borrowing Base) then in effect, or the Majority Lenders, in the case of a Proposed Borrowing Base that would decrease or maintain the Borrowing Base (or, if applicable, the
Conforming Borrowing Base) then in effect, have approved or deemed to have approved, as aforesaid, then the Proposed Borrowing Base shall become the new Borrowing Base (and, if applicable, the Conforming Borrowing Base), effective on the date
specified in Section 2.07(d). If, however, at the end of such 15-day period, the Required or Majority Lenders, as applicable, have not approved or deemed to have approved, as aforesaid, then the Administrative Agent shall poll the Lenders to
ascertain the highest Borrowing Base (and, if applicable, the Conforming Borrowing Base) then acceptable to the Majority Lenders for purposes of this Section 2.07 and, so long as such amount does not increase the Borrowing Base (or, if
applicable, the Conforming Borrowing Base) then in effect, such amount shall become the new Borrowing Base (and, if applicable, the new Conforming Borrowing Base), effective on the date specified in Section 2.07(d). While the Conforming
Borrowing Base is in effect, the foregoing procedures shall apply to each proposed Borrowing Base and each proposed Conforming Borrowing Base separately. 
 (iv) The Borrowing Base shall not be more than $100,000,000 greater than the Conforming Borrowing Base. If the Conforming Borrowing Base is adjusted and the Borrowing Base is more than $100,000,000 greater than the
Conforming Borrowing Base, then the Borrowing Base shall automatically be reduced to an amount that is equal to $100,000,000 greater than the Conforming Borrowing Base. 
 (d) Effectiveness of a Redetermined Borrowing Base. After a redetermined Borrowing Base (and, if applicable, the Conforming Borrowing Base) is approved or is deemed to have been approved by the Required Lenders
or the Majority Lenders, as applicable, pursuant to Section 2.07(c)(iii), the Administrative Agent shall notify the Borrower and the Lenders of the amount of the redetermined Borrowing Base (and, if applicable, the Conforming Borrowing Base)
(the “New Borrowing Base Notice”), and such amount shall become the new Borrowing Base (and, if applicable, the new Conforming Borrowing Base), effective and applicable to the Borrower, the Agents, the Issuing Bank and the Lenders:

 (i) in the case of a Scheduled Redetermination, (A) if the Administrative Agent shall have received the Engineering Reports required
to be delivered by the Borrower pursuant to Section 8.12(a) and (c) in a timely and complete manner, then on May 1st or November 1st, as applicable, following such notice, or (B) if the Administrative Agent shall not have
received the Engineering Reports required to be delivered by the Borrower pursuant to Section 8.12(a) and (c) in a timely and complete manner, then on the Business Day next succeeding delivery of such notice; and 
  

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 (ii) in the case of an Interim Redetermination, on the Business Day next succeeding delivery of such
notice. 
 Such amount shall then become the Borrowing Base (and, if applicable, the Conforming Borrowing Base) until the next Scheduled
Redetermination Date, the next Interim Redetermination Date or the next adjustment to the Borrowing Base (and, if applicable, the Conforming Borrowing Base) under Section 8.13(c) or Section 9.13, whichever occurs first. Notwithstanding the
foregoing, no Scheduled Redetermination or Interim Redetermination shall become effective until the New Borrowing Base Notice related thereto is received by the Borrower. 
 2.4 Section 2.08. Section 2.08(b)(vi) is hereby amended and restated as follows: 
 “(vi) specifying the amount of the then effective Borrowing Base (and, if applicable, the Conforming Borrowing Base) and whether a Borrowing Base Deficiency exists at such time, the current total Revolving Credit Exposures (without
regard to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit) and the pro forma total Revolving Credit Exposures (giving effect to the requested Letter of Credit or the requested
amendment, renewal or extension of an outstanding Letter of Credit).” 
 2.5 Section 8.13(c). Section 8.13(c) is hereby
amended by adding “(and, if applicable, the Conforming Borrowing Base)” after “Borrowing Base” in each of the second and third sentences. 
 2.6 Section 9.04(b). 
 (a) Section 9.04(b)(i)(B)(2) is hereby amended and restated in its
entirety as follows: 
 “(2) after giving pro forma effect to any such Redemption or repurchase, the Borrower would have at least
$100,000,000 of unused availability under the lower of the Borrowing Base and the Conforming Borrowing Base,” 
 (b)
Section 9.04(b)(i)(C)(2) is hereby amended and restated in its entirety as follows: 
 “(2) the Borrower would have at least
$100,000,000 of unused availability under the lower of the Borrowing Base and the Conforming Borrowing Base,” 
 2.7
Section 9.13(e). Section 9.13(e) is hereby amended by replacing “then the Borrowing Base shall be reduced” with “then the Borrowing Base (and, if applicable, the Conforming Borrowing Base) shall be reduced”

 2.8 Section 12.02(b). Section 12.02(b)(ii) is hereby amended and restated in its entirety as follows: 
 “(ii) increase the Borrowing Base or the Conforming Borrowing Base without the written consent of the Required Lenders, decrease or maintain the
Borrowing Base or the Conforming Borrowing Base without the consent of the Majority Lenders, or modify Section 2.07 without the consent of each Lender,” 
  

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 2.9 Borrowing Base. 
 (a) Fees. For any and all increases in the Borrowing Base pursuant to this Fifth Amendment, the Borrower agrees to pay to the Administrative Agent, for the account of each Lender then party to the Agreement,
ratably in accordance with its Applicable Percentage, a Borrowing Base increase fee equal to 0.2% on the amount of any increase of the Borrowing Base over the highest Borrowing Base previously in effect, payable on the Fifth Amendment Effective
Date. 
 (b) Interim Borrowing Base Adjustment. Pursuant to this Interim Redetermination, the Borrowing Base shall be increased to
$1,000,000,000 and the Conforming Borrowing Base shall be $900,000,000, effective from the Fifth Amendment Effective Date. 
 (c)
Repayment of Senior Notes. The Borrower may prepay the 2012 Notes or 2013 Notes pursuant to Section 9.04(b)(i)(C), but neither the Borrowing Base nor the Conforming Borrowing Base may be increased pursuant to the Fourth Amendment to the
Second Amended and Restated Credit Agreement so long as the Borrowing Base is equal to the Aggregate Maximum Credit Amount. 
 2.10 Annex
I. Annex I is hereby amended and restated in its entirety as set forth in the attached Annex I. 
 Section 3. Waiver.

 3.1 The Borrower has informed the Administrative Agent that it has entered into Swap Agreements that exceed the 85% limit set forth in
Section 9.19(a)(ii) of the Credit Agreement. Therefore, the Majority Lenders do hereby waive Section 9.19(a)(ii) of the Credit Agreement to allow the Borrower to exceed such limit for the second, third and fourth quarters of 2008, provided
that the notional volumes for the Borrower’s Swap Agreements with Approved Counterparties in respect of commodities do not exceed 70% of the anticipated total forecasted production for each month during 2008 for each of crude oil and natural
gas, calculated separately. Except as expressly waived herein, all covenants, obligations and agreements of the Borrower contained in the Credit Agreement and the other Loan Documents shall remain in full force and effect in accordance with their
terms. 
 3.2 Neither the execution by the Administrative Agent or the Lenders of this Amendment, nor any other act or omission by the
Administrative Agent or the Lenders or their officers in connection herewith, shall be deemed a waiver by the Administrative Agent or the Lenders of any other defaults which may exist, which may have occurred prior to the Swap Agreements described
in Section 3.1, or which may occur in the future under the Credit Agreement and/or the other Loan Documents, or any future defaults of the same provision waived hereunder (collectively “Other Violations”). Similarly, nothing
contained in this Amendment shall directly or indirectly in any way whatsoever either: (i) impair, prejudice or otherwise adversely affect the Administrative Agent’s or the Lenders’ right at any time to exercise any right, privilege
or remedy in connection with the Loan Documents with respect to 

  

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any Other Violations, or (ii) constitute any course of dealing or other basis for altering any obligation of the Borrower or any right, privilege or
remedy of the Administrative Agent or the Lenders under the Credit Agreement, the other Loan Documents, or any other contract or instrument. Nothing in this letter shall be construed to be a consent by the Administrative Agent or the Lenders to any
Other Violations. 
 Section 4. Assignment. For an agreed consideration, the existing Lenders hereby irrevocably sell and assign
to one another and Citibank, N.A. and Royal Bank of Canada (collectively, the “New Lenders”), and the New Lenders and existing Lenders, by their signature hereto, hereby irrevocably purchase and assume from such existing Lenders,
subject to and in accordance with the Credit Agreement, as of the Fifth Amendment Effective Date (i) such assignors’ rights and obligations in their capacities as Lenders under the Credit Agreement and any other documents or instruments
delivered pursuant thereto to the extent related to the amount and percentage interest identified on the attached Annex I, of such outstanding rights and obligations of the assignors under the Agreement and (ii) to the extent permitted
to be assigned under applicable law, all claims, suits, causes of action and any other right of the assignors (in their capacities as Lenders) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement,
any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above. 
 Section 5. Conditions Precedent. The effectiveness of this Fifth Amendment is subject to the receipt by the Administrative Agent of the following documents and satisfaction of the other conditions provided in this
Section 5, each of which shall be reasonably satisfactory to the Administrative Agent in form and substance: 
 5.1 The Administrative
Agent and the Lenders shall have received all fees and other amounts due and payable on or prior to the Fifth Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be
reimbursed or paid by the Borrower hereunder. 
 5.2 The Administrative Agent shall have received from the Administrative Agent, each of the
Lenders and each of the Guarantors, counterparts (in such number as may be requested by the Administrative Agent) of this Fifth Amendment signed on behalf of such Person. 
 5.3 No Default or Event of Default shall have occurred and be continuing as of the Fifth Amendment Effective Date. 
 5.4 The Administrative Agent shall have received such other documents as the Administrative Agent or its special counsel may reasonably require. 
 The Administrative Agent is hereby authorized and directed to declare this Fifth Amendment to be effective when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent,
compliance with the conditions set forth in this Section 4 or the waiver of such conditions as permitted hereby. Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes. 
  

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 Section 6. Representations and Warranties; Etc. The Borrower and each Guarantor hereby
affirms: (a) that as of the date of execution and delivery of this Fifth Amendment, and after giving effect to the transactions contemplated hereby, all of the representations and warranties contained in each Loan Document to which it is a
party are true and correct in all material respects (unless made as of a specific earlier date, in which case, was true as of such date); and (b) that after giving effect to this Fifth Amendment and to the transactions contemplated hereby, no
Defaults exist under the Loan Documents or will exist under the Loan Documents. 
 Section 7. Miscellaneous. 
 7.1 Confirmation. The provisions of the Credit Agreement (as amended by this Fifth Amendment) shall remain in full force and effect in accordance
with its terms following the effectiveness of this Fifth Amendment. 
 7.2 Ratification and Affirmation of Borrower and Guarantors.
The Borrower and Guarantors hereby expressly (a) acknowledge the terms of this Fifth Amendment, (b) ratify and affirm their obligations under the Loan Documents to which they are a party, (c) acknowledge, renew and extend their
continued liabilities under the Guarantee Agreement and the other Security Instruments to which they are a party and agree that their guarantee under the Guarantee Agreement and the other Security Instruments to which they are a party remains in
full force and effect with respect to the Indebtedness as amended hereby. 
 7.3 Counterparts. This Fifth Amendment may be executed by
one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 
 7.4 No Oral Agreement. THIS WRITTEN FIFTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND
THEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. 
 7.5 Governing Law. THIS FIFTH AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS. 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to be duly executed effective as
of the date first written above. 
  

					
	BORROWER:	 	PETROHAWK ENERGY CORPORATION
			
		 	By:	 	 /s/ Mark J. Mize

		 	Name:	 	Mark J. Mize
		 	Title:	 	 Executive Vice President – Chief Financial Officer
 and Treasurer

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 1 

							
	GUARANTORS:	 	PETROHAWK OPERATING COMPANY
		
		 	P-H ENERGY, LLC
		
		 	RED RIVER FIELD SERVICES, L.L.C.
		
		 	PETROHAWK PROPERTIES, LP
		 		 	By:	 	P-H Energy, L.L.C. Its General Partner
		
		 	WINWELL RESOURCES, INC.
		
		 	WSF, INC.
		
		 	KSC RESOURCES, INC.
		
		 	KCS ENERGY SERVICES, INC.
		
		 	MEDALLION CALIFORNIA PROPERTIES COMPANY
		
		 	PROLIQ, INC.
		
		 	ONE TEC, LLC
		
		 	ONE TEC OPERATING, LLC
		
		 	BISON RANCH LLC
			
		 	By:	 	 /s/ Mark J. Mize

		 	Name:	 	Mark J. Mize
		 	Title:	 	 Executive Vice President – Chief Financial Officer
 and Treasurer

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 2 

			
	PETROHAWK HOLDINGS, LLC
		
	By:	 	 /s/ Connie D. Tatum

		 	Connie D. Tatum
		 	President

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 3 

					
	ADMINISTRATIVE AGENT:	 	 BNP PARIBAS,
 as Administrative
Agent and Lender

			
		 	By:	 	 /s/ Robert Long

		 	Name:	 	Robert Long
		 	Title:	 	Vice President
			
		 	By:	 	 /s/ Russell Otts

		 	Name:	 	Russell Otts
		 	Title:	 	Vice President

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 4 

					
	CO-SYNDICATION AGENT:	 	 BANK OF AMERICA, N.A.,
 as
Co-Syndication Agent and Lender

			
		 	By:	 	 /s/ Jeffrey H. Rathkamp

		 	Name:	 	Jeffrey H. Rathkamp
		 	Title:	 	Managing Director

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 5 

					
	CO-SYNDICATION AGENT:	 	 BMO CAPITAL MARKETS FINANCING, INC.,
 as Co-Syndication Agent and Lender

			
		 	By:	 	 /s/ James V. Ducote

		 	Name:	 	James V. Ducote
		 	Title:	 	Director

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 6 

					
	CO-DOCUMENTATION AGENT:	 	 JPMORGAN CHASE BANK, N.A.,
 as
Co-Documentation Agent and Lender

			
		 	By:	 	 /s/ Michael A. Kamauf

		 	Name:	 	Michael A. Kamauf
		 	Title:	 	Vice President

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 7 

					
	CO-DOCUMENTATION AGENT:	 	 WELLS FARGO BANK, N.A.,
 as
Co-Documentation Agent and Lender

			
		 	By:	 	 /s/ Scott Hodges

		 	Name:	 	Scott Hodges
		 	Title:	 	Vice President

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 8 

					
	CO-DOCUMENTATION AGENT:	 	 FORTIS CAPITAL CORP.,
 as
Co-Documentation Agent and Lender

			
		 	By:	 	 /s/ Scott Myatt

		 	Name:	 	Scott Myatt
		 	Title:	 	Vice President
			
		 	By:	 	 /s/ Darrell Holley

		 	Name:	 	Darrell Holley
		 	Title:	 	Managing Director

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 9 

					
	LENDERS:	 	KEYBANK, NATIONAL ASSOCIATION
			
		 	By:	 	 /s/ Thomas Rajan

		 	Name:	 	Thomas Rajan
		 	Title:	 	Director

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 10 

					
	LENDERS:	 	ALLIED IRISH BANKS p.l.c.
			
		 	By:	 	 /s/ Mark Connelly

		 	Name:	 	Mark Connelly
		 	Title:	 	Senior Vice President
			
		 	By:	 	 /s/ Edward Fenk

		 	Name:	 	Edward Fenk
		 	Title:	 	Vice President

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 11 

					
	LENDERS:	 	AMEGY BANK NATIONAL ASSOCIATION
			
		 	By:	 	 /s/ W. Bryan Chapman

		 	Name:	 	W. Bryan Chapman
		 	Title:	 	Senior Vice President

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 12 

					
	LENDERS:	 	SUNTRUST BANK
			
		 	By:	 	 /s/ James M. Warren

		 	Name:	 	James M. Warren
		 	Title:	 	Managing Director

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 13 

					
	LENDERS:	 	BANK OF TEXAS, N.A.
			
		 	By:	 	 /s/ Mari Salazar

		 	Name:	 	Mari Salazar
		 	Title:	 	Vice President

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 14 

					
	LENDERS:	 	U.S. BANK NATIONAL ASSOCIATION
			
		 	By:	 	 /s/ Monte E. Deckerd

		 	Name:	 	Monte E. Deckerd
		 	Title:	 	Senior Vice President

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 15 

					
	LENDERS:	 	COMERICA BANK
			
		 	By:	 	 /s/ Huma V. Manal

		 	Name:	 	Huma V. Manal
		 	Title:	 	Vice President

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 16 

					
	LENDERS:	 	COMPASS BANK
			
		 	By:	 	 /s/ Dorothy Marchand

		 	Name:	 	Dorothy Marchand
		 	Title:	 	Senior Vice President

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 17 

					
	LENDERS:	 	STERLING BANK
			
		 	By:	 	 /s/ Jeff A. Forbis

		 	Name:	 	Jeff A. Forbis
		 	Title:	 	Senior Vice President

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 18 

					
	NEW LENDER:	 	CITIBANK, N.A.
			
		 	By:	 	 /s/ David E. Hunt

		 	Name:	 	David E. Hunt
		 	Title:	 	Vice President

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 19 

					
	NEW LENDER:	 	ROYAL BANK OF CANADA
			
		 	By:	 	 /s/ Jay T. Sartain

		 	Name:	 	Jay T. Sartain
		 	Title:	 	Authorized Signatory

  

 Fifth Amendment – Second Amended and Restated Senior Revolving Credit Agreement 
 Signature Page 
 20Warrant Certificate

 Exhibit 4.1 
 Execution Copy 
 [Copy] 
 THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS
OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH
ACT OR SUCH LAWS. 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO TRANSFER AND OTHER RESTRICTIONS SET FORTH
IN AN AMENDED AND RESTATED INVESTMENT AGREEMENT, DATED AS OF FEBRUARY 6, 2008, COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE ISSUER. 
 B2-WARRANT 
 to purchase 
 3,870,000 
 Shares of Common Stock 
 dated as of February 6, 2008 
 MBIA INC. 
 a Connecticut Corporation 
 Issue Date:
February 6, 2008 
  

	 	1.	Definitions. Unless the context otherwise requires, when used herein the following terms shall have the meanings indicated. 

 “Affiliate” means, with respect to any Person, any Person directly or indirectly controlling, controlled by or under common control with, such other
person, provided, that with respect to the Company, also includes Channel Reinsurance Ltd. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common
control with”) when used with respect to any Person, means the possession, directly or indirectly, of the power to cause the direction of management or policies of such person, whether through the ownership of voting securities by contract or
otherwise. 
 “Applicable Price” means the greater of (A) the greater of the Market Price per share of outstanding Common Stock on
(i) the date on which the Company issues or sells any Common Stock other than Excluded Stock or (ii) the first date of the announcement of such issuance or sale or (B) the Buy-In Price. 
 “Appraisal Procedure” means a procedure whereby two independent appraisers, one chosen by the Company and one by the Warrantholder (or if there is more
than one Warrantholder, a majority in interest of Warrantholders), shall mutually agree upon the determinations then the subject of appraisal. Each party shall deliver a notice to the other appointing its appraiser within fifteen (15) days
after the Appraisal Procedure is invoked. If within thirty (30) days after appointment of the two appraisers they are unable to agree upon the amount in question, a third independent appraiser shall be chosen within ten (10) days
thereafter by the mutual consent of such first two appraisers or, if such first two appraisers fail to agree upon the appointment of a third appraiser, such appointment shall be made by the American Arbitration Association, or any organization
successor thereto, from a panel of arbitrators having experience in the appraisal of the subject matter to be appraised. The decision of the third appraiser so appointed and chosen 

 
shall be given within thirty (30) days after the selection of such third appraiser. If three appraisers shall be appointed and the determination of one
appraiser is disparate from the middle determination by more than twice the amount by which the other determination is disparate from the middle determination, then the determination of such appraiser shall be excluded, the remaining two
determinations shall be averaged and such average shall be binding and conclusive on the Company and the Warrantholder; otherwise, the average of all three determinations shall be binding and conclusive on the Company and the Warrantholder. The
costs of conducting any Appraisal Procedure shall be borne by the Warrantholder requesting such Appraisal Procedure, except (A) the fees and expenses of the appraiser appointed by the Company and any other costs incurred by the Company shall be
borne by the Company and (B) if such Appraisal Procedure shall result in a determination that is disparate by 5% or more from the Company’s initial determination, all costs of conducting such Appraisal Procedure shall be borne by the
Company. 
 “Beneficially Own,” “Beneficial Owner” and “Beneficial Ownership” are defined in Rules 13d-3
and 13d-5 of the Exchange Act. 
 “Board” means the Board of Directors of the Company. 
 “Board Representatives” means the two people nominated by the Investor to be elected or appointed, subject to satisfaction of all legal and governance
requirements regarding service as a director of the Company, to the Board on the Closing Date (as defined in the Investment Agreement). 
 “Business
Combination” means a merger, consolidation, statutory share exchange or similar transaction that requires adoption by the Company’s stockholders. 
 “Business Day” means any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions in the State of New York generally are authorized or required by law or other
governmental actions to close. 
 “Buy-In Price” means $12.15. 
 “Capital Stock” means (A) with respect to any Person that is a corporation or company, any and all shares, interests, participations or other equivalents (however designated) of capital or
capital stock of such Person and (B) with respect to any Person that is not a corporation or company, any and all partnership or other equity interests of such Person. 
 “Change of Control” means, with respect to the Company, the occurrence of any one of the following events: 
  

	 	(A)	 the Incumbent Directors cease for any reason to constitute at least a majority of the Board; provided, that any person becoming a director subsequent to the
date of the Investment Agreement whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the relevant
party in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director (except that no individuals who were not directors at the time any agreement or understanding with respect to
any Business Combination or contested election is reached shall be treated as Incumbent Directors for the purposes of clause (C) below with respect to such Business Combination or this paragraph in the case of a contested 

  

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election); provided, further, that the Board Representatives will be treated as an Incumbent Directors even if the Persons designated to be
such Board Representatives should change; 

  

	 	(B)	any Person is or becomes a Beneficial Owner (other than the Investor and its Affiliates), directly or indirectly, of 50% of the aggregate voting power of the Voting Securities;
provided, however, that the event described in this clause (B) will not be deemed a Change of Control by virtue of any holdings or acquisitions: (i) by the Company or any of its Subsidiaries, (ii) by any employee benefit
plan (or related trust) sponsored or maintained by the Company or any of its subsidiaries; provided, that such holdings or acquisitions by any such plan (other than any plan maintained under Section 401(k) of the Internal Revenue Code of
1986, as amended) do not exceed 50% of the then outstanding Voting Securities, (iii) by any underwriter temporarily holding securities pursuant to an offering of such securities or (iv) pursuant to a Non-Qualifying Transaction;

  

	 	(C)	a Business Combination, to the extent it is not a Non-Qualifying Transaction; or 

  

	 	(D)	a plan of liquidation or dissolution of the Company or a sale of all or substantially all of the Company’s assets. 

 “Common Stock” means the Company’s common stock, par value $1.00 per share, and any Capital Stock for or into which such Common Stock hereafter is
exchanged, converted, reclassified or recapitalized by the Company or pursuant to an agreement or Business Combination to which the Company is a party. 
 “Company” means MBIA Inc., a Connecticut corporation. 
 “Exchange Act” means the Securities Exchange Act of 1934,
as amended, or any successor statute, and the rules and regulations promulgated thereunder. 
 “Excluded Stock” means (A) shares of
Common Stock issued by the Company as a stock dividend payable in shares of Common Stock, or upon any subdivision or split-up of the outstanding shares of Capital Stock in each case which is subject to Section 13(B), or upon conversion of
shares of Capital Stock (but not the issuance of such Capital Stock which will be subject to the provisions of Section 13(A)) and (B) shares of Common Stock to be issued to employees, consultants and advisors of the Company pursuant to
options granted prior to the date of issuance of this Warrant and pursuant to options granted after the date of issuance of this Warrant if the exercise price per share of Common Stock on the date of such grant equals or exceeds the Market Price of
a share of Common Stock on the date of such grant. 
 “Exercise Approval” means any and all shareholder approvals as may be necessary under
any applicable law or regulation or requirement of any applicable securities exchange, including but not limited to the applicable New York Stock Exchange rules, such that this Warrant may be exercisable for Shares. 
 “Exercise Price” has the meaning given to it in Section 2. 
 “Expiration Time” has the meaning given to it in Section 3. 
  

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 “Governmental Entities” has the meaning given to it in Section 2.2(d) of the Investment Agreement.

 “Group” means a group as contemplated by Section 13(d)(3) of the Exchange Act. 
 “Incumbent Directors” means individuals who on the date of the Investment Agreement constitute the Board. 
 “Investment Agreement” means the Amended and Restated Investment Agreement, dated as of February 6, 2008, between the Company and the Investor,
including all schedules and exhibits thereto. 
 “Investor” means Warburg Pincus Private Equity X, L.P. 
 “Market Price” means, with respect to a particular security, on any given day, the last reported sale price regular way or, in case no such reported
sale takes place on such day, the average of the last closing bid and ask prices regular way, in either case on the principal national securities exchange on which the applicable securities are listed or admitted to trading, or if not listed or
admitted to trading on any national securities exchange, (A) the closing sale price for such day reported by the Nasdaq Global Market if such security is traded over-the-counter and quoted in the Nasdaq Global Market, or (B) if such
security is so traded, but not so quoted, the average of the closing reported bid and ask prices of such security as reported by the Nasdaq Global Market or any comparable system, or (C) if such security is not listed on the Nasdaq Global
Market or any comparable system, the average of the closing bid and ask prices as furnished by two members of the National Association of Securities Dealers, Inc. selected from time to time by the Company for that purpose. If such security is not
listed and traded in a manner that the quotations referred to above are available for the period required hereunder, the Market Price per share of Common Stock shall be deemed to be the fair value per share of such security as determined in good
faith by the Board of Directors of the Company. 
 “Non-Qualifying Transaction” means any Business Combination that satisfies all of the
following criteria: (A) more than 50% of the total voting power of the surviving corporation resulting from a Business Combination, or, if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100%
of the voting securities eligible to elect directors of the surviving corporation, is represented by Voting Securities that were outstanding immediately before such Business Combination (or, if applicable, is represented by shares into which such
Voting Securities were converted pursuant to such Business Combination) and (B) at least a majority of the members of the board of directors of the parent corporation (or, if there is no parent corporation, the surviving corporation) following
the consummation of the Business Combination were Incumbent Directors at the time the Company’s Board approved the execution of the initial agreement providing for such Business Combination. 
 “Ordinary Cash Dividends” means a regular quarterly cash dividend out of surplus or net profits legally available therefor (determined in accordance
with generally accepted accounting principles, consistently applied) and consistent with past practice. 
 “Person” has the meaning given to
it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act. 
 “Preliminary Control
Event” means, with respect to the Company, (A) the execution of definitive documentation for a transaction or (B) the recommendation that stockholders tender in response 

  

 - 4 - 

 
to a tender or exchange offer, that could reasonably result in a Change of Control upon consummation. 
 “Pro Rata Repurchases” means any purchase of shares of Common Stock by the Company or any Affiliate thereof pursuant to any tender offer or exchange
offer subject to Section 13(e) of the Exchange Act, or pursuant to any other offer available to substantially all holders of Common Stock, whether for cash, shares of Capital Stock of the Company, other securities of the Company, evidences of
indebtedness of the Company or any other person or any other property (including, without limitation, shares of Capital Stock, other securities or evidences of indebtedness of a subsidiary of the Company), or any combination thereof, effected while
this Warrant is outstanding; provided, however, that “Pro Rata Repurchase” shall not include any purchase of shares by the Company or any Affiliate thereof made in accordance with the requirements of Rule 10b-18 as in effect under
the Exchange Act. The “Effective Date” of a Pro Rata Repurchase shall mean the date of acceptance of shares for purchase or exchange under any tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with
respect to any Pro Rata Repurchase that is not a tender or exchange offer. 
 “Rights Offering” has the meaning given to it in
Section 4.10(a) of the Investment Agreement. 
 “Securities” has the meaning given to it in the recitals of the Investment Agreement.

 “Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated
thereunder. 
 “Shares” is defined in Section 2. 
 “Subsidiary” of a Person means those corporations, banks, savings banks, associations and other Persons of which such Person owns or controls 51% or more of the outstanding equity securities either directly or through an
unbroken chain of entities, as to each of which 51% or more of the outstanding equity securities is owned directly or indirectly by its parent; provided, however, that there shall not be included any such entity to the extent that the equity
securities of such entity were acquired in satisfaction of a debt previously contracted in good faith or are owned or controlled in a bona fide fiduciary capacity. 
 “Voting Securities” means the Company’s then outstanding securities eligible to vote for the election of directors. 
 “Warrantholder” has the meaning given to it in Section 2. 
 “Warrants” means this
Warrant, issued to the Investor pursuant to the Investment Agreement. 
 2. Number of Shares; Exercise Price. This certifies that, for
value received, Warburg Pincus Private Equity X, L.P., its affiliates or its registered assigns (the “Warrantholder”) is entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the Company, in
whole or in part, up to an aggregate of 3,870,000 fully paid and nonassessable shares of Common Stock, par value $1.00 per share (the “Shares”), of the Company, at a purchase price of $16.20 per Share (the “Exercise
Price”). The number of Shares and the Exercise Price are subject to adjustment as provided herein, and all references to “Shares,” “Common Stock” and “Exercise Price” herein shall be deemed to include any such
adjustment or series of adjustments. 
  

 - 5 - 

 3. Exercise of Warrant; Term. To the extent permitted by applicable laws and regulations,
including but not limited to the insurance laws of the States of New York and Illinois, the right to purchase the Shares represented by this Warrant are exercisable, in whole or in part by the Warrantholder, at any time or from time to time after
9:00 a.m., New York City time, on the date hereof, but in no event later than 11:59 p.m., New York City time, on the seventh anniversary of the date of issuance of the Warrant (the “Expiration Time”), by (A) the surrender of
this Warrant and Notice of Exercise annexed hereto, duly completed and executed on behalf of the Warrantholder, at the office of the Company in Armonk, New York (or such other office or agency of the Company in the United States as it may designate
by notice in writing to the Warrantholder at the address of the Warrantholder appearing on the books of the Company), and (B) payment of the Exercise Price for the Shares thereby purchased at the election of the Warrantholder in one of the
following manners: 
 (i) by tendering in cash, by certified or cashier’s check or by wire transfer payable to the order of the Company;
or 
 (ii) by having the Company withhold shares of Common Stock issuable upon exercise of the Warrant equal in value to the aggregate
Exercise Price as to which this Warrant is so exercised based on the Market Price of the Common Stock on the trading day prior to the date on which this Warrant and the Notice of Exercise are delivered to the Company. 
 If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be entitled to receive from the Company within a reasonable time, and in any
event not exceeding three (3) Business Days, a new warrant in substantially identical form for the purchase of that number of Shares equal to the difference between the number of Shares subject to this Warrant and the number of Shares as to
which this Warrant is so exercised. Notwithstanding anything in this Warrant to the contrary, prior to obtaining the Exercise Approval, the Warrantholder may only exercise this Warrant in the manner permitted by Section 3(B)(ii) and upon any
such exercise receive, in lieu of the shares of Common Stock, cash in an amount equal to the product of (x) the number of shares of Common Stock that would have been otherwise issuable and (y) the Market Price of the Common Stock on the
trading day prior to the date on which this Warrant and the Notice of Exercise are delivered to the Company, such amount being paid by certified or cashiers check or by wire transfer in same day funds no later than the third Business Day following
such exercise; provided, however, that at its option, the Company may pay such amount in four quarterly payments, the first payment of which shall be made no more than three (3) Business Days following such exercise by the Warrantholder;
provided, further, that each such quarterly payment shall not be for an amount less than 25% of the total amount of such aggregate payment obligation (except for the final payment), and in each case, plus interest computed at the
Company’s borrowing rate under its revolving credit facility. 
 4. Issuance of Shares; Authorization; Listing. Certificates for
Shares issued upon exercise of this Warrant will be issued in such name or names as the Warrantholder may designate and will be delivered to such named Person or Persons within a reasonable time, not to exceed three (3) Business Days after the
date on which this Warrant has been duly exercised in accordance with the terms of this Warrant. The Company hereby represents and warrants that any Shares issued upon the exercise of this Warrant in accordance with the provisions of Section 3
will, upon such exercise, be duly and validly authorized and issued, fully paid and nonassessable and free from all taxes, liens and charges (other than liens or charges created by the Warrantholder or taxes in respect of any transfer occurring
contemporaneously therewith). The Company agrees that the Shares so issued will be deemed to have been issued to the Warrantholder as of the close of business on the date on which this Warrant and payment of the Exercise Price are delivered to the

  

 - 6 - 

 
Company in accordance with the terms of this Warrant, notwithstanding that the stock transfer books of the Company may then be closed or certificates
representing such Shares may not be actually delivered on such date. The Company will, beginning at a time prior to the Exercise Approval and thereafter at all times, reserve and keep available, out of its authorized but unissued Common Stock,
solely for the purpose of providing for the exercise of this Warrant, the aggregate number of shares of Common Stock issuable upon exercise of this Warrant. The Company will (i) procure, at its sole expense, the listing of the Shares and other
securities issuable upon exercise of this Warrant, including but not limited to those Shares issuable pursuant to Section 13 of this Warrant, subject to issuance or notice of issuance on all stock exchanges on which the Common Stock are then
listed or traded and (ii) maintain the listing of such Shares after issuance. The Company will use commercially reasonable efforts to ensure that the Shares may be issued without violation of any applicable law or regulation or of any
requirement of any securities exchange on which the Shares are listed or traded. 
 5. No Fractional Shares or Scrip. No fractional
Shares or scrip representing fractional Shares shall be issued upon any exercise of this Warrant. In lieu of any fractional Share to which the Warrantholder would otherwise be entitled, the Warrantholder shall be entitled to receive a cash payment
equal to the Market Price of the Common Stock less the Exercise Price for such fractional share. 
 6. No Rights as Shareholders; Transfer
Books. This Warrant does not entitle the Warrantholder to any voting rights or other rights as a shareholder of the Company prior to the date of exercise hereof. The Company will at no time close its transfer books against transfer of this
Warrant in any manner which interferes with the timely exercise of this Warrant. 
 7. Charges, Taxes and Expenses. Issuance of
certificates for Shares to the Warrantholder upon the exercise of this Warrant shall be made without charge to the Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificates, all of which
taxes and expenses shall be paid by the Company. 
 8. Transfer/Assignment. 
  

	 	(A)	Subject to compliance with clause (B) of this Section 8, without obtaining the consent of the Company to assign or transfer this Warrant, this Warrant and all rights
hereunder are transferable, in whole or in part, upon the books of the Company by the registered holder hereof in person or by duly authorized attorney, and a new warrant shall be made and delivered by the Company, of the same tenor and date as this
Warrant but registered in the name of the transferee, upon surrender of this Warrant, duly endorsed, to the office or agency of the Company described in Section 2. All expenses (other than stock transfer taxes) and other charges payable in
connection with the preparation, execution and delivery of the new warrants pursuant to this Section 8 shall be paid by the Company. 

  

	 	(B)	Notwithstanding the foregoing, this Warrant and any rights hereunder, and any Shares issued upon exercise of this Warrant, shall be subject to the applicable restrictions as set
forth in Section 4.2 of the Investment Agreement.  

  

	 	(C)	Notwithstanding anything herein to the contrary, nothing shall prevent any hedging transactions by the Warrantholder or its transferees.  

 9. Exchange and Registry of Warrant. This Warrant is exchangeable, upon the surrender hereof by the Warrantholder to the Company, for a new
warrant or warrants of like tenor and representing 

  

 - 7 - 

 
the right to purchase the same aggregate number of Shares. The Company shall maintain a registry showing the name and address of the Warrantholder as the
registered holder of this Warrant. This Warrant may be surrendered for exchange or exercise, in accordance with its terms, at the office of the Company, and the Company shall be entitled to rely in all respects, prior to written notice to the
contrary, upon such registry. 
 10. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in the case of any such loss, theft or destruction, upon receipt of an indemnity or security reasonably satisfactory to the Company, or, in the case of
any such mutilation, upon surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same
aggregate number of Shares as provided for in such lost, stolen, destroyed or mutilated Warrant. 
 11. Saturdays, Sundays, Holidays,
etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding day that is
a Business Day. 
 12. Rule 144 Information. The Company covenants that it will use its reasonable best efforts to timely file all
reports and other documents required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations promulgated by the U.S. Securities and Exchange Commission thereunder (or, if the Company is not required to file such
reports, it will, upon the request of any Warrantholder, make publicly available such information as necessary to permit sales pursuant to Rule 144), and it will use reasonable best efforts to take such further action as any Warrantholder may
reasonably request, all to the extent required from time to time to enable such holder to sell the Warrants without registration under the Securities Act within the limitation of the exemptions provided by (i) Rule 144 under the Securities Act,
as such Rule may be amended from time to time, or (ii) any similar rule or regulation hereafter adopted by the Securities and Exchange Commission. Upon the written request of any Warrantholder, the Company will deliver to such Warrantholder a
written statement that it has complied with such requirements. 
 13. Adjustments and Other Rights. The Exercise Price and the number
of Shares issuable upon exercise of this Warrant shall be subject to adjustment from time to time as follows; provided, that no single event shall be subject to adjustment under more than one subsection of this Section 13 so as to result
in duplication: 
  

	 	(A)	 Common Stock Issued at Less than the Applicable Price. If the Company issues or sells any Common Stock other than Excluded Stock for consideration per share
less than the Applicable Price, then the Exercise Price in effect immediately prior to each such issuance or sale will immediately (except as provided below) be reduced to the price determined by multiplying the Exercise Price in effect immediately
prior to such issuance or sale by a fraction, (x) the numerator of which shall be (1) the number of shares of Common Stock outstanding immediately prior to such issuance or sale plus (2) the number of shares of Common Stock which the
aggregate consideration received by the Company for the total number of such additional shares of Common Stock so issued or sold would purchase at the Applicable Price, and (y) the denominator of which shall be the number of shares of Common
Stock outstanding immediately after such issuance or sale. In such event, the number of shares of Common Stock issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product of (1)

  

 - 8 - 

	 	 
the number of Shares issuable upon the exercise of this Warrant before such adjustment and (2) the Exercise Price in effect immediately prior to the
issuance or sale giving rise to this adjustment, by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. For the purposes of any adjustment of the Exercise Price and the number of Shares issuable upon
exercise of this Warrant pursuant to this Section 13(A), the following provisions shall be applicable, provided, however, no increase in the Exercise Price or reduction in the number of Shares issuable upon exercise of this Warrant shall
be made pursuant to subclauses (i) or (ii) of this Section 13(A): 

  

	 	(i)	In the case of the issuance or sale of Common Stock for cash, the amount of the consideration received by the Company shall be deemed to be the amount of the gross cash proceeds
received by the Company for such Common Stock before deducting therefrom any discounts or commissions allowed, paid or incurred by the Company for any underwriting or otherwise in connection with the issuance and sale thereof.

  

	 	(ii)	In the case of the issuance or sale of Common Stock (otherwise than upon the conversion of shares of Capital Stock or other securities of the Company) for a consideration in whole
or in part other than cash, including securities acquired in exchange therefor (other than securities by their terms so exchangeable), the consideration other than cash shall be deemed to be the fair value thereof as determined by the Board, before
deducting therefrom any discounts or commissions allowed, paid or incurred by the Company for any underwriting or otherwise in connection with the issuance and sale thereof, provided, however, that such per share fair value as determined by
the Board shall not exceed the Applicable Price. 

  

	 	(iii)	In the case of the issuance of (1) options, warrants or other rights to purchase or acquire Common Stock (whether or not at the time exercisable) or (2) securities by
their terms convertible into or exchangeable for Common Stock (whether or not at the time so convertible or exchangeable) or options, warrants or rights to purchase such convertible or exchangeable securities (whether or not at the time
exercisable): 

  

	 	(1)	The aggregate maximum number of shares of Common Stock deliverable upon exercise of such options, warrants or other rights to purchase or acquire Common Stock shall be deemed to
have been issued at the time such options, warrants or rights are issued and for a consideration equal to the consideration (determined in the manner provided in Section 13(A)(i) and (ii)), if any, received by the Company upon the issuance or
sale of such options, warrants or rights plus the minimum purchase price provided in such options, warrants or rights for the Common Stock covered thereby. 

  

	 	(2)	 The aggregate maximum number of shares of Common Stock deliverable upon conversion of or in exchange for any such convertible or exchangeable securities, or upon
the exercise of options, warrants or other rights to purchase or acquire such convertible or exchangeable securities and the subsequent conversion or exchange thereof, shall be deemed to have been issued at the time such securities were issued or
such options, warrants or rights were issued and for a consideration equal 

  

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to the consideration, if any, received by the Company for any such securities and related options, warrants or rights (excluding any cash received on account
of accrued interest or accrued dividends), plus the additional consideration (in each case, determined in the manner provided in Section 13(A)(i) and (ii)), if any, to be received by the Company upon the conversion or exchange of such
securities, or upon the exercise of any related options, warrants or rights to purchase or acquire such convertible or exchangeable securities and the subsequent conversion or exchange thereof. 

  

	 	(3)	On any change in the number of shares of Common Stock deliverable upon exercise of any such options, warrants or rights or conversion or exchange of such convertible or exchangeable
securities or any change in the consideration to be received by the Company upon such exercise, conversion or exchange, but excluding changes resulting from the anti-dilution provisions thereof (to the extent comparable to the anti-dilution
provisions contained herein), the Exercise Price and the number of Shares issuable upon exercise of this Warrant as then in effect shall forthwith be readjusted to such Exercise Price and number of Shares as would have been obtained had an
adjustment been made upon the issuance or sale of such options, warrants or rights not exercised prior to such change, or of such convertible or exchangeable securities not converted or exchanged prior to such change, upon the basis of such change.

  

	 	(4)	On the expiration or cancellation of any such options, warrants or rights (without exercise), or the termination of the right to convert or exchange such convertible or exchangeable
securities (without exercise), if the Exercise Price and the number of Shares issuable upon exercise of this Warrant shall have been adjusted upon the issuance or sale thereof, the Exercise Price and the number of Shares issuable upon exercise of
this Warrant shall forthwith be readjusted to such Exercise Price and number of Shares as would have been obtained had an adjustment been made upon the issuance or sale of such options, warrants, rights or such convertible or exchangeable securities
on the basis of the issuance of only the number of shares of Common Stock actually issued upon the exercise of such options, warrants or rights, or upon the conversion or exchange of such convertible or exchangeable securities.

  

	 	(5)	If the Exercise Price and the number of Shares issuable upon exercise of this warrant shall have been adjusted upon the issuance or sale of any such options, warrants, rights or
convertible or exchangeable securities, no further adjustment of the Exercise Price and the number of Shares issuable upon exercise of this Warrant shall be made for the actual issuance of Common Stock upon the exercise, conversion or exchange
thereof; provided, however, that no increase in the Exercise Price or reduction in the number of Shares issuable upon exercise of this Warrant shall be made pursuant to subclauses (1) or (2) of this Section 13(A)(iii).

  

	 	(iv)	 For the avoidance of doubt, (i) the Company’s issuance or sale of shares of Common Stock in the Rights Offering to the extent not purchased by the
Investor 

  

 - 10 - 

	 	 
pursuant to Section 4.10 of the Investment Agreement shall be subject to the provisions of this Section 13(A) and (ii) the Company’s
issuance or sale of shares of Common Stock in the Rights Offering to the extent purchased by the Investor pursuant to Section 4.10 of the Investment Agreement shall not be subject to the provisions of this Section 13(A).

  

	 	(B)	Stock Splits, Subdivisions, Reclassifications or Combinations. If the Company shall (i) declare a dividend or make a distribution on its Common Stock in shares of Common
Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of shares, or (iii) combine or reclassify the outstanding Common Stock into a smaller number of shares, the number of Shares issuable upon
exercise of this Warrant at the time of the record date for such dividend or distribution or the effective date of such subdivision, combination or reclassification shall be proportionately adjusted so that the Warrantholder after such date shall be
entitled to purchase the number of shares of Common Stock which such holder would have owned or been entitled to receive after such date had this Warrant been exercised immediately prior to such date. In such event, the Exercise Price in effect at
the time of the record date for such dividend or distribution or the effective date of such subdivision, combination or reclassification shall be adjusted to the number obtained by dividing (x) the product of (1) the number of Shares
issuable upon the exercise of this Warrant before such adjustment and (2) the Exercise Price in effect immediately prior to the issuance giving rise to this adjustment by (y) the new number of shares issuable upon exercise of the Warrant
determined pursuant to the immediately preceding sentence. 

  

	 	(C)	Other Distributions. In case the Company shall fix a record date for the making of a distribution to all holders of shares of its Common Stock (i) of shares of any class
other than its Common Stock, (ii) of evidence of indebtedness of the Company or any Subsidiary, (iii) of assets (excluding Ordinary Cash Dividends, and dividends or distributions referred to in Section 13(B)), or (iv) of rights
or warrants (excluding those referred to in Section 13(B)), in each such case, the Exercise Price in effect prior thereto shall be reduced immediately thereafter to the price determined by dividing (x) an amount equal to the difference
resulting from (1) the number of shares of Common Stock outstanding on such record date multiplied by the Exercise Price per Share on such record date, less (2) the fair market value (as reasonably determined by the Board) of said shares
or evidences of indebtedness or assets or rights or warrants to be so distributed, by (y) the number of shares of Common Stock outstanding on such record date; such adjustment shall be made successively whenever such a record date is fixed. In
such event, the number of shares of Common Stock issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant before
such adjustment, and (2) the Exercise Price in effect immediately prior to the issuance giving rise to this adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. In the event that such
distribution is not so made, the Exercise Price and the number of Shares issuable upon exercise of this Warrant then in effect shall be readjusted, effective as of the date when the Board determines not to distribute such shares, evidences of
indebtedness, assets, rights or warrants, as the case may be, to the Exercise Price that would then be in effect and the number of Shares that would then be issuable upon exercise of this Warrant if such record date had not been fixed.

  

	 	(D)	 Certain Repurchases of Common Stock. In case the Company effects a Pro Rata Repurchase of Common Stock, then the Exercise Price shall be reduced to the price

  

 - 11 - 

	 	 
determined by multiplying the Exercise Price in effect immediately prior to the effective date of such Pro Rata Repurchase by a fraction of which the
numerator shall be (i) the product of (x) the number of shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Market Price of a share of Common Stock on the trading day immediately preceding the
first public announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase, and of which the denominator shall be the product of
(i) the number of shares of Common Stock outstanding immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so repurchased and (ii) the Market Price per share of Common Stock on the trading day immediately
preceding the first public announcement of such Pro Rata Repurchase. In such event, the number of shares of Common Stock issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product of
(1) the number of Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the Pro Rata Repurchase giving rise to this adjustment by (y) the new Exercise Price
determined in accordance with the immediately preceding sentence. 

  

	 	(E)	Business Combinations. Subject to Section 14 of this Warrant, in case of any Business Combination or reclassification of Common Stock (other than a reclassification of
Common Stock referred to in Section 13(B)), any Shares issued or issuable upon exercise of this Warrant after the date of such Business Combination or reclassification, shall be exchangeable for the number of shares of stock or other securities
or property (including cash) to which the Common Stock issuable (at the time of such Business Combination or reclassification) upon exercise of this Warrant immediately prior to such Business Combination or reclassification would have been entitled
upon such Business Combination or reclassification; and in any such case, if necessary, the provisions set forth herein with respect to the rights and interests thereafter of the Warrantholder shall be appropriately adjusted so as to be applicable,
as nearly as may reasonably be, to any shares of stock or other securities or property thereafter deliverable on the exercise of this Warrant. In determining the kind and amount of stock, securities or the property receivable upon consummation of
such Business Combination, if the holders of Common Stock have the right to elect the kind or amount of consideration receivable upon consummation of such Business Combination, then the Warrantholder shall have the right to make a similar election
upon exercise of this Warrant with respect to the number of shares of stock or other securities or property which the Warrantholder will receive upon exercise of this Warrant. 

  

	 	(F)	Rounding of Calculations; Minimum Adjustments. All calculations under this Section 13 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest
one-hundredth (1/100th) of a share, as the case may be. Any provision of this Section 13 to the contrary notwithstanding, no adjustment in the Exercise Price or the number of Shares into which this Warrant is exercisable shall be made if
the amount of such adjustment would be less than $0.01 or one-tenth (1/10th) of a share of Common Stock, respectively, but any such amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and together
with any subsequent adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate $0.01 or 1/10th of a share of Common Stock, respectively, or more. 

  

	 	(G)	 Timing of Issuance of Additional Common Stock Upon Certain Adjustments. In any case in which the provisions of this Section 13 shall require that an
adjustment shall 

  

 - 12 - 

	 	 
become effective immediately after a record date for an event, the Company may defer until the occurrence of such event (i) issuing to the Warrantholder
of this Warrant exercised after such record date and before the occurrence of such event the additional shares of Common Stock issuable upon such exercise by reason of the adjustment required by such event over and above the shares of Common Stock
issuable upon such exercise before giving effect to such adjustment and (ii) paying to such Warrantholder any amount of cash in lieu of a fractional share of Common Stock; provided, however, that the Company upon request shall deliver to
such Warrantholder a due bill or other appropriate instrument evidencing such Warrantholder’s right to receive such additional shares, and such cash, upon the occurrence of the event requiring such adjustment. 

  

	 	(H)	Adjustment for Unspecified Actions. If the Company takes any action affecting the Common Stock, other than actions described in this Section 13, which in the opinion of
the Board would adversely affect the exercise rights of the Warrantholder, the Exercise Price for the Warrants and/or the number of Shares received upon exercise of the Warrant shall be adjusted for the Warrantholder’s benefit, to the extent
permitted by law, in such manner, and at such time, as such Board after consultation with the Investor shall reasonably determine to be equitable in the circumstances. Failure of the Board to provide for any such adjustment will be evidence that the
Board has determined that it is equitable to make no such adjustments in the circumstances. 

  

	 	(I)	Statement Regarding Adjustments. Whenever the Exercise Price or the number of Shares into which this Warrant is exercisable shall be adjusted as provided in Section 13,
the Company shall forthwith file at the principal office of the Company a statement showing in reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in effect and the number of Shares into which this Warrant
shall be exercisable after such adjustment, and the Company shall also cause a copy of such statement to be sent by mail, first class postage prepaid, to each Warrantholder at the address appearing in the Company’s records.

  

	 	(J)	Notice of Adjustment Event. In the event that the Company shall propose to take any action of the type described in this Section 13 (but only if the action of the type
described in this Section 13 would result in an adjustment in the Exercise Price or the number of Shares into which this Warrant is exercisable or a change in the type of securities or property to be delivered upon exercise of this Warrant),
the Company shall give notice to the Warrantholder, in the manner set forth in Section 13(I), which notice shall specify the record date, if any, with respect to any such action and the approximate date on which such action is to take place.
Such notice shall also set forth the facts with respect thereto as shall be reasonably necessary to indicate the effect on the Exercise Price and the number, kind or class of shares or other securities or property which shall be deliverable upon
exercise of this Warrant. In the case of any action which would require the fixing of a record date, such notice shall be given at least 10 days prior to the date so fixed, and in case of all other action, such notice shall be given at least 15 days
prior to the taking of such proposed action. Failure to give such notice, or any defect therein, shall not affect the legality or validity of any such action. 

  

	 	(K)	 No Impairment. The Company will not, by amendment of its Articles or through any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out
of all the provisions of this 

  

 - 13 - 

	 	 
Warrant and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Warrantholder.

  

	 	(L)	Proceedings Prior to Any Action Requiring Adjustment. As a condition precedent to the taking of any action which would require an adjustment pursuant to this Section 13,
the Company shall take any action which may be necessary, including obtaining regulatory, New York Stock Exchange or stockholder approvals or exemptions, in order that the Company may thereafter validly and legally issue as fully paid and
nonassessable all shares of Common Stock that the Warrantholder is entitled to receive upon exercise of this Warrant pursuant to this Section 13. 

  

	 	(M)	Adjustment Rules. Any adjustments pursuant to this Section 13 shall be made successively whenever an event referred to herein shall occur. If an adjustment in Exercise
Price made hereunder would reduce the Exercise Price to an amount below par value of the Common Stock, then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the par value of the Common Stock.

 14. Change of Control. Upon the occurrence of a Preliminary Control Event, and by delivering written notice thereof
to the Company, the Warrantholder may cause the Company to purchase any Warrant, in whole or in part, acquired hereunder that the Warrantholder then holds, at a valuation based on a computation of the option value of the Warrant using Black-Scholes
calculation methods and making the assumptions described in the Black-Scholes methodology described in Exhibit A. Payment by the Company to the Warrantholder of such purchase price shall be due only upon the occurrence of the Change in
Control and on the date of the occurrence of the Change of Control, subject to the mechanics described in the last paragraph of Exhibit A. At the election of the Company, all or any portion of such purchase price may be paid in Shares valued
at the Market Price of a share of Common Stock as of (A) the last trading day prior to the date on which this payment occurs or (B) the first date of the announcement of such Preliminary Control Event (whichever is less), so long as such
payment does not cause the Company to fail to comply with applicable New York Stock Exchange requirements or the requirements of any other Governmental Entities. To the extent that a payment in Common Shares would cause the Company to fail to comply
with New York Stock Exchange rules, once the maximum number of Shares has been paid, the remainder of such purchase price may be paid in the form of cash. The Company agrees that it will not take any action resulting in a Preliminary Control Event
in the absence of definitive documentation providing for such election right of the Warrantholder pursuant to this Section 14. Under no circumstances shall the Warrantholder be restricted from engaging in any hedging or derivative program
reasonably necessary in the opinion of the Warrantholder to secure the option value of this Warrant so adjusted. 
 15. Contest and
Appraisal Rights. Upon each determination of Market Price or fair market value, as the case may be, hereunder, the Company shall promptly give notice thereof to the Warrantholder, setting forth in reasonable detail the calculation of such Market
Price or fair market value, and the method and basis of determination thereof, as the case may be. If the Warrantholder (or if there is more than one Warrantholder, a majority in interest of Warrantholders) shall disagree with such determination and
shall, by notice to the Company given within fifteen (15) days after the Company’s notice of such determination, elect to dispute such determination, such dispute shall be resolved in accordance with this Section 15. In the event that
a determination of Market Price, or fair market value (if such determination solely involves Market Price), is disputed, such dispute shall be submitted, at the Company’s expense, to a New York Stock Exchange member firm selected by the Company
and acceptable to the Warrantholder, whose determination of Market Price or fair market value, as the case may be, 

  

 - 14 - 

 
shall be binding on the Company and the Warrantholder. In the event that a determination of fair market value, other than a determination solely involving
Market Price, is disputed, such dispute shall be resolved through the Appraisal Procedure. 
 16. Governing Law. This Warrant shall be
binding upon any successors or assigns of the Company. This Warrant shall constitute a contract under the laws of New York and for all purposes shall be construed in accordance with and governed by the laws of New York, without giving effect to the
conflict of laws principles. 
 17. Attorneys’ Fees. In any litigation, arbitration or court proceeding between the Company and
the Warrantholder as the holder of this Warrant relating hereto, the prevailing party shall be entitled to reasonable attorneys’ fees and expenses incurred in enforcing this Warrant. 
 18. Amendments. This Warrant may be amended and the observance of any term of this Warrant may be waived only with the written consent of the
Company and the Warrantholder. 
 19. Notices. All notices hereunder shall be in writing and shall be effective (A) on the day on
which delivered if delivered personally or transmitted by telex or telegram or telecopier with evidence of receipt, (B) one Business Day after the date on which the same is delivered to a nationally recognized overnight courier service with
evidence of receipt, or (C) five Business Days after the date on which the same is deposited, postage prepaid, in the U.S. mail, sent by certified or registered mail, return receipt requested, and addressed to the party to be notified at the
address indicated below for the Company, or at the address for the Warrantholder set forth in the registry maintained by the Company pursuant to Section 9, or at such other address and/or telecopy or telex number and/or to the attention of such
other person as the Company or the Warrantholder may designate by ten-day advance written notice. 
 20. Prohibited Actions. The
Company agrees that it will not take any action which would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of shares of Common Stock issuable after such action upon exercise of this Warrant, together with all
shares of Common Stock then outstanding and all shares of Common Stock then issuable upon the exercise of all outstanding options, warrants, conversion and other rights, would exceed the total number of shares of Common Stock then authorized by its
Restated Articles of Incorporation. 
 21. Entire Agreement. This Warrant and the forms attached hereto, and the Investment Agreement,
contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior and contemporaneous arrangements or undertakings with respect thereto. 
 [Remainder of page intentionally left blank] 
  

 - 15 - 

 [Copy] 
 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by a duly authorized officer. 
 Dated: February 6, 2008 
  

			
	MBIA INC.
		
	By:	 	 /s/ C. Edward Chaplin

	Name:	 	C. Edward Chaplin
	Title:	 	Vice President & Chief Financial Officer

			
		
	Attest:	 	
		
	By:	 	 /s/ Ram D. Wertheim

	Name:	 	Ram D. Wertheim
	Title:	 	Vice President, Secretary & General Counsel
	
	Acknowledged and Agreed:
	
	WARBURG PINCUS
	 PRIVATE EQUITY X, L.P.

		
	By:	 	Warburg Pincus X L.P., its general
		 	partner
	By:	 	Warburg Pincus X LLC, its general
		 	partner
	By:	 	Warburg Pincus Partners LLC, its sole
		 	member
	By:	 	Warburg Pincus & Co., its managing
		 	member
		
	By:	 	 /s/ David Coulter

	Name:	 	David Coulter
	Title:	 	Managing Director

 [Signature Page to B2-Warrant] 

 [Form Of Notice Of Exercise] 
 Date:                              
 TO: MBIA Inc. 
 RE: Election to Subscribe for and Purchase Common Stock

 The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby agrees to subscribe for and purchase the number of shares of the
Common Stock set forth below covered by such Warrant. The undersigned, in accordance with Section 3 of the Warrant, hereby agrees to pay the aggregate Exercise Price for such shares of Common Stock in the manner set forth below. A new warrant
evidencing the remaining shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased, should be issued in the name set forth below. If the new warrant is being transferred, an opinion of counsel is attached hereto with
respect to the transfer of such warrant. 
 Number of Shares of Common Stock:  
                                       

 Method of Payment of Exercise Price:  
                                       

Name and Address of Person to be 
 Issued New Warrant:  
                                        
                              
  

			
		
	Holder:	 	                                      
                                        
          
		
	By:	 	                                      
                                        
          
		
	Name:	 	                                      
                                        
          
		
	Title:	 	                                      
                                        
          

  
  
 [Form of Notice of Exercise] 

 Exhibit A 
 Black-Scholes Assumptions 
 For the purpose of this Exhibit A: 
 “Acquiror” means (A) the third party that has entered into definitive document for a transaction, or (b) the offeror in the event of a tender
or exchange offer, that could reasonably result in a Change of Control upon consummation. 
  

			
	Underlying Security Price:	  	 In the event of a merger or acquisition, (A) in the event of an “all cash” deal, the cash per share offered to the Company’s
shareholders by the Acquiror; (B) in the event of an “all stock” deal, (1) in the event of a fixed exchange ratio transaction, the product of (i) the average of the Market Price of the Acquiror’s common stock for the ten (10) trading
day period ending on the day preceding the date of the Preliminary Control Event and (ii) the number of Acquiror’s shares being offered for one share of Common Stock and (2) in the event of a fixed value transaction, the value offered by the
Acquiror for one share of Common Stock; (C) in the event of a transaction contemplating various forms of consideration for each share of Common Stock, the cash portion, if any, shall be valued as clause (A) above and the stock portion shall be
valued as clause (B) above and any other forms of consideration shall be valued by the Company in good faith, without applying any discounts to such consideration.
  
 In the event of all other Change of Control events, the average of the Market Price of the Common Stock for the five (5) trading day period beginning on the date of the
Preliminary Control Event.

		
	Exercise Price:	  	The Exercise Price as adjusted and then in effect for the Warrant at the time of the Preliminary Control Event.
		
	Dividend Rate:	  	The Company’s annualized dividend yield as of the date of the Preliminary Control Event
		
	Interest Rate:	  	The applicable U.S. 5-year treasury note risk free rate as of the date of the Preliminary Control Event
		
	Model Type:	  	Black-Scholes
		
	Exercise Type:	  	American
		
	Put or Call:	  	Call
		
	Trade Date:	  	The date of the Preliminary Control Event
		
	Expiration Date:	  	Expiration Time
		
	Settle Date:	  	The date of the Preliminary Control Event
		
	Exercise Delay:	  	0
		
	Volatility:	  	The average annual volatility over the last 3 years of the Common Stock as listed by Bloomberg L.P., as of the date of the Preliminary Control Event

  

 - A1 - 

 Such valuation of the Warrant based on the Black-Scholes methodology shall not be discounted in any way. If the
Warrantholder disputes such Black-Scholes valuation pursuant to this Exhibit A as calculated by the Company, the Company and the Warrantholder will choose a mutually-agreeable firm to compute the valuation of the Warrant using the guidelines
above, and such valuation shall be final. The fees and expenses of such firm shall be borne equally by the Company and the Warrantholder. 
 The Company
covenants that it will not close the Change of Control transaction or otherwise facilitate the closing of a tender or exchange offer as referenced above until giving the Warrantholder at least five (5) Business Days to sell or distribute the
Common Stock to be received in an exchange and will cooperate with the Warrantholder to ensure that there is an effective registration statement available to facilitate such a sale during such five (5) Business Day period or an effective
opportunity is provided in the case of a tender or exchange offer as referenced above to tender such shares in to the offer. 
  

 - A2 -

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