Document:

Form of  Key Employee Employment  Protection Agreement

 Exhibit 10.81 
 FORM OF KEY EMPLOYEE EMPLOYMENT PROTECTION AGREEMENT 
 THIS AGREEMENT between MBIA Inc., a Connecticut
corporation (the “Company”), and
                                        
        (the “Participant”), dated as of this         th day of
                    ,
                    . Capitalized terms used but not defined herein shall have the meaning set forth in the MBIA Inc., Key Employee Employment
Protection Plan. 
 WITNESSETH: 
 WHEREAS, the Company has employed the Participant and has determined that the Participant holds an important position with the Company; 
 WHEREAS, the Company believes that, in the event it is confronted with a situation that could result in a change in ownership or control of the Company, continuity of management will be essential to its ability to evaluate and respond to
such a situation in the best interests of shareholders; 
 WHEREAS, the Company understands that any such situation will present significant
concerns for the Participant with respect to his financial and job security; 
 WHEREAS, the Company desires to assure itself of the
Participant’s services during the period in which it is confronting such a situation, and to provide the Participant certain financial assurances to enable the Participant to perform the responsibilities of his position without undue
distraction and to exercise his judgment without bias due to his personal circumstances; 
 WHEREAS, as a condition to participation in the
Plan, the Participant must enter into a Key Employee Employment Protection Agreement with the Company; 
 NOW, THEREFORE, in consideration of
the benefits provided by the Company in the Plan, including severance payments, the grant and continued vesting of equity awards and other benefits due Participant under Section 6 of the Plan: 
 1.        Effective Date. The Effective Date of this Agreement shall be the date specified on the signature page hereof.

 2.        Employment Period. Subject to Section 7 of the Plan, the Participant agrees to remain in the
employ of the Company through the Employment Period. 
 3.        Duties. During the Employment Period, the
Participant shall devote his full attention during normal business hours to the business and affairs of the Company and use his best efforts to perform faithfully and efficiently the responsibilities assigned to him hereunder, to the extent
necessary to discharge such responsibilities, except for (i) time spent in managing his personal, financial and legal affairs and serving on corporate, civic or charitable boards or committees, in each case only if and to the extent not
substantially interfering with the performance of such responsibilities, and (ii) periods of vacation and sick leave to which he is entitled. It is expressly understood and agreed that the Participant’s continuing to serve on any boards
and committees on which he is serving or with which he is otherwise associated immediately preceding the Effective Date shall not be deemed to interfere with the performance of the Participant’s services to the Company. 
 4.        Confidential Information, Company Property. 
 (a) Confidential Information. At all times after the Effective Date, the Participant shall hold in a fiduciary capacity for the benefit of the
Company all secret or confidential information, knowledge or data relating to the Company or any of its affiliated companies, and their respective businesses, (i) obtained by the Participant during his employment by the Company or any of its
affiliated companies and (ii) not otherwise public knowledge (other than by reason of an unauthorized act by the Participant). After termination of the Participant’s employment with the Company, the Participant shall not, without the prior
written consent of the Company, unless compelled pursuant to an order of a court or other body having jurisdiction over such matter, communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated
by it. 
 (b) Non-Competition. The Participant agrees that for two years after the Date of Termination, Participant shall not, except
with the prior written consent of the Chief Executive Officer of the Company, directly or indirectly, own any interest in, operate, join, control or participate as a partner, director, principal, officer, or agent of, enter into the employment of,
act as a consultant to, or perform any services for any of MBIA’s Triple A monoline competitors, whether currently in existence or formed after the date hereof, which currently include AMBAC, FSA, FGIC, CDC/CIFG, XL, Ace Guaranty Corp.,
DePfa, Assured Guaranty and Radian Asset Assurance Inc or any of their affiliates or successors or with any other company that is established for the purposes of providing triple-A rated financial guaranty or similar credit enhancement products,
including triple-A rated credit derivative products, that would compete with MBIA (any of the above, an “MBIA 

  

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Competitor”). Nothing in this paragraph shall prohibit the Participant from accepting employment in with a commercial bank, investment bank or
other similar institution that is not primarily engaged in the business of providing the products described above, providing that such commercial bank, investment bank or other similar institution is not affiliated with (e.g. does not own more than
a 5 percent interest in) an MBIA Competitor. Notwithstanding anything herein to the contrary, the foregoing shall not prevent the Participant from acquiring as an investment securities representing not more than two percent (2%) of the
outstanding voting securities of any publicly held corporation. 
 (c) Non-Disparagement. During the Employment Period and at any time
thereafter, Participant shall not, directly or indirectly, engage in any conduct or make any statement, whether in commercial or noncommercial speech, disparaging or criticizing in any way the Company or any of its affiliates any products or
services offered by any of these, nor shall he engage in any other conduct or make any other statement that could be reasonably expected to impair the goodwill of any of them, in each case except to the extent required by law, and then only after
consultation with the Company. 
 (d) Nonsolicitation of Employees. The Participant agrees that for two years after the Date of
Termination, he will not attempt, directly or indirectly, to induce any employee of the Company, or any subsidiary or any affiliate thereof to be employed or perform services elsewhere or otherwise to cease providing services to the Company, or any
subsidiary or affiliate thereof. 
 (e) Nonsolicitation of Clients. During the Employment Period and for two years after the Date of
Termination, Participant shall not, directly or indirectly, for his own account or for the account of any other Person, in any jurisdiction in which the Company or any of its affiliates has commenced or made plans to commence operations, solicit or
otherwise attempt to establish any business relationship of a nature that is competitive with the business or relationship of the Company or any of its affiliates with any person throughout the world which is or was a customer, client or distributor
of the Company or any of its affiliates at any time during which Participant was employed by the Company (in the case of any such activity during such time) or during the twelve-month period preceding the Date of Termination (in the case of any such
activity after the Date of Termination), other than any such solicitation on behalf of the Company or any of its affiliates during the Employment Period. 
 (f) Company Property. Except as expressly provided herein, promptly following the Participant’s termination of employment, the Participant shall return to the Company all property of the Company and all
copies thereof in the Participant’s possession or under his control. 
 5.        Injunctive Relief and Other
Remedies with Respect to Covenants. 
 (a) The Participant acknowledges and agrees that the covenants and obligations of the Participant
with respect to confidentiality and Company property relate to special, unique and extraordinary matters and that a violation of any of the terms of such covenants and obligations will cause the Company irreparable injury for which adequate remedies
are not available at law. Therefore, the Participant agrees that the Company shall be entitled to an injunction, restraining order or such other equitable relief (without the requirement to post bond) restraining Participant from committing any
violation of the covenants and obligations contained in this Agreement. These remedies are cumulative and are in addition to any other rights and remedies the Company may have at law or in equity. In no event shall an asserted violation of the
provisions of this Agreement constitute a basis for deferring or withholding any amounts otherwise payable to the Participant under the Plan. 
 (b) The Participant agrees that in the event the Participant breaches any provision of Section 4 hereof in any material respect following the Date of Termination, in addition to any remedy at law or in equity, the Participant shall
(i) not be entitled to receive, if not already paid, the benefits described in Section 8 of the Plan, and (ii) return to the Company any and all payments previously made by the Company (or any of its affiliates) pursuant
to Section 8 of the Plan within 15 days after written demand for such repayment is made to Participant by the Company. 
 6.        Miscellaneous. 
 (a) Applicable Law. Except to the extent that they
may be preempted by Federal law, this Agreement shall be governed by and construed in accordance with the laws of the States of New York, applied without reference to principles of conflict of laws. 
 (b) Gender and Number. Except when otherwise indicated by the context, words in the masculine gender used in this Agreement shall include the
feminine gender, the singular shall include the plural, and the plural shall include the singular. 
 (c) Arbitration. Except as
otherwise provided in Section 5 hereof, any dispute or controversy arising under or in connection with this Agreement shall be resolved by binding arbitration. The arbitration shall be held in the city of White Plains, New York and, except to
the extent inconsistent with this 

  

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Agreement, shall be conducted in accordance with the Expedited Employment Arbitration Rules of the American Arbitration Association then in effect at the
time of the arbitration (or such other rules as the parties may agree to in writing), and otherwise in accordance with principles which would be applied by a court of law or equity. The arbitrator shall be acceptable to both the Company and the
Participant. If the parties cannot agree on an acceptable arbitrator, the dispute shall be heard by a panel of three arbitrators, one appointed by each of the parties and the third appointed by the other two arbitrators. 
 (d) Severability; Reformation. In the event that one more of the provisions of this Agreement shall become invalid, illegal or unenforceable in
any respect, the validity, legality, and enforceability of the remaining provisions contained herein shall not be affected thereby. In the event that any of the provisions of Section 4 hereof is not enforceable in accordance with its terms, the
Participant and the Company agree that such Section shall be reformed to make such Section enforceable in a manner which provides the Company the maximum rights permitted at law. 
 (e) Entire Agreement. The Plan and this Agreement constitute the entire agreement among the parties hereto with respect to the subject matter
hereof, and supersede all undertakings and agreements, whether oral or in writing, previously entered into by the parties with respect thereto. 
 (f) Waiver. Waiver by any party hereto of any breach or default by the other party of any of the terms of this Agreement shall not operate as a waiver of any other breach or default, whether similar to or different from the breach or
default waived. No waiver of any provision of this Agreement shall be implied from any course of dealing between the parties hereto or from any failure by either party hereto to assert its or his rights hereunder on any occasion or series of
occasions. 
 (g) Captions. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

 IN WITNESS WHEREOF, the Company and the Participant have executed this Agreement as of the date first above written. 
  

	
	MBIA INC.
	
	  
	By:

  

	
	PARTICIPANT
	
	  
	

  

 - 3 -Form of Restricted Stock Agreement

 Exhibit 10.86 
                     , 2007 
 Name 
 Address 
 City, State Zip

 AWARD OF RESTRICTED STOCK 
 Dear                 : 
 We are pleased to
confirm to you that, subject to the restrictions described below, you have been awarded shares of the Common Stock of MBIA Inc. (the “Company”), par value $1.00 per share (the “Restricted Shares”), pursuant to and subject
to the terms of the Company’s MBIA Inc. 2005 Omnibus Incentive Plan (the “Plan”). This letter will confirm the following agreement between you and the Company with respect to this award of Restricted Shares. Capitalized terms used in
this agreement but not defined herein shall have the meaning set forth in the Plan. 
 1. Restriction on Transfer. Except as provided
in Section 8 or as the Compensation and Organization Committee of the Company’s Board of Directors (the “Committee”) shall otherwise determine, none of the Restricted Shares may be sold, assigned, transferred, pledged,
hypothecated or otherwise encumbered (the “Transfer Restriction”) until the Restricted Shares (or a portion thereof) vest and the Transfer Restriction with respect to such Shares lapses as determined pursuant to the following schedule or
at such earlier date as such restrictions shall otherwise lapse under the terms of this letter. Subject to Sections 3 through 5 below, a percentage of the Restricted Shares, determined pursuant to the table set forth below, shall become vested on
February 27, 2009 (the “Normal Vesting Date”) or upon the dates described in Sections 4 and 5, based on the applicable MBV Appreciation measured as of the applicable measurement date. Intermediate levels of vesting shall be determined
by linear interpolation (e.g., MBV Appreciation as of the Normal Vesting Date of 10% will yield 33% vesting). 
  

					
	 MBV Appreciation as of Normal
 Vesting Date
	 	 	  	Vested Percentage of
Restricted Shares
	0%	 		  	0%
	7.5%	 		  	25%
	15.0%	 		  	50%
	22.5%	 		  	75%
	30.0%	 		  	100%

 For purposes of this letter, the period during which the Restricted Shares remain subject to the Transfer
Restrictions set forth in this Section 1 shall be called the “Restricted Period.” 
 2. Calculation of MBV. For
purposes of this Agreement, the terms “MBV” and “MBV Appreciation” have the following meanings: 
 (i)
“MBV” as of any date shall mean the Company’s GAAP book value per share of Common Stock as of the relevant date (which unless otherwise determined by the Committee or its designees in good faith, shall be calculated as of the date of
the Company’s most recent prior quarterly measurement date) adjusted to (i) reverse the effects of unrealized gains and losses on investments and derivatives, (ii) reverse the effects of unearned compensation pertaining
to restricted stock awards held by the Company’s employees and directors, (iii) add dividends declared on the Company’s Shares since January 1, 2007, (iv) add interest accrued on dividends declared on the
Company’s Shares since January 1, 2007 and (v) reverse the effects of the Company’s open market share repurchases made since January 1, 2004. In the event of any merger, consolidation, reorganization,
recapitalization, spin-off, split-up, combination, share exchange, liquidation, dissolution, stock split, extraordinary cash dividend, stock dividend, distribution of stock or other property in respect of the Company’s Common Stock or other
securities of the Company, or other change in corporate structure or capitalization affecting the Common Stock, appropriate adjustment(s) will be made to the calculation of MBV so as to avoid dilution or enlargement of your rights and of the
economic opportunity and value represented by the Restricted Shares. 
 (ii) “MBV Appreciation” as of any
measurement date shall mean the percentage increase in MBV from January 1, 2006 through such measurement date, determined pursuant to the following formula: 
 (A minus B) ÷ B 
 where “A” equals MBV as of such measurement date and “B” equals MBV as of January 1, 2007. 
  

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 3. Forfeiture of Restricted Stock Upon Voluntary Termination or Termination for Cause. Except as
provided in Section 4 below or as the Committee shall otherwise determine, if (i) you voluntarily terminate your employment with the Company and each of its subsidiaries or (ii) your employment is terminated by the
Company for Cause (as hereinafter defined) prior to the end of the Restricted Period, any Restricted Shares then still subject to the transfer restrictions set forth in Section 1 shall be forfeited and revert back to the Company without any
payment to you. For purposes of this letter, “Cause” means (i) your willful failure to perform substantially your duties as an employee of the Company (other than due to physical or mental illness) after reasonable notice to
you of such failure, (ii) your engaging in serious misconduct that is injurious to the Company or any of its subsidiaries in any way, including, but not limited to, by way of damage to their respective reputations or standings in their
respective industries, (iii) your being convicted of, or your entry of a plea of nolo contendere to, a crime that constitutes a felony or (iv) your breach of any written covenant or agreement with the Company or any
Subsidiary not to disclose or misuse any information pertaining to, or misuse any property of, the Company or any Subsidiary or not to compete or interfere with the Company or any Subsidiary. 
 4. Partial Vesting Upon Death, Disability, Termination by the Company Without Cause. If your employment with the Company and its subsidiaries
terminates due to (i) your death or (ii) your long-term disability (as determined in accordance with the Company’s applicable policies pertaining to long-term disability), a pro-rata portion of the Restricted Shares
shall become vested on the date of your termination due to death or disability based on MBV Appreciation through such termination date. If your employment with the Company and its subsidiaries is terminated by the Company other than for Cause, a
pro-rata portion of the Restricted Shares shall become vested on the date of your termination based on (i) MBV Appreciation through such termination date and (ii) the portion of the Restricted Period during which you remained
employed with the Company and its subsidiaries. Any portion of the Restricted Shares that does not become vested as of the date of your termination of employment pursuant to this Section 4 shall be forfeited and revert back to the Company
without any payment to you. 
 5. Change of Control. Notwithstanding any other provision of this letter to the contrary, upon the
occurrence of a Change of Control, a pro-rata portion of the Restricted Shares shall become vested based on (i) MBV Appreciation through such Change of Control date and (ii) the portion of the Restricted Period completed
through the Change of Control date. With respect to the portion of your Restricted Shares that does not become immediately vested upon the Change of Control date pursuant to the preceding sentence, (i) the portion of the Restricted
Shares corresponding to unsatisfied performance goals (i.e., due to MBV Appreciation of less than 30% through the Change of Control date) shall be forfeited and revert back to the Company without any payment to you and (ii) the pro-rata
portion of your Restricted Shares that does not vest as of the Change of Control date solely because such portion relates to the uncompleted portion of the Restricted Period as of the Change of Control date shall be converted into a new award to be
granted by the Company or its successor in the form of an equivalent valued new restricted stock or restricted unit award that will vest solely based upon your continued employment with the Company or its successor through the end of the Restricted
Period. If the Company or its successor declines to grant the replacement award described in clause (ii) of the preceding sentence, then the pro-rata portion of your Restricted Shares related to the uncompleted portion of the Restricted Period
shall become vested as of the Change of Control date. 
 For purposes of this Agreement, a Change of Control shall mean the occurrence of any of the
following events: 
 (i) any person (within the meaning of Section 3(a)(9) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)), including any group (within the meaning of Rule 13d-5(b) under the Exchange Act), but excluding any of the Company, any Subsidiary or any employee benefit plan sponsored or maintained by the Company or any
Subsidiary, acquires “beneficial ownership” (within the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined Voting Power (as defined below) of the
Company’s securities; or 
 (ii) within any 24-month period, the persons who were directors of the Company at the
beginning of such period (the “Incumbent Directors”) shall cease to constitute at least a majority of the Board or the board of directors of any successor to the Company; provided, however, that any director elected to the Board, or
nominated for election, by a majority of the Incumbent Directors then still in office shall be deemed to be an Incumbent Director for purposes of this subclause (ii); or 
 (iv) (iii) upon the consummation of a merger, consolidation, share exchange, division, sale or other disposition of all or
substantially all of the assets of the Company which has been approved by the shareholders of the Company (a “Corporate Event”), and immediately following the consummation of which the stockholders of the Company immediately prior to such
Corporate Event do not hold, directly or indirectly, a majority of the Voting Power of (x) in the case of a merger or consolidation, the surviving or resulting corporation, (y) in the case of a share exchange, the acquiring corporation or
(z) in the case of a division or a sale or other disposition of assets, each surviving, resulting or acquiring corporation which, immediately following the relevant Corporate Event, holds more than 25% of the consolidated assets of the Company
immediately prior to such Corporate Event. 
  

 2 

 When used in the definition of a Change of Control, a specified percentage of “Voting
Power” of a company shall mean such number of the Voting Securities as shall enable the holders thereof to cast such percentage of all the votes which could be cast in an annual election of directors and “Voting Securities”
shall mean all securities of a company entitling the holders thereof to vote in an annual election of directors. 
 6. Rights as a
Shareholder. Except for the transfer restriction, you shall have all the rights of a stockholder with respect to your Restricted Shares, including the right to vote the shares and to receive dividends. 
 7. Conversions and Property Distributions. In the event your Restricted Shares are exchanged for or converted into securities other than Common
Stock or in the event that any distribution is made with respect to such Restricted Shares either in Common Stock or in other property, the securities or other property that you receive shall be subject to the same restrictions as apply to your
Restricted Shares. 
 8. Transfers of Restricted Stock to Family Members. Nothing in this letter (including, without limitation,
Section 1) shall preclude you from transferring any of the Restricted Shares to any member of your immediate family, to a trust the only beneficiaries of which are you and/or members of your immediate family or to a partnership the sole
partners of which are you and/or members of your immediate family, provided that in each case (i) you notify the Company of the transfer (you must sign and deliver to the Secretary of MBIA a completed Restricted Stock Transfer
Form attached as Exhibit A hereto), (ii) the transferee must acknowledge in writing that the restrictions set forth in this letter shall continue to apply to such shares in accordance with the terms hereof and (iii) the
Company may impose such reasonable conditions on such transfer as it shall deem necessary or appropriate to preserve its rights under this letter. 
 9. Withholding. As a condition of receiving a share certificate without legend, you shall be required to comply with any applicable Federal, state or local tax withholding requirements. 
 10. Amendment. This Agreement may be amended, modified or supplemented only by a written instrument executed by the Purchaser and the Company.

 11. No Right to Continued Employment. Nothing in this Agreement shall be deemed to confer on you any right to continue in the
employ of the Company or any of its subsidiaries, or to interfere with or limit in any way the right of the Company or any of its subsidiaries to terminate such employment at any time. 
 12. Governing Law. This Agreement shall be construed and enforced in accordance with, and governed by, the laws of the State of New York.

 13. Limitation on Shares Issuable. Notwithstanding any other provision of this Agreement, in the event that the fair market value
(as of the vesting date) of the Restricted Shares that would otherwise vest in a calendar year for which you are a “Covered Employee” (as defined in the Plan), when added to the value of any other long-term incentive awards that will or
may become vested or payable to you under the Plan during the same calendar year, exceeds $5 million, then the amount of Restricted Shares that vests under this Agreement shall be limited to the maximum number of Shares that may be delivered to you
without exceeding such $5 million limit under Section 4 of the Plan. 
 Please retain this agreement for your records. 
  

			
	MBIA INC.
		
	 By:
	 	 
		 	Ram D. Wertheim, General Counsel

  

 3 

 EXHIBIT A 
 RESTRICTED STOCK TRANSFER FORM  
 Pursuant to the terms of the letter agreement dated
                    , 2007 pursuant to which the undersigned was awarded restricted stock of MBIA Inc., the undersigned hereby
transfers (#)                 shares of restricted stock of MBIA Inc. from the restricted stock granted on
                    , 2007 to (insert name of
transferee)             . 
 Family member (transferee) information:

 Relationship of transferee to the undersigned:
                                        
                                         

 Transferee Address:
                                       
                                        
                                         

                                       
                                        
                                        
                                    
 Transferee Social Security #:
                                       
                                        
                           
 Transferee Phone #:
                                       
                                        
                                         

  

							
	Date:                    	 	Signed:	 	  
	 	

                                       
                                        
                                        
                                        
                                        
             
 The undersigned transferee acknowledges that he/she has read the restricted
stock letter Agreement and agrees to abide by its terms. 
  

			
	Transferee Signature:	 	  

		
	Transferee Name (print):	 	  

		
	Date:	 	  

 RETURN TO THE SECRETARY OF MBIA INC. 
  

 4

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