Document:

B Warrant Agreement, dated January 30, 2008

 Exhibit 4.8 
  

	
	 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 INVESTMENT AGREEMENT, DATED AS OF DECEMBER 10 2007, COPIES OF
WHICH ARE ON FILE WITH THE SECRETARY OF THE ISSUER.

  
 B-WARRANT 

to purchase 
 7,430,112

 Shares of Common Stock 
 dated as of January 30, 2008 
 MBIA INC. 
 a Connecticut Corporation 
 Issue Date: January 30, 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 the price per share at which the Investor acquires each share of Common Stock pursuant to Section 1.2(a)(2) of the Investment Agreement.

  

	    	“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 

  

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respect to such Business Combination or this paragraph in the case of a contested 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 Investment Agreement, dated as of December 10, 2007, 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 Stock Market if such security is traded over-the-counter and quoted in the Nasdaq Stock 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 Stock Market or any comparable system, or (C) if such security is not listed on the Nasdaq Stock 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 

  

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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 7,430,112 fully paid and nonassessable shares of Common Stock,
par value $1.00 per share (the “Shares”), of the Company, at a purchase price of $40.00 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. 

  

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	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 

  

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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 

  

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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)

  

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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).

  

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	 	(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 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: January 30, 2008 
  
  

			
	 MBIA INC.
  

		
	By:	 	/s/ C. Edward Chaplin
	 Name: C. Edward Chaplin
 Title: Vice
President and Chief Financial Officer

 Attest: 
  
  

			
	
		
	By:	 	/s/ Ram D. Wertheim
	 Name: Ram D. Wertheim
 Title: Vice President,
Secretary and 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 A. Coulter
	 Name: David A. Coulter
 Title:
Managing Director

  
  
  
 [Signature Page to B-Warrant] 
  

 - 16 - 

 [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] 
  

 - 17 - 

 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

  

 - A-1 - 

 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. 
  

 - A-2 -Key Employee Employment Protection Plan.

 Exhibit 10.80 
 MBIA INC. 
 KEY EMPLOYEE EMPLOYMENT PROTECTION PLAN 
 1. Purpose. The purpose of the MBIA Inc. Key Employee Employment Protection Plan (the “Plan”) is to assure MBIA Inc. of the services of key executives
during any change in ownership or control of the Company and to provide such executives certain financial assurances to enable them to perform the responsibilities of their positions without undue distraction and to exercise their judgment without
bias due to personal circumstances. This Plan is intended to be, and shall be administered as, an employee welfare benefit plan as defined in Section 3(1) of ERISA. 
 2. Definitions. 
 (a) “Agreement” means the Key Employee Employment Protection Agreement
between the Participant and the Company whereby Participant agrees to be bound by the covenants described in Section 12 of the Plan. 
 (b) “Board” means the Board of Directors of the Company. 
 (c) “Cause” means (i) the willful failure by
the Participant to perform substantially his duties under Section 3 of the Agreement (other than due to physical or mental illness) after reasonable notice to the Participant of such failure, (ii) the Participant’s engaging in serious
misconduct that is injurious to the Company or any subsidiary of the Company in any way, including, but not limited to, by way of damage to their respective reputations or standings in their respective industries, (iii) the Participant’s
having been convicted of, or entered a plea of nolo contendere to, a crime that constitutes a felony or (iv) the breach by the Participant of any written covenant or agreement with the Company or any subsidiary of the Company not to disclose or
misuse any information pertaining to, or misuse any property of, the Company or any subsidiary of the Company or not to compete or interfere with the Company or any subsidiary of the Company. 
 (d) “Change of Control” means: 
 (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 of the Company or any employee benefit plan sponsored or maintained by the Company or any subsidiary of the Company, 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 of the Company’s Voting 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 (other than in compromise of a proxy contest
or to avoid such contest) shall be deemed to be an Incumbent Director for purposes of this subclause (ii); or 
 (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 in (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. 
 (e) “Change of Control Date” means the date on which the Change of Control is deemed to occur. 
 (f) “Committee” means the Compensation & Organization Committee of the Board or such other committee of the Board as the Board shall
designate from time to time; provided that, in respect of any period after any Change of Control Date, the Committee shall mean the Committee as in office and as constituted immediately prior to the Change of Control. 
 (g) “Company” means MBIA Inc., a Connecticut corporation, and any successor thereto. 
 (h) “Date of Termination” means (i) in the case of a termination for which a Notice of Termination is required, the date of receipt of
such Notice of Termination or, if later, the date specified therein, as the case may be, and (ii) in all other cases, the actual date on which a Participant’s employment terminates during the Employment Period. 
  

 - 1 - 

 (i) “Disability” means the Participant has met the conditions to qualify for long-term
disability benefits under the Company’s policies, as in effect immediately prior to the Change of Control Date. 
 (j) “Effective
Date” means the date on which the Agreement becomes effective. 
 (k) “Employee” means any employee or officer of the Company.

 (l) “Employment Period” has the meaning specified in Section 4 hereof. 
 (m) “Good Reason” means the occurrence of any of the following, without the express written consent of the affected Participant, after the
occurrence of a Change of Control: 
 (i) the assignment to the Participant of any duties inconsistent in any material adverse respect with
the Participant’s position, authority or responsibilities as contemplated by Section 5 of this Plan, or any other material adverse change in such position, including titles, authority or responsibilities; 
 (ii) any failure by the Company to comply with any of the provisions of Section 6 of this Plan, other than an insubstantial or inadvertent failure
remedied by the Company promptly after receipt of notice thereof given by the Participant; 
 (iii) the Company’s requiring the
Participant to be based at any office or location more than 50 miles (or such other distance as shall be set forth in the Company’s relocation policy as in effect at the Effective Time) from (x) that location at which he performed
his services immediately prior to the Change of Control and (y) the Participant’s residence immediately prior to the Change of Control, except for travel reasonably required in the performance of the Participant’s
responsibilities; or 
 (iv) any failure by the Company to obtain the assumption and agreement to perform this Agreement by a successor as
contemplated by Section 13(b). 
 With respect to the person or persons serving as the Chief Executive Officer of the Company at the time of a Change of
Control, and to any other Participant that the Committee shall designate, the definition of Good Reason shall also include the Participant’s voluntary termination of employment at any time during the 30-day period commencing on the first
anniversary of the date on which a Change of Control occurs. 
 (n) “Governing Documents” means the Company’s Certificate of
Incorporation and By-Laws. 
 (o) “Notice of Termination” means a written notice of a Participant’s termination of employment
which (i) indicates the specific termination provision in this Plan relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Participant’s employment under the
provision so indicated, and (iii) if the termination date is other than the date of receipt of such notice, specifies the termination date of the Agreement (which date shall be not more than 15 days after the giving of such notice). 

(p) “Participant” means an Employee who is designated to participate in the Plan pursuant to Section 3 of the Plan. 
 (q) “Performance-Vesting Restricted Stock” means awards of restricted stock of MBIA Inc. which vests based on achievement of predetermined
performance goals. 
 (r) “Potential Change of Control” means: 
 (i) a Person commences a tender offer (with adequate financing) for securities representing at least 15% of the Voting Power of the Company’s
securities; 
 (ii) the Company enters into an agreement the consummation of which would constitute a Change of Control; 
 (iii) proxies for the election of directors of the Company are solicited by anyone other than the Company; or 
 (iv) any other event occurs which is deemed to be a Potential Change of Control by the Board. Notwithstanding the foregoing, if, after a Potential Change
of Control and before a Change of Control, the Board makes a good faith determination that such Potential Change of Control will not result in a Change of Control, the Board may nullify the effect of the Potential Change of Control (a
“Nullification”) by resolution (a “Nullification Resolution”), in which case the Participant shall have no further rights and obligations under this Agreement by reason of such Potential Change of Control; provided, however, that
if the Participant shall have delivered a Notice of Termination prior to the date of the Nullification Resolution, such Resolution shall not effect the Participant’s rights hereunder. 
 (s) “Time-Vesting Restricted Stock” means awards of restricted stock of MBIA Inc. which vests based solely on the passage of time. 

 

 - 2 - 

 (t) “Voting Power” means 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. 
 (u) “Voting Securities”
means all securities of a company entitling the holders thereof to vote in an annual election of directors. 
 3. Eligibility. Each Employee of the
Company who is a direct report of the Chief Executive Officer whom he or she designates as a member of senior management of the Company and who is approved by the Committee and each other Employee as the Committee may from time to time designate as
a Participant, shall participate in the Plan. 
 4. Employment Period. Subject to Section 7 of this Plan, the Company agrees to continue the
Participant in its employ for the period (the “Employment Period”) commencing on the Change of Control Date and ending on the second anniversary of the Change of Control Date. 
 5. Position and Duties. 
 (a) No Reduction in Position. During the Employment Period, a
Participant’s position (including titles), authority and responsibilities shall be at least commensurate with those held, exercised and assigned to the Participant immediately prior to the Change of Control Date. It is understood that, for
purposes of this Plan, such position, authority and responsibilities shall not be regarded as not commensurate merely by virtue of the fact that a successor shall have acquired all or substantially all of the business and/or assets of the Company as
contemplated by Section 13(b) of this Plan. A Participant’s services shall be performed at the location where the Participant was employed immediately preceding the Change of Control Date. 
 (b) Business Time. From and after the Effective Date, a Participant shall devote his full attention during normal business hours to the business
and affairs of the Company and shall 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 a 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 Change of Control Date shall not be deemed to interfere with the performance of the Participant’s services to the Company. 
 6.
Compensation. 
 (a) Base Salary. During the Employment Period, a Participant shall receive a base salary at a monthly rate at
least equal to the monthly salary paid to the Participant by the Company and any of its affiliated companies immediately prior to the Change of Control Date. The base salary shall be reviewed at least once each year after the Change of Control Date,
and may be increased (but not decreased) at any time and from time to time by action of the Board or any committee thereof or any individual having authority to take such action in accordance with the Company’s regular practices. The
Participant’s base salary, as it may be increased from time to time, shall hereafter be referred to as “Base Salary”. Neither the Base Salary nor any increase in Base Salary after the Change of Control Date shall serve to limit or
reduce any other obligation of the Company hereunder. 
 (b) Annual Bonus. During the Employment Period, in addition to the Base
Salary, for each fiscal year of the Company ending during the Employment Period, each Participant shall be afforded the opportunity to receive an annual bonus on terms and conditions no less favorable to the Participant (taking into account
reasonable changes in the Company’s goals and objectives and taking into account actual performance) than the annual bonus opportunity that had been made available to the Participant for the fiscal year ended immediately prior to the Change of
Control Date (the “Annual Bonus Opportunity”). Any amount payable in respect of the Annual Bonus Opportunity shall be paid as soon as practicable following the year for which the amount is earned or awarded, unless electively deferred by
the Participant pursuant to any deferral programs or arrangements that the Company may make available to the Participant. 
 (c) Long-term
Incentive Compensation Programs. During the Employment Period, each Participant shall participate in all long-term incentive compensation programs for key executives at a level that is commensurate with the Participant’s participation in
such plans immediately prior to the Change of Control Date, or, if more favorable to the Participant, at the level made available to the Participant or other similarly situated officers at any time thereafter. 
 (d) Benefit Plans. During the Employment Period, each Participant (and, to the extent applicable, his dependents) shall be entitled to participate
in or be covered under all pension, retirement, deferred compensation, savings, medical, dental, health, disability, group life and accidental death insurance plans and programs of the Company and its affiliated companies 

  

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at a level that is commensurate with the Participant’s participation in such plans immediately prior to the Change of Control Date, or, if more
favorable to the Participant, at the level made available to the Participant or other similarly situated officers at any time thereafter; provided that, in the event of an across the board change in the level of benefits available to all
employees, each Participant shall be entitled to participate at the level made available to other similarly situated officers after giving effect to such change. 
 (e) Expenses. During the Employment Period, each Participant shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Participant in accordance with the policies and
procedures of the Company as in effect immediately prior to the Change of Control Date. Notwithstanding the foregoing, the Company may apply the policies and procedures in effect after the Change of Control Date to the Participant, if such policies
and procedures are not less favorable to the Participant than those in effect immediately prior to the Change of Control Date. 
 (f)
Vacation and Fringe Benefits. During the Employment Period, each Participant shall be entitled to paid vacation and fringe benefits at a level that is commensurate with the paid vacation and fringe benefits available to the Participant
immediately prior to the Change of Control Date, or, if more favorable to the Participant, at the level made available from time to time to the Participant or other similarly situated officers at any time thereafter. 
 (g) Indemnification. During and after the Employment Period, the Company shall indemnify each Participant and hold each such Participant harmless
from and against any claim, loss or cause of action arising from or out of the Participant’s performance as an officer, director or employee of the Company or any of its Subsidiaries or in any other capacity, including any fiduciary capacity,
in which the Participant serves at the request of the Company to the maximum extent permitted by applicable law and the Company’s Governing Documents, provided that in no event shall the protection afforded to the Participant under the Plan be
less than that afforded under the Governing Documents as in effect immediately prior to the Change of Control Date, except to the extent that any such claim, loss, or cause of action resulted from such Participant’s bad faith, gross negligence
or willful misconduct. 
 (h) Office and Support Staff. Each Participant shall be entitled to an office with furnishings and other
appointments during the employment period, and to secretarial and other assistance, at a level that is at least commensurate with the foregoing provided to other similarly situated officers. 
 7. Termination. 
 (a) Death, Disability or
Retirement. A Participant’s participation in this Plan shall terminate automatically upon such Participant’s death, termination due to Disability or voluntary retirement under any of the Company’s retirement plans as in effect
from time to time. 
 (b) Voluntary Termination. Notwithstanding anything in this Plan to the contrary, following a Change of Control
a Participant may, upon not less than 60 days’ written notice to the Company, voluntarily terminate employment for any reason (including early retirement under the terms of any of the Company’s retirement plans as in effect from time to
time), provided that any termination by a Participant pursuant to Section 7(d) on account of Good Reason shall not be treated as a voluntary termination under this Section 7(b). 
 (c) Cause. The Company may terminate the Participant’s employment for Cause. Any termination by the Company for Cause shall be communicated
by Notice of Termination to the Participant in accordance with Section 14(h). 
 (d) Good Reason. Following the occurrence of a
Change of Control, the Participant may terminate his employment for Good Reason. In no event shall the mere occurrence of a Change of Control, absent any further impact on a Participant, be deemed to constitute Good Reason. Any termination by a
Participant for Good Reason shall be communicated by Notice of Termination to the Company in accordance with Section 14(h) within 90 days of the Participant’s having actual knowledge of the events giving rise to such termination. The
failure by a Participant to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason shall not waive any right of the Participant hereunder or preclude the Participant from asserting such fact or
circumstance in enforcing his rights hereunder. 
 8. Obligations of the Company upon Termination. 
 (a) Death or Disability. If a Participant’s employment is terminated during the Employment Period by reason of the Participant’s death or
Disability, the Agreement shall terminate without further obligations to the Participant or the Participant’s legal representatives under this Plan or the Agreement other than those obligations accrued hereunder at the Date of Termination, and
the Company shall pay to the Participant (or his beneficiary or estate) (i) the Participant’s full Base Salary through the Date of Termination (the “Earned Salary”), (ii) any vested amounts or benefits owing to the
Participant under the Company’s otherwise applicable employee benefit plans and programs, including any compensation previously deferred by the Participant (together with any accrued earnings thereon) and not yet paid by the Company and any
accrued 

  

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vacation pay not yet paid by the Company (the “Accrued Obligations”), and (iii) any other benefits payable due to the Participant’s death
or Disability under the Company’s plans, policies or programs (the “Additional Benefits”). Any Earned Salary shall be paid in cash in a single lump sum as soon as practicable, but in no event more than 10 days (or at such earlier date
required by law), following the Date of Termination. Accrued Obligations and Additional Benefits shall be paid in accordance with the terms of the applicable plan, program or arrangement. 
 (b) Cause and Voluntary Termination. If, during the Employment Period, the Participant’s employment is terminated for Cause or voluntarily
terminated by the Participant (other than on account of Good Reason following a Change of Control), the Company shall pay the Participant (i) the Earned Salary in cash in a single lump sum as soon as practicable, but in no event more than 10
days, following the Date of Termination, and (ii) the Accrued Obligations in accordance with the terms of the applicable plan, program or arrangement. 
 (c) Termination by the Company other than for Cause and Termination by the Participant for Good Reason. 
 (i) Severance and Other Termination Payments. If (x) the Company terminates a Participant’s employment other than for Cause during the Employment Period or (y) a Participant terminates his employment at any time during
the Employment Period for Good Reason, the Company shall pay the Participant the following: 
 (A) the Participant’s Earned Salary; and

 (B) an amount (the “Pro-Rated Annual Incentive”) equal to the average of the annual bonuses payable to the Participant for the
two fiscal years of the Company ended prior to the Change of Control Date for which bonuses have been determined (the “Average Annual Bonus”) multiplied by a fraction, the numerator of which is the number of months in such fiscal year
which have elapsed on or before (and including) the last day of the month in which the Date of Termination occurs and the denominator of which is 12; and 
 (C) the Accrued Obligations; and 
 (D) a cash amount (the “Severance Amount”) equal to two times
the sum of (1) the Participant’s annual Base Salary; (2) an amount equal to the Average Annual Bonus. 
 The
Earned Salary and Pro-Rated Annual Incentive shall be paid in cash in a single lump sum as soon as practicable, but in no event more than 10 days (or at such earlier date required by law), following the Date of Termination. The Accrued Obligations
shall be paid in accordance with the terms of the applicable plan, program or arrangement. The Severance Amount shall be paid in cash in a single lump sum on the date that is six months and one day after the Date of Termination. 
 (ii) Continuation of Benefits. If (x) the Company terminates a Participant’s employment other than for Cause during the Employment Period
or (y) a Participant terminates his employment at any time during the Employment Period for Good Reason, the Participant (and, to the extent applicable, his dependents) shall be entitled, after the Date of Termination until the earlier of
(1) the second anniversary of the Date of Termination (the “End Date”) and (2) the date the Participant becomes eligible for comparable benefits under a similar plan, policy or program of a subsequent employer, to continue
participation in all of the Company’s group health and group life employee benefits plans (the “Group Benefit Plans”). To the extent any such benefits cannot be provided under the terms of the applicable plan, policy or program, the
Company shall provide a comparable benefit under another plan or from the Company’s general assets. The Participant’s participation in the Group Benefit Plans will be on the same terms and conditions (including, without limitation, any
condition that the Participant make contributions toward the cost of such coverage on the same terms and conditions generally applicable to similarly situated employees) that would have applied had the Participant continued to be employed by the
Company through the End Date. 
 (iii) Time-Vesting Restricted Stock. Any and all awards of Time-Vesting Restricted Stock held by the
Participant at the Date of Termination shall immediately become fully vested. 
 (iv) Performance-Vesting Restricted Stock. Performance
Vesting Restricted Stock shall vest to the extent provided in the award agreement granting such Performance-Vesting Restricted Stock. 
 (v)
Post-Termination Exercise Period. Notwithstanding anything else contained in Article 5 of the Company’s 2000 Stock Option Plan or in any Company equity incentive plan to the contrary, in the event that the Participant is entitled to
receive the severance benefits described above pursuant to the terms of the Plan, all of his outstanding Options or SARs under such 2000 Stock Option Plan or any Company equity incentive plan shall automatically be and become fully exercisable on
the Date of Termination without further action on anyone’s part and the Participant shall have the right to exercise any such Option or SAR until the earlier to occur of the expiration of the term of such Option or SAR and the fifth anniversary
of the Date of Termination. 
  

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 (vi) Retirement Contribution Credits. The Participant shall receive credits to the Company’s
nonqualified excess benefits plan in an amount equal to the amount that would otherwise have been contributed on the Participant’s behalf had the Participant remained employed for two years following the Date of Termination. 
 (vii) Outplacement Services. The Participant shall be provided at the Company’s expense with outplacement services customary for executives at
his level (including, without limitation, office space and telephone support services) provided by a qualified and experienced third party provider selected by the Company, up to a maximum of $50,000. 
 (d) Discharge of the Company’s Obligations. Except as expressly provided in the last sentence of this Section 8(d), the amounts payable
to a Participant pursuant to this Section 8 following termination of his employment shall be in full and complete satisfaction of the Participant’s rights under this Plan and any other claims he may have in respect of his employment by the
Company or any of its Subsidiaries. Such amounts shall constitute liquidated damages with respect to any and all such rights and claims and, upon the Participant’s receipt of such amounts, the Company shall be released and discharged from any
and all liability to the Participant in connection with this Plan or otherwise in connection with the Participant’s employment with the Company and its Subsidiaries. Nothing in this Section 8(d) shall be construed to release the Company
from its commitment to indemnify the Participant and hold the Participant harmless from and against any claim, loss or cause of action arising from or out of the Participant’s performance as an officer, director or employee of the Company or
any of its Subsidiaries or in any other capacity, including any fiduciary capacity, in which the Participant served at the request of the Company to the maximum extent permitted by applicable law and the Governing Documents. 
 (e) Certain Further Payments by the Company. 
 (i) In the event that any amount or benefit paid or distributed to any Participant pursuant to this Plan, taken together with any amounts or benefits otherwise paid or distributed to the Participant by the Company or any affiliated company
(collectively, the “Covered Payments”), are or become subject to the tax (the “Excise Tax”) imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any similar tax that may
hereafter be imposed, and the total amount of the Covered Payments equals or exceeds three times the “base amount” (as defined in section 280G of the Code) by at least 10%, the Company shall pay to the Participant at the time specified in
Section 8(e)(v) below an additional amount (the “Tax Reimbursement Payment”) such that the net amount retained by the Participant with respect to such Covered Payments, after deduction of any Excise Tax on the Covered Payments and any
Federal, state and local income or employment tax and Excise Tax on the Tax Reimbursement Payment provided for by this Section 8(e), but before deduction for any Federal, state or local income or employment tax withholding on such Covered
Payments, shall be equal to the amount of the Covered Payments. 
 (ii) In the event the Covered Payments are or become subject to the Excise
Tax under section 4999 of the Code or any similar tax that may hereafter be imposed, but such Covered Payments exceed three times the base amount by less than 10% of such base amount, the Company will reduce the Covered Payments to such amount as
would not subject Participant to the Excise Tax. 
 (iii) For purposes of determining whether any of the Covered Payments will be subject to
the Excise Tax and the amount of such Excise Tax, (A) such Covered Payments will be treated as “parachute payments” within the meaning of Section 280G of the Code, and all “parachute payments” in excess of the
“base amount” (as defined under Section 280G(b)(3) of the Code) shall be treated as subject to the Excise Tax, unless, and except to the extent that, in the good faith judgment of the Company’s independent certified public
accountants appointed prior to the Change of Control Date or tax counsel selected by such Accountants (the “Accountants”), the Company has a reasonable basis to conclude that such Covered Payments (in whole or in part) either do not
constitute “parachute payments” or represent reasonable compensation for personal services actually rendered (within the meaning of Section 280G(b)(4)(B) of the Code) in excess of the “base amount,” or such “parachute
payments” are otherwise not subject to such Excise Tax, and (B) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Accountants in accordance with the principles of Section 280G of the
Code. 
 (iv) For purposes of determining the amount of the Tax Reimbursement Payment, the Participant shall be deemed to pay:
(A) Federal income taxes at the highest applicable marginal rate of Federal income taxation for the calendar year in which the Tax Reimbursement Payment is to be made, and (B) any applicable state and local income taxes at the highest
applicable marginal rate of taxation for the calendar year in which the Tax Reimbursement Payment is to be made, net of the maximum reduction in Federal income taxes which could be obtained from the deduction of such state or local taxes if paid in
such year. 
 (v) In the event that the Excise Tax is subsequently determined by the Accountants or pursuant to any proceeding or negotiations
with the Internal Revenue Service to be less than the amount taken into account hereunder in calculating the Tax Reimbursement Payment made, the Participant shall repay to the Company, at the time that the amount of such reduction in the Excise Tax
is finally determined, the portion of such prior Tax Reimbursement Payment that would not 

  

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have been paid if such Excise Tax had been applied in initially calculating such Tax Reimbursement Payment, plus interest on the amount of such repayment at
the rate provided in Section 1274(b)(2)(B) of the Code. 
 Notwithstanding the foregoing, in the event any portion of the
Tax Reimbursement Payment to be refunded to the Company has been paid to any Federal, state or local tax authority, repayment thereof shall not be required until actual refund or credit of such portion has been made to the Participant, and interest
payable to the Company shall not exceed interest received or credited to the Participant by such tax authority for the period it held such portion. The Participant and the Company shall mutually agree upon the course of action to be pursued (and the
method of allocating the expenses thereof) if the Participant’s good faith claim for refund or credit is denied. In the event that the Excise Tax is later determined by the Accountants or pursuant to any proceeding or negotiations with the
Internal Revenue Service to exceed the amount taken into account hereunder at the time the Tax Reimbursement Payment is made (including, but not limited to, by reason of any payment the existence or amount of which cannot be determined at the time
of the Tax Reimbursement Payment), the Company shall make an additional Tax Reimbursement Payment in respect of such excess (plus any interest or penalty payable with respect to such excess) at the time that the amount of such excess is finally
determined. 
 (vi) The Tax Reimbursement Payment (or portion thereof) provided for in Section 8(e)(i) above shall be paid to the
Participant not later than 10 business days following the payment of the Covered Payments; provided, however, that if the amount of such Tax Reimbursement Payment (or portion thereof) cannot be finally determined on or before the date on which
payment is due, the Company shall pay to the Participant by such date an amount estimated in good faith by the Accountants to be the minimum amount of such Tax Reimbursement Payment and shall pay the remainder of such Tax Reimbursement Payment
(together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined, but in no event later than 45 calendar days after payment of the related Covered Payment. In the event that the
amount of the estimated Tax Reimbursement Payment exceeds the amount subsequently determined to have been due, such excess shall constitute a loan by the Company to the Participant, payable on the fifth business day after written demand by the
Company for payment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code). 
 9. Non-exclusivity of Rights. Except
as expressly provided herein, nothing in this Plan shall prevent or limit any Participant’s continuing or future participation in any benefit, bonus, incentive or other plan or program provided by the Company or any of its affiliated companies
and for which the Participant may qualify, nor shall anything herein limit or otherwise prejudice such rights as the Participant may have under any other agreements with the Company or any of its affiliated companies, including employment agreements
or stock option agreements. Amounts which are vested benefits or which any Participant is otherwise entitled to receive under any plan or program of the Company or any of its affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan or program. 
 10. No Offset. The Company’s obligation to make the payments provided for under this Plan and
otherwise to perform its obligations hereunder shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company may have against a Participant or others
whether by reason of the subsequent employment of the Participant or otherwise. 
 11. Legal Fees and Expenses. If any Participant asserts any claim
in any contest (whether initiated by the Participant or by the Company) as to the validity, enforceability or interpretation of any provision of this Plan or the Agreement and the Participant prevails on such claim in a proceeding before an
arbitrator referred to in Section 14(e) or a court of competent jurisdiction, then the Company shall pay the Participant’s legal expenses (or cause such expenses to be paid) including, without limitation, his reasonable attorney’s
fees, upon presentation of proof of such expenses in a form acceptable to the Company. 
 12. Confidential Information, Company Property. By and in
consideration of the salary and benefits to be provided by the Company hereunder, including the severance arrangements set forth herein, each Participant shall enter into an Agreement with the Company whereby the Participant shall agree that:

 (a) Confidential Information. Each 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 a 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. 
  

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 (b) Non-Competition. For two years after the Date of Termination, a Participant shall not, except
with the prior written consent of the Board, 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 entity which has operations that compete in any material respect with the Business of the Company. 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. For
two years after the Date of Termination, a Participant shall 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 a Participant’s termination of employment, such Participant
shall return to the Company all property of the Company and all copies thereof in the Participant’s possession or under his control. 
 (g) Injunctive Relief and Other Remedies with Respect to Covenants. The covenants and obligations of each Participant with respect to confidentiality and Company property relate to special, unique and extraordinary matters and 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 Company shall be entitled to an injunction, restraining order or such
other equitable relief (without the requirement to post bond) restraining a Participant from committing any violation of the covenants and obligations contained in this Section 12. 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 Section 12 constitute a basis for deferring or withholding any amounts otherwise payable to the Participant under
this Plan or the Agreement. 
 (h) In the event the Participant breaches any provision of this Section 12 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 hereof, and (ii) return to
the Company any and all payments previously made by the Company (or any of its affiliates) pursuant to Section 8 hereof within 15 days after written demand for such repayment is made to Participant by the Company. 
 13. Successors. 
 (a) Each Participant’s rights
under this Plan and the Agreement are personal to the Participant and, without the prior written consent of the Company, shall not be assignable by the Participant other than by will or the laws of descent and distribution. The Agreement shall inure
to the benefit of and be enforceable by a Participant’s legal representatives. 
 (b) This Plan and the Agreement shall inure to the
benefit of and be binding upon the Company and its successors. The Company shall require any successor to all or substantially all of the business and/or assets of the Company, whether direct or indirect, by purchase, merger, consolidation,
acquisition of stock, or otherwise, by an agreement in form and substance satisfactory to the Participant, expressly to assume and agree to maintain this Plan and perform in the same manner and to the same extent as the Company would be required to
perform under the Agreement if no such succession had taken place. 
  

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 14. Miscellaneous. 
 (a) Administration. The Plan shall be administered by the Committee. The Committee shall have full and complete authority to interpret the Plan and to make all determinations hereunder relating to the
participation and eligibility of eligible Employees for benefits, including, but not limited to, making determinations as to eligibility for benefits or to participate in the Plan, the amount of benefits payable, the time at which benefits cease to
be payable, and other comparable issues. The Committee may delegate any of its authority and responsibilities, subject to Committee review and to the extent permitted by law, to any officer or committee of officer(s) of the Company. The
determinations made by the Committee or its delegate shall be final, binding and conclusive on all persons affected thereby, including, but not limited to, each Participant and the Company. The Company and/or the Committee, as the case may be, shall
maintain such procedures and records as each deems necessary or appropriate. Each Participant shall receive a copy of the Plan, and written confirmation of his or her participation thereunder. 
 (b) Applicable Law. Except to the extent that they may be preempted by Federal law, this Plan shall be governed by and construed in accordance
with the laws of the State of New York, applied without reference to principles of conflict of laws. 
 (c) Gender and Number. Except
when otherwise indicated by the context, words in the masculine gender used in the Plan shall include the feminine gender, the singular shall include the plural, and the plural shall include the singular. 
 (d) Effective Date of the Plan. This Plan shall become effective on the date approved by the Committee. 
 (e) Arbitration. Except to the extent provided in Section 12(g), any dispute or controversy arising under or in connection with the Plan
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 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 involved in such arbitration. 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. 
 (f) Amendments. This Plan may be amended, modified or terminated
at any time; provided that any amendment which occurs within one year of a Change of Control and which reduces the benefits available under the Plan in respect of any Employees participating in the Plan at the date such amendment is adopted
shall be void and without effect; provided further that any such amendment, modification or termination which adversely affect the rights of any Participant shall be agreed to, in writing, by such Participant. 
 (g) Entire Agreement. This Plan and the Agreement constitute the entire agreement between the parties hereto with respect to the matters referred
to herein. No other agreement relating to the terms of any Participant’s employment by the Company, oral or otherwise, shall be binding between the parties unless it is in writing and signed by the party against whom enforcement is sought.
There are no promises, representations, inducements or statements between the parties other than those that are expressly contained herein. 
 (h) Notices. All notices and other communications hereunder shall be in writing and shall be given by hand-delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as
follows: 
 If to a Participant, at the home address of the Participant noted on the records of the Company 
  

			
	 If to the Company:
	  	 MBIA Inc.
 113 King Street
 Armonk, New York 10504
 Attn.: Secretary

 or to such other address as either party shall have furnished to the other in writing in accordance herewith.
Notice and communications shall be effective when actually received by the addressee. 
 (i) Tax Withholding. The Company shall
withhold from any amounts payable under this Plan such Federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
 (j) Severability; Reformation. In the event that one more of the provisions of this Plan 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 12 is not enforceable in accordance with its terms, such 

  

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Section shall be reformed to make such Section enforceable in a manner which provides the Company the maximum rights permitted at law. 
 (k) Survival. The provisions of Sections 8 and 12 shall survive the termination of the Employment Period hereunder and shall be binding upon and
enforceable against the Company or a Participant, as the case may be, in accordance with its terms. In the event that any dispute arises with respect to the Participant’s entitlement to such enhanced retirement benefits, the dispute resolutions
provisions contained in Section 14(c) and the legal fees provision contained in Section 11 shall also survive the end of the Employment Period and shall be applied as though the dispute arose within the Employment Period. 
 (l) Headings. The headings of this Plan are not part of the provisions hereof and shall have no force or effect. 
  

			
		
		 	 MBIA Inc.
  

		
		 	  /s/ Joseph W. Brown
		 	   By: Joseph W. Brown
   Title:
CEO

 Adopted as of November 8, 2006 and amended as of February 27, 2007 

 

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