Document:

EX-10.1

 Exhibit 10.1 
 THE COMPANY HAS APPLIED FOR CONFIDENTIAL TREATMENT OF CERTAIN PROVISIONS OF THIS EXHIBIT WITH THE SECURITIES AND EXCHANGE COMMISSION. THE CONFIDENTIAL PORTIONS OF THIS EXHIBIT ARE BRACKETED AND MARKED
WITH ASTERISKS ([***]) AND HAVE BEEN OMITTED. THE OMITTED PORTIONS OF THIS EXHIBIT WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. 

ANTARES PHARMA, INC. 
 2008 EQUITY COMPENSATION PLAN 
 PERFORMANCE STOCK UNIT SUMMARY OF GRANT

 Antares Pharma, Inc., a Delaware corporation (the “Company”), pursuant to its 2008 Equity Compensation
Plan, as amended and restated (the “Plan”), hereby grants to the individual listed below (the “Grantee”), this performance stock unit award representing the target number of performance stock units set forth below (the
“Performance Stock Units”) that may become earned and vested by the Grantee based on the level of achievement of the Performance Goals. The actual number of Performance Stock Units earned and vested will be based on the actual performance
level achieved with respect to the Performance Goals set forth on Schedule A. The Performance Stock Units are subject in all respects to the terms and conditions set forth herein, in the Performance Stock Unit Award Agreement attached hereto
as Exhibit A (the “Performance Stock Unit Award Agreement”) and the Plan, each of which is incorporated herein by reference and made part hereof. Unless otherwise defined herein, capitalized terms used in this Performance Stock Unit
Summary of Grant (the “Summary of Grant”) and the Performance Stock Unit Award Agreement shall have the meanings set forth in the Plan. 
  

			
	Grantee:	  	[                    ]
		
	Date of Grant:	  	May 22, 2013
		
	Target Award:	  	[                    ] Performance Stock Units
		
	Performance Period:	  	As set forth on Schedule A, either the three, three and one-half or four-year period beginning on January 1, 2013 and ending on December 31, 2015, June 30, 2016 or December
31, 2016, respectively (each, a “Performance Period”).
		
	Performance Goals:	  	The Performance Goals are based on the four performance measures set forth on Schedule A.
		
	Vesting Schedule:	  	 The Performance Stock Units will become earned and vested based on the performance level achieved with respect to the Performance Goals
and the Grantee’s continued employment or service with the Employer through the last day of the applicable Performance Period (each such day, a “Vesting Date”).

 
 The number of Performance Stock Units set forth above is equal to the target number
of shares of Company Stock that the Grantee will earn and become vested in for 100% achievement of the Performance Goals (referred to as the “Target Award”). The actual number of shares of Company Stock that the Grantee will become earned
and vested in with respect to the Performance Stock Units may be greater or less than the Target Award, or even zero, and will be based on the performance level achieved by the Company with respect to the Performance Goals, as set forth on
Schedule A. Performance level is measured based on the threshold, target and maximum performance levels set forth on Schedule A.

			
		  	 Each performance level is calculated as a percentage of target level performance. Threshold performance level is 50% of target, target
performance level is 100% of target and maximum performance level is 150% of target. If actual performance with respect to the net revenue and business development Performance Goals only is between performance levels, the number of Performance Stock
Units earned and vested with respect to those Performance Goals, if any, will be interpolated on a straight line basis for pro-rata achievement of the Performance Goals, rounded down to the nearest whole number. Failure to achieve the threshold
performance level with respect to any Performance Goal will result in no Performance Stock Units being earned and vested with respect to that Performance Goal.
  

In the event a Change of Control occurs while the Grantee is employed by, or providing service to, the Employer, the Performance Stock Units will vest as
if target performance had been achieved as to each Performance Goal, such that the Target Award is deemed fully earned and vested as of the date of the Change of Control.

		
	Issuance Schedule:	  	The Grantee will receive a distribution with respect to the Performance Stock Units earned and vested pursuant to this Performance Stock Unit Award, if any, within 60 days following
the applicable Vesting Date (each, a “Payment Date”); provided, however, that such distribution will be made not later than March 15 of the fiscal year following the applicable Vesting Date. Distribution will be made with respect to the
Performance Stock Units on the Payment Date in shares of Company Stock, with each Performance Stock Unit earned and vested equivalent to one share of Company Stock. In no event shall any fractional shares be issued. The Grantee must be employed by,
or providing service, to the Employer on the applicable Vesting Date in order to earn and vest in the Performance Stock Units, unless the Committee determines otherwise.

 Grantee Acceptance: 

By signing the acknowledgement below, the Grantee agrees to be bound by the terms and conditions of the Plan, the Performance Stock Unit
Award Agreement and this Summary of Grant and accepts the Performance Stock Units following the date of the Company’s notification to the Grantee of the award of the Performance Stock Units (the “Notification Date”). The Grantee will
accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan, this Summary of Grant or the Performance Stock Unit Award Agreement. 

The Grantee acknowledges delivery of a copy of the Plan and the Plan prospectus together this with this Summary of Grant and the
Performance Stock Unit Award Agreement. Additional copies of the Plan and the Plan prospectus are available upon request by contacting the Chief Financial Officer at (609) 359-3020. 

 

	
	Agreed and accepted:
	
	  

	Grantee
	
	  

	Date

  
 2 

 SCHEDULE A 

PERFORMANCE GOALS 
 The number of Performance Stock Units that may become earned and vested shall be determined based on the actual performance level achieved with respect to the following performance measures during the
applicable Performance Period: (1) Three-Year Net Revenue; (2) either (a) Development and Initiation of Pivotal Study for Third Pipeline Product or (b) Commencement of Business Development Partnership with Significant Revenue
Potential; and (3) Four-Year Clinical Trials and New Drug Application (NDA) Completion for [***] (collectively referred to as the “Performance Goals,” and each individual measure, a “Performance Goal”). The chart below sets
forth the applicable weighting and Performance Goals at each performance level for each performance measure for the applicable Performance Period: 
 For purposes of the (1) Three-Year Net Revenue Performance Goal, the Performance Period is January 1, 2013 – December 31, 2015, (2) (a) Development and Initiation of
Pivotal Study for Third Pipeline Product Performance Goal and (b) Commencement of Business Development Partnership with Significant Revenue Potential Performance Goal, the Performance Period is January 1, 2013 – June 30, 2016 and
(3) Four-Year Clinical Trials and New Drug Application (NDA) Completion for [***], the Performance Period is January 1, 2013 – December 31, 2016.* 

 

													
	 No.
	  	 Performance

Measure
	  	 Weight
	  	 Performance
Level
	  	 Performance Goals
	  	Performance Stock
Units Earned and
Vested as a
Percentage of Target	 
	(1)	  	Three-Year Net Revenue	  	33-1/3%	  	  
 Threshold
	  	  
 Three-Year Net Revenue of
at least $[***] million but less than $[***] million
	  	 	50	% 
	  	  	  	  
 Target
	  	  
 Three-Year Net Revenue of
at least $[***] million but less than $[***] million
	  	 	100	% 
	  	  	  	  
 Maximum
	  	  
 Three-Year Net Revenue of
$[***] million or above
	  	 	150	% 
	 (2)**
	  	  
 Development
and Initiation of Pivotal Study for Third Pipeline Product
	  	33-1/3%	  	  
 Threshold
	  	  
 Initiation of pivotal
Clinical Trials by [***]
	  	  
  
	  
 50
	  
 % 

	  	  	  	  
 Target
	  	  
 Initiation of pivotal
Clinical Trials by [***]
	  	  
  
	  
 100
	  
 % 

	  	  	  	  
 Maximum
	  	  
 Initiation of pivotal
Clinical Trials by [***]
	  	  
  
	  
 150
	  
 % 

	  	 

OR
	 

  

	  	  
 Commencement of Business Development
Partnership with Significant Revenue Potential
	  	33-1/3%	  	  
 Threshold
	  	  
 Upfront payment of at
least $[***] million but less than $[***] million
	  	 	50	% 
	  	  	  	  
 Target
	  	  
 Upfront payment of at
least $[***]million but less than $[***] million
	  	 	100	% 
	  	  	  	  
 Maximum
	  	  
 Upfront payment of $[***]
million or above
	  	 	150	% 
	(3)	  	  
 4-Year Clinical Trials and File New
Drug Application (NDA) for [***]
	  	33-1/3%	  	  
 Threshold
	  	  
 Complete Clinical Trials
& File NDA by [***]
	  	  
  
	  
 50
	  
 % 

	  	  	  	  
 Target
	  	  
 Complete Clinical Trials
and File NDA by [***]
	  	  
  
	  
 100
	  
 % 

	  	  	  	  
 Maximum
	  	  
 Complete Clinical Trials
and File NDA by [***]
	  	  
  
	  
 150
	  
 % 

  
 3 

	*	The actual number of Performance Stock Units earned and vested will be based on the actual performance level achieved with respect to each performance level and, with
respect to the Net Revenue and Commencement of Business Development Partnership with Significant Revenue Potential Performance Goals only, will be interpolated on a straight line basis for pro-rata achievement, rounded down to the nearest whole
number, for performance at or between performance levels. If the actual performance level achieved for any Performance Goal does not meet threshold performance (i.e., less than 50%) for the applicable Performance Goal, then no Performance
Stock Units will be earned and vested for that Performance Goal pursuant to this Award. Threshold level performance may be achieved for one Performance Goal and not another based on the Company’s actual performance during the applicable
Performance Period. The actual number of Performance Stock Units earned and vested will be determined by the Committee based on the actual performance level achieved with respect to the applicable Performance Goals during the applicable Performance
Period, factoring in the weighting for each Performance Goal. The maximum number of Performance Stock Units that may become earned and vested pursuant to this Award is capped at 150% of the Target Award. 

	**	With respect to the second performance measure, the Committee will determine whether and to what extent the Performance Goals related to the (a) Development and
Initiation of Pivotal Study for Third Pipeline Product and (b) Commencement of Business Development Partnership with Significant Revenue Potential are met. The Performance Stock Units earned and vested will be based on the actual performance
level achieved of either (a) Development and Initiation of Pivotal Study for Third Pipeline Product or (b) Commencement of Business Development Partnership with Significant Revenue Potential, whichever is achieved at the highest
performance level, taking into account that the Commencement of Business Development Partnership with Significant Revenue Potential Performance Goal will be interpolated on a straight line basis for pro-rata achievement, rounded down to the nearest
whole number, for performance at or between performance levels. In no event with the levels of performance of both (a) Development and Initiation of Pivotal Study for Third Pipeline Product and (b) Commencement of Business Development
Partnership with Significant Revenue Potential be aggregated. 

  
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 ANTARES PHARMA, INC. 

PERFORMANCE STOCK UNIT AWARD AGREEMENT 
 (Pursuant to the Company’s 2008 Equity Compensation Plan) 
 This
PERFORMANCE STOCK UNIT AWARD AGREEMENT (this “Agreement”) dated as of the Date of Grant set forth in the Summary of Grant is delivered by Antares Pharma, Inc. (the “Company”) to the individual named in the Summary of Grant (the
“Grantee”). 
 RECITALS 
 A. The Antares Pharma, Inc. 2008 Equity Compensation Plan, as amended and restated (the “Plan”), provides for the grant of restricted stock units that are payable if specified performance goals
are met (referred to herein as “Performance Stock Units”), in accordance with the terms and conditions of the Plan. 

B. The Compensation Committee of the Board of Directors of the Company (the “Committee”) has decided to make a Performance
Stock Unit Award grant as an inducement for the Grantee to promote the best interests of the Company and its stockholders. 
 C.
The Grantee acknowledges delivery of a copy of the Plan and the Plan prospectus together with this Summary of Grant and the Performance Stock Unit Award Agreement. Additional copies of the Plan and the Plan prospectus are available upon request by
contacting the Chief Financial Officer at (609) 359-3020. 
 NOW, THEREFORE, the parties to this Agreement, intending to be
legally bound hereby, agree as follows: 
 1. Performance Stock Unit Grant. 

(a) Subject to the terms, restrictions and conditions set forth in the Summary of Grant, this Agreement and the Plan, the Company hereby
grants to the Grantee the right to receive the shares of Company Stock in the amount and on the terms set forth in the Summary of Grant upon achievement of the Performance Goals as set forth in the Summary of Grant and satisfaction of the
requirements of the Vesting Schedule set forth in the Summary of Grant. No shares of Company Stock shall be issued to the Grantee on the Date of Grant. 
 (b) The Committee shall, as soon as practicable following the last day of the Performance Period, certify (i) the extent, if any, to which, the Performance Goals have been achieved with respect to
the Performance Period and (ii) the number of shares of Company Stock, if any, earned upon attainment of the Performance Goal. Such certification shall be final, conclusive and binding on the Grantee, and on all other persons, to the maximum
extent permitted by law. In the event that the Committee makes a final determination that the Performance Goals have not been achieved, the Grantee shall have no further rights to receive shares of Company Stock hereunder. 

(c) The Committee may at any time prior to the final determination of whether the Performance Goals have been attained, change the
Performance Goals or change the weighting of the Performance Goals to reflect any change in the Grantee’s responsibility level or position during the course of the period beginning on the Date of Grant and ending on the last day of the
Performance Period. In addition, the Committee may, at any time prior to the final determination of whether the Performance Goals have been attained, change the Performance Goals to reflect a change in corporate capitalization, such as a stock split
or stock dividend, or a corporate transaction, such as a merger, consolidation, separation, reorganization or partial or complete liquidation, or to equitably reflect the occurrence of any extraordinary event, any change in applicable accounting
rules or principles, any change in the Company’s method of accounting, any change in applicable law, any change due to any merger, consolidation, acquisition, reorganization, stock split, stock dividend, combination of shares or other changes
in the Company’s corporate structure or shares, or any other change of a similar nature. 

  
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 2. Stockholder Rights. Prior to the issuance, if any, of shares of Company Stock pursuant to the
terms of the Summary of Grant, this Agreement and the Plan, the Grantee shall not (a) have any of the rights or privileges of, a stockholder of the Company; (b) have the right to receive any dividends or other distributions; and
(c) have any interest in any fund or specific assets of the Company by reason of this Agreement. 
 3. Vesting. 

(a) The shares of Company Stock subject to this Agreement will become earned based on the actual level of performance achieved with
respect to the Performance Goals for the Performance Period on the terms set forth in the Summary of Grant and as determined by the Committee and provided that the Grantee satisfies the requirements of the Vesting Schedule set forth in the Summary
of Grant. 
 (b) If the Grantee ceases to be employed by, or provide service to, the Employer for any reason prior to the
applicable Vesting Date, the Grantee shall forfeit all rights to receive shares of Company Stock hereunder and the Grantee will not have any rights with respect to any portion of the shares of Company Stock that have not yet become vested as of the
date the Grantee ceases to be employed by, or provide service to, the Employer, irrespective of the level of achievement of the Performance Goals. 
 4. Issuance. 
 (a) Shares of Company Stock equal to the number of shares of
Company Stock that the Grantee earns upon achievement of the Performance Goals and becomes vested in the right to receive in accordance with the Vesting Schedule, in each case, as set forth in the Summary of Grant shall be issued to the Grantee as
set forth in the Summary of Grant and a certificate representing the Company Stock shall be issued to the Grantee, free of the restrictions under Section 5 of this Agreement. 

(b) The obligation of the Company to deliver the Company Stock to the Grantee following the applicable Vesting Date shall be subject to
all applicable laws, rules, and regulations and such approvals by governmental agencies as may be deemed appropriate to comply with relevant securities laws and regulations. 
 5. Nonassignability of Company Stock. During the period prior to the certification of the Performance Goals and prior to the Vesting Date, the right to receive shares of Company Stock may not be
assigned, transferred, pledged or otherwise disposed of by the Grantee, except as permitted under the Plan or by the Committee. Any attempt to assign, transfer, pledge or otherwise dispose of the right to receive shares of Company Stock contrary to
the provisions the Summary of Grant, this Agreement and the Plan, and the levy of any execution, attachment or similar process upon the right to receive the shares, shall be null, void and without effect. 

6. Change of Control. Except as provided in the Summary of Grant, the provisions of the Plan applicable to a Change of Control shall apply to the
right to receive the Company Stock issuable upon attainment of the Performance Goals and satisfaction of the Vesting Schedule set forth in the Summary of Grant, and, in the event of a Change of Control, the Committee may take such actions as it
deems appropriate pursuant to the Plan. 
 7. Grant Subject to Plan Provisions. This grant is made pursuant to the Plan, the terms of
which are incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan. This grant is subject to interpretations, regulations and determinations concerning the Plan established from time to time by the
Committee in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (a) rights and obligations with respect to withholding taxes, (b) the registration,

  
 -2-

 
qualification or listing of the shares, (c) changes in capitalization of the Company and (d) other requirements of applicable law. The Committee shall have the authority to interpret
and construe this grant pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder. 
 8.
Withholding. Unless the Committee provides otherwise, the number of shares of Company Stock distributed to the Grantee with respect to the Performance Stock Units will be reduced by a number of shares sufficient to satisfy the amount of any
federal, state or local income and employment taxes associated with the distribution. Notwithstanding the foregoing, the Employer may require that the Grantee receiving any distribution or payment hereunder pay to the Employer the amount of any
federal, state or local income and employment taxes that the Employer is required to withhold with respect to such payment, or the Employer may deduct from other compensation paid by the Employer the amount of any federal, state or local income and
employment taxes due with respect to the Performance Stock Units. The Executive shall bear all expense of, and be solely responsible for, all federal, state and local income and employment taxes due with respect to any distribution or payment
received under this Agreement. In no event shall the amount of withholding exceed the minimum applicable withholding tax rate for federal (including FICA), state, local and other tax liabilities. 

9. No Employment or Other Rights. This grant shall not confer upon the Grantee any right to be retained by or in the employ or service of the
Employer and shall not interfere in any way with the right of the Employer to terminate the Grantee’s employment or service at any time. The right of the Employer to terminate at will the Grantee’s employment or service at any time for any
reason is specifically reserved. 
 10. Recoupment Policy. The Grantee agrees that the Grantee will be subject to any compensation,
clawback and recoupment policies that may be applicable to the Grantee as an employee of the Employer, as in effect from time to time and as approved by the Board of Directors or a duly authorized committee thereof, whether or not approved before or
after the Date of Grant. 
 11. Assignment by Company. The rights and protections of the Company hereunder shall extend to any successors
or assigns of the Company and to the Company’s parents, subsidiaries, and affiliates. This Agreement may be assigned by the Company without the Grantee’s consent. 
 12. Applicable Law. The validity, construction, interpretation and effect of this instrument shall be governed by and construed in accordance with the laws of the State of Delaware without giving
effect to the conflicts of laws provisions thereof. 
 13. Notice. Any notice to the Company provided for in this instrument shall be
addressed to the Chairman of the Compensation Committee at the corporate headquarters of the Company, and any notice to the Grantee shall be addressed to such Grantee at the current address shown on the payroll of the Employer, or to such other
address as the Grantee may designate to the Employer in writing. Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office
regularly maintained by the United States Postal Service. 
 14. Application of Section 409A of the Internal Revenue Code. This
Agreement, including the right to receive Company Stock upon achievement of the Performance Goals and satisfaction of the Vesting Schedule, is intended to be exempt from the requirements of section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”) pursuant to the short-term deferral exemption thereunder, and this Agreement, including the right to receive Company Stock upon the achievement of the Performance Goals and satisfaction of the Vesting Schedule, shall
be interpreted on a basis consistent with such intent. Notwithstanding any provision in this Agreement to the contrary, if the Grantee is a “specified employee” (as defined in section 409A of the Code) and it is necessary to postpone the
commencement of any payments otherwise payable under this Agreement to prevent any accelerated or additional tax under section 409A of the Code, then the Company will postpone the payment until five days after the end of

  
 -3-

 
the six-month period following the Grantee’s “separation from service” (as defined under section 409A of the Code). If the Grantee dies during the postponement period prior to the
payment of postponed amount, the amounts withheld on account of section 409A of the Code shall be paid to the personal representative of the Grantee’s estate within 60 days after the date of the Grantee’s death. The determination of who is
a specified employee, including the number and identity of persons considered specified employees and the identification date, shall be made by the Committee in accordance with the provisions of sections 416(i) and 409A of the Code. In no event
shall the Grantee, directly or indirectly, designate the calendar year of payment. For purposes of Section 409A of the Code, each payment under this Agreement shall be treated as a separate payment. This Agreement may be amended without the
consent of the Grantee in any respect deemed by the Committee to be necessary in order to preserve compliance with section 409A of the Code or other applicable law. 

  
 -4-EX-4.2

 Exhibit 4.2 
 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. 

WARRANT 
 to purchase

 1,910,417 

Shares of Common Stock 

dated as of August 5, 2013 

MBIA INC. 
 a Connecticut
Corporation 
 Issue Date: August 5, 2013 
  

	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. 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 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. 
 “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. 
 “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 that 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. 

“Capital Stock” means (A) with respect to any Person that is a corporation or company, any and all shares, interests,
participations or other equivalents (however designated) of capital or capital stock of such Person and (B) with respect to any Person that is not a corporation or company, any and all partnership or other equity interests of such Person.

 “Change of Control” means, with respect to the Company, the occurrence of any one of the following events: 

 

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

  

	 	(B)	any Person (other than the Investor and its Affiliates) is or becomes a Beneficial Owner, 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;

  
 2 

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

  

	 	(D)	the consummation of a Transfer; 

  

	 	(C)	a plan of liquidation or dissolution of the Company; 

  

	 	(D)	a De-Listing; or 

  

	 	(E)	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. 
 “De-Listing” means the voluntary de-listing of the Common Stock from the New York Stock Exchange or the NASDAQ Stock Market other than in connection with a listing of the Common Stock on a national
securities exchange. 
 “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 Price” has the meaning given to it in Section 2. 

“Existing Warrants” means (a) the warrants issued to Warburg Pincus Private Equity X, L.P. (“Warburg”) and
its affiliates pursuant to (i) that certain Warrant Agreement, dated as of January 30, 2008, between the Company and Warburg, (ii) that certain B Warrant Agreement, dated as of January 30, 2008, between the Company and Warburg,
(iii) that certain B2 Warrant Agreement, dated as of January 30, 2008, between the Company and Warburg, and (iv) that certain B2 Warrant Agreement, dated as of January 30, 2008, between the Company and Warburg Pincus X Partners,
L.P. and (b) the warrant issued to Blue Ridge Investments, L.L.C. pursuant to that certain Investment Agreement, dated as of May 6, 2013, between the Company and Blue Ridge Investments, L.L.C. 

“Expiration Time” has the meaning given to it in Section 3. 

“Governmental Entities” means any governmental or regulatory federal, state, local and foreign authorities, agencies, courts,
commissions or other entities, including stock exchanges and other self-regulatory organizations. 

  
 3 

 “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 and any other
individuals deemed to be Incumbent Directors as set forth in clause (A) of the definition of “Change of Control” above. 

“Investment Agreement” means the Investment and Settlement Agreement and Waiver and Release, of even date herewith, between the
Company, the Investor and, solely for purposes of Section 1.3 thereof, Warburg Pincus X Partners, L.P., 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. 

“National” means National Public Finance Guarantee Corporation. 

“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. 
 “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, the earlier of (i) the execution of definitive documentation
for a transaction that, if consummated, would result in a Change of Control, (ii) the recommendation that stockholders tender in response to a tender or exchange offer, that, if consummated, would result in a Change of Control upon
consummation, (iii) the filing of a registration statement with the Securities and Exchange Commission in respect of a Transfer, (iv) the making of a public disclosure of a decision by the Company to consummate a Transfer, (v) the
public announcement by the Company that it intends to effect a De-Listing, and (v) the actual consummation of a Change of Control. 

  
 4 

 “Securities” means Common Stock, the Warrants and any other securities (including
shares of Common Stock into which any of the foregoing are converted, exchanged or exercised in accordance with the terms hereof). 

“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. 

“Transfer” means the transfer, distribution (by dividend, exchange or any other means) or disposition, in one transaction or a
series of related transactions, to the Company’s stockholders or to any Person or Group of 50% or more of the Capital Stock or consolidated assets of (i) National or (ii) a Subsidiary or Subsidiaries of the Company that own, directly
or indirectly, 50% or more of the consolidated assets of the Company. 
 “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, Investor, 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 1,910,417 fully paid and nonassessable shares of Common Stock, par value $1.00 per share (the
“Shares”), of the Company, at a purchase price of $9.59 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. 

 

	3.	 Exercise of Warrant; Term. To the extent permitted by applicable laws and regulations, including but not limited to the insurance laws of the State of New
York, 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 fifth anniversary of the date of issuance of the Warrant (the “Expiration Time”), by (A) the surrender of this Warrant and delivery of the Notice of Exercise annexed hereto, duly completed and
executed on behalf of the Warrantholder, to the Company via e-mail or to 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 (including

  
 5 

	 	
by e-mail) 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 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 the last of this Warrant and the Notice of Exercise is 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. 

  

	4.	Issuance of Shares; Authorization; Listing. Certificates for Shares (or book entry 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, subject to prior or simultaneous surrender of this Warrant at the Company’s office designated in accordance with Section 3. 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 the last of this
Warrant and payment of the Exercise Price is delivered to the 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 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; provided that nothing in this Section 4 shall preclude the Company from satisfying its obligations in respect of the exercise of this Warrant by delivery of shares of Common Stock that are
held in the treasury of the Company. 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 for so long as the Common Stock is
listed on such stock exchanges. 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. 

  
 6 

	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)	Without obtaining the consent of the Company to assign or transfer this Warrant, from and after the earlier of (x) the six-month anniversary of the issuance of this Warrant
and (y) the consummation by the Company of a registered public offering of equity or equity linked Securities of the Company (other than Excluded Stock), this Warrant and all rights hereunder shall be 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, if any) 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 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 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 commercially reasonable 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 commercially reasonable efforts to take such further action as any Warrantholder may reasonably request, all to the
extent required from time 

  
 7 

	 	
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 85%
of 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) 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 avoidance of doubt, no adjustment of the Exercise Price or the number of Shares issuable upon exercise of this Warrant shall be made pursuant to this Section 13(A) in connection with
any change in the number of shares of Common Stock deliverable upon exercise of any Existing Warrant that results from the anti-dilution provisions of such Existing Warrant. 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

  
 8 

	 	
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 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 

  
 9 

	 	
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).

  

	 	(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 (including without limitation cash dividends, but excluding dividends or distributions referred to in
Section 13(B), or (iv) of rights or warrants 

  
 10 

	 	
(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)	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. 

 

	 	(E)	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. 

  
 11 

	 	(F)	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
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. 

  

	 	(G)	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, (i) if any of the Existing Warrants is then outstanding, in the same manner, and at the same time, as the Board determines to adjust the exercise price under such Existing Warrants and/or number of Shares received upon
exercise of such Existing Warrants as a result of such action (and, if the Board determines not to make any adjustment under the Existing Warrants as a result of such action, no adjustment shall be made under this Warrant), or (ii) if none of
the Existing Warrants is then outstanding, or if each holder of any Existing Warrant then outstanding has waived its right to any adjustment as a result of such action, 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.

  

	 	(H)	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 e-mail and by mail, first class postage prepaid, to each Warrantholder at the address appearing in the Company’s
records. 

  

	 	(I)	 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(H), 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

  
 12 

	 	
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. 

  

	 	(J)	No Impairment. The Company will not, by amendment of its Amended and Restated Articles of Incorporation 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 Warrant and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Warrantholder. 

 

	 	(K)	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. 

 

	 	(L)	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. Within 30 calendar days following the occurrence of a Preliminary Control Event, the Warrantholder may deliver a written notice to the Company, electing
to 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 in cash due only upon the occurrence of the Change in Control and on the date of the
occurrence of the Change of Control and simultaneous therewith and with surrender by the Warrantholder of such Warrant, subject to the mechanics described in the last paragraph of Exhibit A. If the Warrantholder does not elect to have the Company
purchase any 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 subject to the outstanding portion of such Warrant. 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. 

  

	 	(A)	 If any determination of Market Price or fair market value is to be made hereunder, and, at such time, a similar determination of “Market Price” or
“fair market value” is made under any Existing Warrant then outstanding, the determination of Market Price or fair market 

  
 13 

	 	
value, as the case may be, hereunder shall be the same as the final determination made with respect to the “Market Price” or “fair market value,” as the case may be, under
such Existing Warrant. Upon such final determination under such Existing Warrant, the Company shall promptly deliver notice thereof to the Warrantholder. 

  

	 	(B)	If any determination of Market Price or fair market value is to be made hereunder but no similar determination of “Market Price” or “fair market value” is
made under any Existing Warrant then outstanding, or if no Existing Warrant is outstanding at such time, the provisions in this Section 15(B) shall apply. 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(B). 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, 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.

  
 14 

	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 facsimile
transmission or e-mail with evidence of receipt and with, in the case of e-mail, a copy mailed on the same day in the manner provided in clause (B) or (C), (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 (or at such other address and/or facsimile number and/or e-mail address and/or to the attention of such other person as the Company or the Warrantholder may designate by ten-day
advance written notice): 

  

	 	(1)	if to the Company: 

  

	
	MBIA Inc.
	113 King Street
	Armonk, New York 10504
	Attention: Ram Wertheim, General Counsel
	Facsimile: (914) 765-3919
	E-mail: Ram.Wertheim@mbia.com
	
	with a copy to:
	
	Debevoise & Plimpton LLP
	919 Third Avenue
	New York, New York 10022
	Attention: Andrew L. Bab
	 Steven J. Slutzky

	Facsimile: (212) 919-6836
	E-mail: albab@debevoise.com
	 sjslutzky@debevoise.com

  

	 	(2)	if to the Warrantholder, at the address for the Warrantholder set forth in the registry maintained by the Company pursuant to Section 9. 

 

	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 Amended and 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 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by a duly authorized officer.

 Dated: August 5, 2013 
  

			
	MBIA INC.
		
	By:	 	 /s/ William C. Fallon

	Name:	 	William C. Fallon
	Title:	 	President and Chief Operating Officer

  

					
	Attest:
		
	By:	 	 /s/ Andrew Hughes

	Name:	 	Andrew Hughes
	Title:	 	Assistant Vice President and Assistant Secretary

  

					
	Acknowledged and Agreed:
	
	WARBURG PINCUS PRIVATE EQUITY X, L.P.
		
	By:	 	 /s/ David Coulter

		 	Name:	 	David Coulter
		 	Title:	 	Managing Director

 [Signature Page to Warrant] 

 [Form Of Notice Of Exercise] 

Date:                      

 

	TO:	MBIA Inc. 

  

	RE:	Election to Subscribe for and Purchase Common Stock 

The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby agrees to subscribe for and purchase the number of shares of
the Common Stock set forth below covered by such Warrant. The undersigned, in accordance with Section 3 of the Warrant, hereby agrees to pay the aggregate Exercise Price for such shares of Common Stock in the manner set forth in the Warrant. A
new warrant evidencing the remaining shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased, if any, should be issued in the name set forth below. 

 

					
	Number of Shares of Common Stock:	 	  
	 	

  

					
	Name and Address of Person to be	 	
	Issued New Warrant:	 	  
	 	
		 	  
	 	
		 	  
	 	
		 	  
	 	

  

			
	Holder:	 	  

 
			
		
	By:	 	  

 
			
	Name:	 	  

 
			
	Title:	 	  

 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

 Preliminary Control Event 
 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

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