Objection Deadline: July 5, 2011 at 4:00 p.m. (EST)

ny-981266

MORRISON & FOERSTER LLP 1290 Avenue of the Americas New York, New York 10104 Telephone: (212) 468-8000 Facsimile: (212) 468-7900 Anthony Princi Gary S. Lee Attorneys for the Official Committee of Unsecured Creditors of Ambac Financial Group, Inc. UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK

) In re ) Chapter 11 ) AMBAC FINANCIAL GROUP, INC., ) Case No. 10-15973 (SCC) )

)

) Debtor. ) )

MONTHLY APPLICATION OF MORRISON & FOERSTER LLP FOR

COMPENSATION FOR SERVICES AND REIMBURSEMENT OF EXPENSES AS ATTORNEYS FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS

FOR THE PERIOD FROM MAY 1, 2011 THROUGH MAY 31, 2011

Name of Applicant: Morrison & Foerster LLP Authorized to Provide Professional Services to: The Official Committee of Unsecured

Creditors of Ambac Financial Group, Inc. Date of Retention: Order entered on December 21, 2010 retaining

Morrison & Foerster LLP, nunc pro tunc to November 17, 2010

Period for which compensation and reimbursement is sought:

May 1, 2011 through May 31, 2011

Amount of Compensation sought as actual, reasonable and necessary:

$311,692.00 (80% of $389,615.00)

Amount of Expense Reimbursement sought as actual, reasonable and necessary:

$4,311.52

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This is Morrison & Foerster’s sixth monthly application for compensation (the

“Application”) filed pursuant to the Order Pursuant to Sections 105(a) and 331 of the

Bankruptcy Code, Bankruptcy Rule 2016, and Local Rule 2016-1 Establishing Procedures for

Interim Monthly Compensation and Reimbursement of Expenses of Professionals [Docket No.

81] (the “Interim Compensation Order”). Morrison & Foerster requests: (a) payment of

compensation in the amount of $311,692.00 (which is 80% of $389,615.00) on account of actual

and necessary professional services rendered to the Official Committee of Unsecured Creditors

to the above-captioned debtor (the “Committee”) by Morrison & Foerster; and (b)

reimbursement of actual and necessary costs and expenses in the amount of $4,311.52 incurred

by Morrison & Foerster during the period May 1, 2011 through May 31, 2011 (the “Fee

Period”). A detailed summary of the fees and expenses incurred by the Committee is attached

hereto as Exhibit A.

The Morrison & Foerster attorneys and paraprofessionals who rendered services in the

above-captioned chapter 11 case (the “Chapter 11 Case”) during the Fee Period are:

Name of Professional Individual

Department and Licensure Hourly Billing Rate

Total Hours Billed

Total Compensation

Partners Thomas A. Humphreys Department: Tax

Licensure: CA (1977) NY (1980)

$985 67.6 $66,586.00

Gary S. Lee Department: Bankruptcy Licensure: NY (1991)

$950 10.7 $10,165.00

Jamie A. Levitt Department: Litigation Licensure: NJ (1992) NY (1993)

$825 .5 $412.50

Anthony Princi Department: Bankruptcy Licensure: NY (1983) FL (1985)

$950 108.7 $103,265.00

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Associates and Of Counsel Edward L. Froelich Department: Tax

Licensure: MD (1994) DC (1997)

$725 63.3 $45,892.50

James E. Merritt Department: Tax Licensure: DC (1962) CA (1967)

$950 2.0 $1,900.00

Irwin M. Slomka Department: Tax Licensure: NY (1980)

$725 3.4 $2,465.00

Renee L. Freimuth Department: Bankruptcy Licensure: NY (2005) CT (2004)

$640 74.1 $47,424.00

Jared B. Goldberger Department: Tax Licensure: NY (2009) NJ (2008)

$430 28.3 $12,169.00

Stephen P. Koshgerian Department: Bankruptcy Licensure: NY (2010)

$380 31.6 $12,008.00

Stacy L. Molison Department: Bankruptcy Licensure: NY (2009)

$500 42.4 $21,200.00

Remmelt A. Reigersman Department: Tax Licensure: NY (2007)

$640 43.1 $27,584.00

Shane M. Shelley Department: Tax Licensure: CA (2005)

$595 61.2 $36,414.00

Paraprofessionals Laura Guido Department: Bankruptcy $260 6.0 $1,560.00Douglas Keeton Department: Bankruptcy $225 8.2 $1,845.00Professionals Totals Blended Rate Total

Hours Billed Total

CompensationTotal Fees Incurred $390,890.00

Client Accommodation (Non-Working Travel) $1,275.00

Total After Client Accommodation $706.98 551.1 $389,615.00

Compensation by Matter

Task Code

Matter Description Total Billed Hours

Total Compensation

003 Business Operations and Advice 3.40 $2,966.00

004 Case Administration 4.20 $952.00

005 Claims Administration and Objections 15.70 $13,032.50

007 Fee / Employment Applications 5.00 $2,119.50

010 Meetings of Creditors 24.70 $17,637.50

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011 Plan and Disclosure Statement 107.70 $67,121.50

012 Relief from Stay Proceedings 12.20 $8,521.00

013 Hearings 3.70 $2,740.00

014 Tax Issues 298.20 $222,543.50

016 Communication with Creditors 20.90 $18,054.50

020 Non-Working Travel 3.50 $2,550.00

021 OCI / AAC Rehabilitation 13.50 $6,115.00

022 OCI Discussions and Term Sheet 34.00 $23,936.00

023 Rule 2004 and Other Document Requests 4.40 $2,601.00

Total Incurred 551.1 $390,890.00

Client Accommodation (Non-Working Travel) $1,275.00

Total After Client Accommodation $389,615.00

Expense Summary

Category of Expenses Amount

Photocopies $82.60

Long Distance Telephone $86.53

Travel $73.06

On-line Research - (LEXIS, WESTLAW, OTHER DATABASE) $3,910.45

Messenger Service $33.54

Meals $125.34

Total $4,311.52

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Notice

Morrison & Foerster provided notice of this Application to: (a) the Debtor; (b) counsel to

the Debtor; and (c) the Office of the United States Trustee for the Southern District of New York

(each as defined in the Interim Compensation Order). In light of the nature of the relief

requested, Morrison & Foerster respectfully submits that no further notice is necessary.

WHEREFORE, pursuant to the Interim Compensation Order, Morrison & Foerster

requests: (a) payment of compensation in the amount of $311,692.00 (which is 80% of

$389,615.00) on account of actual and necessary professional services rendered to the

Committee by Morrison & Foerster; and (b) reimbursement of actual and necessary costs and

expenses in the amount of $4,311.52.

Dated: June 21, 2011 New York, New York

Respectfully submitted,

/s/ Anthony Princi Anthony Princi Gary S. Lee MORRISON & FOERSTER LLP 1290 Avenue of the Americas New York, New York 10104 Telephone: (212) 468-8000 Facsimile: (212) 468-7900

Attorneys for the Official Committee of Unsecured Creditors of Ambac Financial Group, Inc.

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EXHIBIT A