Document:

Exhibit 10.01

        

         

        

        Plant Lease Contract

         

      

      
        (Contract No.: SWH (2021) No.          )

         

        

        

      

      Party A (Lessor): Shanghai Shengyu Culture Development Co., Ltd.

       

      Address: No.185 Zhangjiang Road, Pudong New Area, Shanghai

       

      Post Code: 201203

       

      Legal Representative: MINGFU LU

       

      Contact: MIN MIAO    Tel.: [***]

       

       

      

      Party B (Lessee): ACM Research (Shanghai), Inc.

       

      Address: Building 4, No.1690 Cailun Road, Zhangjiang, Pudong, Shanghai

       

      Post Code: 201203

       

      Legal Representative: HUI WANG

       

      Contact: JIAN WANG   Tel: [***]

       

      
        In accordance with the Contract Law of the People’s Republic of China, the Regulations of Shanghai Municipality on House Leasing and other laws and regulations, Party A and Party B, on the basis of equality,
          voluntariness, fairness and good faith, through negotiation, hereby enter into this Contract with respect to the lease of the plant, which is legally tenantable, to Party B by Party A.

         

        Article 1 Overview of the Plant on Lease

         

        1.1 The plant leased by Party A to Party B is located in the whole Building 4, No. 365 Chuanhong Road, Shanghai (the “Plant”). The Plant has a total rental floor area of 9,854.76 square meters
          (subject to the area approved in the certificate of real estate ownership), of which the area of the first floor is 4,734.3 square meters, and the area of the second floor is 5,120.46 square meters. The corresponding plans are shown in Annex II
          hereto.

         

        1.2 Party A, as the owner of the Plant, establishes a leasing relationship with Party B. Before execution of this Contract, Party A has presented to Party B the Certificate of Land Use Right and the Certificate of
          Real Estate Ownership concerning the Plant (see Annex I hereto for the said Certificate of Real Estate Ownership No. [HFDPZ (2011)

         

      

      
        1

        
          

      

      
        No. 068242], and has informed Party B that the land corresponding to the Plant has been mortgaged while providing the Commitment on Mortgage.

         

        Article 2 Use Nature and Production Purpose of the Leased Plant

         

        2.1 The Plant shall, in nature, be used for production as an industrial plant.

         

        2.2 Party A has checked the Business License and corresponding production/operation qualification certificates of Party B. Party B undertakes to lease the Plant from Party A for semiconductor equipment
            assembly, storage and office work in strict accordance with the approved production and business scope as well as the production and use nature of the Plant.

         

        2.3 Party B guarantees that during the lease term, without the written consent of Party A and the approval of safety production supervision, fire control and other relevant
            authorities according to the regulations, it will not change the production and use nature of the Plant for product production and business activities other than those specified in the preceding paragraph.

         

        Article 3 Delivery Date and Lease Term

         

        3.1 Both Parties agree that Party A shall deliver to Party B the second floor of the Plant before February 1, 2021 and the first floor thereof before March 1, 2021. The rent-free period shall last
          from March 1, 2021 to April 10, 2021 for the first floor, and from February 1, 2021 to March 31, 2021 for the second floor. During the rent-free period, the water, electricity, gas and other public utilities
            expenses and property management fees, etc., incurred in the use of the Plant shall be for the account of Party B. On this regard, the property management fees shall be payable from March 1, 2021 as to the first floor, and from February 1,
          2021 as to the second floor. The lease term shall commence from February 1, 2021 and end on January 15, 2023.

         

        3.2 Upon expiration of the lease term, Party B shall re-deliver the Plant as scheduled. Party B shall, if it needs to renew the lease, submit a written request for renewal to Party A three months before the
          expiration of the lease term. With the consent of Party A, both Parties shall enter into a separate lease agreement on the renewal. Party A agrees to fix the renewal rent of the Plant after re-negotiation according to the market price, and that
          Party B has the priority to renew the lease under the same lease conditions.

         

        Article 4 Rent, Payment Method and Time Limit

         

        4.1 Both Parties agree that the rent of the Plant shall be RMB1.5 per square meter per day. Accordingly, the monthly rent including tax shall be RMB449,623 (in words: Renminbi Four Hundred and
          Forty Nine Thousand Six Hundred and Twenty Three only), on the basis of 365 days a year.

         

      

      
        2

        
          

      

      
        Party A shall, within 3 days after receiving the rent of the Plant, issue the rent-related invoice (in form of special VAT invoice) to Party B.

         

        4.2 During the lease term, the rent shall be paid on a three-month period basis. Both Parties agree that Party B is not required to pay any rent to Party A during the rent-free period.

         

        Within 10 working days upon execution hereof, Party B shall pay Party A the “deposit” (as defined in Article 5) and the property management fees (as defined in the “Supplementary Agreement” and
          “Annex III”). From March 16, 2021, Party B shall pay Party A the rent of the next period on schedule. The first-period rent shall be RMB1,277,854 (in words: Renminbi One Million Two Hundred and Seventy Seven Thousand Eight Hundred and Fifty Four
          only). Starting from the second period, the rent for each period comprising three months shall total to RMB1,348,869 (in words: Renminbi One Million Three Hundred and Forty Eight Thousand Eight Hundred and Sixty Nine only). Party B
          shall, 10 days before the expiration of the previous period, pay Party A the rent for the next period in a lump sum, or shall, in case of delay in the payment, be subject to a late fee at 0.5% of the then-current daily rent for each day of delay.
          For the schedule and amount of rent payment, please refer to Annex III “Details of Rent Payment”.

         

        4.3 Party B shall remit the rent to the following bank account of Party A by check or transfer:

         

      

      
        Account Name: [***]

         

        Opening Bank: [***]

         

        Bank Account No.: [***]

         

      

      
        Article 5 Deposit and Other Expenses

         

        5.1 Both Parties agree that Party B shall, within five working days after the execution hereof, pay Party A RMB899,246 (in words: Renminbi Eight Hundred and Ninety Nine Thousand Two
            Hundred and Forty Six only) as the deposit hereunder. Where the rent grows, Party B shall pay additional deposit to Party A.

         

        5.2 During the lease term, the water, electricity, gas and other public utilities expenses and property management fees incurred in using the Plant shall be borne by Party B, expenses
          other than which shall be borne by Party A.

         

        5.3 During the lease term, Party B shall go through the relevant EIA and fire control procedures on its own at its own expense and risk, for which Party A shall provide necessary assistance.

         

      

      
        3

        
          

      

      
        5.4 During the lease term, the fire alarm system of the area leased by Party B shall be connected to the central control system of the park, with the central control system to  be monitored by
          the property management company in accordance with laws and regulations. In case of an alarm, both Parties shall take emergency measures timely.

         

        5.5 Party B shall, if the fire alarm point is changed due to its reasonable use and decoration, cooperate to complete the modification of central control procedure free of charge.

         

        Article 6 Requirements for Use of Plant

         

        6.1 During the lease term, Party B shall, whenever it finds any damage or failure of the Plant and its ancillary facilities, or any damage caused by the fault of a third party, promptly notify
          Party A for the latter to make repairs. Party A shall, within five days upon receipt of the notice from Party B, repair the same and bear the expenses therefor. In case of failure to repair within the time limit, Party B may proceed with
          the repair work on behalf of Party A at Party A’s expense.

         

        6.2 During the lease term, Party B shall reasonably use and take good care of the Plant and its ancillary facilities. In case of damage or failure of the Plant and its ancillary facilities due
          to improper or unreasonable use by Party B, Party B shall be responsible for the repair. If Party B refuses to repair, Party A may proceed with the repair work on behalf of Party B at Party B’s expense.

         

        6.3 During the lease term, Party A shall ensure that the Plant together with the corresponding facilities and equipment are in normal usable and safe condition. Party A shall give Party B a
          prior five-day notice in case of a plan to inspect the Plant to fulfill its safety management duties, in which Party B shall cooperate, provided, however, that the inspection shall not affect Party B’s normal business activities. Party A shall
          have the right to inform Party B in writing and order Party B to make rectifications whenever any potential safety hazard is found on the part of Party B.

         

        6.4 Party B shall, where it needs to add special equipment, carry out further decoration, change technical process or transform relevant facilities and equipment of Party A in response to its
          business operation demand, obtain the prior written consent of Party A, the consent of which shall not be withheld or delayed by Party A without reason or unreasonably. If any of such activities is required to be submitted to relevant authorities
          for approval, Party B shall be responsible for handling relevant approval procedures at its own expense, while Party A shall provide necessary cooperation and assistance therefor.

         

        6.5 Party B shall operate in accordance with the law and shall not store inflammable, explosive, toxic substances and other pollutants in the Plant. During the lease term, Party B shall be
          responsible for the internal security work such as fire prevention, explosion-proof and anti-theft in connection with its relevant goods.

         

      

      
        4

        
          

      

      
        6.6 When the lease relationship is terminated, the deposit to Party A shall be used for offsetting the expenses due from Party B as agreed herein, with the residual amount to be refunded to
          Party B without interest within ten working days after all the procedures for lease withdrawal are completed.

         

        Article 7 Status of the Plant at the Time of Re-delivery

         

        7.1 Except where Party A agrees with Party B to renew the lease, Party B shall re-deliver the Plant along with relevant facilities and equipment within ten days after the expiration of
          the lease term hereof. If the re-delivery is delayed without Party A’s consent, Party B shall pay Party A a usage fee during the occupation period equaling to twice the daily rent applicable to the last period of the lease term for each day of
          delay.

         

        7.2 Party B shall, after the expiration of the lease term or when the lease is withdrawn ahead of schedule, re-deliver the Plant as well as relevant facilities and equipment, which shall be in
          a state corresponding to post-normal use. At the time of re-delivery, Party A shall carry out acceptance inspection according to Annex IV hereto, and both Parties shall settle the relevant expenses to each other.

         

        Article 8 Sublease and Change of Lease Relationship

         

        8.1 During the lease term, Party B shall obtain the prior written consent of Party A before subletting part or all of the Plant to others. Party B shall, in case of subletting the Plant, enter
          into a written sublease contract with the sublessee as required.

         

        8.2 Any transfer by Party B of the lease right on the Plant to a third party during the lease term shall be subject to the written consent of Party A. The new lessee of the Plant with the lease
          right shall enter into an agreement on contractual party change (covering the deposit change procedure) with Party A and Party B, for the purpose of continuing the performance hereof. The lease contract between Party A and Party B shall still be
          valid before the agreement on contractual party change is duly signed.

         

        8.3 During the lease term, Party A shall, insofar as it needs to sell the Plant, notify Party B three months in advance. Party B shall have the right of first refusal under the same
          conditions. Where Party B waives the right of first refusal, Party A shall make it clear the lease situation of the Plant to the third-party buyer when selling the same, and shall procure and ensure that the new owner of the Plant agrees to
          perform the obligations of the lessor hereunder.

         

        Article 9 Termination of Contract

         

        9.1 Party A and Party B agree that this Contract shall be terminated under any of the following circumstances during the lease term, for which neither Party shall be liable to the other Party:

         

        (1) The right to use the land within the area occupied by the Plant is recovered in advance according to law.

         

      

      
        5

        
          

      

      
        (2) The Plant is expropriated according to law for the public interest.

         

        (3) The Plant is listed in the scope of house demolition permission according to law for the need of municipal construction.

         

        (4) The Plant is identified as a dangerous plant or is damaged or lost due to force majeure during the lease term.

         

        (5)  Both Parties agree to terminate this Contract after negotiation.

         

        9.2 Both Parties agree that a Party may terminate this Contract by giving a written notice to the other Party under any of the following circumstances. The breaching Party shall pay liquidated
          damages to the other Party at a rate equaling to three times of the then-current monthly rent, and shall, to the extent that the liquidated damages paid by it are insufficient to cover the actual losses suffered by the other Party, make
          up for the difference between the actual losses and the liquidated damages to the other Party as well.

         

        (1)  Party A fails to deliver all the Plant along with relevant facilities and equipment on schedule, and still fails to deliver them within ten days after being demanded by Party B.

         

        (2) The Plant and its facilities and equipment delivered by Party A do not conform to the provisions hereof, resulting in the failure to realize the purpose of lease hereunder, which has not
          been corrected within [10] days after Party B’s request.

         

        (3)  Party A having found hidden dangers against production safety on the part of Party B informs Party B in writing for rectification within a reasonable period of time, but Party B fails to
          so rectify or refuses to do so within the time limit.

         

        (4)  Without the written consent of Party A and the approval of relevant authorities, Party B changes the operation and use nature of the Plant for business activities other than those
          specified in Article 2.1 hereof.

         

        (5)  Party B adds or transforms special equipment, or produces, operates, transports, stores or uses dangerous goods or disposes abandoned hazardous chemicals without the written consent of
          Party A and the approval of safety production supervision, fire control and other relevant authorities.

         

        (6)  Without the written consent of Party A, Party B sublets the Plant or exchanges the lease right thereon with others.

         

        (7)  Party B has delayed in paying the rent for more than one month.

         

      

      
        6

        
          

      

      
        Article 10 Special Provisions on Breach of Contract

         

        10.1 In the event Party A has mortgaged the land of the Plant or sold the Plant to a third party rather than Party B during the lease term, thus affecting Party B’s continued leasing operation
          at the address of the Plant and causing losses to Party B, Party A shall pay Party B liquidated damages at a rate equaling to three times of the then-current monthly rent. If the liquidated damages so paid are insufficient to cover the
          losses of Party B, Party A shall also be responsible for making up for the difference between the actual losses and the liquidated damages to Party B.

         

        10.2 Party A shall, to the extent it cancels this Contract without authorization during the lease term and takes back the Plant ahead of schedule under circumstances other than those specified
          herein, pay Party B liquidated damages at a rate equaling to three times of the then-current monthly rent. If the liquidated damages so paid are insufficient to cover the losses of Party B, Party A shall also be responsible for making up
          for the difference between the actual losses and the liquidated damages to Party B.

         

        10.3 During the lease term, if Party A fails to perform the repair and maintenance responsibilities hereunder timely in accordance with Article 6 hereof, resulting in damage to the Plant
          structure and relevant facilities and equipment, thereby Party B fails to operate normally or incurs losses from business suspension, Party A shall be liable for compensation.

         

        10.4 In case Party B, without the written consent of Party A or beyond the scope and requirements consented by Party A, changes the building structure of the Plant, carries out decoration works
          such as power lines, or changes the technical process or production facilities in violation of relevant technical standards and fire safety regulations, Party A shall be entitled to require Party B to restore the Plant and relevant facilities and
          equipment to their original state and compensate Party A for the losses actually incurred therefrom.

         

        10.5 Party B shall, if it withdraws the lease without authorization before expiration of the lease term except as stipulated herein, pay Party A liquidated damages at a rate equaling to three
          times of the then-current monthly rent. Insofar as the liquidated damages are insufficient to cover the losses of Party A, Party B shall be responsible for making up for the shortfall as well. Party A can deduct the liquidated damages from the
          deposit for lease. If the deposit is insufficient for deduction, the difference shall be paid separately by Party B.

         

        Article 11 Dispute Resolution

         

        11.1 This Contract shall be governed by the laws and regulations of the People’s Republic of China.

         

        11.2 Matters not covered herein can be specified by both Parties in separate agreements to be entered into through negotiation. The supplementary agreements and annexes hereto shall be an
          integral part hereof having the same legal effect herewith.

         

      

      
        7

        
          

      

      
        11.3 Any dispute between both Parties during the performance hereof shall be settled through negotiation; if the negotiation fails, both Parties agree to have the dispute resolved by the 2nd  mean as follows:

         

        (1) Referring the dispute to Shanghai Arbitration Commission for arbitration;

         

        (2) Submitting the dispute to the People’s Court of Pudong New Area for litigation according to law.

         

        11.4 This Contract shall come into force after being signed and sealed by both Parties.

         

        11.5 This Contract together with its annexes shall be made in two originals, with Party A and Party B each holding one original, and each original having the same legal effect.

         

      

      	Party A:	
              Party B:

            
	 	 
	Signature (Seal):	Signature (Seal):
	 	 
	ID No.:	ID No.:
	 	 
	Contact Information:	Contact Information:
	 	 
	
              Date:

            	
              Date:

            

      
        

        

      

      
        8

        
          

      

      
        Supplementary Agreement

         

        1. The property management fees for the Plant leased to Party B shall be calculated at a rate of RMB2.1 per square meter per month, with the corresponding monthly property management fees
          therefor being RMB20,695. Party B shall pay the property management fees to Shanghai Renlian Real Estate Management Co., Ltd. For details, please refer to the property management convention.

         

        2. During the lease term, Party A agrees to provide Party B with [20] parking spaces free of charge. If Party B needs to rent additional parking spaces, it can apply to the property management
          company for the latter to arrange the allocation uniformly. The rent of the above-ground parking spaces shall be RMB50 per month per vehicle, and that of the under-ground parking spaces shall be RMB[100] per month per vehicle (if applicable).
          Party A shall, before the 10th day of each month, pay the property management company the rent for the free-of-charge parking spaces provided to Party B, while Party B shall, before the 10th day of each month, pay the property management company
          the rent for the additional parking spaces. In case of failure to make the said payment within the time limit, the property management company may sublet such parking spaces. Regarding the above-mentioned rent payable by Party A to the property
          management company, should Party A fail to effect the payment on time, Party B may make the payment for Party A and recover the same from Party A or deduct it accordingly from the rent for the next period. Party A shall ensure that the parking
          spaces around the housing area leased by Party B, which Party B shall be entitled to the priority of leasing, are preferentially arranged to Party B. Consultation shall be made with Party B before the property management company leases out the
          corresponding parking spaces.

         

        3. The use of goods-related transport corridors, unloading areas and public spaces, among others, and the establishment of external logo location shall be subject to the relevant rules
          formulated by Shanghai Renlian Real Estate Management Co., Ltd.

         

        4. Party B shall, where it needs to add other temporary business facilities, give a prior written notice to Party A, and shall obtain the written consent of Party A before it can proceed with
          the same. In order to ensure the image of the park, Party B shall not hang air conditioning, electrical appliances, light box advertising and other ancillary facilities on the external wall of the main road of the Plant, provided that Party B is
          allowed to so hang the company name or logo after confirming the hanging scheme with Party A, which confirmation shall not be withheld by Party A without reason.

         

        5. Party A shall provide Party B with independent water and electricity meters, and Party B shall pay the corresponding fees according to the amount recorded in the meters every month. The
          standard power distributed to the subject property in the park is 400KVA, and the relevant expenses incurred for the part beyond the standard power distribution in the park shall be borne by Party B.

         

      

      
        9

        
          

      

      
        6. Party B shall, in case of a need to install indoor water supply and drainage devices and carry out interior decorations, inform Party A of the decoration scheme and relevant pipeline
          drawings in advance in writing and obtain Party A’s consent before construction.

         

        7. The property management company shall properly coordinate with the water supply department to enable the around-the-clock supply of required tap water to the site of Party B. The property
          management company shall be responsible for installing the main pipe for water supply and the water meter to the position designed by Party A, and undertake the corresponding works at its expense, after which Party B shall undertake the
          arrangement works and bear the costs therefor. In case of water supply failure (whether it is attributable to Party A or the property management company or the water supply department) for more than [24] hours, Party A shall (or procure the
          property management company to) take such temporary water supply measures as necessary to ensure to meet the normal water demand of Party B.

         

      

      
        8. Party A agrees with Party B to install large outdoor air conditioning units, and shall, after Party B issues relevant drawings, actively cooperate with and assist Party B in the placement of
          such units.

         

      

       

      

      Party A:

       

      Legal Representative/Authorized Agent (Signature):

       

      Party B:

       

      Legal Representative/Authorized Agent (Signature):

       

      Executed on: February 1, 2021

       

      
        10

        
          

      

      
      
        Annex I Certificate of Real Estate Ownership

          

        

      

      
        Annex II: Floor Plans

         
          The above annexes have been omitted pursuant to Item 601(a)(5) of Regulation S-K.

           

          

        

      

      
        11

        
          

      

      
        Annex III Details of Rent Payment

         

        The rent shall be paid to Party A i.e. Shanghai Shengyu Culture Development Co., Ltd.;

         

        The property management fees shall be paid to Shanghai Renlian Real Estate Management Co., Ltd.;

         

      

      	
              Payment Schedule

            	
              Deposit

            	
              Rent

            	
              Subtotal

              (Deposit + Rent)

            	
              Property Management Fees

            	
              Remarks

            
	
              Initial payment

              (before March 15, 2021)

            	
              899,246

            	
              /

            	
              899,246

            	
              34,717

            	
              Deposit + 2 months’ property fees (1 month and 10 days for the first floor; 2 months for the second floor;)

              deposit paid: 404,943;

              property management fees paid: 21,506;

            
	
              Before March 20, 2021

            	
              /

            	
              1,277,854

            	
              1,277,854

            	
              58,816

            	
              April to June 2021 (RMB71,015 per day, after deducting the 10 days’ rent-free period for the first floor)

            
	
              Before June 20, 2021

            	
              /

            	
              1,348,869

            	
              1,348,869

            	
              62,085

            	
              July to September 2021

            
	
              Before September 20, 2021

            	
              /

            	
              1,348,869

            	
              1,348,869

            	
              62,085

            	
              October to December 2021

            
	
              Before December 20, 2021

            	
              /

            	
              1,348,869

            	
              1,348,869

            	
              62,085

            	
              January to March 2022

            
	
              Before March 20, 2022

            	
              /

            	
              1,348,869

            	
              1,348,869

            	
              62,085

            	
              April to June 2022

            
	
              Before June 20, 2022

            	
              /

            	
              1,348,869

            	
              1,348,869

            	
              62,085

            	
              July to September 2022

            
	
              Before September 20, 2022

            	
              /

            	
              1,348,869+221,732=1,570,601

            	
              1,348,869

            	
              62,085+10,206=72,291

            	
              October 2022 to January 15, 2023

              (15 days for January 2023)

            

       

      

      
        12

        
          

      

      Annex IV

       

      Overview of Existing Decorations, Ancillary Facilities and Equipment

       
        

      
        

        

      

      Floor: cement floor

       

      Inner wall: brick structure with tie column, cement mortar painting

       

      External wall: brick structure with tie column, cement mortar painting

       

      Ceiling and lighting: lighting lamp

       

      Fire control: fire hydrant and smoke sensing system

       

      Any other decoration-related demands in response to special operations shall be negotiated by both Parties and confirmed by Party A, with the corresponding expenses to be borne by Party B.

       

      Equipment and Facilities

       

      Air conditioning: Party B shall be responsible for the installation and bear the relevant expenses

       

      Power supply: The property management company shall properly coordinate with the power supply department in enabling the around-the-clock supply of lighting and power to Party B as required for its business (except for the
          maintenance and troubleshooting to be conducted by the power supply department in the place where the Plant is located). In case of power supply failure (whether it is attributable to Party A or the property management company or the power supply
          department) for more than [24] hours, Party A shall (or procure the property management company to) take such temporary power supply measures as necessary to ensure to meet the normal power demand of Party B.

       

      Fire control, alarm and spray system: Party A shall provide fire control system facilities required in the specifications. Party B shall arrange the design drawings of fire control, alarm and spray terminals by itself and
          report them to the local fire department. After approval, the construction shall be carried out by the professional fire control company designated by the property management company. Party B shall be responsible for the materials and bear the
          installation costs of the above terminal facilities.

       

      Telephone line and network line: Party B shall be responsible for the design, construction and installation of the work from each household to the weak case and the subsequent work, and shall report the same to relevant
          departments by itself.

       

      
        13

        
          

      

      Water supply: the property management company shall supply tap water as required around the clock to the site, be responsible for installing the main pipe for water supply and the water
            meter to the position designed by Party A, and undertake the corresponding works at its expense; after which Party B shall undertake the arrangement works and bear the costs therefor.

       

      The pipelines and equipment in the toilet shall meet the requirements of Party B.

       

      
        14

        
          

      

      Annex V

       

      Confirmation on House Delivery

       

      

      
        

      
        

        

      

      Party A and Party B hereby state that Party A has delivered to Party B the second floor of the Plant before February 1, 2021 and the first floor thereof before March 1, 2021. From
        the date of actual delivery, the Plant has been under the control of Party B, both Parties having no need to go through other delivery procedures.

       

      Both parties confirm that the Plant has a floor area of [9,854.76] square meters (the rent, property management fees and other related expenses to be counted hereunder shall be subject to
        the area approved in the certificate of real estate ownership).

       

      Both Parties confirm that the following defects are found on the part of the Plant at the time of delivery:

       

       

      

      [  / ]

       

       

      

      Party A:

       

      Legal Representative/Authorized Agent (Signature):

       

       

      

      Party B:

       

      Legal Representative/Authorized Agent (Signature):

       

      Executed on:

       

       

      

      15Document

Exhibit 10.1
Relative TSR PSU
To Be Used For Executive Officers
As Approved February 2021

Performance-Based Restricted Stock Unit Agreement under
Assured Guaranty Ltd. 2004 Long-Term Incentive Plan
THIS AGREEMENT is effective as of the Grant Date (as defined in Section 1), and is by and between the Participant and Assured Guaranty Ltd. (the “Company”).
WHEREAS, the Company maintains the Assured Guaranty Ltd. 2004 Long-Term Incentive Plan (the “Plan”), and the Participant has been selected by the committee administering the Plan (the “Committee”) to receive a Performance-Based Restricted Stock Unit Award under the Plan; and
NOW, THEREFORE, IT IS AGREED, by and between the Company and the Participant, as follows:
1. Terms of Award.  The following words and phrases used in this Agreement shall have the meanings set forth in this Section 1:
(a)The “Participant” is <Name>.
(b)The “Grant Date” is [   ], 2021.
(c)The number of “Covered Units” granted under this Agreement is <shares> Covered Units.  
(d)The “Delivery Date” with respect to the Covered Units shall be the fourth anniversary of the Grant Date. 
(e)The “Performance Determination Date” is the earlier to occur of (i) December 31, 2023, and (ii) the date of a Change in Control. 
(f)The “Performance Period” is January 1, 2021, through December 31, 2023; provided, however, if a Change in Control occurs on or after the Grant Date but prior to December 31, 2023, the Performance Period shall be the period beginning on January 1, 2021, and ending on the date of the Change in Control.
Other words and phrases used in this Agreement are defined pursuant to Section 23, elsewhere in this Agreement or the Plan.
2. Performance-Based Restricted Stock Unit Award.  This Agreement specifies the terms of the Performance-Based Restricted Stock Unit Award granted to the Participant.  Each Covered Unit represents the right to receive up to two and one-half shares of Stock on the Delivery Date, subject to the terms of this Agreement and the Plan.  

3. Performance Percentage.  As of the Performance Determination Date, the Performance Percentage shall be determined in accordance with the table below based on the Company’s Relative Total Shareholder Return during the Performance Period.  If the Relative Total Shareholder Return in the Performance Period is between percentiles listed on the table below, the Performance Percentage shall be determined using straight line interpolation between the percentiles listed on the table below.  For example, if the Relative Total Shareholder Return determined for the Performance Period is the 40th Percentile, the Performance Percentage shall be 75%.   
									
	Performance Level	Assured’s Relative Total Shareholder Return	% of Units Vesting (the “Performance Percentage”)
	Outstanding	95th Percentile or higher
	250%
	Target	55th Percentile
	100%
	Threshold	25th Percentile
	50%
	< Threshold	Less than 25th Percentile
	0%

Notwithstanding the foregoing, if, during the Performance Period, the Company’s Total Shareholder Return is a negative number, in no event shall the Performance Percentage be greater than 100%. 
Notwithstanding anything herein to the contrary, the Performance Percentage shall be determined by the Committee and certified by the Committee in writing before any shares of Stock are delivered on or after the Delivery Date (or, if earlier, a 457A Delivery Date as defined in Exhibit A); provided, however, that such determination and delivery of shares of Stock shall be made within the period commencing on the Delivery Date (or, if earlier, a 457A Delivery Date) and ending on the later to occur of: (i) the end of the calendar year in which the such date occurs and (ii) the fifteenth day of the third month following such date.  
4. Restricted Period.  Subject to Section 5 below, with respect to all Covered Units, the “Restricted Period” for the Covered Units shall begin on the Grant Date and end on the earlier to occur of (i) the third anniversary of the Grant Date; or (ii) a Vesting Change in Control.  The Committee, in its sole discretion, may accelerate the end of the Restricted Period.
5. Termination of Employment.  Except as otherwise provided in this Section 5, if the Participant’s Date of Termination occurs for any reason prior to the last day of the Restricted Period, all Covered Units shall be immediately forfeited.  
(a)Death or Disability.  If the Participant’s Date of Termination occurs due to the Participant’s death or Disability prior to the last day of the Restricted Period, the Restricted Period shall immediately lapse upon such Date of Termination.
(b)Retirement. If the Participant’s Date of Termination occurs due to a Retirement prior to the last day of the Restricted Period, then, only for purposes of this Section 5, the Participant shall be treated as if his Date of Termination had not occurred prior to the last 

day of the Restricted Period, subject to the Participant not engaging in any Competitive Activity or any Post-Retirement Activity prior to the last day of the Restricted Period and subject to the Participant signing and not revoking a general release and waiver of all claims against the Company as required by Section 7.1 of the Severance Plan.  If such release is not effective within the 60-day period required by Section 7.1 of the Severance Plan or in the event that the Participant engages in a Competitive Activity or a Post-Retirement Activity prior to the last day of the Restricted Period, the Participant shall immediately forfeit all of the Covered Units. 
(c)Qualifying Termination Before a Change in Control.  If the Participant’s Date of Termination occurs due to a Qualifying Termination prior to the last day of the Restricted Period and prior to the date of a Change in Control, then, only for purposes of this Section 5 (and not for purposes of determining the Pro-Rata Fraction), the Participant shall be treated as if his Date of Termination had not occurred prior to the last day of the Restricted Period, subject to the Participant not engaging in any Competitive Activity prior to the last day of the Restricted Period and subject to the Participant signing and not revoking a general release and waiver of all claims against the Company as required by Section 7.1 of the Severance Plan.  If such release is not effective within the 60-day period required by Section 7.1 of the Severance Plan or in the event that the Participant engages in a Competitive Activity prior to the last day of the Restricted Period, the Participant shall immediately forfeit all of the Covered Units.
(d)Qualifying Termination On or After a Change in Control.  If the Participant’s Date of Termination occurs due to a Qualifying Termination prior to the last day of the Restricted Period but on or after the date of a Change in Control that is not a Vesting Change in Control, then, only for purposes of this Section 5 (and not for purposes of determining the Pro-Rata Fraction), the Participant shall be treated as if his Date of Termination had not occurred prior to the last day of the Restricted Period subject to the Participant signing and not revoking a general release and waiver of all claims against the Company as required by Section 7.1 of the Severance Plan.  If such release is not effective within the 60-day period required by Section 7.1 of the Severance Plan, the Participant shall immediately forfeit all of the Covered Units.  
6. Delivery Date.  On the Delivery Date, the Participant shall receive a number of shares of Stock in settlement of his or her Performance-Based Restricted Stock Unit Award. The number of shares of Stock that a Participant shall receive on the Delivery Date shall be determined by multiplying (i) the number of Covered Units (which have not previously been forfeited or cancelled) by (ii) the Performance Percentage determined pursuant to Section 3 above (with such percentage converted to a number by dividing such percentage by 100); provided, however, that (A) if the Participant’s Date of Termination occurred prior to the Delivery Date and prior to a Change in Control due to (x) death, (y) Disability or (z) a Qualifying Termination, then the product of clauses (i) and (ii) shall additionally be multiplied by the Pro-Rata Fraction or (B) if the Participant’s Date of Termination occurred prior to the Delivery Date due to Retirement, then the product of clauses (i) and (ii) shall additionally be multiplied by the Retirement Percentage (with such percentage converted to a number by dividing such percentage 

by 100).  Shares of Stock received by a Participant pursuant to this Section 6 shall be free of restrictions otherwise imposed by this Agreement and the Plan; provided, however, that the shares of Stock shall remain subject to the terms of this Agreement expressly applicable after such Delivery Date (including, without limitation, Section 13).  As of the Delivery Date and settlement of the Performance-Based Restricted Stock Unit Award pursuant to this Section 6, all Covered Units (which have not previously been forfeited or cancelled) shall be cancelled.  
7. Change in Control. In the event of a Change in Control, the Company, or the entity that is the surviving entity or successor to the Company following such transaction, may elect to (a) to continue this Performance-Based Restricted Stock Unit Award subject to the terms of this Agreement and the Plan and subject to such adjustments, if any, by the Committee as permitted by Section 5.2(f) of the Plan; or (b), if the Change in Control also satisfies the definition of “change in control event” as set forth in Treas. Reg. 1.409A-3(i)(5), to terminate this Performance-Based Restricted Stock Unit Award and distribute shares of Stock consistent with Treas. Reg. 1.409A-3(j)(4)(ix)(B).  In the event that the Company or its successor chooses to terminate this award and make a distribution of shares of Stock as provided in clause (b) of the previous sentence (in which case the Change in Control is a Vesting Change in Control), the payment amount attributable to dividends as described in and determined pursuant to Section 11 shall be determined as if the date of the Vesting Change in Control were the Delivery Date and the number of shares of Stock to be delivered pursuant to Section 6 shall be calculated as if the date of such Vesting Change in Control were the Delivery Date and the shares of Stock received by a Participant pursuant to this Section 7 shall be free of restrictions otherwise imposed by this Agreement and the Plan; provided, however, that the shares of Stock shall remain subject to the terms of this Agreement expressly applicable after the Delivery Date (including, without limitation, Section 13).  
8. Section 457A of the Code.  If the Covered Units would otherwise constitute nonqualified deferred compensation subject to Code section 457A and the date on which the Covered Units are no longer treated as subject to a substantial risk of forfeiture for purposes of Code section 457A occurs prior to the Delivery Date or a Vesting Change in Control, the terms of Exhibit A shall apply.
9. Withholding.  All deliveries and distributions of shares of Stock or vesting of Restricted Shares (granted pursuant to Exhibit A) under this Agreement are subject to withholding of all applicable taxes.  At the election of the Participant, and subject to such rules and limitations as may be established by the Committee from time to time, such withholding obligations may be satisfied through the surrender of shares of Stock which the Participant already owns, or to which the Participant is otherwise entitled under the Plan; provided, however, that such shares of Stock may be used to satisfy not more than the maximum individual tax rate for the Participant in applicable jurisdiction for such Participant (based on the applicable rates of the relevant tax authorities (for example, federal, state, and local), including the Participant’s share of payroll or similar taxes, as provided in tax law, regulations, or the authority’s administrative practices, not to exceed the highest statutory rate in that jurisdiction, even if that rate exceeds the highest rate that may be applicable to the specific Participant).

10. Transferability.  Except as otherwise provided by the Committee, the Performance-Based Restricted Stock Unit Award (and Covered Units or Restricted Shares subject to this award) may not be sold, assigned, transferred, pledged, or otherwise encumbered. 
11. Dividends.  To the extent that the Covered Units have not otherwise been forfeited or cancelled prior to the Delivery Date, the Participant will be paid a cash payment on the Delivery Date equal to the number of shares of Stock delivered pursuant to Section 6 multiplied by the total amount of dividend payments made in relation to one share of Stock with respect to record dates occurring during the period between the Grant Date and the Delivery Date.  
12. Voting.  The Participant shall not be a shareholder of record with respect to the Covered Units and shall have no voting rights with respect to the Covered Units during the Restricted Period or prior to the delivery of shares of Stock pursuant to Section 6 or 7.  The Participant shall be a shareholder of record with respect to Restricted Shares granted to the Participant pursuant to Exhibit A.
13. Cancellation and Rescission of Restricted Stock Unit Award.
(a)The Committee may cancel, rescind, suspend, withhold, or otherwise limit or restrict the Performance-Based Restricted Stock Unit Award at any time if the Participant engages in any Competitive Activity or if the Participant engages in any conduct that constitutes Cause or, in the case of a Participant whose Date of Termination has occurred due to Retirement, if the Participant engages in any Post-Retirement Activity. 
(b)Immediately prior to the Delivery Date (or, if earlier, a 457A Delivery Date) and prior to the transfer of the shares of Stock to the Participant, the Participant shall certify, to the extent required by the Committee, in a manner acceptable to the Committee, that the Participant is not engaging and has not engaged in any Competitive Activity and, in the case of a Participant whose Date of Termination has occurred due to Retirement, that the Participant is not engaging and has not engaged in any Post-Retirement Activity.  In the event a Participant has engaged in any Competitive Activity or, if applicable, any Post-Retirement Activity, prior to or during the twelve months after the later to occur of the Delivery Date or the last day of the Restricted Period with respect to any Covered Units (the “Restrictive Covenant Period”), the right to delivery of shares of Stock with respect to such Covered Units (including the delivery or vesting of any Restricted Shares) may be rescinded by the Committee within two years of the end of the Restricted Covenant Period.  In the event of any such rescission, the Participant shall pay to the Company the amount of any gain realized as a result of the prior delivery of shares of Stock applicable to the rescinded Covered Units, in such manner and on such terms and conditions as may be required by the Company, and the Company shall be entitled to set-off against the amount of any such gain any amount owed to the Participant by the Company and/or Subsidiary.
14. Recoupment and Plan Provisions Govern.  

(a)Notwithstanding anything in this Agreement to the contrary, the Participant’s rights with respect to the Performance-Based Restricted Stock Unit Award shall be subject to the Assured Guaranty Ltd. Executive Officer Recoupment Policy as amended and restated on November 3, 2015, and as further amended from time to time.  
(b)Notwithstanding anything in this Agreement to the contrary, but subject to subparagraph (a) of this Section 14 above, this Agreement shall be subject to the terms of the Plan, a copy of which may be obtained by the Participant from the office of the Secretary of the Company; and this Agreement is subject to all interpretations, amendments, rules and regulations promulgated by the Committee from time to time pursuant to the Plan.
15. Heirs and Successors.  Subject to Section 7, this Agreement shall be binding upon, and inure to the benefit of, the Company and its successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets, or otherwise, all or substantially all of the Company’s assets and business.  If any benefits deliverable to the Participant under this Agreement have not been delivered at the time of the Participant’s death, such benefits shall be delivered to the Designated Beneficiary, in accordance with the provisions of this Agreement and the Plan.  The “Designated Beneficiary” shall be the beneficiary or beneficiaries designated by the Participant in a writing filed with the Committee in such form and at such time as the Committee shall require.  If a deceased Participant fails to designate a beneficiary, or if the Designated Beneficiary does not survive the Participant, any rights that would have been exercisable by the Participant and any benefits distributable to the Participant shall be distributed to the legal representative of the estate of the Participant.  If a deceased Participant designates a beneficiary and the Designated Beneficiary survives the Participant but dies before the complete distribution of benefits to the Designated Beneficiary under this Agreement, then any benefits distributable to the Designated Beneficiary shall be distributed to the legal representative of the estate of the Designated Beneficiary.
16. Administration.  The authority to manage and control the operation and administration of this Agreement shall be vested in the Committee, and the Committee shall have all powers with respect to this Agreement as it has with respect to the Plan.  Any interpretation of this Agreement by the Committee and any decision made by it with respect to this Agreement is final and binding on all persons.  The Committee shall have the authority to obtain such information from the Participant (including tax return information) as it determines may be necessary to confirm that the Participant is in compliance with the requirements applicable to Competitive Activity, and if the Participant fails to provide such information, the Committee may, in its discretion, conclude that the Participant is not in compliance with such requirements.
17. Plan Governs.  Notwithstanding anything in this Agreement to the contrary, this Agreement shall be subject to the terms of the Plan, a copy of which may be obtained by the Participant from the office of the Secretary of the Company; and this Agreement is subject to all interpretations, amendments, rules, and regulations promulgated by the Committee from time to time pursuant to the Plan.

18. Not an Employment Contract.  The Performance-Based Restricted Stock Unit Award will not confer on the Participant any right with respect to continuance of employment or other service with the Company or any Subsidiary, nor will it interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate or modify the terms of such Participant’s employment or other service at any time.
19. Notices.  Any written notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax or overnight courier, or by postage-paid first-class mail.  Notices sent by mail shall be deemed received three business days after mailing but in no event later than the date of actual receipt.  Notices shall be directed, if to the Participant, at the Participant’s address indicated by the Company’s records, or if to the Company, at the Company’s principal executive office.
20. Fractional Shares.  In lieu of issuing a fraction of a share, resulting from an adjustment of the Performance-Based Restricted Stock Unit Award pursuant to the Plan or otherwise, the Company will be entitled to pay to the Participant an amount equal to the fair market value of such fractional share.
21. Deemed Acceptance.  If the Participant wishes to decline this Award, the Participant must reject this Agreement prior to the earlier to occur of (i) the last day of the Restricted Period and (ii) the one-year anniversary of the Grant Date (the earlier of such dates referred to as the “Acceptance Date”).  If the Agreement has not been rejected prior to the Acceptance Date, the Participant will be deemed to have automatically accepted this Award and the terms and conditions set forth in this Agreement.
22. Amendment.  This Agreement may be amended in accordance with the provisions of the Plan, and may otherwise be amended by written agreement of the Participant and the Company without the consent of any other person.
23. Definitions.  For purposes of this Agreement, words and phrases shall be defined as follows: 
(a)Accumulated Shares.  The term “Accumulated Shares” means, for a given trading day, the sum of (i) one share and (ii) the cumulative number of shares of the company’s common stock purchasable with dividends declared on the company’s common stock to prior to such date during the Performance Period, assuming same-day reinvestment of such dividends at the closing price of the ex-dividend date.   
(b)Cause.  The term “Cause” is defined in Section 1 of the Severance Plan.
(c)Change in Control.  The term “Change in Control” shall be defined as set forth in the Plan.
(d)Closing Average Share Value.  The term “Closing Average Share Value” means the average Share Value of the forty-day trading period immediately preceding the Performance Determination Date.

(e)Competitive Activity.  The term “Competitive Activity” shall mean (i) the Participant’s engaging in an activity, directly or indirectly, whether as an employee, consultant, partner, principal, agent, distributor, representative, stockholder (except as a less than one percent stockholder of a publicly traded company or a less than five percent stockholder of a privately held company), or otherwise, within the United States, Bermuda, or the Cayman Islands, if such activities involve insurance or reinsurance of United States-based entities or risks that are competitive with the financial guaranty insurance business then being conducted by the Company or any affiliate and which, during the period covered by the Participant’s employment, were conducted by the Company or any affiliate; or (ii) the Participant’s engaging in any activity, directly or indirectly, whether on behalf of himself or herself or any other person or entity (x) to solicit any client and/or customer of the Company or any affiliate or (y) to hire any employee or former employee of the Company or any present or former affiliate of the Company or encourage any employee of the Company or affiliate to leave the employ of the Company or affiliate; or (iii) the Participant’s violation of Section 7.3 of the Severance Plan (relating to confidentiality).
(f)Date of Termination.  A Participant’s “Date of Termination” means, with respect to an employee, the date on which the Participant’s employment with the Company and Subsidiaries terminates for any reason, and with respect to a Director, the date immediately following the last day on which the Participant serves as a Director; provided that a Date of Termination shall not be deemed to occur by reason of a Participant’s transfer of employment between the Company and a Subsidiary or between two Subsidiaries; further provided that a Date of Termination shall not be deemed to occur by reason of a Participant’s cessation of service as a Director if, immediately following such cessation of service, the Participant becomes or continues to be employed by the Company or a Subsidiary, nor by reason of a Participant’s termination of employment with the Company or a Subsidiary if, immediately following such termination of employment, the Participant becomes or continues to be a Director; and further provided that a Participant’s employment shall not be considered terminated while the Participant is on a leave of absence from the Company or a Subsidiary approved by the Participant’s employer.
(g)Director.  The term “Director” means a member of the Board of Directors of Assured Guaranty Ltd., who may or may not be an employee of the Company or a Subsidiary.
(h)Disability.  The Participant shall be considered to have a “Disability” during the period in which the Participant is unable, by reason of a medically determinable physical or mental impairment, to engage in any substantial gainful activity, which condition, in the opinion of a physician selected by the Committee, is expected to have a duration of not less than 120 days.  
(i)Opening Average Share Value.  The term “Opening Average Share Value” means the average Share Value of the forty-day trading period immediately preceding the first day of the Performance Period.

(j)Peer Companies.  The term “Peer Companies” means all companies listed in the Russell Mid-Cap Financial Services Index as of the first day of the Performance Period as adjusted below.  Each Peer Company’s “common stock” shall mean that series of common stock that is publicly traded on a registered U.S. exchange or, in the case of a non-U.S. company, an equivalent non-U.S. exchange.  For purposes of calculating TSR, the value on any given trading day of any Peer Company shares traded on a foreign exchange will be converted to U.S. dollars.  The Peer Companies may be changed as follows:
(i)     In the event of a merger, acquisition, or business combination transaction of a Peer Company with or by another Peer Company, the surviving entity shall remain a Peer Company.
(ii)     In the event of a merger of a Peer Company with an entity that is not a Peer Company, or the acquisition or business combination transaction by or with a Peer Company, or with an entity that is not a Peer Company, in each case where the Peer Company is the surviving entity and remains publicly traded, the surviving entity shall remain a Peer Company.
(iii)     In the event of a merger or acquisition or business combination transaction of a Peer Company by or with an entity that is not a Peer Company or a “going private” transaction involving a Peer Company where the Peer Company is not the surviving entity or is otherwise no longer publicly traded, the company shall no longer be a Peer Company.
(iv)     In the event of a bankruptcy, liquidation or delisting of a Peer Company, such company shall remain a Peer Company.
(v)      In the event of a stock distribution from a Peer Company consisting of the shares of a new publicly-traded company (a “spin-off”), the Peer Company shall remain a Peer Company and the stock distribution shall be treated as a dividend from the Peer Company based on the closing price of the shares of the spun-off company on its first day of trading.  The performance of the shares of the spun-off company shall not thereafter be tracked for purposes of calculating TSR.
(k)Post-Retirement Activity.  The term “Post-Retirement Activity” shall mean the Participant’s provision of significant commercial or business services to any one or more persons or entities, regardless of whether such entity is owned or controlled by the Participant; provided that the Participant’s devotion of reasonable time to the supervision of his personal investments, and activities involving professional, charitable, community, educational, religious and similar types of organizations, speaking engagements, membership on the boards of directors of other organizations, and similar types of activities shall not be considered Post-Retirement Activity, to the extent that the Committee, in its discretion, determines that such activities are consistent with the 

Participant’s Retirement.  At the request of the Participant, the Committee shall determine whether a proposed activity of the Participant will be considered a Post-Retirement Activity for purposes of this Agreement.  Such request shall be accompanied by a description of the proposed activities, and the Participant shall provide such additional information as the Committee may determine is necessary to make the determination.  Such a determination shall be made promptly, but in no event more than 30 days after the written request, together with any additional information requested of the Participant, is delivered to the Committee.
(l)Pro-Rata Fraction.  The term “Pro-Rata Fraction” shall mean a fraction, the numerator of which shall be equal to the number of days between the Grant Date and the Participant’s Date of Termination and the denominator of which shall be 1095.
(m)Qualifying Termination.  The term “Qualifying Termination” is defined in Section 1 of the Severance Plan.  
(n)Relative Total Shareholder Return.  The term “Relative Total Shareholder Return” means the Company’s Total Shareholder Return relative to the Total Shareholder Return of the Peer Companies expressed as a percentile rank.  Relative Total Shareholder Return will be determined by the percentile ranking of each Peer Company (including the Company) from the highest TSR to lowest TSR. The Peer Company ranked highest will be assigned the one hundred percentile (100%) rank and the Peer Company ranked lowest will be assigned a zero percentile (0.0%) rank. Each Peer Company ranked in between would be assigned a percentile equal to (1 minus ((r-1)/(n-1))), where “r” is the ranking of the Company in the list of Peer Companies and “n” is the total number of Peer Companies.  For example, if there were twenty (20) Peer Companies and the Company had the fifth-highest Total Shareholder Return during the Performance Period, then the Relative Total Shareholder Return would equal (1-((5-1)/(20-1))) or .79 or the 79th percentile.  
(o)Retirement.  The term “Retirement” means the occurrence of a Participant’s Date of Termination due to the voluntary termination of employment with the consent of the Committee (as described below) by a Participant who meets the following requirements as of such Date of Termination: (i) the Participant is age 60 or older and (ii) the total of the Participant’s age and years of service equals or exceeds 65.  For purposes of defining “Retirement,” years of service shall be determined in accordance with rules which may be established by the Committee, and shall take into account service with the Company and the Subsidiaries.  If, on or before the date of the initial public offering of stock of the Company, the Participant was employed by the Company or its Subsidiaries, years of service shall also include service with ACE Limited and its subsidiaries occurring prior to such the initial public offering.  For purposes of this Agreement, the Participant’s Date of Termination shall not be considered to be a Retirement unless, prior to such Date of Termination, the Committee approved treating such Participant’s Date of Termination as a Retirement for purposes of this Agreement.  The determination of whether to treat the Participant’s Date of Termination as a Retirement shall be made in the sole discretion of the Committee and such determination shall be final and binding on all persons.  

(p)Retirement Percentage.  The term “Retirement Percentage” means (i) one hundred percent (100%) if the Participant has an approved Retirement and the combination of his or her age and years of service as of such Date of Termination equals or exceeds 85; (ii) seventy-five percent (75%) if the Participant has an approved Retirement and the combination of his or her age and years of service as of such Date of Termination equals or exceeds 75; and (iii) fifty percent (50%) if the Participant has an approved Retirement and the combination of his or her age and years of service as of such Date of Termination equals or exceeds 65, in each case, with service determined as provided in the definition of Retirement above.
(q)Severance Plan.  The term “Severance Plan” shall mean the Assured Guaranty Ltd. Executive Severance Plan.  
(r)Share Value.  The term “Share Value” means, with respect to a given trading day, the closing price of a company’s common stock multiplied by the Accumulated Shares for such trading day. 
(s)Total Shareholder Return.  The term “Total Shareholder Return” means, for the Company and each of the Peer Companies, the company’s total shareholder return, expressed as a percentage, which will be calculated by dividing (i) the Closing Average Share Value by (ii) the Opening Average Share Value and subtracting one from the quotient.
(t)Vesting Change in Control.  The term “Vesting Change in Control” shall mean the date of a Change in Control where this Performance-Based Restricted Stock Unit Award is terminated pursuant to Section 7(b) of this Agreement.  

IN WITNESS WHEREOF, the Participant has executed the Agreement, and the Company has caused this Agreement to be executed in its name and on its behalf, all as of the Grant Date.
        

_________________________ 
Assured Guaranty Ltd.

I hereby agree to all the terms, restrictions and conditions set forth in the Agreement:

_________________________
<Name>
Participant 

EXHIBIT A
SECTION 457A OF THE CODE
    If the Covered Units constitute nonqualified deferred compensation subject to Code section 457A and the date on which the Covered Units are no longer treated as subject to a substantial risk of forfeiture for purposes of Code section 457A (“457A Delivery Date”) occurs prior to the Delivery Date or a Vesting Change in Control, then, in addition to the terms of the Agreement and the Plan, the terms of this Exhibit A shall apply.
    A-1.  457A Delivery Date Prior to a Change in Control.  In the event that the Section 457A Delivery Date occurs prior to the date of a Change in Control, the terms of this Section A-1 shall apply.  
        (a)  Transfer of Vested Shares.  If the Section 457A Deliver Date occurs on or after the beginning of the Performance Period, on the 457A Delivery Date, the Participant shall receive a number shares of Stock determined by multiplying (i) the number of Covered Units (which have not previously been forfeited) by (ii) the Performance Percentage determined pursuant to Section 3 as if the Performance Period ended on the later to occur of the 457A Delivery Date and December 1, 2021 (with such percentage converted to a number by dividing such percentage by 100); provided, however, that (A) if the Participant’s Date of Termination occurred on or prior to the 457A Delivery Date due to death, Disability, or a Qualifying Termination, then the product of clauses (i) and (ii) shall additionally be multiplied by the Pro-Rata Fraction or (B) if the Participant’s Date of Termination occurred on or prior to the 457A Delivery Date due to Retirement, then the product of clauses (i) and (ii) shall additionally be multiplied by the Retirement Percentage (with such percentage converted to a number by dividing such percentage by 100).  Shares of stock received by a Participant pursuant to this Section A-1 shall be free of restrictions otherwise imposed by this Agreement and the Plan; provided, however, that the shares of Stock shall remain subject to the terms of this Agreement expressly applicable after such Delivery Date (including, without limitation, Section 13); provided, further, however, that the Participant agrees that such shares of Stock cannot be sold or transferred by the Participant at any time prior to the Delivery Date.  
        (b)  Transfer of Restricted Shares.  On the 457A Delivery Date, the Participant shall also receive distribution of shares of Stock that remain subject to the restrictions otherwise imposed by the Plan and this Agreement (including, without limitation, the forfeiture provisions of this Section A-2, the transfer restrictions of Section 9 and the restrictive covenants of Section 13) (such shares of Stock subject to forfeiture and transfer restrictions referred to as the “Restricted Shares”).  The number of Restricted Shares to be distributed on the Section 457A Delivery Date shall be determined by multiplying (i) the number of Covered Units (which have not previously been forfeited or cancelled) by (ii) the percentage determined by subtracting the Performance Percentage used for paragraph (a) of Section A-1 above from 200% (with such percentage converted to a number by dividing such percentage by 100); provided, however, that (A) if the Participant’s Date of Termination occurred on or prior to the 457A Delivery Date due to death, Disability, or a Qualifying Termination, then the product of clauses (i) and (ii) shall additionally be multiplied by the Pro-Rata Fraction or (B) if the Participant’s Date of 

Termination occurred on or prior to the 457A Delivery Date due to Retirement, then the product of clauses (i) and (ii) shall additionally be multiplied by the Retirement Percentage (with such percentage converted to a number by dividing such percentage by 100).  Upon the Performance Determination Date, the number of Restricted Shares which become vested and nonforfeitable and free of all restrictions otherwise imposed by this Agreement (except that the shares of Stock shall remain subject to the terms of this Agreement expressly applicable after the Delivery Date, including, without limitation, Section 13) shall be determined by multiplying (i) the number of Covered Units as used in calculation described in the previous sentence by (ii) the percentage determined by subtracting the Performance Percentage used for paragraph (a) of Section A-1 above from the Performance Percentage determined as of the end of the Performance Period pursuant to Section 3 (as determined by the Committee in writing) (with such percentage converted to a number by dividing such percentage by 100) by (iii), if used in the calculation in the previous sentence, the Pro-Rata Fraction or the Retirement Percentage.  Restricted Shares which do not become vested shares of Stock pursuant to the previous sentence shall be forfeited as of the Performance Determination Date.  Notwithstanding anything herein to the contrary, if the Participant’s Date of Termination occurred on or prior to the 457A Delivery Date due to a Qualifying Termination, the Restricted Shares shall be immediately forfeited if (i) prior to the last day of the Performance Period, the Participant engages in a Competitive Activity or (ii) the Participant fails to sign and not revoke a general release and waiver of all claims against the Company such that the release is effective within the 60-day period as required by Section 7.1 of the Severance Plan.  Notwithstanding anything herein to the contrary, if the Participant’s Date of Termination occurred on or prior to the 457A Delivery Date due to a Retirement, the Restricted Shares shall be immediately forfeited if (i) prior to the last day of the Performance Period, the Participant engages in a Competitive Activity or a Post-Retirement Activity or (ii) the Participant fails to sign and not revoke a general release and waiver of all claims against the Company such that the release is effective within the 60-day period as required by Section 7.1 of the Severance Plan.
    A-2.  457A Delivery Date On or After a Change in Control.  In the event that the Section 457A Delivery Date occurs on or after the date of a Change in Control that is not a Vesting Change in Control, the terms of this Section A-2 shall apply.  On the 457A Delivery Date, the Participant shall receive a number shares of Stock determined by multiplying (i) the number of Covered Units (which have not previously been forfeited or cancelled) by (ii) the Performance Percentage determined pursuant to Section 3 (with such percentage converted to a number by dividing such percentage by 100); provided, however, that if the Participant’s Date of Termination occurred on or prior to the 457A Delivery Date due to Retirement, then the product of clauses (i) and (ii) shall additionally be multiplied by the Retirement Percentage (with such percentage converted to a number by dividing such percentage by 100).  Shares of Stock received by a Participant pursuant to this Section A-2 shall be free of restrictions otherwise imposed by this Agreement and the Plan; provided, however, that the shares of Stock shall remain subject to the terms of this Agreement expressly applicable after such Delivery Date (including, without limitation, Section 13); provided, further, however, that the Participant agrees that such shares of Stock cannot be sold or transferred by the Participant at any time prior to the Delivery Date.  

    A-3.  Cancellation of Covered Units.  As of the 457A Delivery Date, all Covered Units (which have not previously been forfeited or cancelled) shall be cancelled.  
    A-4.  Dividends.  To the extent that the Covered Units have not otherwise been forfeited or cancelled prior to the 457A Delivery Date, the Participant will be paid a cash payment on the 457A Delivery Date equal to the number of shares of Stock delivered pursuant to Sections A-1 and A-2 above, multiplied by the total amount of dividend payments made in relation to one share of Stock with respect to record dates occurring during the period between the Grant Date and the 457A Delivery Date.  To the extent that Restricted Shares granted pursuant to this Exhibit A have not otherwise been forfeited or cancelled after the 457A Delivery Date, dividends paid with respect to such Restricted Shares with respect to record dates occurring on or after the 457A Delivery Date of such Restricted Shares shall be used to purchase additional Restricted Shares subject to the same vesting conditions as the original Restricted Shares to which such dividends relate.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}]]