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Exhibit 10.58  

ASSURED GUARANTY LTD.

REPLACEMENT AWARD PLAN

(April, 2004)  

 
 

SECTION 1
  GENERAL  
    

        1.1.    Purpose.    The Assured Guaranty Ltd. Replacement Award Plan (the "Plan") has been established by
Assured Guaranty Ltd. (the "Company") to award restricted stock units to certain continuing employees of the Company and its Subsidiaries who, on the date of the initial public offering of
Shares of the Company, forfeited restricted shares of ACE Limited. 

        1.2.    Participation.    The "Participants" in the Plan are those employees of the Company designated for the receipt
of an Award by the Board, which designated employees are set forth in Exhibit [F] to those resolutions of the Board providing for the adoption of the Plan; provided, however,
that the Committee may designate additional employees of the Company or its Subsidiaries to be Participants in the Plan, if the Committee determines, in its sole discretion, that such individuals were
intended to be included in the original designation of Award recipients and otherwise fulfill the requirements under the Plan. Notwithstanding any provision of Plan to the contrary, no employee of the
Company or its Subsidiaries who has received notice of termination of employment on or prior to the Effective Date shall be eligible for an Award under the Plan. 

        1.3.    Operation, Administration, and Definitions.    The operation and administration of the Plan, including the
Awards made under the Plan, shall be subject to the provisions of Section 5 (relating to operation and administration). Capitalized terms in the Plan shall be defined as set forth in the Plan
(including the definition provisions of Section 6). 

 
 

SECTION 2
  RESTRICTED STOCK UNIT AWARDS  
    

        2.1.    Definition.    A "Restricted Stock Unit Award" is the grant of a right to receive one or more Shares at the
end of the Deferral Period. A Participant shall be fully vested in the Restricted Stock Unit Award on the date on which the Award is granted; provided, however, that the delivery of Shares underlying
the Award shall not occur until the end of the Deferral Period and shall be subject to the Participant not having engaged in any engaged in Detrimental Activity (as defined in Section 2.2
below) at any time during the Deferral Period. The "Deferral Period" is the period beginning on the date the Restricted Stock Unit Award is granted and ending on the date that is the
18-month anniversary of the date of grant. The grant of Restricted Stock Unit Awards may also be subject to such other conditions, restrictions and contingencies, as determined by the
Committee. 

        2.2.    Detrimental Activity.    The term "Detrimental Activity" shall mean (i) the rendering of services for
any of the following organizations: ACA, AMBAC, Channel Re, CIFG, DePfa, FGIC, FSA, MBIA, Radian Inc., Ram Re, SJAG, and XL Capital; (ii) the disclosure to anyone outside the Company or
the Subsidiaries, or the use in other than the Company's or its Subsidiaries' business, without prior written authorization from the Company or its Subsidiaries, of any confidential information or
material, relating to the business of the Company or its Subsidiaries, acquired by the Participant either during or after employment with the Company or its Subsidiaries; (iii) a violation of
any rules, policies, procedures or guidelines of the Company or its Subsidiaries, including but not limited to the Company's business conduct guidelines; (iv) any attempt directly or indirectly
to induce any employee of the Company to be employed or perform services elsewhere or any attempt directly or 

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indirectly
to solicit the trade or business of any current or prospective customer, supplier or partner of the Company; or (v) the Participant being convicted of, or entering a guilty plea with
respect to, a crime connected with the Company. Notwithstanding the foregoing, activity occurring after the Date of Termination shall constitute Detrimental Activity only if it is described in
clause (i) (relating to competition), (ii) (relating to confidentiality), or (iv) (relating to solicitation) above. "Date of Termination" shall mean 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 of the Company 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 of the Company; 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. 

 
 

SECTION 3
  OPERATION AND ADMINISTRATION  
    

        3.1.    Effective Date.    The Plan shall be
effective                        (the "Effective Date"). The Plan shall be
unlimited in duration and, in the event of Plan termination, shall remain in effect as long as any Awards under it are outstanding. 

        3.2.    Shares and Other Amounts Subject to Plan.    The Shares for which Awards may be granted under the Plan shall
be subject to the following: 

	(a)
	The
Shares with respect to which Awards may be made under the Plan shall be shares of the Company purchased from ACE Limited under the directed share program.

	(b)
	Subject
to the following provisions of this subsection 3.2, the maximum number of Shares that may be delivered to Participants and their beneficiaries under the Plan shall be the
number of Shares, par value $0.01 per share, of the Company purchased from ACE Limited under the directed share program, with the number of such Shares equal to the product of (i) the number of
ACE Limited Forfeited Shares (estimated to be approximately 183,450 shares) multiplied by the average of the closing price for an ordinary share of ACE
Limited on each of the three business days immediately prior to the IPO; divided by (ii) the initial public offering price for Shares. For
purposes of the preceding sentence, the "ACE Limited Forfeited Shares" shall be the total number of restricted ordinary shares of ACE Limited forfeited by persons who performed services for ACE
Limited and its Subsidiaries immediately prior to the initial public offering of Shares of the Company, to the extent that such forfeiture occurred in connection with their cessation of employment by
ACE Limited and its Subsidiaries and performance of services for the Company and its Subsidiaries immediately after the initial public offering of Shares of the Company.

	(c)
	To
the extent provided by the Committee, any portion of any Award that is a fraction of a Share will be settled in cash rather than Shares.

	(d)
	Only
Shares, if any, actually delivered to the Participant or beneficiary on an unrestricted basis with respect to an Award shall be treated as delivered for purposes of the
determination under 

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paragraph (b)
above, regardless of whether the Award is denominated in Shares or cash. Consistent with the foregoing: 

	(i)
	To
the extent any Shares covered by an Award are not delivered to a Participant or beneficiary because the Award is forfeited or canceled, or the Shares are not delivered on an
unrestricted basis (including, without limitation, by reason of the Award being settled in cash or used to satisfy the applicable tax withholding obligation), such Shares shall not be deemed to have
been delivered for purposes of the determination under paragraph (b) above.

	(ii)
	If
the tax withholding obligation with respect to any Award granted under the Plan is satisfied by tendering Shares to the Company (by either actual delivery or by attestation), only
the number of Shares issued net of the Shares tendered shall be deemed delivered for purposes of determining the number of Shares available for delivery under the Plan.

	(e)
	In
the event of a corporate transaction involving the Company (including, without limitation, any share dividend, share split, extraordinary cash dividend, recapitalization,
reorganization, merger, amalgamation, consolidation, split-up, spin-off, sale of assets or Subsidiaries, combination or exchange of shares), the Committee may adjust Awards to
preserve the benefits or potential benefits of the Awards. Action by the Committee may include: (i) adjustment of the number and kind of shares which may be delivered under the Plan;
(ii) adjustment of the number and kind of shares subject to outstanding Awards; and (iii) any other adjustments that the Committee determines to be equitable (which may include, without
limitation, (A) replacement of Awards with other Awards which the Committee determines have comparable value and which are based on shares of a company resulting from the transaction, and
(B) cancellation of the Award in return for cash payment of the current value of the Award, determined as though the Award is fully vested at the time of payment). 

        3.3.    General Restrictions.    Delivery of Shares or other amounts under the Plan shall be subject to the following: 

	(a)
	Notwithstanding
any other provision of the Plan, the Company shall have no obligation to deliver any Shares or make any other distribution of benefits under the Plan unless such
exercise, delivery or distribution complies with all applicable laws (including, without limitation, the requirements of the United States Securities Act of 1933), and the applicable requirements of
any securities exchange or similar entity or other regulatory authority with respect to the issue of shares and securities by the Company.

	(b)
	To
the extent that the Plan provides for issuance of share certificates to reflect the issuance of Shares, the issuance may be effected on a non-certificated basis, to the
extent not prohibited by or may be made in compliance with applicable law, the Bye-laws of the Company, or the applicable rules of any stock exchange. 

        3.4.    Tax Withholding.    All distributions under the Plan are subject to withholding of all applicable taxes, and
the Committee may condition the delivery of any Shares or other benefits under the Plan on satisfaction of the applicable withholding obligations. Except as otherwise provided by the Committee and
subject to applicable law, such withholding obligations may be satisfied (i) through cash payment by the Participant; (ii) through the surrender of Shares which the Participant already
owns (provided, however, that to the extent Shares described in this clause (ii) are used to satisfy more than the minimum statutory withholding obligation, as described below, then, except as
otherwise provided by the Committee, payments made with Shares in accordance with this clause (ii) shall be limited to Shares held by the Participant for not less than six months prior to the
payment date); or (iii) through the surrender of Shares to which the Participant is otherwise entitled under the Plan; provided, however, that such Shares under this clause (iii) may be
used to satisfy not more than the Company's minimum statutory withholding obligation (based on minimum statutory withholding rates for Federal 

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and
state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income). 

        3.5.    Grant and Use of Awards.    Subject to section 3.2(e), no awards other then Restricted Stock Unit
Awards may be granted under the Plan. 

        3.6.    Dividends and Dividend Equivalents.    An Award will provide the Participant with the right to receive
dividend or dividend equivalent payments with respect to Shares subject to the Award, which payments may be either made currently or credited to an account for the Participant, and will be settled in
cash unless otherwise determined by the Committee. Any such settlements, and any such crediting of dividends or dividend equivalents, will be subject to the Company's Bye-laws as well as
applicable law and further may be subject to such conditions, restrictions and contingencies as the Committee shall establish. 

        3.7.    Settlement of Awards.    The obligation to make payments and distributions with respect to Awards shall be
satisfied through the delivery of Shares, subject to such conditions, restrictions and contingencies as the Committee shall determine. Any obligation to make a payment pursuant to a portion of any
Award that is a fraction of a Share shall be made in cash. Each Subsidiary shall be liable for payment due under the Plan with respect to any Participant to the extent that such benefits are
attributable to the services rendered for that Subsidiary by the Participant. Any disputes relating to liability of a Subsidiary for payments shall be resolved by the Committee. 

        3.8.    Transferability.    Except as otherwise provided by the Committee, Awards under the Plan are not transferable
except as designated by the Participant by will or by the laws of descent and distribution. 

        3.9.    Form and Time of Elections.    Unless otherwise specified herein, each election required or permitted to be
made by any Participant or other person entitled to benefits under the Plan, if any, and any permitted modification, or revocation thereof, if any, shall be in writing filed with the Committee at such
times, in such form, and subject to such restrictions and limitations, not inconsistent with the terms of the Plan, as the Committee shall require. 

        3.10.    Agreement With Company.    An Award under the Plan shall be subject to such terms and conditions, not
inconsistent with the Plan, as the Committee shall, in its sole discretion, prescribe. The terms and conditions of any Award to any Participant shall be reflected in such form of written (including
electronic) document as is determined by the Committee. A copy of such document shall be provided to the Participant, and the Committee may, but need not require that the Participant sign a copy of
such document. Such document is referred to in the Plan as an "Award Agreement" regardless of whether any Participant signature is required. 

        3.11.    Action by Company or Subsidiary.    Any action required or permitted to be taken by the Company or any
Subsidiary shall be by resolution of its board of directors, or by action of one or more members of the board (including a committee of the board) who are duly authorized to act for the board, or
(except to the extent prohibited by applicable law or applicable rules of any stock exchange) by a duly authorized officer of such company. 

        3.12.    Gender and Number.    Where the context admits, words in any gender shall include any other gender, words in
the singular shall include the plural and the plural shall include the singular. 

        3.13.    Limitation of Implied Rights.    

	(a)
	Neither
a Participant nor any other person shall, by reason of participation in the Plan, acquire any right in or title to any assets, funds or property of the Company or any
Subsidiary whatsoever, including, without limitation, any specific funds, assets, or other property which the Company or any Subsidiary, in its sole discretion, may set aside in anticipation of a
liability under the Plan. A Participant shall have only a contractual right to the Shares or amounts, if any, payable under the 

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Plan,
unsecured by any assets of the Company or any Subsidiary, and nothing contained in the Plan shall constitute a guarantee that the assets of the Company or any Subsidiary shall be sufficient to
pay any benefits to any person. 

	(b)
	The
Plan does not constitute a contract of employment, and selection as a Participant will not give any participating employee or other individual the right to be retained in the
employ of the Company or any Subsidiary or the right to continue to provide services to the Company or any Subsidiary, nor any right or claim to any benefit under the Plan, unless such right or claim
has specifically accrued under the terms of the Plan. Except as otherwise provided in the Plan, no Award under the Plan shall confer upon the holder thereof any rights as a shareholder of the Company
prior to the date on which the individual fulfills all conditions for receipt of such rights and is registered in the Company's Register of Shareholders.

	(c)
	All
Stock and Shares issued under any Award or otherwise are to be held subject to the provisions of the Company's Bye-laws and each Participant is deemed to agree to be
bound by the terms of the Company's Bye-laws as they stand at the time of issue of any Shares under the Plan. 

        3.14.    Evidence.    Evidence required of anyone under the Plan may be by certificate, affidavit, document or other
information which the person acting on it considers pertinent and reliable, and signed, made or presented by the proper party or parties. 

 
 

SECTION 4
  COMMITTEE  
    

        4.1.    Administration.    The authority to control and manage the operation and administration of the Plan shall be
vested in the compensation committee of the Board (the "Committee"). As a committee of the Board, the Committee is subject to the overview of the Board. If the Committee does not exist, or for any
other reason determined by the Board, and to the extent not prohibited by applicable law or the applicable rules of any stock exchange, the Board may take any action under the Plan that would
otherwise be the responsibility of the Committee. 

        4.2.    Powers of Committee.    The Committee's administration of the Plan shall be subject to the following: 

	(a)
	Subject
to the provisions of the Plan, the Committee will have the authority to designate certain additional employees of the Company or its Subsidiaries to be Participants in the
Plan, as provided in section 1.2 of the Plan, to determine the time or times of receipt, to determine the number of Shares covered by the Awards, to establish the terms, conditions, performance
criteria, restrictions, and other provisions of such Awards, and (subject to the restrictions imposed by Section 5) to cancel or suspend Awards.

	(b)
	To
the extent that the Committee determines that the restrictions imposed by the Plan preclude the achievement of the material purposes of the Awards in jurisdictions outside the
United States and Bermuda, the Committee will have the authority and discretion to modify those restrictions as the Committee determines to be necessary or appropriate to conform to applicable
requirements or practices of jurisdictions outside of the United States and Bermuda.

	(c)
	The
Committee will have the authority and discretion to interpret the Plan, to establish, amend, and rescind any rules and regulations relating to the Plan, to determine the terms and
provisions of any Award Agreement made pursuant to the Plan, and to make all other determinations that may be necessary or advisable for the administration of the Plan.

	(d)
	Any
interpretation of the Plan by the Committee and any decision made by it under the Plan is final and binding on all persons. 

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	(e)
	In
controlling and managing the operation and administration of the Plan, the Committee shall take action in a manner that conforms to applicable corporate law. 

        4.3.    Delegation by Committee.    Except to the extent prohibited by applicable law or the applicable rules of a
stock exchange, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers
to any person or persons selected by it. Any such allocation or delegation may be revoked by the Committee at any time. 

        4.4.    Information to be Furnished to Committee.    The Company and Subsidiaries shall furnish the Committee with
such data and information as it determines may be required for it to discharge its duties. The records of the Company and Subsidiaries as to an employee's or Participant's employment (or other
provision of services), termination of employment (or cessation of the provision of services), leave of absence, reemployment and compensation shall be conclusive on all persons unless determined to
be incorrect. Participants and other persons entitled to benefits under the Plan must furnish the Committee such evidence, data or information as the Committee considers desirable to carry out the
terms of the Plan. 

 
 

SECTION 5
  AMENDMENT AND TERMINATION  
    

        The Board may, at any time, amend or terminate the Plan, and may amend any Award Agreement, provided that no amendment or termination may, in the absence of
written consent to the change by the affected Participant (or, if the Participant is not then living, the affected beneficiary), adversely affect the rights of any Participant or beneficiary under any
Award granted under the Plan prior to the date such amendment is adopted by the Board; and further provided that adjustments pursuant to paragraph 3.2(e) shall not be subject to the foregoing
limitations of this Section 5. 

 
 

SECTION 6
  DEFINED TERMS  
    

        In addition to the other definitions contained herein, the following definitions shall apply: 

	(a)
	Award.    The term "Award" means the award of Restricted Stock Unit Awards under the Plan.

	(b)
	Board.    The term "Board" means the Board of Directors of the Company.

	(c)
	Code.    The term "Code" means the United States Internal Revenue Code of 1986, as amended. A reference to any provision of
the Code shall include reference to any successor provision of the Code.

	(d)
	Shares.    The term "Shares" means common shares of the Company.

	(e)
	Subsidiaries.    For purposes of the Plan, the term "Subsidiary" means any corporation, partnership, joint venture or other
entity during any period in which at least a fifty percent voting or profits interest is owned, directly or indirectly, by the Company (or by any entity that is a successor to the Company), and any
other business venture designated by the Committee in which the Company (or any entity that is a successor to the Company) has a significant interest, as determined in the discretion of the Committee.

	(f)
	Stock.    The term "Stock" is sometimes used to refer to common shares of the Company. 

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SECTION 1 GENERAL

SECTION 2 RESTRICTED STOCK UNIT AWARDS

SECTION 3 OPERATION AND ADMINISTRATION

SECTION 4 COMMITTEE

SECTION 5 AMENDMENT AND TERMINATION

SECTION 6 DEFINED TERMSQuickLinks
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Exhibit 10.59  

 
 

ASSURED GUARANTY LTD. REPLACEMENT AWARD PLAN TRUST
   (Effective April    , 2004)    

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	 
	 	Page

	ARTICLE I    THE TRUST AND THE PLAN	 	1
	 	 	I-1.	 	Name	 	1
	 	 	I-2.	 	Plan	 	1
	 	 	I-3.	 	Grantor	 	1
	 	 	I-4.	 	Administrator	 	1
	ARTICLE II    MANAGEMENT AND CONTROL OF TRUST FUND ASSETS	 	2
	 	 	II-1.	 	The Trust Fund	 	2
	 	 	II-2.	 	Trust Contributions	 	2
	 	 	II-3.	 	Investment Guidelines	 	2
	 	 	II-4.	 	General Powers	 	2
	 	 	II-5.	 	Common Fund	 	3
	 	 	II-6.	 	Relating to Trustees	 	4
	 	 	II-7.	 	Trustee Who is a Participant	 	4
	ARTICLE III    ACCOUNTING AND DISTRIBUTION OF TRUST ASSETS	 	4
	 	 	III-1.	 	Statement of Account	 	4
	 	 	III-2.	 	Benefit Payments	 	4
	ARTICLE IV    COMPENSATION, EXPENSES AND LIABILITY	 	5
	 	 	IV-1.	 	Compensation and Expenses	 	5
	ARTICLE V    TRUST FUND ASSETS	 	5
	 	 	V-1.	 	Use of Trust Assets	 	5
	 	 	V-2.	 	Claims of Creditors	 	5
	 	 	V-3.	 	Claims of Participants	 	5
	 	 	V-4.	 	Assets Contributed by the Company	 	6
	ARTICLE VI    TAX MATTERS	 	6
	ARTICLE VII    MISCELLANEOUS	 	6
	 	 	VII-1.	 	Disagreement as to Acts	 	6
	 	 	VII-2.	 	Person Dealing with Trustees	 	6
	 	 	VII-3.	 	Evidence	 	6
	 	 	VII-4.	 	Waiver of Notice	 	6
	 	 	VII-5.	 	Counterparts	 	7
	 	 	VII-6.	 	Governing Laws	 	7
	 	 	VII-7.	 	Successors, Etc.	 	7
	 	 	VII-8.	 	Service of Legal Process	 	7
	ARTICLE VIII    CHANGES OF TRUSTEES	 	7
	 	 	VIII-1.	 	Resignation	 	7
	 	 	VIII-2.	 	Removal of Trustee	 	7
	 	 	VIII-3.	 	Powers Pending Appointment of Successor Trustee	 	7
	 	 	VIII-4.	 	Duties of Resigned or Removed Trustees and of Successor Trustee	 	7
	ARTICLE IX    AMENDMENT, REVOCATION AND TERMINATION	 	8
	 	 	IX-1.	 	Amendment and Revocation	 	8
	 	 	IX-2.	 	Distribution of Assets Upon Revocation or Termination	 	8

i

  

 
 

ASSURED GUARANTY LTD. REPLACEMENT AWARD PLAN TRUST    
    

        THIS TRUST AGREEMENT, made and entered into
this                        day of April, 2004, by and among Assured Guaranty Ltd., a corporation organized and
existing under the laws of Bermuda, having its principal place of business in Hamilton, Bermuda (the "Company"), and James Michener, Pierre Samson, and Robert Mills, as trustees (the "Trustees"), 

 
 

WITNESSETH THAT:    
    

        WHEREAS, the Company has established the Assured Guaranty Ltd. Replacement Award Plan (the "Plan") to provide certain employees and other persons providing
services to the Company and to subsidiaries of the Company (individually, "Employer" and collectively, "Employers") with benefits (the "Participants"); and 

        WHEREAS,
it is intended that the Trust will provide a vehicle for the accumulation of assets for the purpose of making payments under the Plan and for such other corporate purposes as
are consistent with the terms of the Trust and that the Trust will constitute a grantor trust as described in section 671 of the United States Internal Revenue Code of 1986, as amended (the
"Code"); 

        NOW,
THEREFORE, in consideration of the premises and mutual covenants herein contained, IT IS AGREED that the Trustees, and each of them, do hereby accept their appointment as
such under this Trust Agreement, effective as of the day and year first above written; 

        IT
IS FURTHER AGREED, by and among the parties hereto, as follows: 

 
 

ARTICLE I
  
    The Trust and the Plan    
    

        I-1.    Name.    The Trust Agreement and Trust hereby evidenced shall be known as the Assured
Guaranty Ltd. Replacement Award Plan Trust. 

        I-2.    Plan.    The Secretary of the Company shall deliver to the Trustees a certified copy of each of
the Plan and a copy of any amendments thereto for convenience of reference, but the rights, powers and duties of the Trustees shall be governed solely by the terms of this Agreement without reference
to the provisions of the Plan. 

        I-3.    Grantor.    The Company shall be the grantor (within the meaning of Section 677(a) of the
Code) of the Trust. 

        I-4.    Administrator.    The Company is the Administrator of the Plan and the Trust and the Secretary of
the Company will certify to the Trustees the names of the employees of the Company who are, from time to time, authorized to act on behalf of the Administrator under the terms of this Agreement and to
receive notices which the Trustees are required under the terms of this Agreement to provide to the Administrator. 

 
 

ARTICLE II
  
    Management and Control of Trust Fund Assets    
    

        II-1.    The Trust Fund.    The term "Trust Fund" means all property of every kind held by the Trustees. 

1

 

        II-2.    Trust Contributions.    The Company shall contribute to the Trustees on or before today's date
the sum of US $100.00 and may, from time to time, contribute further amounts to the Trustees to be held, invested and distributed in accordance with the provisions of this Agreement. 

        II-3.    Investment Guidelines.    The Administrator may, from time to time, establish investment
guidelines for the Trustees with respect to the investment, retention, disposition and reinvestment of the assets of the Trust Fund by writing filed with the Trustees. 

        II-4.    General Powers.    Subject to the provisions of paragraph II-3, with respect
to the Trust Fund, the Trustees shall have the following powers, rights and duties in addition to those provided elsewhere in this Trust Agreement or by law: 

	(a)
	to
receive and hold all contributions paid to the Trustees by the Company; provided, however, that the Trustees shall have no duty to require any contributions to be made, or to
determine that any of the contributions received comply with the conditions and limitations of the Plan;

	(b)
	to
deposit any part or all of the cash and other property of this Trust in any common trust fund, pooled fund or other commingled investment fund maintained by the Trustees for trust
investment purposes;

	(c)
	to
invest and reinvest the Trust Fund in property of any kind, real or personal;

	(d)
	to
manage, operate, sell, contract to sell, convey, exchange, partition, transfer, abandon, and otherwise deal with all property, real or personal, in such manner, for such
consideration, and on such terms and conditions as the Trustees shall decide;

	(e)
	to
retain in cash (pending investment, reinvestment or payment of benefits) any reasonable portion of the Trust Fund and to deposit cash in any depository selected by them;

	(f)
	to
make payments from the Trust Fund in accordance with paragraph III-2;

	(g)
	to
compromise, contest, arbitrate, settle or abandon claims and demands;

	(h)
	to
begin, maintain or defend any litigation necessary in connection with the investment, reinvestment and administration of the Trust;

	(i)
	to
have all rights of an individual owner, including the power to give proxies, to vote stocks, to join in or oppose (alone or jointly with others) voting trusts, mergers,
consolidations, foreclosures, reorganizations, recapitalizations or liquidations, and to exercise or sell stock subscription or conversion rights;

	(j)
	to
hold securities or other property in the name of the Trustees or their nominee or nominees, or in such other form as the Trustees shall determine, with or without disclosing the
Trust relationship, provided that the records of the Trustees shall indicate the actual ownership of such securities or other property;

	(k)
	to
deposit securities with a clearing corporation, central depository or similar organization, in which event, the certificates representing securities, including those in bearer
form, may be held in bulk form with, and may be merged into, certificates of the same class of the same issuer which constitute assets of other accounts or owners, without certification as to the
ownership attached and to participate in and use a book-entry system for the transfer or pledge of securities held by the Trustees or by a corporate depository; provided, however, that the
Trustees shall at all times maintain a separate and distinct record of the securities owned by the Trust Fund;

	(l)
	to
retain any funds or property subject to any dispute without liability for the payment of interest, or to decline to make payment or delivery thereof until final adjudication is
made by a court of competent jurisdiction; 

2

 

	(m)
	to
employ agents, attorneys, investment counsel, accountants or other persons (who also may be employed by or represent the Company) for such purposes as the Trustees consider
desirable;

	(n)
	to
furnish the Administrator with such information in the Trustees' possession as the Company may need for tax or other purposes; and

	(o)
	to
perform any and all other acts which are, in the Trustees' judgment, necessary or appropriate for the proper and advantageous management, investment and distribution of the Trust
Fund. 

        II-5.    Common Fund.    Subject to the provisions of paragraph V-2, the Trustees may
administer and invest all contributions made to it as one Trust Fund. The Trustees shall not be required to make any separate investment of the Trust Fund for the account of any creditor of the
Company prior to receipt of directions to make payments of such creditor in accordance with paragraph V-2. 

        II-6.    Relating to Trustees.    During any period in which two or more Trustees are acting, the
following provisions shall apply where the context admits: 

	(a)
	A
majority of the Trustees qualified to act may act on behalf of all Trustees by meeting, or by writing signed without meeting, and may execute any document relating to the Trust Fund
by signing one document or concurrent documents.

	(b)
	The
certificate of a majority of the Trustees that they have taken or authorized any action shall be conclusive in favor of any person relying on the certificate.

	(c)
	By
their unanimous written consent the Trustees may allocate any of their rights, duties or obligations under this Trust Agreement or the Plan to any other Trustee then acting. 

        II-7.    Trustee Who is a Participant.    If a Trustee is a participant in a Plan, he may not decide any
matter concerning distribution of any kind to be made to him unless such decision could be made by him under such Plan if he were not a Trustee. 

 
 

ARTICLE III
  
    Accounting and Distribution of Trust Assets    
    

        III-1.    Statement of Account.    Within 60 days after the last day of each fiscal year, the
Trustees shall furnish to the Administrator a written report showing the fair market value of the Trust Fund as of that date, and all investments of the Trust Fund, and receipts and disbursements and
other transactions made by the Trustees during that fiscal year, with respect to the Trust Fund. The records of the Trust may be audited at any time and from time to time by the Administrator. 

        III-2.    Benefit Payments.    Subject to the provisions of paragraph V-2, the Trustees
shall make payments to Participants in such amounts and at such times as the Administrator may certify to the Trustees, subject to the following: 

	(a)
	The
Trustees shall have no responsibility to inquire as to whether a payee is entitled to the payment, or as to whether a payment is proper, and shall have no liability for a payment
made in good faith without actual notice or knowledge of the changed condition or status of the payee.

	(b)
	If
any check for any payment directed to be made from the Trust Fund has been mailed by the Trustees to the last address of the payee furnished to the Trustees and is returned
unclaimed, the Trustee shall notify the Administrator. 

3

 

	(c)
	The
Trustees may reserve such reasonable amount from any payment as it shall deem necessary to pay any estate, inheritance, income or other tax, charge or assessment attributable to
any payment or may require such releases or other document from any taxing authority and such indemnity from the intended payee as the Trustee shall deem necessary for its protection. 

 
 

ARTICLE IV
  
    Compensation, Expenses and Liability    
    

        IV-1.    Compensation and Expenses.    No compensation shall be paid to the Trustees as such. The Trustees
are authorized to pay from the Trust Fund (unless otherwise paid by the Company) all of the Trustees' reasonable expenses, taxes and charges (including reasonable fees of persons employed by it in
accordance with subparagraph II-4(m)) incurred in connection with the collection, administration, management, investment, protection and distribution of the Trust Fund. 

        IV-2.    Liability of Trustees.    The Trustees shall not be liable for any act or failure to act in the
performance of duties under this Agreement, unless such action or failure to act is dishonest, constitutes negligence or is in willful violation of the law. The Trustees shall not be liable for
following in good faith any direction of the Administrator given in accordance with the terms of this Agreement. 

 
 

ARTICLE V
  
    Trust Fund Assets    
    

        V-1.    Use of Trust Assets.    Subject to the provisions of paragraph V-2 and the
provisions of paragraphs X-1 and X-2, the assets of the Trust shall be used for the purpose of providing benefits under the  Plan. 

        V-2.    Claims of Creditors.    Notwithstanding any provision of this Trust Agreement, the assets in the
Trust Fund shall be subject to the claims of the general creditors of the Company if such claims are not satisfied by payment from the other general assets of the Company, because of the Company's
insolvency (as described below). The Chairman of the Board of Directors and the Chief Executive Officer of the Company shall notify the Trustees of the Insolvency of the Company within three days of
receipt of knowledge of such Insolvency. Upon receipt of such notice or an applicable court order, the Trustees shall hold assets of the Trust Fund for the benefit of its general creditors, and shall
suspend payment of benefits under the Plan which would be charged to the Trust until the Trustee has determined that the Company is no longer Insolvent or pursuant to a court order. The Trustees shall
have no duty to inquire whether the Company is Insolvent. The Trustees may rely on such evidence concerning the Company's insolvency as may be furnished to the Trustees by the Company. The Company
shall be considered as "Insolvent" for purposes of this Trust agreement if it is (i) unable to pay its debts generally as they become due or (ii) engaged as a debtor in a proceeding
under the Bankruptcy Code of the United States (11 U.S.C.-101 et. seq.) or any other law of any jurisdiction for the relief, liquidation or rehabilitation of debtors. 

        V-3.    Claims of Participants.    The principal of the Trust, and any earnings thereon shall be held
separate and apart from other funds of Company and shall be used exclusively in accordance with and in furtherance of the goals of the Plan, subject to the provision paragraph V-2
hereto. Neither the Participants in the Plan nor the Plan shall have any preferred claim on, or any beneficial ownership in, any assets of the Trust, or be entitled to any payment from the Trust, and
all rights of a Participant created under any of the Plan shall constitute unsecured contractual rights of the participant. It is intended that neither the Plan nor the Trust shall be subject to the
provisions of part 4 of title I of the 

4

 

Employee
Retirement Income Security Act of 1974, an amended, and neither the Participants nor the Plan shall have any right to require the Company to make any contribution to the Trust. 

        V-4.    Assets Contributed by the Company.    Notwithstanding any provision of the Trust to the contrary,
any ordinary shares of the Company ("Assured Shares"), contributed to the Trust by the Company and held in a fund intended to be invested primarily in Assured Shares, which Assured Shares or fund is
held in the Trust for the benefit of the employees or service providers of any Employer, shall be subject to the claims of the general creditors of such Employer as well as to the claims of the
general creditors of the Company. With respect to Assured Shares and to any fund intended to be invested primarily in Assured Shares which is held in the Trust, references to the "Company" in
paragraphs V-1, V-2 and V-3 of this Article V shall be interpreted to also refer to such Employer. Upon the termination of the Trust, any such Assured Shares
remaining in the Trust shall revert to the Company. 

 
 

ARTICLE VI
  
    Tax Matters    
    

        This
Trust Agreement is intended to constitute a grantor trust, as described in section 671 of the Code. The Company acknowledges that all income of the Trust is attributable to
it as owner of the Trust assets for income tax purposes and will be income to the Company. 

 
 

ARTICLE VII
  
    Miscellaneous    
    

        VII-1.    Disagreement as to Acts.    If there is a disagreement between the Trustees and anyone as to any
act or transaction reported in any accounting, the Trustees shall have the right to have its account settled by a court of competent jurisdiction. 

        VII-2.    Person Dealing with Trustees.    No person dealing with the Trustees shall be required to see to
the application of all money paid or property delivered to the Trustees, or to determine whether or not the Trustees are acting pursuant to any authority granted under this Trust Agreement. 

        VII-3.    Evidence.    Evidence required of anyone under this Trust Agreement may be by certificate,
affidavit, document or other instrument which the person acting in reliance thereon considers pertinent and reliable, and signed, made or presented by the proper party. 

        VII-4.    Waiver of Notice.    Any notice required under this Trust Agreement may be waived by the person
entitled thereto. 

        VII-5.    Counterparts.    This Trust Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, and no other counterpart need be produced. 

        VII-6.
Governing Laws. This Trust Agreement shall be construed and administered according to the laws of Bermuda. 

        VII-7.    Successors, Etc.    The provisions of this Trust Agreement shall be binding on the Company and
the Trustees and their successors and the Participants and their respective heirs and legal representatives. 

        VII-8.    Service of Legal Process.    If the Trustees receive service of summons, subpoena or other legal
process of any court with respect to any action relating to the Plan or this Trust Agreement, it shall, as soon as practicable, inform the Administrator of such service and the Trustees shall promptly
provide the Administrator with a copy of the document served. 

5

 

 
 

ARTICLE VIII
  
    Changes of Trustees    
    

        VIII-1.    Resignation.    A Trustee may resign at any time by giving 90 days' advance written
notice to the Company, and to any other Trustee or Trustees then acting. 

        VIII-2.    Removal of Trustee.    The Company may remove a Trustee by giving 30 days' advance
written notice to that Trustee and to any other Trustee or Trustees then acting. The Company shall fill a vacancy in the office of the Trustees as soon as practicable by writing filed with the person
or entity appointed to fill the vacancy and with any other Trustee or Trustees then acting; provided, however, that there must always be at least one Trustee acting. 

        VIII-3.    Powers Pending Appointment of Successor Trustee.    If a vacancy in the office of Trustee
exists, the remaining Trustee or Trustees may exercise all of the Trustees' powers until the vacancy is filled. 

        VIII-4.    Duties of Resigned or Removed Trustees and of Successor Trustee.    If all the Trustees resign
or are removed, they shall promptly transfer and deliver the assets of the Trust Fund to the successor Trustee or Trustees, after reserving such reasonable amount as it shall deem necessary to provide
for expenses and any sums chargeable against the Trust Fund for which it may be liable. Within 120 days, the resigned or removed Trustees shall furnish to the Company and the successor Trustee
or Trustees an account of the administration of the Trust from the date of their last account. Each successor Trustee shall succeed to the title to the Trust Fund vested in his predecessor without the
signing or filing of any further instrument, but any resigned or removed Trustee shall execute all documents and do all acts necessary to vest such title of record in any successor Trustee. Each
successor Trustee shall have all the powers, rights and duties conferred by this agreement as if originally named as Trustee. No successor Trustee shall be personally liable for any act or
failure to act of a predecessor Trustee. 

 
 

ARTICLE IX
  
    Amendment, Revocation and Termination    
    

        IX-1.    Amendment and Revocation.    This Trust Agreement and the Trust created hereby may be amended,
revoked or terminated by the Company at any time, provided that no amendment shall materially change the rights, duties and responsibilities of the Trustees without their consent. 

        IX-2.    Distribution of Assets Upon Revocation or Termination.    Upon revocation or termination of this
Trust by the Company, the Trustees shall, subject to the provisions of paragraph V-2 and to the Trustees' reserving such reasonable amount as they shall deem necessary to provide
for expenses and any sums chargeable against the Trust Fund, distribute the assets of the Trust to the Company. 

        IN
WITNESS WHEREOF, the Company has caused these presents to be signed by its duly authorized officer and the Trustees have set forth their hands and seals as of the day and year first
above written. 

Assured
Guaranty Ltd.

By  

Its 

6

QuickLinks

ASSURED GUARANTY LTD. REPLACEMENT AWARD PLAN TRUST (Effective April , 2004)

TABLE OF CONTENTS

ASSURED GUARANTY LTD. REPLACEMENT AWARD PLAN TRUST

WITNESSETH THAT

ARTICLE I The Trust and the Plan

ARTICLE II Management and Control of Trust Fund Assets

ARTICLE III Accounting and Distribution of Trust Assets

ARTICLE IV Compensation, Expenses and Liability

ARTICLE V Trust Fund Assets

ARTICLE VI Tax Matters

ARTICLE VII Miscellaneous

ARTICLE VIII Changes of Trustees

ARTICLE IX Amendment, Revocation and Termination

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