Document:

Exhibit 10.1

 

The Compensation Package in this memorandum has been submitted to and
approved by the Compensation Committee of the Board of Directors of Evolving
Systems, Inc.  This Compensation
Plan (the “Plan”) is effective during calendar year 2006, and is provided to
you to give you information regarding compensation offered to you as [Insert
Title].  This Plan
supersedes all prior Compensation plans or other compensation agreements, oral
or written, you have with the Company, other than stock options previously
granted to you, the Management Change in Control Agreement, as amended, and the
Indemnification Agreement which shall continue in full force and effect.  Your Plan includes a base salary paid in
accordance with the normal payroll practices of Evolving Systems, as well as
eligibility for quarterly and annual incentive compensation.

 

This
Plan is not a contract of employment and shall not be construed to guarantee
employment for any particular period of time. 
All Evolving Systems’ employees are employed at will.  You, or Evolving Systems, may terminate the
employment relationship at any time, with or without notice, for any reason or
no reason.  The Plan may be changed or discontinued
by the Company at any time with or without prior notice.

 

 

I.  Compensation

 

	
  Annual Base Salary

  	
   

  	
  [Insert Amount]

  
	
  Target Incentive Compensation

  	
   

  	
  [Insert applicable percentage] of Base Salary, paid as described below

  

 

B.                                    Incentive
Compensation

 

Incentive Compensation will be paid in five (5) equal payments,
based upon attainment of defined Company quarterly results and annual
results.  Quarterly Incentive
Compensation is computed and earned at the end of each quarter in which you
work; the Annual Incentive compensation is computed and earned at the end of
the calendar year. Two measurement categories will be used as the basis for
Incentive Compensation – Revenue and Earnings
Before Interest, Taxes, Depreciation and Amortization (EBITDA).  The following criteria will apply:

 

	
  Period

  	
   

  	
  •    Measure

  	
   

  	
  •    Combined
  Payout

  
	
  1st Quarter

  	
   

  	
  Attainment of 1st Quarter
  Results, weighted 1⁄2 on Revenue and 1⁄2 on EBITDA

  	
   

  	
  20% of Target Incentive Compensation

  
	
  2nd Quarter

  	
   

  	
  Attainment of 2nd Quarter
  Results, weighted 1⁄2 on Revenue and 1⁄2 on EBITDA

  	
   

  	
  20% of Target Incentive Compensation

  
	
  3rd Quarter

  	
   

  	
  Attainment of 3rd Quarter
  Results, weighted 1⁄2 on Revenue and 1⁄2 on EBITDA

  	
   

  	
  20% of Target Incentive Compensation

  
	
  4th Quarter

  	
   

  	
  Attainment of 4th Quarter
  Results, weighted 1⁄2 on Revenue and 1⁄2 on EBITDA

  	
   

  	
  20% of Target Incentive Compensation

  
	
  Full Year

  	
   

  	
  Attainment of Annual Results, weighted 1⁄2 on
  Revenue and 1⁄2 on EBITDA

  	
   

  	
  20% of Target Incentive Compensation

  

 

Attainment of Quarterly and Annual Results, and the percentage payout
attributable to such attainment, will be determined based upon the Incentive Targets
established by the Board of Directors.

 

In the event your employment terminates prior to the end of any
calendar quarter, for reasons other than Cause (as described below), the
Quarterly Incentive Compensation that would have been paid at the end of the
calendar quarter will be pro-rated to the date of termination of your
employment.  There will be no pro-ration
for the Annual Incentive Compensation; you must be employed by the Company on December 31,
2006, to be eligible for the Annual Incentive Compensation amount.

 

 

II.                                     Severance

 

1)              In the event your
employment is terminated by the Company other than for (a) Cause; (b) Disability;
or (c) death, you will be paid severance compensation in an amount equal
to [insert applicable amount: (3)(6)(9) months]
of your then current Base Salary.

 

2)              “Cause” and “Disability”
for purposes of the severance provisions described in this Section II
shall mean:

 

(a) ”Cause”  shall
mean:

 

(i)            Willful
action or failure to act by you that in the reasonable opinion of the Board of
Directors materially injures the reputation, business or business relationships
of the Company or any of its officers, directors or executives and such action
or failure is not remedied or reasonable steps to effect such remedy are not
commenced within ten (10) days following receipt of written notice;

 

(ii)           Your
failure to perform your duties or to follow the reasonable directions of the
Board of Directors of the Company within ten (10) business days after
receipt by you of written notice of such failure;

 

(iii)          Any
act involving moral turpitude or a crime, other than a vehicle offense
(excepting vehicular manslaughter), which could reflect in some material
fashion unfavorably upon the business or business relationships of the Company
or any of its officers, directors or executives.

 

(b)                                 “Disability”
shall mean a physical or mental impairment that substantially limits a major
life activity, other than on a temporary basis, which prevents you from
performing the essential functions of your job for any period, and for which no
reasonable accommodation can be made. As an officer of the Company, you are
considered a “key employee” under the Family and Medical Leave Act (“FMLA”).  As such, you will be provided a reasonable
opportunity to return to work from any FMLA leave.  However, the possibility exists that
restoration to employment may be denied following FMLA leave if the Company, in
its sole discretion, determines that your position is critical and must be
filled.

 

3)              In exchange for the
severance payment described in this Section II, the Company will require
that you execute a Separation Agreement, in which you release all claims
against the Company arising out of your employment or termination of your
employment.  In addition, the Separation
Agreement will provide that during the period of time during which you receive
severance payments you will refrain from (a) soliciting Evolving Systems’
employees to leave the employ of the Company; 
(b) interfering with the relationship of the Company with any such
employees, including, but not limited to, hiring such employees; (c) targeting
or soliciting customers of the Company to purchase products or services in
competition with the Company’s products or services or to terminate a
relationship with the Company and (d) competing directly or indirectly
with the Company as is described in the Management Change in Control Agreement.

 

4)              Severance payments will be paid in equal
installments, in the Company’s normal payroll cycle, over the applicable
severance period. (The Company reserves the right to modify this provision to
comply with the provisions of the American Jobs Creation Act.)  Under no circumstances will the Company be
obligated to pay any amounts to you under this Section II if your
employment has been terminated by the Company for Cause, Disability or death.

 

 

5)              The severance provisions of this 2006
Compensation Plan are not intended to apply in the event of a Change in
Control, as defined in the Management Change in Control Agreement.  Accordingly, if severance described in this
Plan is paid, and the Management Change in Control Agreement is subsequently
triggered, payments made under this Plan shall be credited against, and shall
NOT be in addition to, amounts paid under the Change In Control Agreement.

 

III.                                 Benefits

 

You
will receive benefits in accordance with the Company’s standard benefits plan
and policies, with the following modifications:

 

1.                                      Paid Time Off:  Your
Paid Time Off (PTO) will be set at one level above the “standard” rates for
employees, as follows:

 

	
  Years of Service

  	
   

  	
  Hours Accrued per Pay Period

  	
   

  	
  Annual # of Days of PTO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  0-2

  	
   

  	
  6.16

  	
   

  	
  20

  
	
  3-5

  	
   

  	
  7.69

  	
   

  	
  25

  
	
  6+

  	
   

  	
  9.23

  	
   

  	
  30

  

 

You
will be expected to record your PTO in accordance with standard Company policy
and all other provisions of the Company’s PTO policy will apply.

 

2.                                      Life Insurance Benefits:  In
addition to the standard life insurance benefits payable to employees of the
Company, the Company will provide life insurance to you in the amount of
$300,000, subject to your insurability. 
The Company pays the premium, but the premium attributable to insurance
over $50,000 is taxable to you.

 

3.                                      Disability Benefits:  The Company will provide you with short term and long term disability
insurance coverage per the Company’s general plan for all employees.  The general plan for employees pays benefits
at the rate of 66 2/3% of your base pay, with a base pay cap of $8,501 per
month (resulting in total monthly benefit payable to you under the Company plan
of $5,667).  This benefit, if payable, terminates
at age 65.  In addition, the Company will
make available to you, at your expense, additional long term disability
coverage that will pay the lesser of the difference between 66 2/3% of your
monthly base salary and the benefit provided under the general Company plan or
$6,000 per month. (For example, if your monthly base salary is $15,000, the
additional long-term disability policy will provide $4,334, the difference
between the general Company plan benefit ($5,667) and 66 2/3% of your base
salary.)  This additional benefit is
payable until age 65, or, in some cases has a 5 year payout.   If you have any questions about the
disability benefits, please see the HR Director.

 

4.                                      Travel. Upgrades to first class domestic
travel/business class international travel will be made available to you in
accordance with the Company’s standard travel policies.  This benefit does NOT imply that you are
authorized to buy first class tickets.

 

5.                                      Miscellaneous Benefits.    The Company will provide you
with a cell phone and cell phone service and reimburse you for the cost (basic
service) of a second phone line to your home. 
You will also be provided with a laptop computer and a second docking
station to be used in your home.

 

 

IV.                                SEC Filing Requirements.

 

You
will be considered an “Executive Officer” for purposes of the SEC rules relating
to trading of stock and reporting your stock trading.  You are required to pre-clear your trading in
Company stock with the Company’s General Counsel prior to buying or selling Company
stock.  You are expected to familiarize
yourself with the Insider trading regulations and to comply with those
regulations, in particular, to abide by Company trading-blackout rules and
to advise the Company’s General Counsel in advance of all stock trades so that
appropriate SEC forms can be timely filed.

 

•                                          Acknowledgment

 

I have received and read my 2006 Compensation Plan.  I understand the details of the Plan and how
it applies to me.  I acknowledge that the
Plan represents Confidential and Proprietary Information of Evolving Systems.  I understand that the Plan may
be changed or discontinued by the Company at any time with or without notice,
and that no representations or promises, either express or implied, have been
made to me about my continued employment, about my compensation or about the
Plan other than what is written here or in any Management Change in Control
Agreement that may be executed.  I understand the responsibilities of my
position and the critical nature of the performance of this position on the
success of Evolving Systems.  I
understand that I am employed on an at-will basis, and that this Plan does not
alter or modify the at-will nature of my employment.  I understand that I can resign my position at
any time, or Evolving Systems can terminate my employment at any time, with or
without prior written notice. I agree that the compensation I receive under the
Plan is fair and adequate compensation for my services.

 

	
   

  	
   

  	
   

  	
   

  
	
  [Name of
  Executive Officer]

  	
   

  	
  DateExhibit
10.1

 

 

 

 

 

 

 

 

 

 

 

 

Assured
Guaranty Corp.

 

Supplemental
Executive Retirement Plan

 

Highlights
Booklet - 2006 Plan Year

 

December
2005

 

 

 

 

 

 

 

 

 

 

 

Assured Guaranty Corp.

Supplemental Executive Retirement Plan

 

Table of Contents

 

	
  1.

  	
  Introduction

  	
  1

  
	
   

  	
  Need for Supplemental Benefits

  	
  1

  
	
   

  	
  Nonqualified
  Status of the Plan

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Overview

  	
  1

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Types
  of Contributions

  	
  1

  
	
   

  	
  Employee Elective Deferrals

  	
  1

  
	
   

  	
  Employer Matching Contributions

  	
  1

  
	
   

  	
  Employer Core
  Retirement Contribution

  	
  1

  
	
   

  	
  Vesting

  	
  1

  
	
   

  	
  FICA Taxation

  	
  1

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Plan Benefits

  	
  1

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Investment Options

  	
  1

  
	
   

  	
  Investment Measurement Option Choices

  	
  1

  
	
   

  	
  Transfer
  Options

  	
  1

  
	
   

  	
  Participant Information and Web Access

  	
  1

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Distributions

  	
  1

  
	
   

  	
  General
  Rules

  	
  1

  
	
   

  	
  Distribution
  Events

  	
  1

  
	
   

  	
  Retirement

  	
  1

  
	
   

  	
  Separation
  from Service

  	
  1

  
	
   

  	
  Distributions to Specified Employees

  	
  1

  
	
   

  	
  Redeferral
  Election

  	
  1

  
	
   

  	
  Loans
  Not Permitted

  	
  1

  
	
   

  	
  Income
  Taxation

  	
  1

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Plan Administration

  	
  1

  
	
   

  	
  Plan
  Administrator

  	
  1

  
	
   

  	
  Claims
  Review

  	
  1

  
	
   

  	
  Plan
  Documentation

  	
  1

  
	
   

  	
  Plan Amendment or Termination

  	
  1

  

 

 

 

This program is governed by the Assured Guaranty
Corp. Supplemental Executive Retirement Plan Document.  If any provisions of this booklet contradict
the Plan document, the Plan document provisions prevail.

 

The American Jobs Creation Act of 2004 added Section 409A to the
Internal Revenue Code;   Section 409A
governs Supplemental Executive Retirement Plans.  The Treasury and Internal Revenue Service
(IRS) issued regulations on Section 409A on September 29, 2005 that provided
guidance as to the application of the rules of Section 409A.  This Plan will be operated in good faith
compliance with these rules; however, as some rules are not applicable until
the end of December 31, 2006, the information contained in this booklet is
subject to change based on interpretation of these rules and any further
guidance.

 

Following is a summary of the
plan.  The Company retains the right to
interpret the plan and also reserves the right to amend or terminate the plan
at any time, subject to applicable law.

 

 

 

1.             Introduction

 

Need for Supplemental Benefits

The Federal government limits the amount of money that a highly
compensated employee can save for retirement in a tax qualified retirement
plan.  The amount of compensation that
may be considered for purposes of a qualified plan is limited to a stated
dollar amount that is set each year by the government (the limit for 2006 is
$220,000).  In addition, the maximum you
will be able to defer for 2006 is $15,000 and depending upon the results of
nondiscrimination testing in the retirement plan, this $15,000 may be further
reduced.  (Note, if you have reached age
50 and you take advantage of the catch-up provisions in the qualified plan, you
may defer an additional $5,000.)

 

Assured Guaranty Corp. (company) has recognized the special needs of
its executives and provides this nonqualified deferred compensation program for
the benefit of its key employees.

 

The various types of contributions and accounts are described in this
booklet.  Enrollment forms and related
material are contained in the enrollment package.

 

Nonqualified Status of the Plan

This Assured Guaranty Corp. Supplemental Executive Retirement Plan
(Plan) is a nonqualified executive deferred compensation arrangement.  Nonqualified means that the Plan is not
subject to ERISA’s antidiscrimination and minimum funding requirements, nor is
it qualified under the Internal Revenue Code Section 401(a), et. seq.  The Plan must meet certain requirements in
order to avoid current federal income taxation for participants:

 

•                                          The Plan must comply with Internal
Revenue Code (IRC) Section 409A and related guidance and regulations;

 

•                                          Participation must be limited to a “select
group of management or highly compensated employees;” and

 

•                                          Your deferrals and company contributions
must remain as employer assets, subject to the claims of the employer’s general
creditors in the event of bankruptcy or forced liquidation.

 

 

1

 

2.             Overview

 

The Assured Guaranty Corp. Supplemental Executive Retirement Plan
provides a comprehensive benefit package that allows you to address a variety
of personal financial objectives.

 

•                                          You may elect to defer up to 6% of your
cash compensation.

 

•                                          The company will match 100% of your
contribution up to 6% of you cash compensation.

 

•                                          The Company will also make a Core Retirement
Contribution to your account equal to 6% of that portion of your cash
compensation in excess of IRS limits applicable to the tax-qualified Retirement
Plan.

 

•                                          All contributions to the Plan are made on
a pretax basis for federal and state income tax purposes.

 

•                                          Contributions allocated to accounts will
be credited with tax-deferred investment gains or losses based on the
performance of investment options you elect from a menu determined by the
company.

 

•                                          Any monies set aside by the company to
pay plan benefits must remain assets of the company until they are paid to you
at predetermined distribution dates.

 

•                                          You, or your beneficiaries, receive
promised benefit payments at the time you separate service from the company.

 

•                                          Benefit payments, when distributed, are
considered ordinary income, subject to federal and state income taxes.

 

2

 

3.             Types
of Contributions

 

There are various types of contributions to the Assured Guaranty Corp.
Supplemental Executive Retirement Plan:

•              Employee
Elective Deferrals

•              Employer
Matching Contributions

•              Employer
Core Retirement Contributions

 

Employee Elective Deferrals

Your deferrals are made on a pretax basis.  You may elect to defer up ro 6% of your cash
compensation.  Deferral elections must be
made in the calendar year prior to the year in which you earn the compensation
(e.g., for compensation earned and paid in 2006, elections must be made no
later than December 31, 2005).

 

If you become eligible to participate during a plan year, and you are
not eligible for any other 409A plan, you may elect to participate by making
your deferral elections within 30 days of the date you are designated as
eligible to join the Plan, and only compensation earned on or after your date
of eligibility is subject to deferral.

 

Your deferral election is effective for a full plan year and is
irrevocable, i.e., once the plan year begins, you may not increase or decrease
your deferral election.  During each
subsequent plan year open enrollment period you may change the amount of your
deferral.

 

Employer Matching Contributions

If you elect to contribute to the Plan, Assured Guaranty Corp. will
match your 100% of your contribution up to 6% of your cash compensation.

 

Employer Core Retirement Contribution

The Company will also make a Core Retirement Contribution to your
account equal to 6% of that portion of your cash compensation in excess of IRS
limits applicable to the tax-qualified Retirement Plan.

 

Vesting

The amounts you defer are always 100% vested.  Company Matching and Core Retirement Contributions
will vest upon your completion of one year of service.  Your account will also be 100% vested upon
your death or attainment of age 65.

 

 

3

 

FICA
Taxation

Your deferrals are subject to FICA taxes at the time of deferral;
benefit payments, however, will not be subject to these taxes.  Employer Contributions  (matching and discretionary) are subject to
FICA at the later of  (1) the date on
which the services (for which the amount is to be paid) are performed, or (2)
the date on which the amount is no longer subject to a substantial risk of
forfeiture, i.e., becomes vested.

 

FICA, the Federal Insurance Contributions Act, provides for Old-Age
Survivors and Disability Insurance (OASDI) which is commonly referred to as
Social Security, and Health Insurance (HI) which is commonly referred to as
Medicare.  Both employees and employers
must pay these taxes.  The FICA Social
Security tax on each employee is 6.2% on compensation earned in a calendar year
up to the wage base.  Each year, usually
in October, the government sets the wage base for the next year — for 2006 the
wage base is $94,200.  The HI employee
tax rate, or Medicare portion, is 1.45%. 
However, there is no wage base limitation for the Medicare portion of
FICA so that all compensation earned during a calendar year is subject to the
1.45% tax.

 

 

4

 

 

4.             Plan Benefits

 

Accounts are subject to the following general parameters:

 

•                                          At the time of your deferral you must
specify the form of distribution (e.g., lump sum or annual installments) of
your contributions for the next plan year.

 

•                                          The form of distribution you elect will
be effective for all contributions made to the plan on or after January 1,
2005.

 

•                                          All elections must be made on or before
December 31st of the year prior to the plan year for which the election is
effective.

 

 

5

 

5.             Investment
Options

 

Investment Measurement Option
Choices

You may elect any combination of the investment options outlined
below.  You may indicate your election on
the investment allocation form in any amount desired as long as amounts
indicated are whole percentages (i.e. 1% increments).  Your account is credited with earnings or
losses equal to the selected investment measurement vehicles.  If you do not make investment option choices,
your account will be deemed to be invested in the Money Market option.  You may choose among the following investment
options*:

 

*Premier and Select are abbreviated marketing
designations for the MassMutual Premier Funds and MassMutual Select Funds,
respectively, and are not the legal names for these two fund families or the
underlying mutual funds offered.

 

Investment Fund Selection

 

	
  Mutual Fund

  	
   

  	
  Share Class

  	
   

  	
  Ticker Symbol

  	
   

  
	
  SHORT TERM

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Premier Money Market Fund

  	
   

  	
  A

  	
   

  	
  MKAXX

  	
   

  
	
  FIXED INCOME

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Premier Core Bond Fund

  	
   

  	
  A

  	
   

  	
  MMCBX

  	
   

  
	
  Oppenheimer High Yield Fund

  	
   

  	
  A

  	
   

  	
  OPPHX

  	
   

  
	
  BALANCED

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Oppenheimer Quest Balanced Fund

  	
   

  	
  A

  	
   

  	
  QVGIX

  	
   

  
	
  LARGE CAP VALUE

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Select Fundamental Value Fund

  	
   

  	
  A

  	
   

  	
  MFUAX

  	
   

  
	
  Select Value Equity Fund

  	
   

  	
  A

  	
   

  	
  MMVAX

  	
   

  
	
  LARGE CAP CORE

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Premier Main Street Fund

  	
   

  	
  A

  	
   

  	
  MSSAX

  	
   

  
	
  Select Indexed Equity Fund

  	
   

  	
  A

  	
   

  	
  MIEAX

  	
   

  
	
  LARGE CAP GROWTH

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Premier Capital Appreciation Fund

  	
   

  	
  A

  	
   

  	
  MACAX

  	
   

  
	
  Select Aggressive Growth Fund

  	
   

  	
  A

  	
   

  	
  MMAAX

  	
   

  
	
  SMALL/MID CAP VALUE

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Select Focused Value Fund

  	
   

  	
  A

  	
   

  	
  MFVAX

  	
   

  
	
  Select Small Company Value Fund

  	
   

  	
  A

  	
   

  	
  MMYAX

  	
   

  
	
  SMALL/MID CAP GROWTH

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Select Mid-Cap Growth Equity II Fund

  	
   

  	
  A

  	
   

  	
  MEFAX

  	
   

  
	
  Select Small Cap Growth Equity Fund

  	
   

  	
  A

  	
   

  	
  MMGEX

  	
   

  
	
  INTERNATIONAL / GLOBAL

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Premier Global Fund

  	
   

  	
  A

  	
   

  	
  MGFAX

  	
   

  

 

6

 

Transfer
Options

You may change the investment allocations for new contributions and /or
transfer existing balances between investment options at any time, up to six
(6) times during the plan year, using the Investment Allocation Change Form
available from your plan administrator. Both current balances and future
contributions will be changed as soon as administratively possible after
written notice is received.

 

Investment change requests received by 10:00 am ET will be initiated
the same business day, and changes received after 10:00 am ET will be initiated
as soon as possible, but no later than the next business day.  If you have questions regarding Plan
investment changes, contact Charon Planning at 800-692-8463 (8:30 am ET to 5:00
pm ET).

 

Participant Information and Web
Access

You will receive a statement of account each quarter (as of March 31,
June 30, September 30, and December 31). 
These statements will allow you to monitor your investment elections and
the value of your accounts.

 

You will also have access to your account balance on a daily basis
through the MassMutual website, The Journeysm, using the same access information
as for your qualified retirement plan. 
The website access is:
https://wwwrs.massmutual.com/journey/login.asp. 
If you forget or lose your PIN, contact the Participant Information
Center of MassMutual at 800-743-5274 (8:00 am to 8:00 pm ET) and ask for
assistance.

 

 

7

 

6.             Distributions

 

General
Rules

All distributions are governed by IRC Section 409A and related
regulations and by the Plan document. 
Some general rules that apply to all types of distributions include:

 

•                                          The amount and form (e.g. lump sum or
installments) of a distribution depends on the election you made at the time of
the deferral and the occurrence of a specific distribution event.  When such an event occurs, benefit payments
become due.

 

•                                          Benefit payments commence as soon as
practicable, but no later than 60 days, following the distribution event.

 

•                                          All benefit payments are based on the
account balance at the time benefit payments are made.

 

•                                          If benefit payments are made over a
series of installments, payments will be made in substantially equal annual
installments over the number of years you indicate.  During the installment period, the account
continues to be credited with earnings and losses that reflect investment
performance of the selected investment measurement options.

 

•                                          If your entire account balance is less
than $10,000 at the time of the distribution, you will receive a lump-sum
payment of your account balance regardless of your payout election.

 

•                                          If you die while receiving installments,
your beneficiary will receive a lump-sum payment of the remainder of your
account balance as soon as administratively possible following notification of
your death.

 

Distribution Events

The Supplemental Executive Retirement Plan provides for the following
distribution events:

•              Retirement

•              Separation
from Service

 

 

8

 

Retirement

If you separate from service with the company at or after having
attained age 55 with a minimum of ten (10) years of service, your account is
distributed to you in a lump sum or annual installments up to five (5) years as
you elected as of your date of eligibility. 
If no election is made, the distribution is made in a lump sum.  Benefit payments commence with 60 days of
your Retirement, unless you are a Specified Employee.

 

Separation from Service

If you separate from service for any reason other than Retirement, your
vested account balance will be paid to you in a lump sum as soon as
practicable, but no later than 60 days, after your separation from service,
unless you are a Specified Employee.  Any
non-vested amounts will be forfeited.

 

Distributions to Specified
Employees

Since Assured Guaranty, Ltd. is a public company, the Plan must impose
additional restrictions (due to 409A) on distributions made to certain
participants.  If you are a “Specified
Employee” as defined in the Plan document, upon your separation from service
for any reason other than Disability or death, a distribution may not be made
before the date which is six (6) months after the date of separation from
service (or, if earlier, your date of death).

 

Redeferral Election

If you wish to postpone the distribution of one of your accounts, or if
you wish to change the form of payout of an account, you may submit a
Redeferral Election to the company.  The
election must meet the following requirements imposed by IRC Section 409A:

 

1.                                       the election may not take effect until at
least 12 months after the date on which the election is made, and

2.                                       the account distribution date with
respect to which such election is made is deferred for a period of not less
than 5 years from the date such payment would otherwise have been paid.

 

Once benefit payments have commenced for a given account, you may not
make any changes to the time and form of the distribution of that account.

 

Loans Not Permitted

Loans are not permitted from Supplemental Executive Retirement Plans.

 

 

9

 

Income
Taxation

Benefit payments are subject to federal income taxation, and state
income taxation, when paid.  Amounts paid
from the Plan are not eligible for any form of tax-sheltered rollover. However,
distributions, including those made prior to age 591⁄2, are not subject to the
qualified plan 10% penalty tax (i.e., the 10% penalty for distributions from a
retirement plan prior to age 59 1⁄2.)

 

 

10

 

7.             Plan
Administration

 

Plan Administrator

Assured Guaranty Corp. has administrative responsibilities for the
Plan.  If you have any questions or
concerns about the program, please contact:

Ivana Grillo

Assured Guaranty Corp.

1325 Avenue of the Americas, 18th Floor

New York, NY 
10019-6011

Tel: (212) 974-0100

 

Claims
Review

In the event that you or your beneficiary do not receive any Plan
benefit that is claimed, you or your beneficiary can request a review as
provided in the Plan document in a manner designed to comply with section 503
of the Employee Retirement Income Security Act of 1974, as amended.

 

Plan Documentation

This program is governed by the Assured Guaranty Corp. Supplemental
Executive Retirement Plan document.  If
any provisions of this booklet contradict the Plan document, the Plan document
provisions prevail.  All documents, e.g.,
Plan, trust, deferral forms, are on file with the plan administrator and are
available to you upon request.

 

Plan Amendment or Termination

This Plan may be amended or terminated by the company at its discretion
provided that no such amendment or termination shall deprive you of a right
accrued prior to the date of amendment or termination, and provided that no
such termination shall accelerate the distribution date(s) for your accounts,
except as permitted by applicable law.

 

 

11

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