Common use of Supplemental Pension Clause in Contracts

Supplemental Pension. In addition, the Executive shall be entitled to payments in the nature of supplemental pension payments at the rate of $200,000 (or such higher amount resulting from the annual COLA Adjustment described below) per year, payable in accordance with the regular payroll practices of the Company, for the period following the termination of his employment until the death of the survivor of the Executive and his current spouse, such payments, however, to begin only following the later of: (i) the termination of any salary payments (including, without limitation, any salary continuation payments contemplated under section 7(d)(ii), if applicable); and (ii) the tenth anniversary of the Final Date if the Executive receives a lump sum payment pursuant to section 7(d)(ii) or section 8(b). Such supplemental pension payments shall be payable upon the termination of the Executive’s employment under all circumstances (including, but not limited to, a termination pursuant to section 7(a)) other than termination by the Company for Cause. The amount of such supplemental pension payments shall be increased (the “COLA Adjustment”) during each year the supplemental pension payments are payable by an amount which reflects any increase in the cost of living on the immediately preceding June 30th over the cost of living on June 30, 2000, using as a basis for such increase the Consumer Price Index for all Urban Consumers (CPI-U) for New York, Northern New Jersey-Long Island, as published by the U.S. Department of Labor (the “Index”) or, in the event such Index is no longer published, such other index as is determined in good faith to be comparable by the board of directors of the Company. The COLA Adjustment shall be made each July 1st and shall remain applicable until the next June 30th. The Executive acknowledges that the Company’s obligation under section 5(b) is an unfunded, unsecured promise to pay certain amounts to the Executive in the future. The amounts payable under section 5(b) shall be paid out of the Company’s general assets and shall be subject to the risk of the Company’s creditors. In no event shall the Executive’s rights under section 5(b) be greater than the right of any unsecured general creditor of the Company.

Supplemental Pension. In addition, the Executive shall be entitled to payments in the nature of supplemental pension payments at the rate of $200,000 (or such higher amount resulting from the annual COLA Adjustment described below) per year, payable in accordance with the regular payroll practices of the Company, for the period following the termination of his employment until the death of the survivor of the Executive and his current spouse, such payments, however, payments to begin only on the first payroll date following the later of: Executive’s “separation from service” within the meaning of Code Section 409A (i) other than in the termination case of any salary payments (including, without limitation, any salary continuation payments contemplated under section 7(d)(ii), if applicable); and (ii) the tenth anniversary of the Final Date if the Executive receives a lump sum payment pursuant to section 7(d)(ii) or section 8(b). Such supplemental pension payments shall be payable upon the termination of the Executive’s employment under all circumstances (including, but not limited to, a termination pursuant to section 7(a)) other than termination by the Company for CauseCause as defined in section 7(c)(i)), subject to Section 21(c). The amount of such supplemental pension payments shall be increased (the “COLA Adjustment”) during each year the supplemental pension payments are payable by an amount which reflects any increase in the cost of living on the immediately preceding June 30th over the cost of living on June 30, 2000, using as a basis for such increase the Consumer Price Index for all Urban Consumers (CPI-U) for New York, Northern New Jersey-Long Island, as published by the U.S. Department of Labor (the “Index”) or, in the event such Index is no longer published, such other index as is determined in good faith to be comparable by the board of directors of the Company. The COLA Adjustment shall be made each July 1st and shall remain applicable until the next June 30th. The Executive acknowledges that the Company’s obligation under section 5(b) is an unfunded, unsecured promise to pay certain amounts to the Executive Executive, in the future. The amounts payable under this section 5(b) shall be paid out of the Company’s general assets and shall be subject to the risk of the Company’s creditors. In no event shall the Executive’s rights under section 5(b) be greater than the right of any unsecured general creditor of the Company. Notwithstanding the foregoing, to the extent any amounts in excess of accrued amounts and benefits are payable under section 7(a), (b), (d) or 8(b)(i) of this agreement, amounts payable under this section 5(b) shall be reduced by such other amounts on a payroll period basis.

Supplemental Pension. In addition(i) Subject to the provisions included herein, the Executive shall earn a supplemental monthly pension (the "Pension") payable in the same manner as the Executive elects with respect to his retirement benefits under the Pension Plan of AMBAC Inc. (the "Retirement Plan") commencing with the month following the month in which the Executive attains age 65. The amount of the Pension shall be determined in accordance with the benefit formula and actuarial factors and assumptions set forth in the Retirement Plan, as in effect on the Effective Date, except that, for purposes of calculating the amount of the Pension, the following shall apply: (A) the Pension shall be calculated without giving effect to the limitations provided for in Sections 401(a)(17) and 415 of the Internal Revenue Code of 1986, as amended (the "Code"), or any successor provisions thereto; and (B) for purposes of calculating the amount of his retirement benefits, including the Pension, the Executive shall be entitled credited with years of accrual service equal to payments the number of whole months elapsed from March 31, 1997 to the date of the Executive's termination of employment with the Company, up to a maximum of 120 months, excluding any leave of absence, divided by six; (C) the Executive shall be fully vested in the nature Pension on the date the Executive completes 60 months of supplemental pension payments employment with the Company (excluding any periods spent on leave of absence); (D) the amount of the Pension shall be paid in the form of a 50% qualified joint and survivor annuity, unless the Executive shall elect in writing prior to his termination of employment to have the Pension paid in another form of payment that may be elected under the Retirement Plan; provided, however, that the Company shall have the right at any time following the rate Executive's termination of $200,000 employment to pay the entire amount of the remaining Pension to the Executive (or his surviving spouse, if applicable) in a lump sum (regardless of the amount of such higher amount resulting from the annual COLA Adjustment described belowlump sum) per year, payable calculated in accordance with the regular payroll practices actuarial factors specified in the Retirement Plan applicable to involuntary cashouts; (E) the amount of the Company, for Pension shall be reduced by the period following the termination of his employment until the death amount of the survivor of retirement benefits payable to the Executive (or his spouse) under the Retirement Plan, the AMBAC Inc. Supplemental Pension Plan and his current spouse, such payments, however, to begin only following the later of: (i) the termination of any salary payments (including, without limitation, any salary continuation payments contemplated under section 7(d)(ii), if applicable)AMBAC Inc. Excess Benefits Pension Plan; and (iiF) the tenth anniversary monthly payments of the Final Date if Pension shall not commence until the latest to occur of (I) the date the Executive receives a lump sum payment pursuant to section 7(d)(iiattains the earliest retirement age under the Retirement Plan and (II) or section 8(b). Such supplemental pension payments shall be payable upon the termination date of the Executive’s employment under all circumstances (including's termination of employment. If the payment of the Pension should commence prior to the time that the Executive attains age 65, but not limited to, a termination pursuant to section 7(a)) other than termination by the Company for Causeamount of the Pension shall be reduced in accordance with the reduction factors set forth in the Retirement Plan. The amount of such supplemental pension payments shall be increased (the “COLA Adjustment”) during each year the supplemental pension payments are payable by an amount which reflects any increase in the cost of living on the immediately preceding June 30th over the cost of living on June 30, 2000, using as a basis for such increase the Consumer Price Index for all Urban Consumers (CPI-U) for New York, Northern New Jersey-Long Island, as published by the U.S. Department of Labor (the “Index”) or, in the event such Index is no longer published, such other index as is determined in good faith to be comparable by the board of directors of the Company. The COLA Adjustment shall be made each July 1st and shall remain applicable until the next June 30th. The Executive acknowledges that the Company’s obligation under section 5(b) is an unfunded, unsecured promise to pay certain amounts Pension to the Executive shall terminate in the futuremonth in which the Executive dies. The amounts Any death benefits payable under section 5(b) to his surviving spouse, if any, and any disability benefits shall be paid out of determined in accordance with the Company’s general assets and shall be subject same terms as apply to the risk of the Company’s creditors. In no event shall the Executive’s rights under section 5(b) be greater than the right of any unsecured general creditor of the CompanyRetirement Plan.