Form of 2020 Restricted Stock Unit Award Agreement between Ambac Financial Group, Inc. and the members of its Board of Directors

<[Insert Name]> (the “Participant”) has been granted a Full Value Award under the Ambac Financial Group, Inc. 2013 Incentive Compensation Plan (the “Plan”) in the form of restricted stock units (the “Award”). The Award shall be effective as of April 30, 2020 (the “Grant Date”). The Award shall be subject to the following terms and conditions (sometimes referred to as this “Agreement”).

1.     Defined Terms. Capitalized terms used in this Agreement which are not otherwise defined herein shall have the meaning specified in the Plan.

2.     Grant of Restricted Stock Units. Subject to the terms of this Agreement and the Plan, effective as of the Grant Date the Participant is hereby granted <[INSERT SHARE #]> restricted stock units (the "Restricted Stock Units"). This Award contains the right to dividend equivalents units as described in Section 3 (“Dividend Equivalents”). Each Restricted Stock Unit shall become vested as described in Section 4 and each vested Restricted Stock Unit shall be settled in accordance with Section 5.

3.     Dividend Equivalent Units. The Participant shall be entitled to Dividend Equivalents, which may consist of Deferred Cash Dividend Equivalents or Dividend Equivalent Units (each as defined below), in accordance with the following:

Dividend Equivalents shall be subject to the same vesting provisions as the Restricted Stock Units to which they relate and shall be settled in accordance with Section 5. No Dividend Equivalent Units shall be credited with respect to previously credited Dividend Equivalent Units.

4.     Vesting and Forfeiture of Awards. All Restricted Stock Units and Dividend Equivalents shall be unvested unless and until they become vested and nonforfeitable in accordance with this Section 4.

Directors pursuant to a vote of Ambac’s stockholders at Ambac’s regularly scheduled annual meeting of stockholders. If Participant’s service on the Board of Directors terminates by reason of voluntary resignation by Participant, then the Awards and associated Dividend Equivalents under this Agreement shall vest as of the date of such termination equal to (x) the number of then outstanding Awards subject to this Agreement multiplied by (y) a fraction, the numerator of which shall be the number of calendar days which have lapsed since the Grant Date and the denominator of which shall be the number of calendar days from the Grant Date until the one-year anniversary of the Grant Date.

5.    Settlement. Subject to the terms and conditions of this Agreement, Restricted Stock Units and associated Dividend Equivalents that have become vested in accordance with Section 4 shall be settled on the earlier of (i) Participant’s Termination Date or (ii) a Change in Control. Settlement of the vested Restricted Stock Units and associated Dividend Equivalent Units shall be made in the form of shares of Common Stock with one share of Common Stock being issued in settlement of each Restricted Stock Unit and associated Dividend Equivalent Unit (any fractional share being rounded up to the next whole unit). Settlement of Deferred Cash Dividend Equivalents shall be paid in cash. Upon the settlement of any vested Restricted Stock Units and Dividend Equivalent Units, such Restricted Stock Units and Dividend Equivalent Units shall be cancelled.

6.     Taxes. It is expressly understood and agreed that during the term of this Agreement the Participant's relationship to the Company will be that of an independent contractor and that the Services to be rendered hereunder shall not for any purpose whatsoever or in any way or manner create any employer-employee relationship. The compensation provided by the Company to the Participant, under this Agreement and otherwise, is not intended to constitute “wages” for purposes of federal, state, or local withholding taxes, social security payments, insurance contributions, unemployment taxes or otherwise. Accordingly, the Participant shall have sole and exclusive responsibility for the payment of all of the Participant’s (a) federal, state and local income taxes, (b) employment and disability insurance, and (c) Social Security and other similar taxes, with respect to any compensation or benefits provided to Participant by the Company.

7.     Transferability. This Award is not transferable except as designated by the Participant by will or by the laws of descent and distribution.

8.     Heirs and Successors. If any benefits deliverable to the Participant under this Agreement have not been delivered at the time of the Participant’s death, such rights shall be delivered to the Participant’s estate.

9.     Administration. The authority to administer and interpret this Agreement shall be vested in the Company’s Governance and Nominating Committee, and such Committee shall have all the powers with respect to this Agreement as the “Committee” has under the Plan. Any interpretation of the Agreement by the Governance and Nominating Committee and any decision made by it with respect to the Agreement is final and binding on all persons.

10.     Adjustment of Award. The number of Restricted Stock Units and Dividend Equivalent Units awarded pursuant to this Agreement may be adjusted (subject to the requirements and limitations of the Code) in accordance with the terms of the Plan to reflect certain corporate transactions which affect the number, type or value of the Common Stock, Restricted Stock Units or Dividend Equivalents.

11.     Notices. Any notice required or permitted under this Agreement shall be deemed given when delivered personally, or when deposited in a United States Post Office, postage prepaid, addressed, as appropriate, to the Company at its principal offices, to the Participant at the Participant’s address as last known by the Company or, in either case, such other address as one party may designate in writing to the other.

12.     Governing Law. The validity, construction and effect of this Agreement shall be determined in accordance with the laws of the State of New York and applicable federal law.

13.     Amendments. The Board of Directors may, at any time, amend or terminate the Plan, and the Board of Directors may amend this 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 this Agreement prior to the date such amendment or termination is adopted by the Board of Directors, as the case may be.

14.     Prior Award Agreements.   The provisions of Sections 3, 4 and 5 of each of the prior annual restricted stock unit agreements (“Prior RSU Award Agreements”) between the Participant and Ambac are hereby amended to conform to the provisions in Sections 3, 4 and 5 of this Agreement.  The acceptance of an Award pursuant to this Agreement shall be deemed a written consent of the Participant to the foregoing amendments.

15.     Award Not Contract of Employment. The Award does not constitute a contract of employment or continued service, and the grant of the Award will not give the Participant the right to be retained in the employ or service of the Company or any Subsidiary, nor any right or claim to any benefit under the Plan or this Agreement, unless such right or claim has specifically accrued under the terms of the Plan and this Agreement.

16.     Severability. If a provision of this Agreement is held invalid by a court of competent jurisdiction, the remaining provisions will nonetheless be enforceable according to their terms. Further, if any provision is held to be overbroad as written, that provision shall be amended to narrow its application to the extent necessary to make the provision enforceable according to applicable law and enforced as amended.

17.     Plan Governs. The Award evidenced by this Agreement is granted pursuant to the Plan, and the Restricted Stock Units, and Dividend Equivalent Units and this Agreement are in all respects governed by the Plan and subject to all of the terms and provisions thereof, whether such terms and provisions are incorporated in this Agreement by reference or are expressly cited.

18.     Code Section 409A Rules.