Exhibit 10.9 

**AMENDMENT TO****SECURITY CAPITAL ASSURANCE LTD****2006 LONG TERM INCENTIVE AND SHARE AWARD PLAN**

 

                         The Security Capital Assurance Ltd 2006 Long Term Incentive and Share Award  Plan is amended, effective December 29, 2006, by adding the following Section  5(i) thereto:

                         “(i) Directors’ Deferral.

|                           |                     (A)      Each Director may make a written irrevocable election before the        beginning of a calendar year to defer payment of all or fifty percent        (50%) of the cash compensation otherwise payable as his or her annual        retainer fees for service as a Director for the calendar year. Notwithstanding        the foregoing, a Director who is first elected or appointed to the Board        may make a written irrevocable deferral election under this Section 5(i)        within thirty (30) days after the date of such election or appointment        to the Board in respect of annual retainer fees for services to be performed        by the Director subsequent to the election. Deferral elections made hereunder        shall remain in effect for all future calendar years until changed in        writing, which change shall apply prospectively to the calendar year        beginning after the date of the written change of election. Elections        shall be made hereunder when delivered in writing to the person designated        from time to time by the Company to receive the elections.

                     (B)      All        compensation which a Director elects to defer pursuant to this Section        5(i) shall be credited in the form of Share units in the name of the        Director, and such Share units shall be considered Other Share-Based        Awards under this Plan. Each such Share unit shall represent the right        to receive one Share at the time set forth in Section 5(i)(D) below.        The number of Share units so credited will be equal to the number of        Shares having an aggregate Fair Market Value on the date the compensation        would otherwise have been paid equal to the amount by which the Director’s        cash compensation was reduced pursuant to the deferral election. All        Share units credited under this Section 5(i) will be vested in full at        all times.

                    (C)      As        of each date on which a cash dividend is paid on Shares, there shall        be granted to each Director a number of additional Share units (including        fractional Share units) determined by (i) multiplying the amount of such    dividend per Share by the number of Share units, if |
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|                           | any, held by the Director, and (ii) dividing the total so determined        by the Fair Market Value of a Share on the date of payment of such cash        dividend. 

                    (D)     Shares        subject to each Share unit shall be distributed (in the form of one Share        for each Share unit) in a single lump sum at the time of the Director’s        Termination of Service. In the event of a Change in Control prior to        a Director’s Termination of Service, Shares subject to each Share unit        shall be distributed (in the form of one Share for each Share unit) in    a single lump sum at the time of the Change in Control.” |

 

 

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