Document:

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                                                                   Exhibit 10.4

                           ENHANCE REINSURANCE COMPANY
                            SUPPLEMENTAL PENSION PLAN

                             EFFECTIVE: JULY 1, 1999

PURPOSE:

The purpose of the Enhance Reinsurance Company Supplemental Pension Plan is to
provide a select group of highly compensated or management Employees who
participate in the Enhance Reinsurance Company Pension Plan with a specified
level of benefits that they are unable to receive under the Pension Plan by
reason of limitations imposed under Sections 401(a)(17) and 415 of the Internal
Revenue Code of 1986.

SECTION 1: DEFINITIONS

1.1   "Actuarial Equivalent" means a benefit determined using the actuarial
      tables and interest rate in effect under the Pension Plan at the time
      payment under the Supplemental Plan is made.

1.2   "Administrator" means the Company or such person or persons as the Company
      may designate.

1.3   "Benefit Limitations" means the limitations imposed on the Pension Plan by
      Sections 401(a)(17) and 415 of the Code.

1.4   "Code" means the Internal Revenue Code currently in effect, and as amended
      from time to time. All reference to the Code shall include the regulations
      and rulings promulgated thereunder.

1.5   "Company" means Enhance Reinsurance Company.

1.6   "Compensation" means those items of compensation paid to a Participant
      that are included within the definition of Annual Compensation under the
      Pension Plan.

1.7   "Effective Date" means July 1, 1999, the first date the Supplemental Plan
      became effective.

1.8   "Employee" means an individual who is employed by a Participating Company.

1.9   "Participant" means any individual who participates in the Supplemental
      Plan in accordance with Section 2.

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1.10  "Participating Company" means the Company or other entity that is a member
      of a controlled group of entities of which the Company is a component,
      which has adopted the Pension Plan and the Supplemental Plan for its
      employees.

1.11  "Pension Plan" means the Enhance Reinsurance Company Pension Plan.

1.12  "Supplemental Plan" means the Enhance Reinsurance Company Supplemental
      Pension Plan, as set forth herein and as amended from time to time.

1.13  "Year of Credited Service" means the period of service with a
      Participating Company that is used to determine a Participant's accrued
      benefit under the Pension Plan.

Wherever used herein, words in the masculine form shall be deemed to refer to
females as well as to males, and the singular form shall be used to include the
plural as applicable.

SECTION 2: ELIGIBILITY AND PARTICIPATION

An Employee shall be a Participant in the Supplemental Plan with respect to the
benefits set forth in Section 3, provided such Employee is a participant in the
Pension Plan and further provided such Employee's accrued benefit under the
Pension Plan is subject to Benefit Limitations.

SECTION 3: VESTING AND BENEFITS

3.1 VESTING:

A Participant shall vest in the benefit provided under the Supplemental Plan to
the same extent and at the same rate as such Participant vests in his accrued
benefit under the Pension Plan.

3.2 SUPPLEMENTAL BENEFIT:

A Participant's benefit under the Supplemental Plan shall be the sum of (a) plus
(b):

         (a) 401(A)(17) BENEFIT: If amounts that would otherwise accrue under
         the Pension Plan by a Participant are not accrued by reason of the
         application of Section 401(a)(17) of the Code, the Supplemental Plan
         shall provide a benefit equal to the sum of (i) 1.75% of the
         Participant's Compensation in excess of the amount permitted by Section
         401(a)(17) of the Code to be used to determine a benefit under the
         Pension Plan multiplied by all Years of Credited Service, but not
         exceeding 25 years; plus (ii) 1% of the Participant's Compensation in
         excess of the amount permitted by Section 401(a)(17) of the Code to be
         used to determine the

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         benefit under the Pension Plan multiplied by all Years of Credited
         Service in excess of 25 years, but not exceeding 5 years;

PLUS

         (b) 415 BENEFIT: If a Participant's benefit under the Pension Plan is
         reduced by reason of the application of Section 415 of the Code, then,
         and only with respect to that part of the benefit provided under the
         Pension Plan that was reduced by application of Section 415 of the
         Code, the Supplemental Plan shall provide a benefit calculated in
         accordance with paragraph 3.2(a) above, except that the Compensation
         used for the calculation shall be limited to the amount of Compensation
         used to determine the benefit under the Pension Plan that was subject
         to reduction.

3.3 SPECIAL BENEFIT ENHANCEMENT:

All Participants who are officers of Enhance Reinsurance Company at the level of
Executive Vice President and above, or such other Participants as the Company
shall designate, and who are fully vested in their accrued benefit under the
Pension Plan shall, for the purpose of calculating the benefit under Section 3.2
above, receive 5 additional Years of Credited Service reduced by the number of
Years of Credited Service attributable to periods prior to the Effective Date.
Notwithstanding the foregoing, Tony Ettinger shall be entitled to receive 5
additional years of Credited Service without reduction.

3.4 FORM AND PAYMENT OF BENEFIT:

The benefit payable under the Supplemental Plan shall be determined as of the
date on which the Participant terminates employment with the controlled group of
entities of which the Company is a component or the date on which the
Participant is found to be disabled in accordance with the terms of the Pension
Plan and entitled to receive a disability benefit thereunder, as if paid under
the Pension Plan as a single life annuity, and it shall then be converted to a
single lump sum payment which shall be the Actuarial Equivalent form of the
single life annuity. The benefit due under the Supplemental Plan to a
Participant shall become payable in the first calendar quarter of the calendar
year following the aforesaid date of determination. If a Participant receives
payment of his benefit under the Supplemental Plan and should again become a
Participant in the Supplemental Plan, any further benefit payable under the
Supplemental Plan shall be reduced by the amount of the benefit previously paid
to such Participant under the Supplemental Plan.

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3.5 DEATH BENEFIT:

In the event of the death of a Participant, the benefit, to the extent vested,
shall be payable to the Participant's designated beneficiary. The Participant
may designate a beneficiary or beneficiaries and may change such designation
from time to time by filing a written designation of beneficiaries with the
Administrator on a form to be prescribed by it; provided that no such
designation shall be effective unless received by the Administrator prior to the
death of such Participant. If a Participant's beneficiary designation is not on
file with the Administrator at the time of the Participant's death, payment of
the benefit shall be made to the estate of such Participant as soon as
administratively feasible after the date of death.

SECTION 4: GENERAL PROVISIONS

4.1 AMENDMENT, SUSPENSION AND TERMINATION OF THE SUPPLEMENTAL PLAN:

The Company may from time to time amend, suspend, reinstate or terminate the
Supplemental Plan, in whole or in part. No amendment, suspension, reinstatement
or termination shall have the effect of reducing the amounts payable hereunder
with respect to the services of any Participant prior to such amendment,
suspension, reinstatement or termination. If the Supplemental Plan is
terminated, the Supplemental Plan will continue in effect with respect to any
benefits accrued at the time of its termination and payable thereafter by reason
of the service of the Participant prior to the time of its termination. A
Participating Company may terminate its participation in the Supplemental Plan,
and the effect of such termination on the Participants employed by such
Participating Company shall be the same as if the Company had terminated the
Supplemental Plan

4.2 NO RIGHT OF CONTINUED EMPLOYMENT:

Neither the establishment of the Supplemental Plan nor the payment of any
benefits hereunder nor any action of a Participating Company shall be held or
construed to confer upon any person any legal right to be continued in the
employ of the Participating Company, and the Participating Company expressly
reserves the right to discharge any Participant whenever the interest of such
Participating Company may so require without liability to such Participating
Company, except as to any rights which may be expressly conferred upon a
Participant under the Supplemental Plan.

4.3 DISCRETION OF THE ADMINISTRATOR:

Any decision made or action taken by the Administrator arising out of or in
connection with the construction, administration, interpretation and effect of
the Supplemental Plan shall be within the absolute discretion of the
Administrator and shall be conclusive and binding upon all persons.

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4.4 NO SEGREGATION OF CASH OR PROPERTY:

Accounts established for Participants are merely a bookkeeping convenience and a
Participating Company shall not be required to segregate any cash or property
with respect to any benefit payable under the Supplemental Plan. Nothing
provided herein shall be construed as providing for such segregation. No
interest at any time shall be allowable or payable with respect to any benefit
except as expressly provided herein. Furthermore, a Participating Company shall
not be deemed by any provisions of the Supplemental Plan to be a fiduciary with
respect to a Participant or the trustee of any cash or property, and the
liabilities of a Participating Company to any Participant pursuant to the
Supplemental Plan shall be those of a debtor pursuant to such contract
obligations as are created by the Supplemental Plan. Such obligation of a
Participating Company shall not be deemed to be secured by any pledge or other
encumbrance on any property of any Participating Company. To the extent that any
person acquires a right to receive payment under the Supplemental Plan, such
right shall be no greater than the right of any unsecured general creditor of a
Participating Company.

4.5 INALIENABILITY OF BENEFITS AND INTERESTS:

No benefit payable under or interest in the Supplemental Plan shall be subject
to any manner of anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge, and any such attempted action shall be void and no such
benefit or interest shall be in any manner liable for or subject to debts,
contracts, liabilities, engagements, or torts of any Nonresident Employee or
beneficiary. If any Participant or beneficiary shall become bankrupt or shall
attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber or
charge any benefit payable under or interest in the Supplemental Plan, then the
Administrator, in its discretion, may hold or apply such benefit or interests,
or any part thereof, to or for the benefit of such Participant or his estate,
beneficiary, spouse, children, blood relatives, or other dependents, or any of
them, in such manner and in such proportions as the Administrator may consider
proper.

4.6 NEW YORK LAW TO GOVERN:

All questions pertaining to the construction, regulation, validity and effect of
the provisions of the Supplemental Plan shall be determined in accordance with
the laws of the State of New York.

4.7 CHANGE IN CONDITIONS OR FEDERAL INCOME TAX LAWS:

In the event of relevant changes in the federal income tax law, regulations or
rulings or other factors affecting the benefits under the Supplemental Plan, the
Administrator may, in its sole discretion, accelerate or change the form of
payment or distribution of all benefits.

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4.8 AGENTS AND ADVISORS:

In carrying out its powers and obligations under the Supplemental Plan, the
Administrator may engage agents, attorneys, appraisers, or other advisors or
assistants (who may also be officers or employees of a Participating Company)
and may delegate such powers as it deems appropriate.

4.9 TAXES:

The Administrator or Participating Company shall make such arrangements as
deemed appropriate for the withholding of any applicable Federal, state or local
taxes with respect to the benefits under the Supplemental Plan.

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                                                                 Exhibit 10.8.1

                      ENHANCE FINANCIAL SERVICES GROUP INC.

                              AMENDED AND RESTATED
                     CHANGE -IN-CONTROL PROTECTION AGREEMENT

         AMENDED AND RESTATED AGREEMENT dated November 15, 1999 by and between
Enhance Financial Services Group Inc. (the "Company") and [Name of Executive]
(the "Executive"), amended and restated as of December 8, 1999.

         WHEREAS, the Executive is a key employee of the Company and an integral
part of its management; and

         WHEREAS, the Company desires to recognize the Executive's commitment to
the Company and to confirm the right of the Executive to certain severance
benefits in the event of termination of the Executive's employment under certain
circumstances following a Change in Control,

         WHEREAS, to that end the board of directors of the Company adopted a
Management Severance Protection Plan in 1998, which it amended September 23,
1999, and the terms of which as so amended, insofar as they apply in the event
of a Change of Control, are reflected in this instrument;

         NOW THEREFORE, in consideration of the promises and mutual covenants
herein contained, and other good and valuable consideration, the Company and the
Executive do hereby agree as follows (capitalized terms herein having the
respective meanings ascribed to them upon their first use or as set forth in
Section X hereof):

I.       SEVERANCE BENEFITS:

                  If a Termination Event occurs during the 24 months following a
         Change in Control (the "Protection Period") , the Executive shall be
         entitled to receive the benefits set forth as follows:

                  1. CASH COMPENSATION: The Executive shall receive, in a single
         lump-sum payment, an amount equal to the sum of (a) three times his or
         her Annual Cash Compensation; plus (b) the greater of (i) the bonus
         paid the Executive in respective of the calendar year immediately
         preceding the Date of Termination, (ii) the bonus paid the Executive in
         the year preceding the calendar year in which the Change in Control
         Date occurs (provided, that, for purposes of both subclauses (i) and
         (ii), if the Executive shall have been employed by the Company for less
         than the entire such relevant preceding calendar year, then the
         applicable bonus for such subclause (i) or (ii) shall, in lieu of that
         set forth above, be the target bonus which would have payable to the
         Executive in respect of such relevant preceding calendar year),
         pro-rated over the period beginning January 1 in the year in which the
         Notice of Termination is given and ending on the Date of Termination.
         Payment of the aforesaid total amount shall be made no later than 30
         days after the Date of Termination. If payment in full is not made
         within the aforesaid 30 days, any amounts due and owing shall earn and
         be allocated daily interest beginning on the 31st day following the
         Date of Termination and ending

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         on the date payment is actually made at a rate equal to 1/365 of the
         annual interest rate payable on one-year U. S. Treasury Bills in effect
         as of the business day coincident with or next following the Date of
         Termination.

                  2. OUTPLACEMENT: The Executive shall be entitled to receive
         six months of outplacement services commensurate with the Executive's
         status level and at such outplacement organization as the Executive
         shall select. The Executive may not elect to take cash in lieu of
         outplacement services. Such outplacement services shall commence on
         such date as is designated by the Executive but in no instance later
         than six months after the Date of Termination.

                  3. WELFARE BENEFITS: Commencing on the Date of Termination and
         continuing for a period of 36 months (the "Benefit Period"), the
         Company shall provide the Executive with life insurance (including
         group term and supplemental executive life insurance), health insurance
         (including, but not limited to, medical, dental and prescription drug
         benefits) and long-term disability insurance ("Welfare Benefits")
         substantially similar in all respects to those which the Executive was
         receiving immediately prior to the Notice of Termination. The receipt
         of the Welfare Benefits shall be conditioned upon the Executive
         continuing to pay the applicable premiums for such Welfare Benefits
         that the Executive paid immediately prior to the Notice of Termination.
         Benefits otherwise receivable by the Executive pursuant to this Section
         I.3. and the corresponding premium payments made by the Executive,
         shall be reduced to the extent substantially similar benefits are
         actually received by the Executive from any other employer during the
         Benefit Period at a cost to the Executive that is commensurate with the
         cost incurred by the Executive immediately prior to Notice of
         Termination; provided, however, that if the Executive becomes employed
         by a new employer that maintains Welfare Benefits that either (a) do
         not cover the Executive or a family member or dependent with respect to
         a pre-existing condition for which there was coverage under the
         applicable Welfare Plans of the Company, or (b) does not cover the
         Executive or a family member or dependent for a designated waiting
         period, or at all, the Executive's coverage under the applicable
         Welfare Benefits of the Company shall continue (but in the event of
         non-coverage due to a preexisting condition, limited to such
         preexisting condition) until (i) the end of the applicable period of
         non-coverage under the new employer's Welfare Benefits, or (ii) the end
         of the Benefit Period, whichever occurs first. The Executive shall
         promptly notify the Company of any Welfare Benefits actually received
         from another employer. During the Benefit Period, the Executive shall
         be entitled to elect to change the Executive's level of coverage and/or
         choice of coverage options (e.g. Executive only or Executive and
         family, or deductible options) under the Welfare Benefits of the
         Company to the same extent that actively employed senior executives of
         the Company are permitted to make such changes; provided, that in the
         event of any such changes, the premiums paid by the Executive for such
         Welfare Benefits shall reflect any cost increases or decreases that
         would actually be paid or received by an actively employed senior
         executive of the Company who made the same changes. For purposes of
         this Section I.3, any measurement of Welfare Benefits, premiums,
         payments or costs that is based on the Welfare Benefits, premiums,
         payments or costs that the Executive was receiving, paying or incurring
         immediately prior to the Notice of Termination shall be determined
         without giving effect to any change thereto during the Protection
         Period if Notice of Termination was due to

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         Good Reason. To the extent the Company is unable to provide the
         Executive with any of the Welfare Benefits required by this Section
         I.3, the Company shall either purchase such Welfare Benefits for the
         Executive or pay the Executive a cash payment equal to the value
         thereof.

                  4. Equity-Based Awards: (a) As to all his or her outstanding
         stock options, restricted stock and any other equity based awards and
         insofar as not inconsistent with the terms of the Company's plans under
         which such awards were granted (the "Incentive Plans"), at the option
         of the Company, either (i) the Executive shall receive a cash-out of
         such awards or (ii) to the extent that such awards are not cashed out
         they shall become (A) fully vested as of the Change in Control Date and
         (B) if susceptible of exercise, exercisable for a period 90 days after
         the Termination Date.

                  (b) If (i) the Executive is terminated as provided for in
         Section VIII (Termination in Anticipation of Change in Control), (ii)
         such termination results in a forfeiture of any of the Executive's
         stock options, restricted stock or other equity-based awards under any
         of the Incentive Plans, and (iii) the Executive is entitled to receive
         payments under the aforesaid Section VIII, the Executive shall, subject
         to the provisions of Section VIII, be entitled to receive a cash
         payment equal to the amount the Executive would have received under
         such plans with respect to such stock options, restricted stock or
         other equity based awards as if the Executive had remained in the
         Company's employ until the Change in Control Date. Such cash payment
         shall be made at the same time and in the same manner as payment would
         have been made under the applicable Incentive Plans had the Executive
         remained employed by the Company until the Change in Control Date.

                  5. Tax Reimbursement Payment: (a) If any amount or benefit
         paid or distributed to the Executive by the Company, whether pursuant
         to this agreement or otherwise (collectively, the "Covered Payments"),
         is or becomes subject to tax imposed under Section 4999 of the Code
         (the "Excise Tax") or any similar tax that may hereafter be imposed,
         the Company shall either pay to the Executive or contribute for the
         benefit of the Executive to a "rabbi" trust established by the Company
         prior to the Change in Control Date, at the time specified in this
         Section I.5.(e) below, the Tax Reimbursement Payment. The "Tax
         Reimbursement Payment" means an amount which, when added to the Covered
         Payments and reduced by any Excise Tax on the Covered Payments and any
         federal, state and local income tax and Excise Tax on the Tax
         Reimbursement Payment provided for by this agreement (but without
         reduction for any federal, state or local income or employment tax on
         the Covered Payments), shall be equal to the sum of (i) the Covered
         Payments, and (ii) the product of (A) any deductions disallowed for
         federal, state, or local income tax purposes because of the inclusion
         of the Tax Reimbursement Payment in the Executive's adjusted gross
         income and (B) the highest applicable marginal rate of federal, state
         or local income taxation, respectively, for the calendar year in which
         the Tax Reimbursement Payment is to be made.

                  (b) For purposes of determining whether any of the Covered
         Payments will be subject to the Excise Tax and, if so, the amount of
         such Excise Tax,

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                           (i) such Covered Payments will be treated as
         "parachute payments" within the meaning of Section 280G of the Code and
         all "parachute payments" in excess of the "base amount," as defined
         under Section 280G(b)(3) of the Code, shall be treated as subject to
         the Excise Tax, unless and except to the extent that, in the opinion of
         the Company's independent certified public accountants, which, in the
         case of Covered Payments made after the Change in Control Date, shall
         be the Company's independent certified accountants appointed prior to
         the Change in Control Date, or tax counsel selected by such accounts,
         (collectively, the "Accounts"), such Covered Payments, in whole or in
         part, either do not constitute "parachute payments" or represent
         reasonable compensation for services actually rendered within the
         meaning of Section 280G(b)(4) of the Code, in excess of the "base
         amount," or such "parachute payments" are otherwise not subject to such
         Excise Tax, and

                           (ii) the value of any non-cash benefits or any
         deferred payment or benefit shall be determined by the Accountants in
         accordance with the principles of Section 280G of the Code.

                  (c) For purposes of determining the amount of the Tax
         Reimbursement Payment, the Executive shall be deemed:

                           (i) to pay federal income taxes at the highest
         applicable marginal rate of federal income taxation for the calendar
         year in which the Tax Reimbursement Payment is to be made,

                           (ii) to pay any applicable state and local income
         taxes at the highest applicable marginal rate of taxation for the
         calendar year in which the Tax Reimbursement Payment is to be made, net
         of the maximum reduction in federal income taxes which would be
         obtained from the deduction of such state or local taxes if paid in
         such year, determined without regard to limitations on deductions based
         upon the amount of the Executive's adjusted gross income, and

                           (iii) to have otherwise allowable deductions for
         federal, state and local income tax purposes at least equal to those
         disallowed because of the inclusion of the Tax Reimbursement Payment in
         the Executive's adjusted gross income.

                  (d) (i) If, subsequent to the making by the Company of the
         payment or the contribution provided for in the first sentence of
         Section I.5.(a), the Excise Tax is determined by the Accountants to be
         less than the amount otherwise taken into account hereunder in
         calculating the Tax Reimbursement Payment made, the Executive shall
         repay to the Company, at the time that the amount of such reduction in
         the Excise Tax is finally determined, the portion of such prior Tax
         Reimbursement Payment that has been paid to the Executive or to
         federal, state or local tax authorities on the Executive's behalf and
         that would not have been paid if such Excise Tax had been applied in
         initially calculating such Tax Reimbursement Payment, plus interest on
         the amount of such repayment at the rate provided for in Section
         1274(b)(2)(B) of the Code. Notwithstanding the foregoing, if any
         portion of the Tax Reimbursement Payment to be refunded to the Company
         has been paid to any federal, state or local tax authority, repayment
         thereof shall not be required until actual refund or credit of such
         portion has been

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          made to the Executive, and interest payable to the Company shall not
          exceed interest received or credited to the Executive by such tax
          authority for the period it held such portion. The Executive and the
          Company shall mutually agree upon the course of action to be pursued,
          and the method of allocating expenses thereof, if the Executive's good
          claim faith for refund or credit is denied.

                  (ii) If, subsequent to the making by the Company of the
         payment or the contribution provided for in the first sentence of
         Section I.5.(a), the Excise Tax is determined by the Accountants to
         exceed the amount otherwise taken into account hereunder at the time
         the Tax Reimbursement Payment is made, including, but not limited to,
         by reason of any payment the existence or amount of which cannot be
         determined at the time of the Tax Reimbursement Payment, the Company
         shall make an additional Tax Reimbursement Payment in respect of such
         excess, which Tax Reimbursement Payment shall include any interest or
         penalty payable with respect to such excess, at the time that the
         amount of such excess is finally determined.

                  (e) The portion of the Tax Reimbursement Payment attributable
         to Covered Payments shall be paid to the Executive or contributed for
         the benefit of the Executive to a "rabbi" trust established by the
         Company prior to the Change in Control Date within ten business days
         following the payment of the Covered Payments. If the amount of such
         Tax Reimbursement Payment, or portion thereof, cannot be finally
         determined on or before the date on which payment is due, the Company
         shall either pay to the Executive or contribute to the aforesaid
         "rabbi" trust an amount estimated in good faith by the Accountants to
         be the minimum amount of such Tax Reimbursement Payment and shall pay
         the remainder of such Tax Reimbursement Payment, including applicable
         interest thereon determined under Section 1274(b)(2)(B) of the Code, as
         soon as the amount thereof can be determined, but in no event later
         than 45 calendar days after payment of the related Covered Payments. If
         the estimated Tax Reimbursement Payment exceeds the amount subsequently
         determined to have been due, such excess shall be repaid or refunded
         pursuant to the provisions of Section I.5.(d).

                  6. SUPPLEMENTAL PENSION: If the Executive is not fully vested
         under the Enhance Reinsurance Company Pension Plan (the "Pension Plan")
         and he or she is a participant in the Enhance Reinsurance Company
         Supplemental Pension Plan (the "Supplemental Plan"), then the Executive
         shall receive, in a single lump-sum payment, an amount equal to the
         amount the Executive would have received under the Supplemental Plan
         had the Executive become fully vested under the Pension Plan on the day
         immediately preceding his or her Date of Termination. The aforesaid
         payment shall be reduced by any amount the Executive is entitled to
         receive under the Supplemental Plan.

II.      FULL SETTLEMENT AND MITIGATION:

         The Company's obligation to make payments provided for in this
agreement and otherwise to perform its obligations hereunder shall not be
affected by any circumstances,

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including, without limitation, any set-off, claim, counterclaim, recoupment,
defense or other legal or equitable right which the Company may have against the
Executive or others whether by reason of subsequent employment of the Executive
or otherwise. In no event shall the Executive be obligated to seek other
employment by way of mitigation. Likewise, the amount of any benefit or payment
provided under this agreement shall not be reduced by any compensation earned by
the Executive through either employment with another employer or
self-employment, or by any retirement-type benefits or unemployment benefits to
which the Executive may be entitled.

III.     RESTRICTIVE COVENANTS:

         1. The Executive shall at all times, now and forever, hold in a
fiduciary capacity for the benefit of the Company and shall not exploit, use,
sell, publish, disclose, communicate or divulge in any manner whatsoever to any
person or entity any trade secret or confidential information, knowledge or data
regarding the Company, its subsidiaries or affiliates. The provision of this
Section III. shall not apply to any truthful statement required to be made by
the Executive pursuant to an order of a court or other body having lawful
jurisdiction over such matter.

         2. The Executive shall not, directly or indirectly, for a period of one
year after the date of the Termination Event employ, or solicit for employment
or advise or recommend to any other person or entity that such person or entity
employ or solicit for employment any person employed at that time or within one
year theretofore by the Company or its subsidiaries or other affiliates.

         3. It is understood and agreed that, if the Executive violates and
breaches either Section III.1 or III.2, the Company will suffer irreparable
damage and that the Company shall be entitled to injunctive relief to prevent
such a breach. Resort to such equitable relief, however, shall not constitute a
waiver of any other rights or remedies the Company may have, and the Executive
shall repay to the Company 95% of the payments made under this agreement and/or
the Company shall be entitled to recover 95% of the amounts paid to the
Executive without waiving the right to pursue any other available legal or
equitable remedies.

IV.      SUCCESSORS AND ASSIGNMENT:

         1. This agreement shall inure to the benefit of and be binding upon the
Company, and the Company shall require any successor to the Company, or any part
thereof, including but not limited to subsidiaries or affiliate, whether direct
or indirect, by purchase, merger, consolidation, acquisition of stock, or
otherwise, to expressly assume and perform this agreement in the same manner and
to the same extent as the Company would be required to perform. In the event of
such succession, references to the Company herein shall thereafter be deemed to
include such successor. Any failure by the Company to obtain assumption of this
agreement by a successor prior to the effectiveness of any such succession shall
be a breach of this agreement. Such breach shall entitle the Executive to
terminate the Executive's employment at anytime within twelve months after such
succession and thereafter to receive compensation and benefits under this
agreement from the Company in the same amount as the Executive would be entitled
to hereunder if the Executive were to terminate his or her employment for Good
Reason during the Protection Period. Any failure by the Executive to exercise
any right to terminate his or her employment under this Section IV shall not
affect any other right of the Executive under this Agreement, and this agreement
shall continue to remain binding on the Company in the same manner and to the
same extent as the successor would be required to perform them if the successor
had assumed this agreement in it entirety without any change thereto.

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         2. This agreement is personal to the Executive and shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution. This agreement shall inure to the benefit of and be enforceable by
the Executive's legal representatives.

V.       LEGAL FEES AND EXPENSES:

         The Company shall pay all reasonable attorney fees and expenses
incurred by the Executive in connection with, but not limited to, a bona fide
dispute regarding the application of any and all the provisions under this
Agreement, the Executive's seeking to obtain or enforce any right or benefit
provided under this Agreement, or in connection with any tax audit or proceeding
to the extent attributable to the application of Section 4999 of the Code to any
payment of benefit provided hereunder. Payment under this Section V shall be
made within ten business days after delivery of the Executive's written request
for payment accompanied by such evidence of fees and expenses incurred as the
Company reasonably may require.

VI.      TERMINATION PROCEDURES:

         1. During the Protection Period any termination of the Executive's
employment by reason of a Termination Event must be preceded by a written
"Notice of Termination" from one party hereto to the other party hereto in
accordance with Section VI. For purposes of this agreement, a "Notice of
Termination" shall mean a written notice that shall (a) specify the Executive's
date of Termination, which shall not be more than 60 days from the date the
Notice of Termination is given (the "Date of Termination"), (b) indicate the
notifying party's opinion regarding the specific provisions of this agreement
that apply to such termination of employment and (c) set forth in reasonable
detail the facts and circumstances claimed to provide a basis for the
application of the provisions indicated.

         2. Termination of the Executive's employment shall occur on the
specified Date of Termination even if there is a dispute between the parties
relating to the provisions of this agreement. Except as provided for in Section
VIII, if Notice of Termination is given by either party to this agreement by
reason of a Termination Event, the Company shall pay all amounts due the
Executive under Section I whether or not a dispute exits between the Executive
and the Company relating to the provisions of this agreement.

         3. If within 30 days of receiving Notice of Termination the party
receiving such notice notifies the other party that a dispute exits as to the
provisions of this agreement that apply to such termination, the dispute shall
be resolved either (a) by mutual written agreement of the parties hereto or (b)
by a final judgment, order or decree of a court having competent jurisdiction,
which is not further appealable or with respect to which the time for appeal
therefrom has expired and no appeal has been perfected. The parties to this
Agreement shall pursue the resolution of such dispute with reasonable diligence.
Within ten business days after such resolution, any party owing any payments to
the other party pursuant to such resolution and/or this Agreement shall make all
payments together with annual compounded interest accrued thereon at a rate
equal to the interest rate payable on one-year U. S. Treasury Bills in effect as
of the business day coincident with or next following the Date of Termination.

         4. Except as otherwise provided in Section VIII, in any proceeding,
regardless of who initiates such proceeding, in which payments of severance
benefits or other benefits or payments under this Agreement is at issue, the
burden of proof that any termination of the Executive's employment has been for
Cause or without Good Reason shall be upon the Company or its

                                       7

<PAGE>

successor, and the standard of proof to be met with respect thereto shall be
clear and convincing evidence.

VII.     NOTICES:

         Any notice or other communication required or permitted to be given
hereunder shall be in writing and shall be deemed to have been duly given or
delivered:, if delivered in person with signed acceptance of such personal
delivery, on the date of such delivery; or if sent by a recognized overnight
courier service, or by certified U.S. Mail, return receipt requested, on the
date of receipt. Notice to the Company shall be sent to:

                           Enhance Financial Services Group Inc.
                           335 Madison Avenue
                           New York, New York  10017
                           Attention:  Elaine J. Eisenman
                                       Executive Vice President

Notice to the Executive shall be sent to the address listed on the last page of
this agreement.

VIII.    TERMINATION IN ANTICIPATION OF CHANGE IN CONTROL:

         1. The Executive's employment shall be deemed to have been terminated
by the Company without Cause during the Protection Period if the Executive's
employment is terminated by the Company otherwise without Cause not during the
Protection Period and such termination of employment (a) was at the request of a
third party that has theretofore taken steps reasonably calculated to effect a
Change in Control; or (b) otherwise arose in anticipation of a Change in
Control.

         2. The Executive's employment shall be deemed to have been terminated
by the Executive for Good Reason during the Protection Period if the Executive
otherwise terminates his or her employment for Good Reason not during the
Protection Period and the circumstances or event that constitutes Good Reason
(a) occurs at the request of a third party that has theretofore taken steps
reasonably calculated to effect a Change in Control; or (b) otherwise arose in
anticipation of a Change in Control.

         3. In the event of a termination of employment described in this
Section VIII, the Executive shall be entitled to all payments and benefits to
which the Executive would have been entitled had such termination occurred
during a Protection Period, except that the Executive shall not be entitled to
receive any payments or benefits under this agreement, and the Company shall
have no obligation to pay any payments or benefit hereunder, as a result of the
termination of the Executive's employment, unless and until the Change in
Control Date occurs within 90 days after termination of the Executive's
employment and, in the reasonable judgment of the Company, the Executive is
entitled to payment of benefits hereunder by reason of the applicability of
either Section VIII.1 or VIII.2. Notwithstanding any provision of this agreement
to the contrary, for purposes of this Section VIII only, the burden of proving
that the requirements of Section VIII.1 or VIII.2 have been met shall be on the
Executive, and the standard of proof to be met by the Executive shall be clear
and convincing evidence.

                                       8

<PAGE>

IX.      MISCELLANEOUS:

         1. Amendment, Modification and Waiver: No provision of this agreement
may be amended, modified, waived or discharged unless such amendment,
modification, waiver or discharge is approved by the Board and is agreed to in
writing and signed by the Executive and such officer of the Company as may be
specifically designated by the Board subsequent to the Board's approval of such
amendment, modification waiver or discharge. No waiver by either party hereto at
any time of any breach of, or failure to comply with, any condition or provision
of this agreement that is to be satisfied or performed by the other party hereto
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any subsequent time.

         2. Entire Agreement: This agreement contains the entire agreement of
the parties concerning the subject matter, and all promises, representations,
understandings, arrangements and prior agreements concerning the subject matter
are merged herein and superseded hereby.

         3. Governing Law and Venue: The validity, interpretation, construction
and performance of this Agreement shall be governed by the laws of the State of
New York applicable to agreement made entirely to be performed within such
jurisdiction. The party bringing any action under this Agreement shall only be
entitled to choose the federal or state courts in the State of New York as the
venue for such action, and each party consents to the jurisdiction of the court
chosen in such manner for such action.

         4. Taxes: The Company shall be entitled to withhold from any payments
made hereunder, applicable federal, state or local income and payroll taxes as
the Company determines it is required to withhold under law.

         5. Validity: The invalidity or unenforceability of any provision of
this agreement shall not affect the validity or enforceability of any other
provision of this agreement, which shall remain in full force and effect.

         6. No Right to Continued Employment: Nothing in this agreement shall be
deemed to give the Executive the right to be retained in the employ of the
Company or to interfere with the right of the Company to discharge the Executive
at any time, subject in all cases to the terms of this agreement.

         7. Termination of Agreement: Notwithstanding anything in this agreement
to the contrary, this agreement may be terminated by the Company at any time
prior to the Change in Control Date if the Executive fails to carry out the
material responsibilities assigned to the Executive, including without
limitation those related to the effectuation of the transaction looking to the
Change in Control.

         8. Waiver under Severance Payment Plan: Should the Executive become
entitled to receive payments and benefits under this Agreement, the Executive
hereby automatically waives all rights to receive any payments under the
Company's Severance Payment Plan.

X.       DEFINITIONS:

         1.       "Accountants" shall have the meaning set forth in Section I.4.

         2.       "Annual Cash Compensation" means the total of:

                                       9

<PAGE>

                           (a) the Executive's stated annual base salary
         determined immediately prior to Notice of Termination, but in no event
         less than the Executive's stated annual base salary in the year in
         which the Change in Control Date occurs; plus

                           (b) the Executive's bonus paid by the Company for the
         year immediately preceding the year in which Notice of Termination is
         given, but in no event shall it be less than the bonus paid in the year
         immediately preceding the year in which the Change in Control Date
         occurs (provided, that, for purposes of this clause (b), if the
         Executive shall have been employed by the Company for less than the
         entire such relevant preceding calendar year, then the applicable bonus
         for this clause (b) shall, in lieu of that set forth above, be the
         target bonus which would have payable to the Executive in respect of
         such relevant preceding calendar year); plus

                           (c) the amount of any cash received or entitled to be
         received prior to Notice of Termination as a "flex perquisite," but in
         no event less than the amount of cash received or entitled to be
         received as a "flex perquisite" from the Company in the year in which
         the Change in Control Date occurs; plus

                           (d) the amount of the premium paid by the Company, on
         behalf of the Executive for executive supplemental long-term disability
         insurance.

         3.       "Benefit Period" shall have the meaning set forth in Section
                  I.3.

         4.       "Board" means the Board of Directors of the Company and,
                  except for purposes of Section X.6 (d), the Compensation and
                  Nominating Committee thereof.

         5.       "Cause" means:

                           (a) the willful and continued failure of the
         Executive to substantially perform the Executive's duties with the
         Company, other than any such failure resulting from incapacity due to
         physical or mental illness, after a written demand for substantial
         performance is delivered to the Executive by the Board or the chief
         executive officer of the Company which specifically identifies the
         manner in which the Board or chief executive officer of the Company
         believes that the Executive has not substantially performed his or her
         duties; or

                           (b) the willful engaging by the Executive in illegal
         conduct or gross misconduct that is demonstrably injurious to the
         Company.

                  For purposes of this Section X.5, no act or failure to act on
the part of the Executive shall be considered "willful" unless it is done, or
omitted to be done, by the Executive in bad faith and without reasonable belief
that the Executive's action or omission was in the best interest of the Company.
Any act, or failure to act, based upon the instructions or prior approval of the
Board or chief executive officer of the Company or the Executive's superior or
based upon the advice of counsel for the Company, shall be conclusively presumed
to be done, or omitted to be done, by the Executive in good faith and in the
best interests of the Company. The cessation of employment of the Executive
shall not be deemed to be for Cause unless and until there shall have been
delivered to the Executive, as part of the Notice of Termination, a copy of a
resolution duly adopted by the affirmative vote of not less than a majority of
the entire Board, at regularly

                                       10

<PAGE>

scheduled Board meeting or at a Board meeting called and held for the purpose of
considering such termination, finding that, in the good faith opinion of the
Board, the Executive is guilty of the conduct described in clause (a) or (b) of
this Section X.5 and specifying the particulars thereof in detail. Such
resolution shall be adopted only after reasonable notice of such Board meeting
is provided to the Executive and the Executive is given an opportunity to be
heard before the Board.

         6. "Change in Control" shall occur when:

                           (a) The "beneficial ownership" (as defined in Rule
         13d-3 of the Securities Exchange Act of 1934) of securities
         representing more than 35% of the combined voting power of the Company
         is acquired by a person or entity other than the Company, any trustee
         or other fiduciary holding securities under an employee benefit plan of
         the Company or an affiliate thereof, or any entity owned directly or
         indirectly by the shareholders of the Company in substantially the same
         proportion as their ownership of the Company; or

                           (b) Consummation of a merger or consolidation of the
         Company with or into any other entity other than a merger or
         consolidation which would result in the voting securities of the
         Company outstanding immediately prior thereto continuing to represent,
         either by remaining outstanding or by being converted into voting
         securities of the surviving entity, more than 65% of the combined
         voting power of the voting securities of the Company or such surviving
         entity outstanding immediately after such merger or consolidation; or

                           (c) The shareholders of the Company approve a plan to
         sell or otherwise dispose of all or substantially all of the Company's
         assets or adopt a plan for the Company's liquidation; or

                           (d) During a period of two consecutive years,
         individuals who at the beginning of such period constitute the Board
         and any new director, other than a director designated by a person who
         has entered into an agreement with the Company to effect a transition
         described in clause (a) or (b) of this Section X.5, whose election by
         the Board or nomination for election by the Company's shareholders was
         approved by a vote of at least two-thirds of the directors then still
         in office who either were directors at the beginning of the period or
         whose election was previously so approved, ceases for any reason to
         constitute a majority thereof; or

                           (e) The "beneficial ownership" (as defined in Rule
         13d-3 of the Securities Exchange Act of 1934) of securities of a wholly
         owned subsidiary of the Company representing at least 70% of the
         combined voting power of such subsidiary, or at least 70% of the assets
         of such subsidiary is acquired by a person or entity other than the
         Company, any trustee or other fiduciary holding securities under an
         employee benefit plan of the Company or an affiliate thereof, or any
         entity owned directly or indirectly by the shareholders of the Company
         in substantially the same proportion as their ownership of the Company,
         provided that the foregoing shall apply as a "Change in Control" for
         purposes of this agreement as concerns only an executive officer of the
         Company holding a position at least of executive vice president of the
         Company and either (i) for whom at least 90% of his or her annual goals
         are attributable to the operations,

                                       11

<PAGE>

         results or performance of such subsidiary or (ii) who is designated as
         "corporate staff." of the Company.

         However, in no event shall a Change in Control be deemed to have
occurred with respect to any Executive who is part of a purchasing group which
consummates the Change in Control transaction. The Executive shall be deemed to
be part of the purchasing group for purposes of the proceeding sentence if the
Executive is an equity participant in the purchasing entity or group of
individuals, except for: (i) passive ownership of less than 3% of the stock of
the purchasing entity; or (ii) ownership of equity participation in the
purchasing entity which is otherwise not significant, as determined prior to the
Change in Control by a majority of continuing directors who are not employees of
the Company or any of its subsidiaries or other affiliates.

         7. "Change in Control Date" means the date on which a Change in Control
shall be deemed to have occurred.

         8. "Code" means the Internal Revenue Code of 1986, as amended from time
to time, and shall also include the regulations and ruling promulgated
thereunder.

         9. "Covered Payments" shall have the meaning set forth in Section I.4.

         10. "Excise Tax" shall have the meaning set forth in Section I.4.

         11. "Good Reason" shall mean the occurrence, during the Protection
Period, of any one or more of the following without the Executive's express
written consent:

                           (a) The assignment to the Executive of duties
         inconsistent in any substantial respect with the Executive's position,
         authority, duties, responsibilities and status (including offices,
         titles and reporting requirements), or any substantial changes in such
         position, authority, duties, responsibilities and status from those
         previously held by the Executive prior to the Change in Control event,
         as applicable. The Executive's position, authority, duties,
         responsibilities and status shall not be regarded as substantially
         inconsistent with or substantially changed from previous position,
         authority, duties, responsibilities or status merely by virtue of the
         fact that there has been a Change in Control.

                           (b) In the case of a Change in Control as described
         in Section VIII.6.(e), with respect to an executive officer of the
         Company holding a position at least of executive vice-president of the
         Company who is designated as "corporate staff" of the Company and who
         remains directly or indirectly employed by the Company, the Change in
         Control, directly or indirectly, results in the reduction of corporate
         revenues or staff by at least 50%,

                           (c) A reduction in the Executive's stated annual base
         salary determined immediately prior to the Change in Control Date and
         which shall include any cash perquisite payment and any insurance
         premium payment,

                           (d) A reduction of the Executive's annual target
         bonus opportunity (excluding any annual reduction that applies to all
         executives of the Company),

                                       12

<PAGE>

                           (e) A reduction in the Executive's level of
         participation in or benefits provided under any short- or long-term
         incentive plan of the Company, including, but not limited to incentive
         compensation in the form of cash, stock or stock options, in effect as
         of the Change in Control Date,

                           (f) A material reduction, in the aggregate, in the
         Executive's level of participation in and benefits provided to the
         Executive under the Company's employee welfare, retirement, fringe
         benefit, vacation and sick leave plans, policies and practices,
         including, but not limited to, retirement, 401(k), severance, medical,
         dental, life, health, short- and long-term disability and flexible
         benefits,

                           (g) A change of more than 50 miles in the office or
         location at which the Executive is based, or

                           (h) A failure of the Company to have a successor
         assume this Agreement pursuant to Section IV of this Agreement.

         For purposes of this definition of "Good Reason," any good faith
determination of "Good Reason" made by the Executive shall be conclusive.

         12. "Notice of Termination" shall have the meaning set forth in Section
V.1.

         13. "Protection Period" shall have the meaning set forth in Section I.

         14. "Tax Reimbursement Payment" shall have the meaning set forth in
Section I.4.

         15. "Termination Date" shall have the meaning set forth in Section V.
1.

         16. "Termination Event" shall mean, upon a Change in Control, an action
of the Company, or the successor to the Company under Section IV, or any of
their respective subsidiaries or affiliates, resulting in either (a) the
involuntary termination of employment of the Executive other than for Cause or
(b) the resignation of the Executive for "Good Reason."

                                   ENHANCE FINANCIAL SERVICES GROUP INC.

                                   By:__________________________________________
                                      Name:  Daniel Gross
                                      Title: President

                                   EXECUTIVE:

                                   _____________________________________________
                                      Name:
                                      Address:

                                       13

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