Document:

Exhibit 10.1

                   FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.

                           DEFERRED COMPENSATION PLAN

                              Amended and Restated

                               as of July 10, 2000
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                                TABLE OF CONTENTS

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ARTICLE I         ESTABLISHMENT AND PURPOSE OF THE PLAN......................2

ARTICLE II        DEFINITIONS................................................2

ARTICLE III       PARTICIPATION..............................................5

ARTICLE IV        DEFERRAL ELECTIONS.........................................6

ARTICLE V         CREDITING OF DEFERRAL AMOUNTS AND ACCRUAL
                  OF INVESTMENT GAINS OR LOSSES..............................9

ARTICLE VI        COMMENCEMENT OF BENEFITS..................................11

ARTICLE VII       BENEFICIARY DESIGNATION...................................12

ARTICLE VIII      MAINTENANCE AND VALUATION OF ACCOUNTS.....................13

ARTICLE IX        FUNDING...................................................13

ARTICLE X         AMENDMENT AND TERMINATION.................................14

ARTICLE XI        FINANCIAL HARDSHIP WITHDRAWALS............................15

ARTICLE XII       ADMINISTRATION............................................16

ARTICLE XIII      GENERAL PROVISIONS........................................17
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                   FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
                           DEFERRED COMPENSATION PLAN

                                    ARTICLE I

                      ESTABLISHMENT AND PURPOSE OF THE PLAN

      1.1 Effective as of June 1, 1995, Financial Security Assurance Holdings
Ltd. established for the benefit of certain of its employees, certain employees
of its affiliates or subsidiaries and certain members of its board of directors
an unfunded plan by which an eligible employee or eligible director can elect to
defer, respectively, receipt of all or a portion of his or her compensation or
fees. This plan was amended and restated as of July 10, 2000. This plan, as so
amended and restated, is known as the Financial Security Assurance Holdings Ltd.
Deferred Compensation Plan.

                                   ARTICLE II

                                   DEFINITIONS

      Unless the context otherwise requires, the following terms, when used
herein, shall have the meaning assigned to them in this Article II.

      2.1 The term "Account" shall mean a Participant's individual account, as
described in Article VIII of the Plan.

      2.2 The term "Beneficiary" shall mean the person or persons designated by
the Participant (including an individual, trust, estate, partnership,
association, company, corporation or any other entity), pursuant to Article VII
of the Plan, to receive benefits under the Plan in the event of the
Participant's death.

      2.3 The term "Board" shall mean the Board of Directors of the Company.

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      2.4 The term "Bonus" shall mean: (i) bonus compensation payable in cash;
(ii) bonus compensation payable in respect of an "Equity Bonus" awarded under
the Equity Participation Plan; (iii) an amount payable pursuant to a
"Performance Shares" award under the Equity Participation Plan; and (iv) any
other incentive, performance related or other payment that, absent deferral
pursuant to the Plan, would constitute taxable income to the Participant.

      2.5 The term "Committee" shall mean the Human Resources Committee of the
Board.

      2.6 The term "Company" shall mean Financial Security Assurance Holdings
Ltd., a New York corporation.

      2.7 The term "Compensation" shall mean, in respect of any Year and in each
case before any deductions for amounts deferred under the Plan: (i) in the case
of an Eligible Employee, the total of his or her annual salary and Bonus with
respect to such Year; and (ii) in the case of an Eligible Director, the total of
his or her fees from the Company, or any direct or indirect subsidiary thereof,
with respect to such Year.

      2.8 The term "Deferral Amount" shall mean the amount of Compensation that
a Participant defers under the terms of the Plan.

      2.9 The term "Deferral Period" shall mean the period of time during which
a Participant elects to defer the receipt of the Deferral Amount under the terms
of the Plan.

      2.10 The term "Deferred Compensation Plan Election Change Form" shall mean
the form prescribed or accepted by the Committee by which a Participant may
change a previous election of a Deferral Amount.

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      2.11 The term "Deferred Compensation Plan Election Form" shall mean the
form prescribed or accepted by the Committee by which a Participant elects a
Deferral Amount.

      2.12 The term "Disability" shall mean, in the case of an Eligible
Employee, a determination of such condition under the Participating Company's
long-term disability plan. In the case of an Eligible Director, "Disability"
shall have the same meaning as set forth in the Company's long-term disability
plan and the determination of this condition shall be made by the Committee.

      2.13 The term "Eligible Director" shall mean any member of the Board, or
any member of the board of directors of any direct or indirect subsidiary of the
Company, in each case who is not an employee of the Company or any of its
subsidiaries.

      2.14 The term "Eligible Employee" shall mean any participant in the
Company's Supplemental Executive Retirement Plan and any other employee of a
Participating Company as may be designated from time to time by the Committee as
eligible to participate in the Plan.

      2.15 The term "Equity Participation Plan" shall mean the Financial
Security Assurance Holdings Ltd. 1993 Equity Participation Plan, as amended from
time to time.

      2.16 The term "Participant" shall mean an Eligible Employee or Eligible
Director who defers payment of Compensation under the terms of the Plan,
including any former Eligible Employee or Eligible Director who is receiving or
will become eligible to receive benefits under the Plan at a later date.

      2.17 The term "Participating Company" shall mean, with respect to an
Eligible Employee, the Company or any affiliate or subsidiary of the Company
employing an Eligible Employee.

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      2.18 The term "Plan" shall mean the Financial Security Assurance Holdings
Ltd. Deferred Compensation Plan, as set forth herein and as amended from time to
time.

      2.19 The term "Year" shall mean the initial period from June 1, 1995
through December 31, 1995 and each 12-month calendar year thereafter beginning
with January 1, 1996.

                                   ARTICLE III

                                  PARTICIPATION

      3.1 Each Eligible Employee and each Eligible Director shall become a
Participant, as of the date specified in Section 3.2, by electing a Deferral
Amount in accordance with Section 4.1.

      3.2 An Eligible Employee or Eligible Director shall become a Participant
in the Plan as of the date a Deferral Amount is credited to his or her Account
and shall remain a Participant until the complete distribution of the
Participant's Account, subject to Article VII hereof.

      3.3 Notwithstanding anything in the Plan to the contrary, the Committee
shall be authorized to take such steps as may be necessary to ensure that the
Plan is and remains at all times an unfunded deferred compensation arrangement
for a select group of management or highly compensated employees, within the
meaning of the Employee Retirement Income Security Act of 1974, as amended from
time to time.

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                                   ARTICLE IV

                               DEFERRAL ELECTIONS

      4.1 Except with respect to the initial Year, in December of each Year,
each Eligible Director then serving and each Eligible Employee then employed at
a Participating Company shall have the right to determine his or her Deferral
Amount for the next Year, subject to the limitations set forth in this Article
IV. With respect to the initial Year, the election of a Deferral Amount by an
Eligible Employee, or by an Eligible Director, can be made within thirty days
after the effective date of the Plan but only with respect to Compensation for
services rendered subsequent to the election. Subject to Section 4.3, such
Deferral Amount shall reduce the amount that is to be paid to the Participant
for the Year of reference. With respect to an Eligible Employee, a separate
election for a Year may be made with respect to salary payable in that Year and
with respect to a Bonus payable for that Year, including a separate election
with respect to any amount payable in respect of "Performance Shares" or "Equity
Bonuses", or any other component of Bonus, as the case may be, awarded pursuant
to the Equity Participation Plan.

      4.2 An Eligible Employee or Eligible Director who does not elect a
Deferral Amount in December of any Year (or on or prior to June 30, 1995 with
respect to the initial Year) will not be permitted to make such an election
until the following December, effective for the following Year.

      4.3 No deferral agreement with respect to a Year shall provide for a
Deferral Amount of less than $5,000 for such Year; provided, however, that an
election by an Eligible Employee with respect to salary or Bonus may be
conditioned upon the amount of the Eligible Employee's salary or Bonus (or
component thereof) awarded.

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      4.4 Any election of a Deferral Amount shall be effected by the execution
of a valid Deferred Compensation Plan Election Form, timely filed with the
Company, and shall be irrevocable for the Year with respect to which the
election is made.

      4.5 Each validly executed and timely filed Deferred Compensation Plan
Election Form shall be effective solely with respect to the specified Year. An
Eligible Director or Eligible Employee who wishes to elect a Deferral Amount
with respect to a succeeding Year must make a separate and timely election for
such Year.

      4.6 An election with respect to a Deferral Amount for a Year must specify
the Deferral Period applicable to that Deferral Amount. With respect to a
Deferral Amount for any Year, the Participant may elect a Deferral Period of a
specific number of years, provided that in no event may the number of years be
less than three (3). Alternatively, the Participant may elect a Deferral Period
which ends on his or her termination of employment or directorship, as the case
may be, or the earlier or later of such termination or a specified number of
years pursuant to the preceding sentence. A Participant may elect a different
Deferral Period for each Year's Deferral Amount or for any specified portion of
any Year's Deferral Amounts. A Participant may elect to extend, but not shorten,
a previously elected Deferral Period at any time at least 12 months before the
end of such previously elected Deferral Period by the execution of a valid
Deferred Compensation Plan Election Change Form, timely filed with the Company.
If such previously elected Deferral Period ended upon termination of employment
or directorship, then a Deferred Compensation Plan Election Change Form shall
only be effective in respect of Deferral Amounts that would not otherwise have
been distributed at least 12 months after the filing of such Form.

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      4.7 Each deferral election also must specify the payment option that will
apply for the Deferral Amount, or any portion thereof, for that Year, and
earnings credited on that amount. The normal form of payment shall be a lump sum
payment. A Participant may elect that the distribution be made in installments
payable over a specified number of years, not longer than 15 years; provided,
however, that in no event may installment payments be elected over a number of
years that is more than the Participant's life expectancy or the life expectancy
of the designated primary Beneficiary, whichever is greater. If a Participant
elects the installment payment option, the Participant also must elect whether
installments should be made annually, quarterly or monthly. Different payment
options may be elected with respect to the Deferral Amount, or any portion
thereof, for each Year, and earnings credited on such amount. At any time at
least 12 months before the end of a Deferral Period, a Participant may make the
following changes to the payment option previously elected with respect to the
Deferral Amount corresponding to such Deferral Period:

      (a)   a Participant who previously elected a lump sum payment with respect
            to a Deferral Amount may select an installment payment option
            described in this Section 4.7 of the Plan; and

      (b)   a Participant who previously elected an installment payment option
            described in this Section 4.7 with respect to a Deferral Amount may
            select a different installment payment option described in this
            Section 4.7 which provides for the payment of the Deferral Amount
            over a longer, but not a shorter, period of time.

Any such change in payment options shall be made by the execution of a valid
Deferred Compensation Plan Election Change Form, timely filed with the Company.
If such previously elected Deferral Period ended upon termination of employment
or directorship, then a Deferred

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Compensation Plan Election Change Form shall only be effective in respect of
Deferral Amounts that would not otherwise have been distributed at least 12
months after the filing of such Form.

      4.8 Anything in Section 4.6 or 4.7 to the contrary notwithstanding, on his
or her Deferred Compensation Plan Election Form the Participant may elect that
in the event of his or her death or Disability any Deferral Period or form of
distribution election otherwise applicable to a Deferral Amount is nullified
and: (i) distribution shall be made after the date of Disability or death; and
(ii) distribution of his or her entire Account, or of any Deferral Amount, shall
be made either in a lump sum or in installments payable over a specified number
of years, not longer than 15. Unless otherwise elected pursuant to the preceding
sentence, in the event of the Participant's death or Disability, payment of a
Participant's Account shall be made in the form of a lump sum as soon as
administratively practicable following the date of death or Disability. Any
election made pursuant to this Section 4.8 may be changed at any time prior to
death or Disability by the execution of a valid Deferred Compensation Plan
Election Change Form, timely filed with the Company.

                                    ARTICLE V

                        CREDITING OF DEFERRAL AMOUNTS AND
                      ACCRUAL OF INVESTMENT GAINS OR LOSSES

      5.1 All deferral amounts will be withheld from the electing Participant's
Compensation and credited on the Company's books in the Account maintained in
such Participant's name.

      5.2 Each month, the balance of each Participant's Account shall be
credited with earnings or investment gains and losses as provided below. The
Committee may establish procedures permitting Participants to designate one or
more investment benchmarks specified by

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the Chief Executive Officer or the Committee for the purpose of determining the
earnings or investment gains and losses to be credited or debited to a
Participant's Account. Investment benchmarks so specified may be made available
to all Participants or selected Participants as the Chief Executive Officer or
the Committee may designate. The Committee shall have the sole discretion to
make such rules as it deems desirable with respect to the administration of any
such investment benchmark procedures, including rules permitting the Participant
to change the designation of investment benchmarks to be used to measure the
value of the Account. The Committee, however, retains the discretion at any time
to change the investment benchmarks available to Participants, including any
investment benchmarks previously specified by the Chief Executive Officer, or to
discontinue the investment benchmark procedure. If the Committee fails to
implement an investment benchmark procedure or discontinues such procedure, or
if the Participant fails to designate properly an investment benchmark, the
Participant's Account shall be credited with earnings at a rate determined by
the Committee in its sole discretion, utilizing whatever factors or indicia it
deems appropriate; provided, however, that the rate of return on a Participant's
Account in such circumstances shall not be less than the Chase Bank prime rate
plus one percent. Nothing in this Article V or in the Committee's rules shall
give a Participant the right to require the Company or a Participating Company
to acquire any asset for the Account of the Participant, and if the Company or a
Participating Company acquires any asset, or causes a trustee on its behalf to
acquire any asset, to permit it to satisfy its obligations to pay the
Participant's Deferral Amount, the Participant shall have no right or interest
in any such asset, which shall be held by the Company or the Participating
Company subject to the rights of all unsecured creditors of the Company or the
Participating Company. The rights of the Participant with respect to any
designation of one or more investment benchmarks for measuring the value of any
Account hereunder shall be expressly subject to the provisions of Article IX of
the Plan.

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                                   ARTICLE VI

                            COMMENCEMENT OF BENEFITS

      6.1 At the end of the Deferral Period selected by a Participant with
respect to each Deferral Amount or, if applicable, termination of employment
with a Participating Company or of status as an Eligible Director, the amount
credited with respect to such Deferral Amount shall be distributable to such
Participant in the form of payment selected, commencing as soon as
administratively practicable.

      6.2 Notwithstanding Section 6.1, each Participant's Account shall be
distributed in accordance with Section 4.8 in the event of the Participant's
death or Disability.

      6.3 Notwithstanding any other provision of the Plan to the contrary, the
Committee, in its sole discretion, shall have the right, but shall not be
required, to distribute all or any portion of a Participant's benefits under the
Plan in the form of any investment or security chosen by the Participant at any
time as an investment benchmark for measuring the value of his or her Account
pursuant to Section 5.2 of the Plan.

      6.4 If the Participant or the Participant's Beneficiary is entitled to
receive any benefits hereunder and is in his or her minority, or is, in the
judgment of the Committee, legally, physically or mentally incapable of
personally receiving and receipting any distribution, the Committee may make
distributions to a legally appointed guardian or to such other person or
institution as, in the judgment of the Committee, is then maintaining or has
custody of the payee.

      6.5 After all benefits have been distributed in full to the Participant or
to the Participant's Beneficiary, all liability under the Plan to such
Participant or to his or her Beneficiary shall cease.

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      6.6 To the extent required by law in effect at the time payments are made,
the Company or other Participating Company shall withhold from payments made
hereunder the minimum taxes required to be withheld by the federal or any state
or local government, or such greater withholding amount as a Participant or the
Participant's Beneficiary may designate.

                                   ARTICLE VII

                             BENEFICIARY DESIGNATION

      The Participant may, at any time, designate a Beneficiary or Beneficiaries
to receive the benefits payable in the event of his or her death (and may
designate a successor Beneficiary or Beneficiaries to receive any benefits
payable in the event of the death of any other Beneficiary). Each Beneficiary
designation shall become effective only when filed in writing with the Company
during the Participant's lifetime on a form prescribed or accepted by the
Company (a "Beneficiary Designation Form"). The filing of a new Beneficiary
Designation Form will cancel any Beneficiary Designation Form previously filed.
If no Beneficiary shall be designated by the Participant, or if the designated
Beneficiary or Beneficiaries shall not survive the Participant, payment of the
Participant's Account shall be made to the Participant's estate. If a
Participant designated that payments be made in installments and did not
designate a successor Beneficiary, the Beneficiary of such Participant may
submit a Beneficiary Designation Form in respect of himself or herself and the
provisions of the Plan shall apply to such Beneficiary as if the Beneficiary
were the Participant hereunder.

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                                  ARTICLE VIII

                      MAINTENANCE AND VALUATION OF ACCOUNTS

      8.1 The Company shall establish and maintain a separate bookkeeping
Account on behalf of each Participant. The value of an Account as of any date
shall equal the Participant's Deferral Amounts theretofore credited to such
Account plus the earnings and investment gains and losses credited to such
Account in accordance with Article V of the Plan through the day preceding such
date and less all payments made by the Company to the Participant or his or her
Beneficiary or Beneficiaries through the day preceding such date.

      8.2 Each Account shall be valued by the Company as of each December 31 or
on such more frequent dates as designated by the Company. Accounts also may be
valued by the Company as of any other date as the Company may authorize for the
purpose of determining payment of benefits, or any other reason the Company
deems appropriate.

      8.3 The Company shall submit to each Participant, within 60 (sixty) days
after the close of each Year, a statement in such form as the Company deems
desirable setting forth the balance standing to the credit of each Participant
in his or her Account, including Deferral Amounts, earnings and investment gains
or losses and Deferral Periods.

                                   ARTICLE IX

                                     FUNDING

      9.1 The benefits contemplated hereunder may be paid directly by the
Company, any other Participating Company or through any trust established by the
Company hereunder to assist in meeting its obligations. Nothing contained
herein, however, shall create any obligation on the

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part of the Company or any other Participating Company to set aside or earmark
any monies or other assets specifically for payments under the Plan.

      9.2 Notwithstanding anything in the Plan to the contrary, Participants and
their Beneficiaries, heirs, successors and assigns shall have no legal or
equitable rights, interest or claims in any specific property or assets of the
Company or any other Participating Company, nor shall they be beneficiaries of,
or have any rights, claims or interests in, any funds, securities, life
insurance policies, annuity contracts, or the proceeds therefrom, owned or which
may be acquired by the Company. Such funds, securities, policies or other assets
shall not be held in any way as collateral security for the fulfillment of the
obligations under the Plan. Any and all of such assets shall be, and remain, for
purposes of the Plan, the general unpledged, unrestricted assets of the Company
or Participating Company, as the case may be.

      9.3 The obligation under the Plan shall be merely that of an unfunded and
unsecured promise of the Company, or Participating Company pursuant to the
succeeding sentence, to pay money in the future. By action of its board of
directors, any Participating Company may assume joint and several liability with
the Company with respect to any obligations under the Plan for Eligible
Employees or Eligible Directors of the Participating Company.

                                    ARTICLE X

                            AMENDMENT AND TERMINATION

      10.1 The Board, or its duly authorized delegates, may at any time amend
the Plan in whole or in part; provided, however, that no amendment shall be
effective to decrease the accrued benefits or rights of any Participant under
the Plan. Written notice of any such amendment shall be given to each
Participant.

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      10.2 The Board may at any time terminate the Plan; provided, however, that
such termination shall not decrease the accrued benefits or rights of any
Participant under the Plan. Upon any termination of the Plan under this Section
10.2, each Participant shall cease to make deferrals under the Plan, and all
amounts shall prospectively cease to be deferred for the balance of such Year.
Accounts shall be maintained and distributed pursuant to such terms, at such
times and upon such conditions as were effective immediately prior to the
termination of the Plan; provided, however, that the Committee, in its
discretion, may direct that all benefits payable under the Plan be distributed
in the form of a lump sum distribution following the Plan's termination.

                                   ARTICLE XI

                         FINANCIAL HARDSHIP WITHDRAWALS

      11.1 Subject to the provisions set forth herein, a Participant may
withdraw up to 100% (one hundred percent) of his or her Account balance as
necessary to satisfy immediate and heavy financial needs of the Participant
which the Participant is unable to meet from any other resource reasonably
available to the Participant. The amount of such hardship withdrawal may not
exceed the amount required to meet such need.

      11.2 (a) Upon written application, the Committee, in its sole discretion,
may grant a withdrawal to the Participant for any of the following unforeseen
financial hardships:

                        (i) unusual medical expenses incurred by the Participant
                  for the Participant or his or her dependents;

                        (ii) threat of foreclosure upon or eviction from the
                  Participant's primary residence; or

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                        (iii) any other situation which the Committee shall deem
                  to constitute financial hardship.

            (b) The Participant shall be required to furnish evidence of purpose
and need to the Committee on forms prescribed by or acceptable to the Company.

      11.3 For purpose of determining the Participant's Account under this
Article XI, the earnings and investment gains and losses credited to the
Participant's Account shall be determined pursuant to Section 5.2 as if the
Participant had terminated employment with the Company as of the date of the
relevant hardship withdrawal distribution made hereunder.

      11.4 Notwithstanding any other provision of the Plan to the contrary, upon
written application of a Participant, the Committee may, in the case of
financial hardship, authorize the cessation of deferrals by such Participant.

                                   ARTICLE XII

                                 ADMINISTRATION

      12.1 The administration of the Plan shall be vested in the Committee.

      12.2 The Committee shall have general charge of the administration of the
Plan and shall have full power and authority to make its determinations
effective. All decisions of the Committee shall be by a vote of the majority of
its members and shall be final and binding unless the Board shall determine
otherwise. Members of the Committee, whether or not Eligible Employees or
Eligible Directors, shall be eligible to participate in the Plan while serving
as a member of the Committee, but a member of the Committee shall not vote or
act upon any matter which relates solely to such member as a Participant. The
Committee may delegate to any agent

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or to any sub-committee or member of the Committee its authority to perform any
act hereunder, including, without limitation, those matters involving the
exercise of discretion, provided that such delegation shall be subject to
revocation at any time by the Committee.

      12.3 In addition to all other powers vested in it by the Plan, the
Committee shall have power to interpret the Plan, to establish and revise rules
and regulations relating to the Plan and to make any other determinations that
it believes necessary or advisable for the administration of the Plan. The
Committee shall have absolute discretion and all decisions made by the Committee
pursuant to the exercise of its authority (including, without limitation, any
interpretation of the Plan) shall be final and binding, in the absence of
arbitrary or capricious action, on all persons and shall be accorded the maximum
deference permitted by law.

      12.4 The Company shall indemnify and hold harmless the members of the
Committee against any and all claims, loss, damage, expense or liability arising
from any action or failure to act with respect to the Plan to the fullest extent
permitted by law.

                                  ARTICLE XIII

                               GENERAL PROVISIONS

      13.1 Neither the establishment of the Plan, nor any modification thereof,
nor the creation of an Account, nor the payment of any benefits shall be
construed: (a) as giving the Participant, Beneficiary or other person any legal
or equitable right against the Company unless such right shall be specifically
provided for in the Plan or conferred by affirmative action of the Company in
accordance with the terms and provisions of the Plan; or (b) as giving an
Eligible Employee the right to be retained in the service of a Participating
Company or to continue as a member of the Board or the board of directors of any
Participating Company, and the Participant

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shall remain subject to discharge or removal to the same extent as if the Plan
had never been established.

      13.2 No interest of any Participant or Beneficiary hereunder shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment or garnishment by creditors of the Participant
or the Participant's Beneficiary.

      13.3 All pronouns and any variations thereof shall be deemed to refer to
the masculine, feminine or neuter, as the identity of the person or persons may
require. As the context may require, the singular may be read as the plural and
the plural as the singular.

      13.4 Any notice or filing required or permitted to be given to the
Committee under the Plan shall be sufficient if in writing and delivered, or
sent by registered or certified mail, to the principal office of the Company,
directed to the attention of each of the President and the General Counsel of
the Company. Such notice shall be deemed given as of the date of receipt.

      13.5 Should any provision of the Plan or any rule or procedure thereunder
be deemed or held to be unlawful or invalid for any reason, such fact shall not
adversely affect the other provisions of the Plan, or any rule or procedure
thereunder, unless such invalidity shall render impossible or impractical the
functioning of the Plan, and, in such case, the appropriate parties shall
immediately adopt a new provision or rule or procedure to take the place of the
one held illegal or invalid.

      13.6 Any dispute, controversy or claim between the Company and any
Participant, Beneficiary or other person arising out of or relating to the Plan
shall be settled by arbitration conducted in the City of New York, in accordance
with the Commercial Rules of the American Arbitration Association then in force
and New York law. In any dispute or controversy or claim

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challenging any determination by the Committee, the arbitrator(s) shall uphold
such determination in the absence of the arbitrator's finding of the presence of
arbitrary or capricious action by the Committee. The arbitration decision or
award shall be final and binding upon the parties. The arbitration shall be in
writing and shall set forth the basis therefor. The parties hereto shall abide
by all awards rendered in such arbitration proceedings, and all such awards may
be enforced and executed upon in any court having jurisdiction over the party
against whom enforcement of such award is sought. Each party shall bear its own
costs with respect to such arbitration, including reasonable attorneys' fees;
provided, however, that: (i) the fees of the American Arbitration Association
shall be borne equally by the parties; and (ii) if the arbitration is resolved
in favor of the Participant, Beneficiary or other person asserting a claim under
the Plan, such person's cost of the arbitration and the fees of the American
Arbitration Association shall be paid by the Company.

      13.7 Nothing contained herein shall preclude a Participating Company from
merging into or with, or being acquired by, another business entity.

      13.8 The liabilities under the Plan shall be binding upon any successor or
assign of the Company, or of another Participating Company that has assumed
liability pursuant to Section 9.3, and upon any purchaser of substantially all
of the assets of the Company or such Participating Company. Subject to Section
10.2, this Plan shall continue in full force and effect after such an event,
with all references to the "Company" or a "Participating Company" herein
referring also to such successor, assignor or purchaser, as the case may be.

      13.9 The Plan shall be governed by the laws of the State of New York to
the extent they are not preempted by the Employee Retirement Income Security Act
of 1974, as amended from time to time.

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      13.10 The titles of the Articles in the Plan are for convenience of
reference only, and, in the event of any conflict, the text rather than such
titles shall control.

                                       20Exhibit 10.2

                   FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.

                     Supplemental Executive Retirement Plan

                             As Amended and Restated

                               as of July 10, 2000
<PAGE>

                   FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.

                     Supplemental Executive Retirement Plan

                                    CONTENTS

                                                                            Page
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ARTICLE 1   Purposes of Plan...............................................  1

ARTICLE 2   Definitions....................................................  1

ARTICLE 3   Participation..................................................  3

ARTICLE 4   Restoration of Benefits........................................  3

ARTICLE 5   Administration and General Provisions............................7

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                   FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
                     Supplemental Executive Retirement Plan

ARTICLE 1. Purposes of Plan.

1.1   Financial Security Assurance Inc. adopted the Financial Security Assurance
      Inc. Supplemental Executive Retirement Plan (the "Plan"), effective
      January 1, 1989, in order to restore the pension benefits of selected
      current and future key employees whose benefits under the Financial
      Security Assurance Inc. Money Purchase Plan are limited by reason of
      certain limitations imposed by Section 401(a)(17), Section 415 and other
      provisions of the Internal Revenue Code of 1986, as amended (the "Code").
      The Plan was previously amended and restated in its entirety, and adopted
      by Financial Security Assurance Holdings Ltd. effective as of January 1,
      1995, and subsequently amended on February 12, 1997, and amended and
      restated as of February 25, 1999. The Plan is hereby amended and restated
      in its entirety, and adopted by Financial Security Assurance Holdings Ltd.
      effective as of July 10, 2000. The benefits, if any, with respect to any
      employee who terminated employment prior to the effective date of any
      amendment shall be determined in accordance with the provisions of the
      Plan as in effect as of such termination date.

ARTICLE 2. Definitions.

      For purposes of the Plan, the following terms shall have the meanings set
      forth below:

2.1   "Account" shall mean the account established for a Participant under the
      Plan to which contributions and earnings are credited.

2.2   "Basic Plan" shall mean the Financial Security Assurance Inc. Money
      Purchase Plan as adopted and amended.

2.3   "Beneficiary" shall mean the person or persons designated by the
      Participant to receive benefits under the Plan in the event of the
      Participant's death. If there is no Beneficiary surviving the Participant,
      any death benefit payable hereunder shall be paid to the Participant's
      estate.

2.4   "Board" shall mean the Board of Directors of the Company.

2.5   "Code" shall mean the Internal Revenue Code of 1986, as amended from time
      to time.

2.6   "COLI" shall mean the corporate owned life insurance purchased by a
      Participating Company on a Participant's life pursuant to the Plan.

2.7   "Committee" shall mean the Human Resources Committee of the Board acting
      on the majority vote of such Committee.

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2.8   "Company" shall mean Financial Security Assurance Holdings Ltd., a New
      York corporation.

2.9   "Compensation" shall mean, with respect to each Plan Year, the
      Participant's annual base salary, cash bonus, any bonus in lieu of which
      an "Equity Bonus" has been granted pursuant to the Company's 1993 Equity
      Participation Plan or any successor plan and any amount deferred pursuant
      to the Company's Deferred Compensation Plan (other than deferrals related
      to "Performance Share" awards); provided, however, that in no case shall
      such Compensation exceed $1 million in any Plan Year.

2.10  "Disability" shall mean the Participant's eligibility for disability
      benefits under his or her Participating Company's long term disability
      plan.

2.11  "Discharge for Cause" shall mean an Employee's termination of employment
      by a Participating Company due to such Employee's willful misconduct or
      gross negligence in respect of his or her duties of employment with the
      Participating Company including, but not limited to, conviction for a
      felony or perpetration of a common law fraud, which has resulted in or is
      likely to result in material economic damage to a Participating Company.

2.12  "Employee" shall mean any individual employed by a Participating Company
      on or after January 1, 1989 to whom benefits are payable under the Basic
      Plan.

2.13  "Participant" shall mean an Employee who is a member of a select group of
      management or highly compensated employees and who has been designated by
      the Committee for participation in the Plan pursuant to Section 3.1.

2.14  "Participating Company" shall mean the Company or any subsidiary or
      affiliate of the Company employing a Participant.

2.15  "Plan" shall mean the Financial Security Assurance Holdings Ltd.
      Supplemental Executive Retirement Plan as set forth herein, previously
      known as, and unless specifically provided to the contrary shall include,
      the Financial Security Assurance Inc. Supplemental Executive Retirement
      Plan.

2.16  "Plan Year" shall mean each calendar year beginning after December 31,
      1988.

2.17   "SERP Election Change Form" shall mean the form prescribed or accepted by
       the Committee by which a Participant may change a previous distribution
       election.

2.18  "Years of Service" shall mean "Years of Service for Vesting" as defined
      under the Basic Plan.

      Where used herein, the masculine gender shall be deemed, where applicable,
      to include the feminine gender, and references to the singular shall be
      deemed, where applicable, to include the plural.

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ARTICLE 3. Participation.

3.1   At any time during the Plan Year, the Chief Executive Officer may
      recommend an Employee to the Committee for participation in the Plan. Upon
      receiving such recommendation, the Committee shall timely act upon it and
      shall notify the Employee in the event he or she is designated a
      Participant and the date as of which such participation commences. Unless
      otherwise determined by the Chief Executive Officer or the Committee, each
      Employee attaining the rank of Director, Managing Director, Associate
      General Counsel, General Counsel, Executive Vice President, President or
      Chairman shall be deemed to have been designated as a Participant by the
      Committee for all purposes of the Plan. Unless otherwise determined by the
      Committee, once an Employee has been approved by the Committee as a
      Participant in the Plan, such Employee shall remain a Participant until
      all of his or her benefits with respect to the Plan have been paid or
      forfeited.

ARTICLE 4. Restoration of Benefits.

4.1   Amount of Restoration of Benefits. Subject to Sections 4.3(b), 4.5 and 5.2
      of the Plan, the Account of a Participant who is in service with a
      Participating Company on the last day of the Plan Year, and whose pension
      benefits under the Basic Plan for such Plan Year are limited by the
      application of Section 401(a)(17) of the Code, Section 415 of the Code and
      other limits under the Code on the inclusion of deferred amounts for
      contribution purposes, shall be credited with an amount equal to the
      difference between:

      (a)   the amount of contribution related to Compensation which would have
            been payable to or in respect of the Participant under the Basic
            Plan without regard to the maximum annual pension limitation in
            Section 415 of the Code or the pensionable compensation limitation
            in Section 401(a)(17) of the Code or the exclusion of certain
            deferred amounts, and

      (b)   the amount of contribution related to Compensation actually payable
            to or in respect of the Participant under the Basic Plan.

4.2   Vesting. A Participant shall be 100% vested in his or her Account upon
      attaining age 55, upon his or her death or Disability while in the employ
      of a Participating Company or upon the termination of the Plan pursuant to
      Section 5.2. Except as provided in Section 5.4, if a Participant
      terminates employment prior to an event specified in the preceding
      sentence, such Participant shall be vested in his or her Account in
      accordance with the following schedule:

                  Completed Years of Service          Percentage
                  --------------------------          ----------

                              Less than  2                 0
                                         2                 20
                                         3                 40
                                         4                 60
                                         5                 80
                                 6 or more                100

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4.3 Crediting of Investment Gain/Loss.

      (a)   The balance of each Participant's Account shall be credited with
            earnings and investment gains and losses as provided below. The
            Committee may establish procedures permitting Participants to
            designate one or more investment benchmarks specified by the Chief
            Executive Officer or the Committee for the purpose of determining
            the earnings or investment gains and losses to be credited or
            debited to a Participant's Account. Investment benchmarks so
            specified may be made available to all Participants or selected
            Participants as the Chief Executive Officer or the Committee may
            designate. The Committee shall have the sole discretion to make such
            rules as it deems desirable with respect to the administration of
            any such investment benchmark procedures, including rules permitting
            the Participant to change the designation of investment benchmarks
            to be used to measure the value of the Account. The Committee,
            however, retains the discretion at any time to change the investment
            benchmarks available to Participants, including any investment
            benchmarks previously specified by the Chief Executive Officer, or
            to discontinue the benchmark procedure. If the Committee fails to
            implement an investment benchmark procedure or discontinues such
            procedure, or if the Participant fails to designate properly an
            investment benchmark, the Participant's Account shall be credited
            with earnings at a rate determined by the Committee in its sole
            discretion, utilizing whatever factors or indicia it deems
            appropriate; provided, however, that the rate of return on a
            Participant's Account in such circumstances shall not be less than
            the Chase Bank prime rate plus one percent.

      (b)   Notwithstanding paragraph (a) above, if the COLI on a Participant's
            life remains in effect (applicable to certain Participants in the
            Plan prior to December 31, 1994), the amount credited to the
            Participant's Account pursuant to Section 4.1 shall first be used to
            pay the premiums on the COLI. Any amount credited pursuant to
            Section 4.1 in excess of the amount needed to pay the premiums on
            the COLI shall be credited with earnings and investment gains and
            losses in the manner provided in paragraph (a) above.

      (c)   Nothing in this Section 4.3 or in the Committee's rules shall give a
            Participant the right to require the Company or a Participating
            Company to acquire any asset for the Account of the Participant, and
            if the Company or a Participating Company acquires any asset, or
            causes a trustee on its behalf to acquire any asset, to permit it to
            satisfy its obligations to pay the balance of the Participant's
            Account, the Participant shall have no right or interest in any such
            asset, which shall be held by the Company or the Participating
            Company subject to the rights of all unsecured creditors of the
            Company or the Participating Company. The rights of the Participant
            with respect to any designation of one or more investment benchmarks
            for measuring the value of any Account hereunder shall be expressly
            subject to the provisions of Section 5.6 of the Plan.

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4.4 Form and Timing of Election.

      (a)   Except as otherwise provided herein, payment of the Participant's
            vested Account Balance shall be made as soon as administratively
            practicable following the Participant's death, Disability or other
            termination of employment (a "Distribution Event"). Effective
            February 12, 1997, a Participant may elect a date subsequent to the
            Participant's death, Disability or other termination of employment
            on which all or any portion of the amounts previously credited to
            his or her Account shall be distributed. Effective July 10, 2000, a
            Participant may elect to extend, but not accelerate, a previously
            elected distribution date at any time at least 12 months before such
            previously elected distribution date by the execution of a SERP
            Election Change Form, timely filed with the Company, provided that a
            SERP Election Change Form shall only be effective in respect of
            amounts that would not otherwise have been distributed at least 12
            months after the filing of such Form.

      (b)   The Participant may elect that his or her vested Account Balance be
            distributed in a lump sum or in installments payable over a
            specified number of years, not longer than 15 years; provided,
            however, that in no event may installment payments be elected over a
            number of years that is more than the Participant's life expectancy
            or the life expectancy of the designated primary Beneficiary,
            whichever is greater, at the time the Participant elects a form of
            distribution. If a Participant elects the installment option, the
            Participant must also elect whether installments should be made
            annually, quarterly or monthly. A Participant may specify different
            payment options (i) for different percentages or dollar amounts of a
            Participant's vested Account Balance; or (ii) in the event of the
            death or Disability of the Participant. Distributions will be in the
            form of a lump sum (i) if the Participant did not choose a different
            distribution option or (ii) in the event of death or Disability, if
            the Participant did not expressly choose a different distribution
            option in the event of death or Disability.

      (c)   A Participant shall make an election with respect to the form of
            distribution on or before the date three months after an Employee
            becomes a Participant; provided, however, that a Participant shall
            be entitled to change his or her form-of-distribution election with
            respect to amounts thereafter contributed or earned on his or her
            Account balance by making a new form-of-distribution election
            applicable to such future balances. Effective July 10, 2000, at any
            time at least 12 months before the date on which a Participant's
            benefit under the Plan shall be distributed, a Participant may make
            the following changes to the distribution option previously elected
            with respect to such benefit:

            (i)   a Participant who previously elected a lump sum payment with
                  respect to certain amounts may elect an installment
                  payment option described in Section 4.4(b) of the Plan with
                  respect to such amounts; and

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            (ii)  a Participant who previously elected an installment payment
                  option described in Section 4.4(b) of the Plan with respect to
                  certain amounts may select a different installment payment
                  option described in Section 4.4(b) which provides for the
                  payment of installments over a longer, but not a shorter,
                  period of time with respect to such amounts.

            Any such change in distribution options shall be made by the
            execution of a valid SERP Election Change Form, timely filed with
            the Company, provided that a SERP Election Change Form shall only be
            effective in respect of amounts that would not otherwise have been
            distributed at least 12 months after the filing of such Form.

      (d)   A form-of-distribution election and any change to a
            form-of-distribution election shall be effective upon submission to
            the Committee or its designee and compliance with all applicable
            requirements established by the Committee, provided that the
            Committee retains the right, at its election, to make payments in a
            lump sum if it elects, in its sole discretion, to do so
            notwithstanding any form-of-distribution election or any change
            thereto requesting an installment option. Notwithstanding any
            contrary provision in the Plan, the Committee, in its sole
            discretion, retains the right, but shall have no obligation, to
            distribute all or any portion of a Participant's vested Account
            Balance in the form of any security or other investment chosen by
            the Participant as an investment benchmark for measuring the value
            of his or her Account pursuant to Section 4.3(a) of the Plan.
            Further, notwithstanding any contrary provision in the Plan, any
            distribution to a Participant otherwise payable hereunder shall be
            deferred until no later than January 2 in the year following
            termination of the Participant's employment with the Company (and
            its subsidiaries) to the extent that such distribution, if not so
            deferred, would be disallowed as a tax deduction by the Company
            pursuant to Section 162(m) of the Code (or any successor provision).

4.5   Benefit Restoration With Respect to Certain Bonus Payments. In the event
      that a Participating Company accelerates the payment of bonuses for any
      Plan Year by paying bonuses which would otherwise be payable in the
      following Plan Year, and such payment causes a Participant to be credited
      with a lower total contribution under the Basic Plan and the Plan by
      virtue of the limitations provided in the Basic Plan and the limitations
      on the amount of Compensation provided in Section 2.9 of the Plan, then,
      notwithstanding any such limitations, the Committee may, in its
      discretion, credit an additional supplemental pension contribution under
      the Plan for the Plan Year in which the bonuses were paid on an
      accelerated basis up to the amount which would otherwise be lost to the
      Participant by virtue of the application of the limitations in the Basic
      Plan and in the Plan. The aggregate amounts credited under the Plan, and
      the contributions actually payable to or in respect of the Participant
      under the Basic Plan, over a two Plan Year period consisting of the Plan
      Year into which the bonus was accelerated and the following Plan Year,
      shall not be increased by virtue of the application of this Section 4.5.

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ARTICLE 5. Administration and General Provisions.

5.1 Administration.

      (a)   The Plan shall be administered by the Committee in accordance with
            the administrative provisions of the Basic Plan. The Committee shall
            have full power and authority to interpret, construe and administer
            the Plan, and review claims for benefits under the Plan, and the
            Committee's interpretations and constructions of the Plan and
            actions thereunder shall be binding and conclusive on all persons
            and for all purposes.

      (b)   The Committee shall establish and maintain Plan records and may
            arrange for the engagement of such certified public accountants,
            actuarial consultants or legal counsel, and make use of such agents
            and clerical or other personnel, as they shall require or may deem
            advisable for purposes of the Plan. The Committee may rely upon the
            written opinion of such counsel and the consultants or accountants
            engaged by the Committee and may delegate to any agent or to any
            sub-committee or member of the Committee its authority to perform
            any act hereunder, including, without limitation, those matters
            involving the exercise of discretion, provided that such delegation
            shall be subject to revocation at any time by the Committee.

      (c)   To the maximum extent permitted by applicable law, no member of the
            Committee shall be personally liable by reason of any contract or
            other instrument executed by him or her in his or her capacity as a
            member of the Committee, nor for any mistakes of judgment made in
            good faith, and the Company shall indemnify and hold harmless,
            directly from its own assets (including the proceeds of any
            insurance policy the premiums of which are paid from the Company's
            own assets), each member of the Committee and each officer, employee
            or director of the Company to whom any duty or power relating to the
            administration or interpretation of the Plan or to the engagement or
            control of the assets of the Plan may be delegated or allocated,
            against any cost or expense (including counsel fees) or liability
            including any sum paid in settlement of a claim with the approval of
            the Company arising out of any act or omission to act in connection
            with the Plan.

5.2   Amendment and Termination. The Plan may be amended, suspended or
      terminated, in whole or in part, by the Board, but no such action shall
      retroactively impair or otherwise adversely affect the rights of any
      person to receive benefits under the Plan which have accrued prior to the
      date of such action, as determined by the Committee; provided, however,
      that the amount of any future contribution payable to or in respect of a
      Participant may be reduced by the amount of any increase in the amount of
      pension actually payable to the Participant or Beneficiary under the Basic
      Plan due to any increases in benefits payable under the Basic Plan
      (whether due to changes in Code Sections 401(a)(17) and 415 limitations or
      otherwise) subsequent to the Participant's retirement. Anything in Section
      4.4

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      to the contrary notwithstanding, in the event of the termination of the
      Plan, the Committee may direct that all Account balances be distributed in
      the form of a lump sum distribution.

5.3   Company's Right to Discharge Employees. Nothing contained herein will
      confer upon any Participant or other employee the right to be retained in
      the employ of any Participating Company, nor will it interfere with the
      right of any Participating Company to discharge or otherwise administer
      the employment and termination of Participants and other employees without
      regard to the existence of the Plan.

5.4   Discharge for Cause. Notwithstanding any other provisions contained in the
      Plan, in the event of a Participant's Discharge for Cause, such
      Participant and his or her Beneficiary shall forfeit all rights to any
      payments under the Plan.

5.5   Sale of Company. Nothing in the Plan shall preclude the Company from
      consolidating with or merging into or with, or transferring all or
      substantially all its assets to, another corporation which assumes the
      Plan and all obligations of the Company hereunder. Under such a
      consolidation, merger, or transfer of assets and assumption, the term
      "Company" shall refer to such other corporation and the Plan shall
      continue in full force and effect.

5.6   Source of Payments. Participants have the status of general unsecured
      creditors of the Company and the Plan constitutes a mere promise by the
      Company to make benefit payments in the future from its general assets;
      provided, however, that such payments shall be reduced by the amount of
      any payments made to the Participant or his or her Beneficiary from any
      trust or special or separate fund established by the Company to assure
      such payments, and if the Company shall make any investments to aid it in
      meeting its obligations hereunder, the Participant and his or her
      Beneficiary shall have no right, title or interest whatever in or to any
      such investments except as may otherwise be expressly provided in a
      separate written instrument relating to such investments. Nothing
      contained in the Plan, and no action taken pursuant to its provisions,
      shall create or be construed to create a trust of any kind between the
      Company and any Participant or Beneficiary. By action of its Board of
      Directors, any Participating Company may assume joint and several
      liability with the Company with respect to any obligations under the Plan
      for Participants employed by the Participating Company.

5.7   Withholding. The Company may withhold from any benefits payable under the
      Plan all Federal, state, city or other taxes as shall be required pursuant
      to any law or governmental regulation or ruling.

5.8   Expenses. All expenses incurred in administering the Plan will be paid by
      the Company and none will be paid by the Participant.

5.9   Assignment. No interest of any Participant or Beneficiary hereunder shall
      be subject in any manner to anticipation, alienation, sale, transfer,
      assignment, pledge, encumbrance, attachment, or garnishment by creditors
      of the Participant or the Participant's Beneficiary. The Plan shall be
      binding upon and inure to the benefit of the Company and its successors
      and assigns and the Participant, his or her Beneficiary and estate.

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5.10  ERISA Status of Plan. The Plan is intended to constitute an "unfunded plan
      for management or other highly compensated individuals" as defined in the
      Employee Retirement Income Security Act of 1974, as amended from time to
      time ("ERISA"), and is subject to certain provisions of ERISA, including
      certain requirements relating to reporting, disclosure, enforcement and
      claims.

5.11  Applicable Law. The Plan shall be construed, regulated and administered
      according to ERISA (to the extent applicable), the Code and the laws of
      the State of New York.

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