Exhibit 10.53

XL CAPITAL LTD

FORM OF LETTER AGREEMENT RELATING TO EMPLOYMENT AGREEMENT

Re: Ordinary Share Exchange

Dear __________:

                    As you know, XL Capital Ltd, a Cayman Islands company (the
“Company”), is considering proposing a scheme of arrangement under Cayman
Islands law to its ordinary shareholders, which effectively will change the
Company’s place of incorporation to Ireland from the Cayman Islands. Completion
of the proposed scheme of arrangement will result in an exchange of all of the
Class A ordinary shares of the Company for ordinary shares of XL Capital plc, an
Irish company (“Irishco”), on a one-for-one basis (the “Ordinary Share
Exchange”).

                    Pursuant to our discussions regarding the terms of the
employment agreement between you and the Company, dated ___________ (the
“Employment Agreement”), and the technical issues concerning whether the
Ordinary Share Exchange might constitute or be deemed to constitute a change in
control under the Employment Agreement, and in view of the fact that it would
not result in a change in the ultimate economic owners and controlling persons
in the Company, you agree and acknowledge that in the event the Company does
effect the Ordinary Share Exchange, it will not constitute or result in (or be
deemed to constitute or result in) a change in control under the terms of the
Employment Agreement. In addition, you acknowledge that the Company would assign
its rights and obligations under the Employment Agreement to Irishco upon the
completion of the Ordinary Share Exchange. This letter agreement is for the
benefit of the Company and its affiliates.

(signatures on following page)

--------------------------------------------------------------------------------

                    If the terms of this letter agreement meet with your
approval, please sign and return one copy to me.

 

 

 

 

 

Sincerely,

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

XL CAPITAL LTD

AGREED TO AND ACCEPTED:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

Executive

 

 

 

 

 

Date: ___________, 2009

 

 

--------------------------------------------------------------------------------

SCHEDULE 1

Each of the following executive officers signed the letter agreement, in form
attached, as of December 15, 2009:

 

David B. Duclos

Kirstin R. Gould

Michael S. McGavick

Elizabeth L. Reeves

Jacob D. Rosengarten

Sarah E. Street

James H. Veghte

--------------------------------------------------------------------------------