Document:

Exhibit 10.13

Master Services Agreement 

This Master Services Agreement is made this 4th day of August, 2006 (the “Effective Date”) between X.L. America, Inc., a company incorporated
under the laws of Delaware (“XLA”) (for purposes of this form of agreement, the “Service Provider”); and XL Financial Administrative Services Inc., a company incorporated under the laws of Delaware (“XLFAS”) (for purposes of this form of agreement, the “Company”) (each a “Party” and collectively the “Parties”). 

WHEREAS: 

Service Provider and Company are currently wholly owned subsidiaries of the XL Capital Ltd group of companies (“XL Group”); and 

Service Provider provides certain services to XL Group companies including the Company; and 

It is contemplated that an initial public offering will be made of a portion of the capital stock of Security Capital Assurance Ltd, a parent of the Company, resulting in partial public ownership of Security Capital
Assurance Ltd; and 

Service Provider and the Company both desire for Service Provider to continue to provide certain services to Company following the initial public offering of Security Capital Assurance Ltd; and 

Service Provider and the Company desire to enter into this Agreement to set forth the roles and responsibilities with regard to services to be provided by Service Provider to the Company. 

Now, in consideration for the mutual benefits contained in this Master Services Agreement, it is agreed as follows: 

	
1.          	
Definitions
	 
	 	
The following words and phrases shall have the meaning given to them below:
	 
	 	
“Actual Cost” shall have the meaning specified in clause 17.2.
	 
	 	
“Agreement” means this Master Services Agreement, the Schedules and Appendices attached to it and any subsequent amendments or alterations agreed in writing by the Parties.
	 
	 	
“AOP” shall have the meaning specified in clause 11.1.
	 
	 	
“AOP Objectives” shall have the meaning specified in clause 11.1.
	 
	 	
“Employee Costs” shall have the meaning specified in the Schedules attached hereto.
	 
	 	
“Expiration Date” shall have the meaning specified in clause 2.1.
	 
	 	
“Fees” shall have the meaning specified in clause 17.1.
	 
	 	
“Non-XL Third Party Contractors” means any individual, company or other legal entity with whom Service Provider enters into a contract for the benefit of the Company, including (but not
	 

	 	
limited to) to enhance its ability to provide any part of the Services, where such individual, company or other legal entity is not within the XL Group .
	 
	 	
“Representatives” shall have the meaning specified in clause 10.1.
	 
	 	
“Services” shall have the meaning specified in clause 3.1.
	 
	 	
“Staff” means individuals employed by the Service Provider or with another company within the XL Group.
	 
	 	
“Steering Committee” shall have the meaning specified in Clause 10.3.
	 
	 	
“Support Services” means Security Capital Assurance Ltd’s and/or the Company’s proportional share of the services provided to and in support of the Service Provider by any employees of the XL Group,
determined on a per capita basis.
	 
	 	
“Third Party Contractors” means both XL Third Party Contractors and Non-XL Third Party Contractors.
	 
	 	
“XL Third Party Contractors” means any individual, company or other legal entity with whom Service Provider enters into a contract for the benefit of Company, including (but not limited to) to enhance its ability
to provide any part of the Services, where such individual, company or other legal entity is within the XL Group.
	 
	
2.          	
Term of This Agreement
	 
	
2.1	
This Agreement shall commence on the Effective Date and shall terminate on the second anniversary of the Effective Date (the “Expiration Date”) unless earlier terminated in accordance with clause 11.1 or 20 of
this Agreement.
	 
	
3.	
Provision of Services
	 
	
3.1	
Each Schedule attached to and made a part of this Agreement describes the services to be provided by Service Provider to the Company, as amended from time to time by written agreement of the Parties (the
“Services”). The Parties have made a good faith effort as of the date hereof to identify each Service and to complete the content of the Schedules accurately. It is anticipated that the Parties will modify the Services from time to time.
In that case or to the extent that any Schedule is incomplete, the Parties will use good faith efforts to modify the Schedules. There are certain terms that are specifically addressed in the Schedules attached hereto that may differ from the terms
provided hereunder. In those cases, the specific terms described in the Schedules shall govern.
	 
	
3.2	
The Parties may also identify additional Services that they wish to incorporate into this Agreement. The Parties will create additional Schedules setting forth the description of such Services, the Fees for such Services
and any other applicable terms.
	 
	
3.3	
Subject to the terms of this Agreement, Service Provider undertakes to and shall provide the Services to Company to the best of its ability at all times and to a standard that would reasonably be expected of it by a
professional, independent person or body.
	 

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3.4	
Without prejudice to clause 3.3, to the extent that Service Provider is unable to perform any part of the Services in accordance with this Agreement, it shall advise Company as soon as reasonably practicable. In addition,
Service Provider shall, to the extent possible, advise Company of a timetable for it to be able to resume full performance of the Services in accordance with this Agreement and the steps it is taking in that regard. Service Provider shall notify the
Company to the extent there is likely to be any deviation from the timetable proposed.
	 
	
3.5	
The Parties acknowledge and agree that Service Provider and the Staff shall be entitled to provide similar services as the Services to any other legal entity, provided that in doing so the operation of the Company is not
unreasonably prejudiced and the provision of the Services to the Company is not materially adversely affected. The Parties further acknowledge and agree that the Company may retain any individual or legal entity, other than Service Provider and the
Staff, to perform services similar or identical to the Services; provided that in doing so the ability of Service Provider to perform any part of the Services in accordance with this Agreement is not materially adversely affected.
	 
	
4.          	
Provision of Staff to perform the Services
	 
	
4.1	
Service Provider acknowledges it has been given sufficient information to understand and appreciate the requirements and operations of the Company relating to the provision of the Services currently described in each
Schedule. Service Provider shall and undertakes to provide at all times, Staff or Non-XL Third Party Contractors of the requisite calibre, and with appropriate training and experience and in sufficient numbers as required by the Company and as
agreed between the Parties and in accordance with the attached Schedules.
	 
	
4.2	
The Company acknowledges and agrees that at the commencement of this Agreement the Staff or Non-XL Third Party Contractors provided to perform the Services are of the requisite calibre, have appropriate experience and
training and are of a sufficient number.
	 
	
4.3	
Clause 4.1 is subject to the Company’s business plan and changing requirements. If the Company’s business plan and requirements alter materially after the date this Agreement commences, the Parties shall endeavour
to agree the additional or reduced requirements relating to the provision of the Services, and Service Provider shall use its reasonable best endeavours to fulfil such agreed requirements of the Company.
	 
	
4.4	
If Service Provider cannot provide Staff to perform the Services, it shall, with the agreement of Company, contract or subcontract with Non-XL Third Party Contractors to provide all or part of the Services. The direction
and management of the Non-XL Third Party Contractors provided to perform the Services on behalf of the Company will be the responsibility of Service Provider, unless otherwise agreed by the Parties in writing but only to the extent that Service
Provider has contracted directly with such Non-XL Third Party Contractors.
	 
	
5.	
Third Party Contractors
	 
	
5.1	
The Company acknowledges and agrees that the provision of the Services may in part be delegated or contracted or subcontracted to Third Party Contractors by Service Provider.
	 
	
5.2	
Service Provider may enter into contracts with Third Party Contractors, including, but not limited to, for the provision of the Services, either on its own behalf or on its own behalf and on behalf of the Company, whichever
Service Provider reasonably deems appropriate and in the best interests of Company.
	 

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5.3	
When entering into contracts with Third Party Contractors, Service Provider will have regard to the stated interests of the Company, including, but not limited to, the identity of the Third Party Contractor, the terms,
costs and period of the contract.
	 
	
5.4	
To the extent Service Provider delegates to, or contracts or subcontracts with, Third Party Contractors to perform any part of the Services or to perform specific functions, Service Provider shall (remain responsible and)
be liable to the Company for the (non) performance of the Services and the (non) performance of such specific functions in their entirety (and for the oversight and management of the Third Party Contractors) and in accordance with clause 6.1. below,
unless otherwise agreed in writing by the Company.
	 
	
6.          	
Liability
	 
	
6.1	
Except to the extent set out in clauses 6.2, to 6.3
below or as a result of a breach by the Company of its obligations under clause
16.1, Service Provider shall be liable to indemnify the Company for any loss
the Company  incurs (including defence costs) caused by (i) the acts and/or omissions
of Service Provider, its employees, directors and officers in providing the Services,
(ii) the breaches of obligations, acts and/or omissions of Third Party Contractors,
and  (iii) the failure of Service Provider to abide by the terms and conditions
of this Agreement. Both Parties shall take all reasonable steps to mitigate any
loss including pursuing recovery from any third party. Where appropriate, the
Parties further agree they will consult each other in respect of such steps in
accordance with clause 10 below.
	 
	
6.2	
Service Provider shall not be liable to the Company in respect of any loss caused by acts of God, or any event beyond the reasonable control of the Parties, including but not limited to nationalization, expropriation,
devaluation, seizure, or similar action by any government authority, de facto or de jure; or acts of war, terrorism, insurrection or revolution.
	 
	
6.3	
Service Provider agrees to take all reasonable steps to recover any loss suffered by Company (for which Service Provider is liable to indemnify the Company under this Agreement) from any insurer or any third party liable to
Service Provider in respect of such loss. Provided that Service Provider complies with such obligation in a timely manner, the Company agrees to delay commencing proceedings against Service Provider to enforce payment in respect of any claim, which
it may have under this Agreement until such time as and to the extent that Service Provider has obtained recovery against any third party (including but not limited to Third Party Contractors and insurers) in respect of such losses.
	 
	
7.	
Insurance
	 
	
7.1	
Service Provider undertakes it or one of its affiliates has and will maintain throughout the duration and period of this Agreement appropriate errors and omissions and directors’ and officers’ insurance in full
force and effect to cover its liabilities to third parties.
	 
	
8.	
Limitation of Authority
	 
	
8.1	
Except as expressly provided for in this Agreement, or by the Company, neither Service Provider nor the Staff shall enter into any contract (including verbal) on behalf of the Company or commit or bind the Company to any
agreement or obligation, or hold it or themselves out as having authority to do so.
	 

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9.	
Compliance
	 
	
9.1	
In providing the Services, Service Provider shall, to the extent within its control, comply with, and will not do anything or fail to do anything, which would result in the Company failing to comply with, all applicable
laws, legislation and regulations. In addition, Service Provider shall comply with relevant principles and guidelines, manuals, codes and policies issued by the Company to the extent it is made aware of such principles and guidelines, manuals, codes
and policies. It is agreed and understood that this clause does not affect or reduce the Company’s duty and responsibility with regard to its own regulatory and legal compliance.
	 
	
9.2	
Service Provider shall direct all enquiries from any regulatory authority relating to this Agreement or the Services to the Company, unless (i) the enquiry is specifically addressed to Service Provider (in which case
Service Provider shall procure that the details or a copy of such enquiry are promptly relayed in writing to the Company), (ii) the enquiry relates exclusively to a third party and not to Company, or (iii) otherwise agreed in writing by the
Parties.
	 
	
10.        	
Persons Responsible for the Operation of this Agreement
	 
	
10.1	
The Service Provider and the Company shall each appoint two individuals to be their respective representatives (the “Representatives”) for the purpose of the operation of this Agreement. The Representatives
(identified below) shall be responsible for, among other things, managing the relationship, and acting as the principal points of contact, between the Parties in relation to matters and disputes under this Agreement.
	 
	
10.2	
Any matters or disputes under this Agreement including matters or disputes affecting the relationship between the Parties or the performance of their respective obligations hereunder, shall in the first instance, be raised
to and sought to be resolved by the Representatives.
	 
	
10.3	 If and to the extent that any matters or
disputes cannot be resolved by the Representatives then the Representatives
shall, raise such matters or disputes with a committee comprised of
the members set forth on Annex A hereto and established by the Parties for the purpose of
overseeing the relationship between the Parties with respect to matters set
forth in this Agreement (the “Steering Committee”). The Steering
Committee shall be responsible for the resolution of those matters and disputes
brought before it.
	 
	
10.4	
The Parties may each appoint Representatives, in lieu of their Representatives listed below, provided that prior written notice is given to the other Party in accordance with Section 24 below.
	     

	         	
Company Representatives: 
	
 
	
      See Annex A hereto. 
      
	 
	 

	 	
Service Provider Representatives: 
	
 
	
      See Annex A hereto. 
      
	 

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11.        	
Annual Operating Plan
	 
	
11.1	
The Parties will coordinate the development of an annual operating plan (“AOP”) setting forth the specific objectives, Service standards, performance measures, activity levels and a detailed budget setting out the
cost estimates, types of services and allocation keys for each of the Services (collectively, the “AOP Objectives”). The Parties shall implement the AOP Objectives by January 1 of each calendar year. In the AOP process, the Parties agree
to use their best efforts to harmonize the interests of Company to have quality services at affordable cost and the interest of Service Provider to recover its costs of performing the Services. On or before August 15 of each calendar year, the
Company shall submit to Service Provider a list of the types of services required from Service Provider, upon which Service Provider shall establish its budget and cost estimate calculations for purposes of the AOP. On or before September 15 of each
calendar year, an AOP for each Service for the next calendar year will be submitted to each of the Representatives of the Company and Service Provider, for review and approval. Approval by each Party’s respective Representatives will constitute
approval by the Parties of the AOP. In the event that the Parties do not approve the AOP in whole or in part in respect of any Service, the Service Provider shall have the right to terminate this Agreement (or any extension hereof entered into
pursuant to clause 20.2 below) in respect of any such services upon ninety (90) days written notice to the Company.
	 
	
12.	
Performance Review
	 
	
12.1	
The Parties will meet annually on or about July 31 to review progress against the AOP Objectives, Service standards, performance measures and activity levels. The Parties will use their good faith efforts to resolve any
issues concerning Service standards, performance measures or changes in Fees from the AOP during these meetings. If the Parties are unable to resolve those issues, they will refer the disputed issues, in the first instance, to their respective
Representatives and in the second instance, to the Steering Committee, pursuant to clause 10 above.
	 
	
13.	
Documents and Records
	 
	
13.1	
Service Provider shall establish and/or maintain records relating to this Agreement and, to the extent reasonable and appropriate, the Services, in accordance with the document retention policy established by XL Capital Ltd
or in accordance with applicable laws and regulations if they provide for longer periods of retention.
	 
	
13.2	
Company, its bona fide agents, auditors and/or a relevant regulatory authority shall have the right on the giving of reasonable prior notice, to inspect and audit any records of or held by Service Provider relating to this
Agreement and the Services, and shall have the right to make copies or extracts of any such records.
	 
	
13.3	
In the event that an audit reveals that Service Provider is not complying with the terms of this Agreement, or any applicable regulation, principles, guidelines, laws or legislation in any material respect, Company may,
without prejudice to its other rights under this Agreement, require Service Provider to take all necessary remedial action within four (4) weeks following disclosure to Service Provider of such audit results.
	 
	
13.4	
All files, materials, policies and documents prepared or obtained by Service Provider in the course of carrying out its obligations under this Agreement shall be and remain the property of Company, and Service Provider
shall treat them accordingly - including keeping them safe and secure whilst in Service Provider’s possession.
	 

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14.        	
Confidentiality
	 
	
14.1	
Confidential Information means all information disclosed by either Company or Service Provider (whether in writing, orally or by another means) concerning the other Party which comes into their possession as a consequence
of the operation of this Agreement including, without limitation, information relating to the Parties products, operations, processes, plans or intentions, product information, know-how, design rights, trade secrets, market opportunities and
business affairs.
	 
	
14.2	
The Parties undertake to hold the Confidential Information in confidence and not to disclose the Confidential Information (except as provided in this Agreement) without the prior written consent of the other
Party.
	 
	
14.3	
Notwithstanding clause 14.2, and provided prior written notice is provided to the other Party, the Parties are entitled to disclose that portion of the Confidential Information required in order to comply with any legal
requirement or any regulation or rule or the requirements of any rating agency, or to the extent the Confidential Information is already in the public domain.
	 
	
15.	
Data Protection
	 
	
15.1	
The Parties undertake to comply with all applicable data protection laws and regulations in any relevant jurisdiction in which personal data (or any other data, the use or transfer of which is regulated by law and
regulations in that jurisdiction) is transferred or used in connection with the provision of the Services.
	 
	
16.	
Business Continuity Plan
	 
	
16.1	
The Parties shall be jointly responsible for devising a plan(s) to ensure the continuity of the Services in the event of an unforeseen interruption and any other prudent procedures and measures that are reasonably necessary
to prevent the disruption of the Services (collectively, the “Business Continuity Plan”). The Company shall be responsible for maintaining the Business Continuity Plan and Service Provider shall, in the event of an unforeseen interruption,
cooperate to the best of its ability with the Company to ensure the uninterrupted provision of Services.
	 
	
17.	
Remuneration and Fees
	 
	
17.1	
General: Within thirty (30) days of the receipt of an invoice from Service Provider, Company shall pay Service Provider semi-annually, in arrears, on a “cost plus” basis for
each Service as set forth in the attached Schedules (collectively, the “Fees”). Such invoices shall be provided at the end of the second and fourth quarter of each calendar year and each such invoice shall itemize the Fees, the Employee
Costs (as defined in the attached Schedules), and the methodology for calculating the Employee Costs. The Parties agree that the annual percentage mark up, as set forth in the attached Schedules, will be determined with the assistance of an
unrelated third party utilizing US tax related transfer pricing guidelines. Except as specifically provided herein or in the Schedules, or as subsequently agreed in an AOP or otherwise by Company, Company will not be responsible to Service Provider
or to any Non-XL Third Party Contractor , for any additional fees, charges, costs or expenses relating to the Services, unless such additional fees, charges, costs or expenses are a direct result of Company’s unilateral deviation from the scope
of the Services defined in the Schedules.
	 

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	17.2      	 Review of Fees:
	 	 	 
	 	
(a)  	
Subject to the provisions of clause 11.1 above, at the end of each annual period commencing as of January 1, 2006, Service Provider will review the charges, costs and expenses actually incurred by Service Provider in
providing any Service, as well as the calculation of any related Fees (collectively, “Actual Cost”) during the previous twelve (12) months. In the event that Service Provider determines that the Actual Cost for any Service differs from
that set forth in the AOP, Service Provider will deliver to Company documentation for such Actual Cost, and will adjust the appropriate Fees retroactively and/or prospectively as necessary to reflect such differences; provided, however, that no such
adjustment shall increase or decrease the Fees payable in respect of any Service by more than 15% of the initial related Fees currently set forth in the related Schedules for such Service.
	 
	 	
(b)        	
As a part of the AOP process referred to in clause 11 above, the Parties will set Fees or new budgets for each ensuing year, and may make other changes to the Fees with respect to each Service, based upon an increase or
reduction in the scope of or requirements for such Service. Once an AOP has been finalized (whether by agreement or pursuant to the provisions of clause 12.1), the Fee for each Service set out in that AOP will apply for the ensuing year, subject to
any subsequent written agreements between the Parties.
	 
	
18.       	
Taxes
	 
	
18.1	
All sums payable pursuant to this Agreement shall be exclusive of any and other duties and taxes. Any other duties or taxes payable on such sums shall be payable in addition to such sums.
	 
	
19.	
Complaints
	 
	
19.1	
In accordance with clause 24, the Parties shall notify one another immediately upon becoming aware of any relevant matter arising out of the operation of, or in connection with, this Agreement, which has resulted or could
result in a complaint to, including but not limited to, any regulatory authority or which could give rise to litigation or proceedings against either Party.
	 
	
20.	
Term and Termination
	 
	
20.1	
At any time prior to the Expiration Date, upon ninety (90) days written notice to the Service Provider, this Agreement may be terminated by the Company either in whole or with respect to one or more of the
Services.
	 
	
20.2	
At any time after the Expiration Date, this Agreement
may be extended and/or terminated by the Parties in writing, either in whole
or with respect to one or more of the Services; provided, however, that such
extension  and/or termination shall only apply to the Services for which the
Agreement was extended and/or terminated. At least ninety (90) days prior to
the Expiration Date, Company shall give Service Provider written notice of Company’s
request to  extend the term of or terminate the Agreement in respect of any Services.
In addition, the Parties shall be deemed to have (i) extended this Agreement
with respect to a specific Service if the Schedule for such Service specifies
a completion or  termination date beyond the aforementioned Expiration Date and
(ii) terminated this Agreement with respect to a specific Service if the Schedule
for such Service specifies a completion or termination date prior to the aforementioned
Expiration  Date. Services shall be provided up to and including the date set
forth in the applicable Schedule, subject to earlier termination as provided
herein.
	 

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20.3     	
Other than in respect of Internal Audit Services provided in connection herewith, which will continue and/or terminate in accordance with the other relevant provisions of this Agreement, this Agreement shall terminate in
the event XL Group’s ownership of common stock of Security Capital Assurance Ltd falls to 35% or less in which case the Parties shall have ninety (90) days, from the date of such event, to terminate all Services unless otherwise agreed by the
Parties; provided, however, that if the reduction in the XL Group’s ownership interests referred to above is initiated by the XL Group, the Service Provider shall use its reasonable best efforts to maintain the General Ledger and Human
Resources Services provided hereunder, subject to applicable law, until the Expiration Date, and any additional costs incurred by either the Service Provider or the Company in connection with the maintenance of such Services shall be paid by the
Service Provider.
	 
	
20.4	
Unless the other Party specifically agrees to the contrary in writing, this Agreement will be automatically terminated with immediate effect in the event that one Party shall:-
	 
	 	
(a)        	
enter or become the subject of voluntary or involuntary rehabilitation or liquidation proceedings;
	 
	 	
(b)	
become the subject of an action in bankruptcy;
	 
	 	
(c)	
make or propose any composition with its creditors or make any assignment for the benefit of its creditors or otherwise acknowledge its insolvency;
	 
	 	
(d)	
have an administrator or administrative receiver or equivalent office holder appointed by a court of competent jurisdiction;
	 
	 	
(e)	
have a receiver or equivalent office holder appointed for the whole or any part of its business;
	 
	 	
(f)	
any past or present director, officer, partner or employee of Service Provider is convicted of or charged with any criminal offence involving fraud or dishonesty or any similar criminal offence which may materially affect
the operation of this Agreement.
	 
	
20.5	
Each Party shall inform the other immediately upon becoming aware of the occurrence of any of the events set out in clause 20.4 above.
	 
	
20.6	
In the event of persistent and material breaches of
any discreet part of the Services, Company shall inform the Representatives of
Service Provider in writing of the nature of such breaches. The Representatives
shall meet as soon as reasonably practicable to discuss these breaches (such
meeting being expected to occur within seven (7) business days of receipt of
the written notice) and try to agree an action plan designed to remedy the breaches
within a reasonable timeframe acceptable to Company. Should an action plan not
be agreed within a reasonable timeframe, or the implementation of an action plan
not result in the Services being performed to the specified standards, then the
Representatives shall raise the matter with the Steering Committee, in accordance
with clause 10 above. If the material breaches continue and the Steering Committee
does not provide a resolution to the matter within a reasonable timeframe, then
Company has the right to terminate the relevant part of the Services with one
(1) month’s notice. Such termination will not affect the continuance of
the Services not subject to the persistent and material breaches.
	 
	
20.7	
On termination of any Service provided for in any Schedule or the entire Agreement, each Party shall bear its own associated costs; Service Provider will cooperate in good faith with Company
	 

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	 	 to provide Company
      (or its designee) with reasonable assistance to make an orderly transition
      from Service Provider to another supplier of the Services. Service Provider
      undertakes to work with Company to ensure a smooth transition and hand-over
      and to minimise the costs associated with termination for each Party. Such
    transition assistance shall include the following: 
	 	 	 
	           	
(a)          	
developing a transition plan with assistance from Company or its designee; and
	 
	 	
(b)	
organizing and delivering to Company records and documents necessary to allow continuation of the Services, including delivering such materials in electronic forms and versions as requested by Company.
	     

	
20.8	
Termination of this Agreement does not affect a Party’s accrued rights and obligations at the date of termination.
	 
	
21.          	
Law and Jurisdiction
	 
	
21.1	
This Agreement shall be construed in accordance with the laws of New York without regard to the principles of conflict of laws.
	 
	
22.	
Third Parties’ Rights
	 
	
22.1	
For the avoidance of doubt, no term of this Agreement is intended for the benefit of any third party, and the Parties do not intend that any term of this Agreement should be enforceable by a third party.
	 
	
23.	
Assignment
	 
	
23.1	
This Agreement shall not be assignable by either Party without the express written consent of the other, and such consent shall not be unreasonably withheld, provided however that upon delivery of notice to Company, Service
Provider may assign all or a portion of its rights under this Agreement to an affiliate. For purposes of this Agreement “affiliate” shall mean any person, corporation, company partnership, individual or group (collectively a
“Person”), which directly or indirectly, through one or more intermediaries, controls or is controlled by, or owns or is owned by another Person, with an equity or other financial interest of 35% or more of any management
interest.
	 
	
24.	
Notices
	 
	
24.1	
All notices hereunder shall be sent to the Party at the address set forth below or at such other address as shall be specified by a Party as to it in a notice duly given. Notices shall be effective upon receipt, and shall
be addressed as follows:
	 
	 	 If to XLA:  	70 Seaview Avenue 
	 	 	Stamford, CT 06902 
	 	 	Attn: General Counsel 
	 
	 	 If to XLFAS:        	1221 Avenue of the Americas 
	 	 	New York, NY 10020 
	 	 	Attn: General Counsel 
	 	 
	 	 or to such other address as a Party shall have
      designated by notice in writing to the other Party in the manner provided
    by this clause 24.1. 
	 	 
	 	 

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	25. 	Entire Agreement 
	 	 
	
25.1	
This Agreement, including the attached Schedules and Appendices, is the complete and exclusive statement of the agreement between the Parties and supersedes all prior proposals, understandings and all other agreements, oral
and written, between the Parties relating to the subject matter of this Agreement. This Agreement may not be modified or altered except by written instrument duly executed by both Parties.
	 
	
26.          	
Force Majeure
	 
	
26.1	
Any delay or failure by either Party in the performance of this Agreement will be excused to the extent that the delay or failure is due solely to causes or contingencies beyond the reasonable control of such
Party.
	 
	
27.	
Severability
	 
	
27.1	
If any provision, clause or part of this Agreement, or the application thereof under certain circumstances is held invalid or unenforceable for any reason, the remainder of this Agreement, or the application of such
provision, clause or part under other circumstances shall not be affected thereby.

IN WITNESS WHEREOF, the Parties have signed this Agreement on the Effective Date above. 

	 

	 	 	
XL FINANCIAL ADMINISTRATIVE 

	
X.L. AMERICA, INC. 
	 	
SERVICES INC. 

	 	 	 
	
      By 
      	 /s/ Richard  G. McCarty 
	 	
      By: 
      	/s/ Richard B. Heberton  

	
      Name: 
      	Richard  G. McCarty 
	 	
      Name: 
      	 Richard B. Heberton 

	
      Title: 
      	SVP, General Counsel & Secretary  
	 	
      Title: 
      	Senior Managing Director  

SCHEDULE #__________

______________________________ SERVICES 

	
I.          	
DESCRIPTION OF SERVICES
	 
	
A.	
SCOPE

 X.L. America, Inc. (“XLA”) will provide
    ______________________________ services to XL Financial Administrative Services
    Inc. (“XLFAS”), either
through XLA’s own resources, the resources of its subsidiaries or affiliates,
as defined in the Master Services Agreement (the “Services Agreement”),
dated as of _______________, by and between Service Provider and XLFAS, or by
contracting with other independent contractors, all in accordance with Section
2.2 of the Services Agreement. 

B.        SPECIFIC
SERVICES 

The specific services that Service Provider will provide are as follows: 

1.           ________________________________________________________________

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2.          	
________________________________________________________________
	 
	
3.	
________________________________________________________________
	 
	
4.	
________________________________________________________________
	 
	
5.	
________________________________________________________________

Additional services may be included upon agreement of both parties. 

II.           SERVICE FEES 

Company will pay Service Provider semi-annually on a “cost plus” basis for each Service as set forth herein. 

The Fee will include: 

	           	
(i)          	
with respect to the Services being performed and Support Services being provided by Service Provider, any salaries, bonuses, benefits, fringe benefits, incentive compensation benefits (if applicable) payroll taxes or other
applicable taxes, and deprecia- tion/amortization of office equipment and software attributed to the employees in the group (collectively, the “Employee Costs”), based upon the ratio of Service Provider’s estimate of the time spent by
the employees on behalf of XLFAS or in connection with providing Support Services divided by the total time spent by the employees multiplied by the Employee Costs;
	 
	 	
(ii)	
a mark up of ____% of the aggregate amount calculated pursuant to (i);
	 
	 	
(iii)	
third-party expenses, including travel and entertainment, consulting fees and printing costs, incurred on behalf of XLFAS by Service Provider on behalf of XLFAS or in connection with providing Support Services;
and
	 
	 	
(iv)	
any costs incurred by the Service Provider in providing the Services not in the ordinary course of business.

III.         ADDITIONAL
TERMS 

Period of coverage will be ongoing subject to yearly reviews during the annual budgeting process. 

-12-EXHIBIT 10.14

                           GENERAL SERVICES AGREEMENT

This General Services Agreement is made this 4th day of August 2006, (the
"EFFECTIVE DATE") between

XL FINANCIAL  ADMINISTRATIVE SERVICES INC., a service company incorporated under
the laws of Delaware ("XLFAS" or the "SERVICE PROVIDER"); and

XL INSURANCE (BERMUDA) LTD, a Bermuda exempted company ("XLIB" or the "COMPANY")

(each a "Party" and collectively the "Parties").

WHEREAS:

Service Provider and Company are currently  wholly owned  subsidiaries of the XL
Capital Ltd group of companies; and

It is contemplated  that an initial public offering will be made of a portion of
the capital stock of Security  Capital  Assurance  Ltd ("SCA"),  a parent of the
Service Provider, resulting in partial public ownership of SCA; and

Service Provider and Company both desire for Service Provider to provide certain
services to the Company following the initial public offering of SCA; and

Service  Provider  and the Company  desire to enter into this  Agreement  to set
forth the roles and  responsibilities  with regard to services to be provided by
Service Provider to the Company.

Now, in consideration for the mutual benefits contained in this General Services
Agreement, it is agreed as follows:

1       DEFINITIONS

        The  following  words and phrases  shall have the meaning  given to them
        below:

        "Agreement"  means this General  Services  Agreement  and the  Schedules
        attached to it and any subsequent  amendments or  alterations  agreed in
        writing by the Parties.

        "Non-SCA Third Party Contractors" means any individual, company or other
        legal entity with whom Service  Provider  enters into a contract for the
        benefit of the  Company,  including  (but not limited to) to enhance its
        ability  to provide  any part of the  Services,  where such  individual,
        company or other legal entity is not within the SCA group of companies.

        "Representatives" shall have the meaning specified in clause 10.1.

        "SCA Third Party  Contractors"  means any  individual,  company or other
        legal entity with whom Service  Provider  enters into a contract for the
        benefit of the  Company,  including  (but not limited to) to enhance its
        ability  to provide  any part of the  Services,  where such  individual,
        company or other legal entity is within the SCA group of companies.

        "Services" shall have the meaning specified in clause 3.1.

        "Staff"  means  individuals  employed by Service  Provider or by another
        company within the SCA group of companies.

        "Steering Committee" shall have the meaning specified in clause 10.3.
<PAGE>
                                      -2-

        "Third Party  Contractors"  means both SCA Third Party  Contractors  and
        Non-SCA Third Party Contractors.

2       PERIOD OF THIS AGREEMENT

2.1     This  Agreement  shall commence on the Effective Date and continue until
        terminated in accordance with clause 19 of this Agreement.

3       PROVISION OF SERVICES

3.1     Each Schedule  attached to and made a part of this  Agreement  describes
        the  services  to be provided by Service  Provider  to the  Company,  as
        amended  from time to time by  written  agreement  of the  Parties  (the
        "Services").  The Parties  have made a good faith  effort as of the date
        hereof to  identify  each  Service  and to  complete  the content of the
        Schedules accurately. It is anticipated that the Parties will modify the
        Services  from  time to time.  In that  case or to the  extent  that any
        Schedule  is  incomplete,  the  Parties  will use good faith  efforts to
        modify the  Schedules.  There are  certain  terms that are  specifically
        addressed  in the  Schedules  attached  hereto  that may differ from the
        terms provided  hereunder.  In those cases, the specific terms described
        in the Schedules shall govern.

3.2     The  Parties may also  identify  additional  Services  that they wish to
        incorporate  into this  Agreement.  The Parties  will create  additional
        Schedules  setting forth the description of such Services,  the fees for
        such Services and any other applicable terms.

3.3     Subject to the terms of this Agreement,  Service Provider  undertakes to
        and shall provide the Services to the Company to the best of its ability
        at all times and to a standard  that would  reasonably be expected of it
        by a professional, independent person or body.

3.4     Without  prejudice to clause 3.3, to the extent that Service Provider is
        unable to  perform  any part of the  Services  in  accordance  with this
        Agreement,   it  shall   advise  the  Company  as  soon  as   reasonably
        practicable.   In  addition,  Service  Provider  shall,  to  the  extent
        possible,  advise the Company of a timetable for it to be able to resume
        full  performance of the Services in accordance  with this Agreement and
        the steps it is taking in that regard. Service Provider shall notify the
        Company  to the  extent  there is  likely to be any  deviation  from the
        timetable proposed.

3.5     The Parties  acknowledge  and agree that Service  Provider and the Staff
        shall be entitled  to provide  similar  services as the  Services to any
        other  legal  entity,  provided  that in doing so the  operation  of the
        Company is not unreasonably prejudiced and the provision of the Services
        to the Company is not materially adversely affected. The Parties further
        acknowledge  and agree that the  Company  may retain any  individual  or
        legal  entity,  other than Service  Provider  and the Staff,  to perform
        services similar or identical to the Services; provided that in doing so
        the ability of Service  Provider to perform any part of the  Services in
        accordance with this Agreement is not materially adversely affected.

4       PROVISION OF STAFF TO PERFORM THE SERVICES

4.1     Service Provider  acknowledges it has been given sufficient  information
        to understand  and  appreciate  the  requirements  and operations of the
        Company relating to the provision of the Services currently described in
        each Schedule.  Service  Provider shall and undertakes to provide at all
        times,  Staff  or  Non-SCA  Third  Party  Contractors  of the  requisite
        calibre,  and with appropriate training and experience and in sufficient
        numbers as required by the Company and as agreed between the Parties and
        in accordance with the attached Schedules.
<PAGE>
                                      -3-

4.2     The Company  acknowledges  and agrees that at the  commencement  of this
        Agreement  the Staff or Non-SCA  Third  Party  Contractors  provided  to
        perform the  Services are of the  requisite  calibre,  have  appropriate
        experience and training and are of a sufficient number.

4.3     If Service  Provider  cannot  provide Staff to perform the Services,  it
        shall,  with the agreement of the Company,  contract or subcontract with
        Non-SCA Third Party  Contractors to provide all or part of the Services.
        The  direction and  management  of the Non-SCA  Third Party  Contractors
        provided  to perform the  Services on behalf of the Company  will be the
        responsibility  of  Service  Provider,  unless  otherwise  agreed by the
        Parties in writing  but only to the extent  that  Service  Provider  has
        contracted directly with such Non-SCA Third Party Contractors.

5       THIRD PARTY CONTRACTORS

5.1     The Company  acknowledges  and agrees that the provision of the Services
        may in part be delegated or contracted or  subcontracted  to Third Party
        Contractors by Service Provider.

5.2     Service Provider may enter into contracts with Third Party  Contractors,
        including, but not limited to, for the provision of the Services, either
        on its own  behalf or on its own  behalf  and on behalf of the  Company,
        whichever Service Provider  reasonably deems appropriate and in the best
        interests of the Company.

5.3     When  entering  into  contracts  with Third Party  Contractors,  Service
        Provider  will  have  regard to the  stated  interests  of the  Company,
        including,  but  not  limited  to,  the  identity  of  the  Third  Party
        Contractor, the terms, costs and period of the contract.

5.4     To  the  extent   Service   Provider   delegates  to,  or  contracts  or
        subcontracts  with,  Third Party  Contractors to perform any part of the
        Services  or to  perform  specific  functions,  Service  Provider  shall
        (remain  responsible  and)  be  liable  to the  Company  for  the  (non)
        performance  of the Services and the (non)  performance of such specific
        functions in their entirety (and for the oversight and management of the
        Third Party  Contractors)  and in  accordance  with  clause 6.1.  below,
        unless otherwise agreed in writing by the Company.

6       LIABILITY

6.1     Except to the extent set out in clauses 6.2, to 6.3 below or as a result
        of a breach by the Company of its obligations under Clause 15.1, Service
        Provider  shall be  liable to  indemnify  the  Company  for any loss the
        Company incurs  (including  defence costs) caused by (i) the acts and/or
        omissions of Service Provider, its employees,  directors and officers in
        providing the Services,  (ii) the breaches of  obligations,  acts and/or
        omissions of Third Party  Contractors,  and (iii) the failure of Service
        Provider to abide by the terms and  conditions of this  Agreement.  Both
        Parties shall take all  reasonable  steps to mitigate any loss including
        pursuing recovery from any third party. Where  appropriate,  the Parties
        further  agree they will  consult each other in respect of such steps in
        accordance with clause 10 below.

6.2     Service  Provider  shall not be liable to the  Company in respect of any
        loss caused by acts of God, or any event beyond the  reasonable  control
        of  the  Parties,   including   but  not  limited  to   nationalization,
        expropriation, devaluation, seizure, or similar action by any government
        authority, de facto or de jure; or acts of war, terrorism,  insurrection
        or revolution.

6.3     Service Provider agrees to take all reasonable steps to recover any loss
        suffered  by the  Company  (for  which  Service  Provider  is  liable to
        indemnify  the  Company  under this  Agreement)  from any insurer or any
        third party liable to Service Provider in respect of

<PAGE>
                                      -4-

        such loss.  Provided that Service Provider complies with such obligation
        in a timely manner,  the Company agrees to delay commencing  proceedings
        against  Service  Provider  to enforce  payment in respect of any claim,
        which it may have  under  this  Agreement  until such time as and to the
        extent that Service  Provider has  obtained  recovery  against any third
        party  (including  but  not  limited  to  Third  Party  Contractors  and
        insurers) in respect of such losses.

7       INSURANCE

7.1     Service  Provider  undertakes it or one of its  affiliates  has and will
        maintain   throughout   the  duration  and  period  of  this   Agreement
        appropriate errors and omissions and directors' and officers'  insurance
        in full force and effect to cover its liabilities to third parties.

8       LIMITATION OF AUTHORITY

8.1     Except as expressly  provided for in this Agreement,  or by the Company,
        neither  Service  Provider  nor the Staff shall enter into any  contract
        (including  verbal)  on  behalf  of the  Company  or  commit or bind the
        Company to any agreement or obligation,  or hold it or themselves out as
        having authority to do so.

9       COMPLIANCE

9.1     In providing the Services,  Service Provider shall, to the extent within
        its  control,  comply  with,  and  will  not do  anything  or fail to do
        anything,  which would result in the Company failing to comply with, all
        applicable  laws,  legislation  and  regulations.  In addition,  Service
        Provider shall comply with relevant principles and guidelines,  manuals,
        codes and policies  issued by the Company to the extent it is made aware
        of such principles and guidelines,  manuals,  codes and policies.  It is
        agreed and  understood  that this  clause  does not affect or reduce the
        Company's duty and responsibility  with regard to its own regulatory and
        legal compliance.

9.2     Service   Provider  shall  direct  all  enquiries  from  any  regulatory
        authority  relating to this  Agreement  or the  Services to the Company,
        unless (i) the enquiry is specifically addressed to Service Provider (in
        which case Service  Provider shall procure that the details or a copy of
        such enquiry are promptly  relayed in writing to the Company),  (ii) the
        enquiry relates  exclusively to a third party and not to the Company, or
        (iii) otherwise agreed in writing by the Parties.

10      PERSONS RESPONSIBLE FOR THE OPERATION OF THIS AGREEMENT

10.1    The Service  Provider and the Company shall each appoint two individuals
        to be their respective  representatives (the  "Representatives") for the
        purpose  of  the  operation  of  this  Agreement.   The  Representatives
        (identified  below)  shall  be  responsible  for,  among  other  things,
        managing  the  relationship,  and  acting  as the  principal  points  of
        contact,  between the Parties in relation to matters and disputes  under
        this Agreement.

10.2    Any  matters or  disputes  under  this  Agreement  including  matters or
        disputes   affecting  the  relationship   between  the  Parties  or  the
        performance  of their  respective  obligations  hereunder,  shall in the
        first  instance,  be  raised  to  and  sought  to  be  resolved  by  the
        Representatives.

10.3    If and to the extent that any matters or disputes  cannot be resolved by
        the Representatives  then the Representatives  shall, raise such matters
        or disputes with a committee comprised of the members set forth on Annex
        A hereto and  established  by the Parties for the purpose of  overseeing
        the  relationship  between the Parties with respect to matters set forth
        in this

<PAGE>
                                      -5-

        Agreement (the "Steering  Committee").  The Steering  Committee shall be
        responsible  for the  resolution of those  matters and disputes  brought
        before it.

10.4    The  Parties  may  each  appoint  Representatives,   in  lieu  of  their
        Representatives  listed below,  provided  that prior  written  notice is
        given to the other Party in accordance with Section 22 below.

        COMPANY REPRESENTATIVES:          See Annex A hereto.

        SERVICE PROVIDER REPRESENTATIVES: See Annex A hereto.

11.     REPORTING

11.1    Unless  otherwise  agreed  between the Parties,  Service  Provider shall
        provide  reports on the  Services in  accordance  with the  Schedules as
        amended from time to time.

11.2    Service Provider shall provide such other reports, including in relation
        to Staff and Third Party  Contractors,  as may reasonably be required by
        the Company from time to time in a timely manner.

11.3    To the extent the Schedules do not already  address the issue and to the
        extent  appropriate,   practicable  and  necessary,  the  Parties  shall
        establish benchmarks against which to monitor the performance of Service
        Provider and Third Party  Contractors.  If and when such  benchmarks are
        established,  Service  Provider shall and undertakes to provide reports,
        at least  quarterly,  in respect of such  benchmarks,  or  otherwise  in
        accordance with the Schedules.

12      DOCUMENTS AND RECORDS

12.1    Service  Provider shall establish  and/or maintain  records  relating to
        this  Agreement  and,  to the extent  reasonable  and  appropriate,  the
        Services,  in accordance with the document  retention policy established
        by SCA or in accordance  with  applicable  laws and  regulations if they
        provide for longer periods of retention.

12.2    The Company, its bona fide agents, auditors and/or a relevant regulatory
        authority shall have the right on the giving of reasonable prior notice,
        to inspect and audit any records of or held by Service Provider relating
        to this  Agreement  and the  Services,  and shall have the right to make
        copies or extracts of any such records.

12.3    In the  event  that  an  audit  reveals  that  Service  Provider  is not
        complying  with  the  terms  of  this   Agreement,   or  any  applicable
        regulation,  principles, guidelines, laws or legislation in any material
        respect,  the Company may,  without  prejudice to its other rights under

<PAGE>
                                      -6-

        this Agreement,  require Service Provider to take all necessary remedial
        action within four (4) weeks following disclosure to Service Provider of
        such audit results.

12.4    All files,  materials,  policies and  documents  prepared or obtained by
        Service  Provider in the course of carrying  out its  obligations  under
        this  Agreement  shall be and remain the  property of the  Company,  and
        Service Provider shall treat them  accordingly - including  keeping them
        safe and secure whilst in Service Provider's possession.

13      CONFIDENTIALITY

13.1    Confidential  Information means all information  disclosed by either the
        Company or Service  Provider  (whether in writing,  orally or by another
        means) concerning the other Party which comes into their possession as a
        consequence  of the  operation  of  this  Agreement  including,  without
        limitation,  information  relating to the Parties products,  operations,
        processes,  plans or intentions,  product information,  know-how, design
        rights, trade secrets, market opportunities and business affairs.

13.2    The Parties undertake to hold the Confidential Information in confidence
        and not to disclose the Confidential  Information (except as provided in
        this Agreement) without the prior written consent of the other Party.

13.3    Notwithstanding  clause 13.2,  the Parties are entitled to disclose that
        portion of the Confidential Information required in order to comply with
        any legal  requirement or any regulation or rule or the  requirements of
        any rating  agency,  or to the extent the  Confidential  Information  is
        already in the public domain.

14      DATA PROTECTION

14.1    The Parties undertake to comply with all applicable data protection laws
        and regulations in any relevant  jurisdiction in which personal data (or
        any other data,  the use or transfer  of which is  regulated  by law and
        regulations in that  jurisdiction)  is transferred or used in connection
        with the provision of the Services.

15      BUSINESS CONTINUITY PLAN

15.1    The  Parties  shall be  jointly  responsible  for  devising a plan(s) to
        ensure the  continuity  of the  Services  in the event of an  unforeseen
        interruption  and any other  prudent  procedures  and measures  that are
        reasonably   necessary  to  prevent  the   disruption  of  the  Services
        (collectively,  the "Business  Continuity  Plan").  The Company shall be
        responsible for maintaining the Business Continuity Plan and the Service
        Provider shall, in the event of an unforeseen interruption, cooperate to
        the best of its  ability  with the  Company to ensure the  uninterrupted
        provision of Services.

16      REMUNERATION AND FEES

16.1    The Company will pay Service  Provider in accordance with the provisions
        of the Schedules.  Within thirty (30) days of receipt of an invoice from
        Service  Provider,  Company shall pay Service Provider  semi-annually in
        arrears.  Such  invoices  shall be provided at the end of the second and
        fourth quarters of each calendar year, if applicable.

16.2    Unless otherwise provided in the relevant  Schedule,  at the end of each
        annual period  commencing as of January 1, 2006,  Service  Provider will
        perform a review of the fees being charged to the Company and if Service
        Provider determines,  based on a transfer pricing or similar study, that
        the fees should be  different,  then the parties will  negotiate in good
        faith to change the fees to a rate consistent with such study.
<PAGE>
                                      -7-

17      TAXES

17.1    All sums payable  pursuant to this  Agreement  shall be exclusive of any
        duties and taxes.  Any other duties or taxes  payable on such sums shall
        be payable in addition to such sums.

18      COMPLAINTS

18.1    In  accordance  with  clause 22, the  Parties  shall  notify one another
        immediately  upon becoming  aware of any relevant  matter arising out of
        the operation  of, or in  connection  with,  this  Agreement,  which has
        resulted or could result in a complaint  to,  including  but not limited
        to, any  regulatory  authority or which could give rise to litigation or
        proceedings against either Party.

19      TERM AND TERMINATION

19.1    This Agreement may be terminated, either in whole or with respect to one
        or more of the  Services,  by the  Company  at any  time by  giving  the
        Service Provider ninety (90) days prior written notice.

19.2    Unless the other Party  specifically  agrees to the contrary in writing,
        this Agreement will be automatically terminated with immediate effect in
        the event that one Party shall:-

        (a)     enter  or  become  the  subject  of  voluntary  or   involuntary
                rehabilitation or liquidation proceedings;

        (b)     become the subject of an action in bankruptcy;

        (c)     make or propose any  composition  with its creditors or make any
                assignment  for  the  benefit  of  its  creditors  or  otherwise
                acknowledge its insolvency;

        (d)     have an administrator or  administrative  receiver or equivalent
                office holder appointed by a court of competent jurisdiction;

        (e)     have a receiver or equivalent  office  holder  appointed for the
                whole or any part of its business;

        (f)     any past or present  director,  officer,  partner or employee of
                Service  Provider is  convicted  of or charged with any criminal
                offence  involving  fraud or dishonesty or any similar  criminal
                offence  which  may  materially  affect  the  operation  of this
                Agreement.

19.3    Each Party shall inform the other immediately upon becoming aware of the
        occurrence of any of the events set out in Clause 19.2 above.

19.4    In the event of persistent and material breaches of any discreet part of
        the Services,  the Company shall inform the  Representatives  of Service
        Provider in writing of the nature of such breaches.  The Representatives
        shall meet as soon as reasonably  practicable  to discuss these breaches
        (such meeting being  expected to occur within seven (7) business days of
        receipt of the written  notice) and try to agree an action plan designed
        to remedy the breaches within a reasonable  timeframe  acceptable to the
        Company.  Should  an  action  plan not be  agreed  within  a  reasonable
        timeframe,  or the  implementation  of an action  plan not result in the
        Services  being   performed  to  the  specified   standards,   then  the
        Representatives  shall raise the matter with the Steering Committee,  in
        accordance with clause 10 above. If the material  breaches  continue and
        the  Steering  Committee  does not  provide a  resolution  to the matter
        within  a  reasonable  timeframe,  then  the  Company  has the  right to
        terminate the relevant part of the Services with one (1) month's notice.
        Such  termination  will not affect the  continuance  of the Services not
        subject to the persistent and material breaches.
<PAGE>
                                      -8-

19.5    On termination of any Service provided for in any Schedule or the entire
        Agreement,  each Party  shall  bear its own  associated  costs;  Service
        Provider  will  cooperate  in good faith with the Company to provide the
        Company (or its designee) with reasonable  assistance to make an orderly
        transition  from Service  Provider to another  supplier of the Services.
        Service Provider  undertakes to work with the Company to ensure a smooth
        transition  and  hand-over  and to minimise  the costs  associated  with
        termination for each Party. Such transition assistance shall include the
        following:

        (a)     developing a transition plan with assistance from the Company or
                its designee; and

        (b)     organizing and  delivering to the Company  records and documents
                necessary  to  allow  continuation  of the  Services,  including
                delivering  such  materials in electronic  forms and versions as
                requested by the Company.

19.6    Termination of this  Agreement does not affect a Party's  accrued rights
        and obligations at the date of termination.

20      LAW AND JURISDICTION

20.1    This  Agreement  shall be construed in  accordance  with the laws of the
        State of New York without regard to the principles of conflict of laws.

21      ASSIGNMENT

21.1    This  Agreement  shall not be  assignable  by either  Party  without the
        express  written  consent of the other,  and such  consent  shall not be
        unreasonably withheld,  provided however that upon delivery of notice to
        the Company,  Service Provider may assign all or a portion of its rights
        under this  Agreement to an  affiliate.  For purposes of this  Agreement
        "affiliate"  shall mean any person,  corporation,  company  partnership,
        individual  or  group  (collectively  a  "Person"),  which  directly  or
        indirectly,   through  one  or  more  intermediaries,   controls  or  is
        controlled by, or owns or is owned by another Person,  with an equity or
        other financial interest of 35% or more of any management interest.

22      NOTICES

22.1    All  notices  hereunder  shall be sent to the Party at the  address  set
        forth below or at such other address as shall be specified by a Party as
        to it in a notice duly given.  Notices shall be effective  upon receipt,
        and shall be addressed as follows:

        If to Service Provider: XL Financial Administrative Services Inc.
                                1221 Avenue of the Americas
                                New York, NY  10020

                                Attention:

                                Telephone:

                                Facsimile:

<PAGE>
                                      -9-

        If to Company:          XL Insurance (Bermuda) Ltd
                                XL House, One Bermudiana Road
                                Hamilton HM 11, Bermuda

                                Attention:

                                Telephone:

                                Fax:

        or to such other  address as a Party shall have  designated by notice in
        writing to the other Party in the manner provided by this clause 22.1.

23.     THIRD PARTIES' RIGHTS

23.1    For the  avoidance of doubt,  no term of this  Agreement is intended for
        the benefit of any third  party,  and the Parties do not intend that any
        term of this Agreement should be enforceable by a third party.

24      ENTIRE AGREEMENT

24.1    This Agreement,  including the attached  Schedules,  is the complete and
        exclusive  statement of the agreement between the Parties and supersedes
        all prior proposals,  understandings and all other agreements,  oral and
        written,  between  the Parties  relating  to the subject  matter of this
        Agreement.  This  Agreement  may not be  modified  or altered  except by
        written instrument duly executed by both Parties.

25.     FORCE MAJEURE

25.1    Any  delay  or  failure  by  either  Party  in the  performance  of this
        Agreement will be excused to the extent that the delay or failure is due
        solely to causes or contingencies  beyond the reasonable control of such
        Party.

26.     SEVERABILITY

26.1    If any provision,  clause or part of this Agreement,  or the application
        thereof under certain circumstances is held invalid or unenforceable for
        any reason, the remainder of this Agreement,  or the application of such
        provision,  clause  or  part  under  other  circumstances  shall  not be
        affected thereby.

IN WITNESS  WHEREOF,  the Parties have signed this  Agreement  on the  Effective
Date.

XL FINANCIAL ADMINISTRATIVE SERVICES INC.  XL INSURANCE (BERMUDA) LTD

By:    /s/ Richard B. Heberton             By:    /s/ Charles Stanley Lee
      -------------------------------            -------------------------------
Name:  Richard B. Heberton                 Name:  Charles Stanley Lee
      -------------------------------            -------------------------------
Title: Senior Managing Director            Title: SVP, Chief Financial Officer
      -------------------------------            -------------------------------
<PAGE>
                                      -10-

SCHEDULE #__________

______________________________ SERVICES

I       DESCRIPTION OF SERVICES

A.      SCOPE

XL Financial Administrative Services Inc. (" Service Provider") will provide
______________________________ services to XL Insurance (Bermuda) Ltd (the
"Company"), either through Service Provider's own resources, the resources of
its subsidiary or affiliates, as provided in the General Services Agreement (the
"Services Agreement"), dated as of _______________, by and between Service
Provider and Company, or by contracting with other independent contractors, all
in accordance with Section 4.1 of the Services Agreement.

B.      SPECIFIC SERVICES

The specific services that Service Provider will provide are as follows:

1.      ________________________________________________________________

2.      ________________________________________________________________

3.      ________________________________________________________________

4.      ________________________________________________________________

5.      ________________________________________________________________

Additional services may be included upon agreement of both parties.

II      SERVICE FEES

[The Company will pay Service Provider [insert payment frequency and related
terms] on a "cost plus" basis for each Service as set forth herein. The Company
will pay the Service Provider within thirty (30) days of the receipt of an
invoice from Servicer Provider.

The fee will include:

        (i)     with respect to the Services being performed and Support
                Services being provided by Service Provider, any salaries,
                bonuses, benefits, fringe benefits, incentive compensation
                benefits (if applicable) payroll taxes or other applicable
                taxes, and depreciation/amortization of office equipment and
                software attributed to the employee in the group (collectively,
                the "Employee Costs"), based upon the ratio of Service
                Provider's estimate of the time spent by the employee on behalf
                of the Company or in connection with providing Services divided
                by the total time spent by the employees multiplied by the
                Employee Costs;

        (ii)    a mark up of ____% of the aggregate amount calculated pursuant
                to (i);

        (iii)   third-party expenses, including travel and entertainment,
                consulting fees and printing costs, incurred on behalf of the
                Company by Service Provider on behalf of the Company or in
                connection with providing Services (such costs are not subject
                to a mark up); and

        (iv)    Any costs incurred by the Service Provider in providing the
                Services not in the ordinary course of business (such costs are
                not subject to a mark up).]

OR
<PAGE>
                                      -11-

[The Company will pay Service Provider semi-annually on an hourly rate per
professional hour (or pro rata portion thereof for portions of an hour) as set
forth below based on the title of the XLFAS professional providing the Services

; plus actual out of pocket expenses incurred in providing such services,
provided that the incurrence of such expenditures has been approved by the
Company. The foregoing hourly rates include a mark up of [ ]. Out of pocket
expenses are not subject to markup.

Account current statements shall be rendered [ ] by Servicer Provider to the
Company (which statements shall provide, upon request from time to time of the
Company, reasonable detail as to the services rendered) and enumeration of any
out-of-pocket expenditure to be reimbursed.]

III     ADDITIONAL TERMS

Insert any other relevant terms.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]