Document:

EXHIBIT 10.11

                              SCA HOLDINGS US INC.
                          DEFERRED COMPENSATION PROGRAM

                                       1.

                           PURPOSE AND EFFECTIVE DATE

(a)     PURPOSE. The purpose of the SCA Holdings US Inc. Deferred Compensation
        Program (the "Plan") is to assist SCA Holdings US Inc. and certain of
        its affiliates in attracting and retaining executives who will make a
        significant contribution to their business success. The Plan provides
        for Voluntary Deferrals by Participants, Benefit Replacement Deferrals
        by Participants, discretionary matching benefits with respect to the
        Benefit Replacement Deferrals, and discretionary profit sharing
        contributions, in each case as provided below. The Plan was also formed
        as a successor plan to the XL America Inc. Deferred Compensation Plan in
        connection with the initial public offering of the common stock of
        Security Capital Assurance Ltd.

(b)     EFFECTIVE DATE. The Plan was adopted effective as of June 16, 2006 (the
        "Effective Date").

                                       2.

                                   DEFINITIONS

                When used herein, the following terms shall have the following
meanings:

                "Account" means the bookkeeping account maintained by the
Company for each Participant which is credited with benefits under Sections
4.1and 4.3, and earnings (or debited with losses) attributable to the Investment
Options selected by the Participant, and which is debited to reflect
distributions. The portions of a Participant's Account allocated to different
Investment Options will be accounted for separately, and the portions
attributable to benefits under Sections 4.1(a) through (e) and 4.3 of the Plan
shall, to the extent required by the Committee, also be accounted for
separately. Grandfathered Benefits shall also be accounted for separately.
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                "Account Balance" means the total amount credited to a
Participant's Account at any time, including the portions of the Account
allocated to each Investment Option.

                "Beneficiary" means the beneficiary or beneficiaries designated
in accordance with Section 10 to receive the amount, if any, payable upon the
death of a Participant.

                "Benefit Replacement Deferral" means the Compensation deferred
pursuant to Sections 4.1(a) and 4.2 of the Plan.

                "Benefit Replacement Deferral Election" means an election with
respect to a Benefit Replacement Deferral made by a Participant pursuant to
Section 4.2 of the Plan in the form designated by the Committee from time to
time.

                "Benefits" means the benefits described in Section 4.1 and 4.3
of the Plan.

                "Board of Directors" means the Board of Directors of the
Company.

                "Change in Control" has the meaning set forth in Appendix A
hereto.

                "Code" means the Internal Revenue Code of 1986, as amended.

                "Committee" means the Retirement and Investment Committee of the
Company.

                "Company" means SCA Holdings US Inc., a Delaware corporation, or
any successor under the provisions of Section 11.2.

                "Compensation" means base salary and bonus payable by an
Employer to the Participant (whether or not deferred under this Plan, a 401(k)
Plan or any other deferred compensation plan).

                "Deferral Election" means an election to defer Compensation
(whether as a Benefit Replacement Deferral Election or a Voluntary Deferral
Election) made by a Participant pursuant to, and in accordance with, Section 4.2
of the Plan in the form designated by the Committee from time to time.

                "Deferred Compensation" means the Compensation deferred pursuant
to Section 4.1(a) and 4.1(c) of the Plan and Benefits transferred to the Plan
pursuant to Section 4.3 hereof which were credited under Sections 4.1(a), (c) or
(f) of the Prior Plan, in each case together with earnings or losses thereon
attributable to the Investment Options selected by the Participant (and debited
to reflect distributions therefrom).
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                "Employer" means the Company, SCA, XL Capital Assurance Inc., XL
Financial Assurance Ltd, XL Financial Administrative Services Inc., and any
other subsidiary of SCA that becomes an Employer in accordance with Section
11.1.

                "ERISA" means the Employee Retirement Income Security Act of
1974, as amended.

                "Excess Compensation" means Compensation payable during a Plan
Year to the extent in excess of the $220,000 compensation limit of Section
401(a)(17) of the Code (as such amount is adjusted from time to time under
Section 401(a)(17)(B) of the Code).

                "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                "401(k) Plan" means the tax-qualified 401(k) plan maintained or
contributed to by the Participant's Employer.

                "Grandfathered Benefits" means Benefits originally accrued under
the Prior Plan which are credited to the Participant's account in this Plan
pursuant to Section 4.3, but only to the extent such Benefits were accrued and
vested on December 31, 2004 (together with earnings or losses thereon, whether
attributable to periods before or after December 31, 2004, attributable to the
Investment Options selected by the Participant).

                "Investment Option" means a measure of investment return
pursuant to which Benefits credited to a Participant's Account shall be further
credited with earnings (or debited with losses). The Investment Options
available under this Plan shall be determined from time to time by the
Committee.

                "Participant" means any employee of an Employer who is selected
to participate in the Plan in accordance with Section 3.

                "Plan" means the SCA Holdings US Inc. Deferred Compensation
Program, as set forth herein and as amended from time to time.

                "Plan Year" means the 12-month period commencing each January 1
and ending on December 31.

                "Prior Plan" means the XL America Inc. Deferred Compensation
Program.

                "Retirement" means the date a Participant reaches age 65,
whether or not the Participant is employed by an Employer or a subsidiary
thereof at such time.

                "SCA" means Security Capital Assurance Ltd, a Bermuda
corporation and owner of all of the common stock of the Company.
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                "Termination Date" with respect to a Participant means the first
date on which the Participant is no longer employed by an Employer or any other
subsidiary of SCA.

                "Voluntary Deferral" means the Compensation deferred pursuant to
Sections 4.1(c) and 4.2 of the Plan.

                "Voluntary Deferral Election" means an election with respect to
a Voluntary Deferral made by a Participant pursuant to Section 4.2 of the Plan
in the form designated by the Committee from time to time.

                                       3.

                                  PARTICIPATION

(a)     PARTICIPATION. An employee of an Employer shall become a Participant in
        the Plan only upon selection and designation as a Participant by the
        Committee. The selection of Participants shall be in the sole discretion
        of the Committee and shall be consistent with the provisions of Section
        8.2 hereof.

(b)     SUSPENSION OF PARTICIPATION. The participation of any Participant may be
        suspended or terminated by the Committee at any time in its sole
        discretion, but no such suspension or termination shall operate to
        reduce any benefits accrued by the Participant under the Plan prior to
        the date of suspension or termination.

                                       4.

                         BENEFITS AND DEFERRAL ELECTIONS

(a)     BENEFITS. Subject to the provisions of Section 6, for each Plan Year the
        following Benefits shall be credited to the Account of a Participant:

        (i)     a Benefit Replacement Deferral of an amount of Excess
                Compensation, not in excess of 5% of such Excess Compensation,
                that is deferred by the Participant pursuant to a Benefit
                Replacement Deferral Election as provided in Section 4.2 below;

        (ii)    an Employer matching contribution equal to 140% (or such other
                percentage as determined by the Board of Directors) of the
                amount of Excess Compensation deferred by the Participant for
                the Plan Year under Section 4.1(a) above;
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        (iii)   a separate Voluntary Deferral of an amount of Compensation, up
                to 50% of base salary and up to 100% of annual bonus, that is
                deferred by the Participant pursuant to a Voluntary Deferral
                Election as provided in Section 4.2 below;

        (iv)    a discretionary profit sharing contribution, if any, of a
                percentage of the Participant's Compensation, as determined from
                time to time by the Board of Directors; and

        (v)     earnings or losses attributable to the Investment Options for
                the Participant's Benefits pursuant to Section 5 below.

(b)     DEFERRAL ELECTIONS.

        (i)     Benefit Replacement Deferral Elections and Voluntary Deferral
                Elections must each be made no later than the December 15
                immediately preceding the Plan Year for which such elections are
                to take effect. Such Deferral Elections shall apply to
                Compensation for services performed in such Plan Year, and they
                shall be irrevocable after such December 15. Benefit Replacement
                Deferral Elections shall remain in effect for all future Plan
                Years until changed, which change, so long as it is made prior
                to the December 15 immediately preceding the Plan Year for which
                the change is to be effective, shall apply prospectively to the
                Plan Year beginning after the date of the change of election. A
                separate Voluntary Deferral Election must be made for each Plan
                Year. Any deferred compensation elections in effect on the
                Effective Date under Section 4.2 of the Prior Plan shall apply
                as a Benefit Replacement Deferral Election or a Voluntary
                Deferral Election for this Plan, as the case may be, for the
                2006 Plan Year under this Plan (and, in the case of a Benefit
                Replacement Deferral Election, shall continue in effect until
                changed in writing by the Participant as set forth above).

        (ii)    Notwithstanding any provision of Section 4.2(a) to the contrary,
                in the case of any Compensation which qualifies as
                "performance-based compensation" under Section 409A of the Code
                and the regulations and other applicable guidance issued
                thereunder and which is based upon a performance period of at
                least twelve (12) months, a Voluntary Deferral Election may be
                made with respect to such performance-based compensation no
                later than the date that is six (6) months before the end of the
                performance period, so long as such election is made in
                compliance with the other applicable requirements of Section
                409A of the Code and the regulations and other applicable
                guidance issued thereunder and in accordance with the procedures
                established by the Committee for such elections.
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                                      -6-

        (iii)   Notwithstanding any provision of Section 4.2 to the contrary, a
                Participant may make a Deferral Election within thirty (30) days
                after first becoming eligible to participate in the Plan
                (treating eligibility to participate in the Prior Plan as
                eligibility to participate in this Plan for this purpose) with
                respect to Compensation paid for services to be performed
                subsequent to the effective date of the election. In the case of
                any bonus payable over a specified service period (E.G., a Plan
                Year), if a Deferral Election is made in the first year of the
                Participant's eligibility but after the beginning of the service
                period, the election will be deemed to apply to Compensation
                paid for services performed subsequent to the election if the
                election applies to the portion of the bonus equal to the total
                amount of the bonus for the service period multiplied by the
                ratio of the number of days remaining in the service period
                after the election over the total number of days in the service
                period.

(c)     TRANSFER AMOUNTS. In the case of each Participant who was actively
        employed by XL Capital Ltd or one of its subsidiaries in connection with
        the business of the Company and its subsidiaries immediately prior to
        the Effective Date and who had accrued benefits under the Prior Plan,
        such accrued benefits will be transferred to this Plan, effective on the
        date determined by the Committee (the "Transfer Date"), by crediting to
        the Participant's Account an amount equal to the amount of such
        Participant's accrued benefit under the Prior Plan at such date, in each
        case as set forth in a written resolution of the Committee which sets
        forth the Participant's name, the amount of the benefit transferred, and
        the vesting schedule for the benefit transferred (including the amount,
        if any, that was vested on December 31, 2004). After the Transfer Date,
        (i) such amount shall also be credited or debited with earnings or
        losses attributable to the Investment Options for the Participant's
        Benefits pursuant to Section 5 below, and (ii) such benefits shall only
        be payable to the Participant under the terms of this Plan and no amount
        shall be payable to the Participant under the Prior Plan.

                                       5.

                         EARNINGS AND INVESTMENT OPTIONS

(a)     CREDITING OF EARNINGS. Earnings shall be credited to a Participant's
        Account based on the Investment Option or Options to which his or her
        Account has been allocated, beginning with the day as of which any
        amounts (or any reallocation of amounts) are credited to the
        Participant's Account. Any amount distributed from a Participant's
        Account shall be credited with earnings through the day on which the
        distribution is processed. The Investment Options shall be determined
        and communicated to

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                                      -7-

        Participants by the Committee; PROVIDED, HOWEVER, that the Investment
        Options may not be changed retroactively.

(b)     SELECTION OF INVESTMENT OPTIONS. The amounts credited to a Participant's
        Account under this Plan shall be allocated among the Investment Options
        as elected in writing (or by such other method approved by the
        Committee) from time to time by the Participant. Participants may
        allocate and reallocate their Account Balance among the Investment
        Options in accordance with the procedures and limitations established
        from time to time by the Committee.

                                       6.

                               VESTING AND PAYMENT

(a)     VESTING. A Participant's Deferred Compensation will be vested in full at
        all times. No amount shall be payable to a Participant or his or her
        Beneficiary under the Plan to the extent it represents Benefits under
        Sections 4.1(b) or (d) of the Plan or Sections 4.1(b), (d) or (e) of the
        Prior Plan (or earnings or losses on such amounts) that would have been
        forfeited under the vesting provisions of the 401(k) Plan applicable to
        corresponding amounts (i.e., matching contributions, employer
        contributions or employee contributions, as the case may be, as
        determined by the Committee), taking into account all service with the
        Company and its subsidiaries and service with XL Capital Ltd and its
        subsidiaries prior to the Effective Date. Notwithstanding the foregoing,
        all Benefits shall become immediately vested in full upon a Change in
        Control.

(b)     DISTRIBUTION OPTIONS. Except as otherwise provided in this Section 6,
        Benefits deferred from a Plan Year shall be paid to a Participant in
        accordance with his or her election applicable to the Plan Year pursuant
        to Section 6.3 hereof, either:

        (i)     in a single lump sum on the date that is six months after the
                Participant's Termination Date (with the payment including all
                deemed earnings or losses calculated in accordance with the
                Investment Options through such date);

        (ii)    in a single lump sum on the later of Retirement of the
                Participant or the date that is six months after the
                Participant's Termination Date (with the payment including all
                deemed earnings or losses calculated in accordance with the
                Investment Options through the payment date), if elected by the
                Participant in accordance with the provisions of Section 6.3;
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                                      -8-

        (iii)   in annual, monthly or quarterly installments for up to ten years
                following the Participant's Termination Date, as elected by the
                Participant in accordance with the provisions of Section 6.3;
                the first such installment shall be paid on the date that is six
                months following the Termination Date, and the remaining
                installments shall be paid on the anniversaries of the
                Termination Date, beginning on the first anniversary of the
                Termination Date; and the amount of each such installment shall
                be determined by dividing the amount credited to the Participant
                under the Plan at such date (including all deemed earnings or
                losses, calculated in accordance with the Investment Options,
                credited through such date) by the number of installments
                remaining to be paid;

        (iv)    in annual, monthly or quarterly installments for up to ten years
                following the later of Retirement of the Participant or the
                Participant's Termination Date, as elected by the Participant in
                accordance with the provisions of Section 6.3; the first such
                installment shall be paid on the later of the date of such
                Participant's Retirement or the date that is six months
                following the Participant's Termination Date, and the remaining
                installments shall be paid on the anniversaries of the later of
                Retirement of the Participant or the Participant's Termination
                Date, beginning on the first anniversary thereof; and the amount
                of each such installment shall be determined by dividing the
                amount credited to the Participant under the Plan at such date
                (including all deemed earnings or losses, calculated in
                accordance with the Investment Options, credited through such
                date) by the number of installments remaining to be paid; or

        (v)     at the time, or pursuant to the fixed schedule, specified by the
                Participant in a payment election made in accordance with the
                provisions of Section 6.3 and Section 409A of the Code.

(c)     ELECTION. Each Participant may elect to be paid under the Plan in
        accordance with one of the alternatives set forth in Section 6.2 above.
        A separate payment election may be made with respect to deferrals for
        each Plan Year. The Participant's payment election with respect to
        deferrals for a Plan Year shall be made at the time, and in accordance
        with the same requirements, as the deferral election under Section
        4.2(a) or (c), as applicable, with respect to the Plan Year. Except as
        otherwise provided in Sections 6.4 or 6.7 below, such an election shall
        be irrevocable. Elections made under the Prior Plan shall continue to
        apply to Benefits under this Plan (subject to any deferral mandated by
        Section 409A of the Code) until a new election is made in accordance
        with the terms of this Plan. In the absence of a valid election by a
        Participant hereunder, the Participant shall be deemed to have elected
        to be paid in a lump sum under Section 6.2(a).

(d)     ADDITIONAL DEFERRAL. A Participant may change his or her payment
        election with respect to amounts deferred for a Plan Year (to provide
        for additional deferral of a

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                                      -9-

        payment) if such change meets the following requirements and is made in
        accordance with the procedures establised by the Committee from time to
        time: (a) such new election shall not take effect until twelve (12)
        months after the date it is made, (b) the payment must be deferred for a
        period of not less than five (5) years from the date the payment would
        otherwise have been made (or in the case of installment payments, five
        (5) years from the date the first installment was scheduled to be paid),
        and (c) in the case of a payment made pursuant to Section 6.2(e), the
        election may not be made less than twelve (12) months prior to the date
        the payment is scheduled to be made (or in the case of installment
        payments, twelve (12) months prior to the date the first installment was
        scheduled to be paid). For purposes of this Section 6.4, entitlement to
        a series of installment payments will be treated as entitlement to a
        single payment, and a series of payments will be treated as installment
        payments if the payments are a series of substantially equal periodic
        amounts to be paid over a predetermined period of years, except to the
        extent any increase in the amount reflects reasonable earnings through
        the date the amount is paid.

(e)     PAYMENTS UPON DEATH. Notwithstanding any provision of this Plan to the
        contrary, upon the death of a Participant, the Participant's Benefits
        shall be paid in a single lump sum to the Participant's Beneficiary
        within forty five (45) days following the Participant's death.

(f)     MANDATORY CASH-OUT. Notwithstanding any provision of this Plan (other
        than Section 6.5) or any election by the Participant to the contrary, if
        a Participant's Account is less than $100,000 on the Termination Date,
        such Participant's Benefits shall be paid in a lump sum on the date that
        is six months after the Termination Date (except to the extent such
        Participant's Account is otherwise to be paid hereunder at an earlier
        time, in which case payments will be made at such earlier scheduled
        time, so long as such payment is consistent with Section 409A of the
        Code).

(g)     SPECIAL 2006 PAYMENT ELECTION. To the extent permitted under Section
        409A and the regulations and other applicable guidance issued thereunder
        and in accordance with procedures approved by the Committee, prior to
        the end of calendar year 2006, each Participant may change the
        Participant's payment election with respect to Benefits subject to
        Section 409A to another time and form of payment permissible under
        Section 6.2 hereof.

(h)     GRANDFATHERED PRIOR PLAN BENEFITS. Notwithstanding any provision of this
        Plan to the contrary, a Participant's distribution election in effect
        under the Prior Plan shall continue to apply to Grandfathered Benefits
        unless and until a new distribution election is made by the Participant
        in accordance with the procedures set forth in Appendix B hereto (which
        shall apply to Grandfathered Benefits in lieu of the provisions of this
        Section 6).
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                                       7.

                                SOURCE OF PAYMENT

(a)     TRUST. All payments provided for under the Plan shall be paid in cash
        from the general funds of the Company; 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. The
        Company shall establish and maintain a trust, the assets of which shall
        be subject to the claims of the Company's creditors in the event of the
        Company's insolvency, in order to provide a source of funds to assist it
        in the meeting of its liabilities hereunder. At the end of each Plan
        Year and at the time of termination of employment of a Participant, the
        Company shall be required to irrevocably deposit additional cash or
        other property to the trust in an amount sufficient to pay each
        Participant who has terminated employment with the Company prior to such
        time (or his or her Beneficiary) the benefits of such Participant
        accrued pursuant to the terms of the Plan as of the close of the Plan
        Year (or in the case of a termination of employment, as of the time of
        such termination). To the extent that any Participant or Beneficiary
        acquires a right to receive payments from the Company hereunder, such
        right shall be no greater than the right of an unsecured creditor of the
        Company.

                                       8.

                  ADMINISTRATION AND INTERPRETATION OF THE PLAN

(a)     COMMITTEE. The Plan shall be administered by the Committee. The
        Committee shall have full discretion, power and authority to interpret,
        construe and administer the Plan, to provide for claims review
        procedures, and to review claims for benefits under the Plan. The
        Committee's interpretations and constructions of the Plan and the
        actions taken thereunder by the Committee shall be binding and
        conclusive on all persons and for all purposes.

(b)     FOR SELECT GROUP OF MANAGEMENT OR HIGHLY COMPENSATED EMPLOYEES. The Plan
        is intended to be an unfunded deferred compensation plan "for a select
        group of management or highly compensated employees" within the meaning
        of Sections 201(a)(2), 301(a)(3) and 401(a)(1) of ERISA. Each provision
        of the Plan shall be administered, interpreted and construed to carry
        out such intention, and any provision that cannot be so administered,
        interpreted and construed shall, to that extent, be disregarded.
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                                      -11-

(c)     ADVISORS. The Committee shall establish and maintain Plan records and
        may arrange for the engagement of such accounting, actuarial or legal
        advisors, who may be advisors to the Company, and make use of such
        agents and clerical or other personnel as it shall require or may deem
        advisable for purposes of the Plan. The Committee may rely upon the
        written opinion of such advisors engaged by the Committee. The Committee
        may appoint a subcommittee (which may include one or more Participants)
        to assist it in carrying out its administrative duties under the Plan.

(d)     HOLD HARMLESS. To the maximum extent permitted by law, no member of the
        Board of Directors, the Committee or any subcommittee appointed pursuant
        to Section 8.3 hereof shall be personally liable by reason of any
        contract or other instrument executed by him or her or on his or her
        behalf in his or her capacity as a member of the Board of Directors, the
        Committee or such subcommittee nor for any mistake 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 Board of Directors, the Committee, and any subcommittee appointed
        pursuant to Section 8.3 hereof and each other 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 management 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
        unless arising out of such person's own fraud or bad faith.

                                       9.

                            AMENDMENT AND TERMINATION

(a)     AMENDMENT AND TERMINATION. The Plan may be amended, suspended or
        terminated, in whole or in part, by the Board of Directors, but no such
        action shall retroactively impair or otherwise adversely affect the
        rights of any person to benefits under the Plan which have accrued prior
        to the date of such action, as determined by the Board of Directors.
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                                      -12-

                                       10.

                          DESIGNATION OF BENEFICIARIES

(a)     BENEFICIARY DESIGNATION. Each Participant who participates in the Plan
        shall file with the Company a written designation of one or more persons
        or trusts as the Beneficiary who shall be entitled to receive the
        amount, if any, payable under the Plan upon his or her death. A
        Participant may, from time to time, revoke or change his or her
        Beneficiary designation without the consent of any prior Beneficiary by
        filing a new designation with the Company. The last such designation
        received by the Company shall be controlling; PROVIDED, HOWEVER, that no
        designation, or change or revocation thereof, shall be effective unless
        received by the Company prior to the Participant's death, and in no
        event shall it be effective as of a date prior to such receipt.

(b)     ESTATE. If no such Beneficiary designation is in effect at the time of a
        Participant's death, or if no designated Beneficiary survives the
        Participant, or if such designation conflicts with law, the
        Participant's estate shall be deemed to have been designated his or her
        Beneficiary and shall receive the payment of the amount, if any, payable
        under the Plan upon his or her death. If the Committee is in doubt as to
        the right of any person to receive such amount, the Committee may retain
        such amount, without liability for any interest thereon, until the
        rights thereto are determined, or the Committee may pay such amount into
        any court of appropriate jurisdiction and such payment shall be a
        complete discharge of the liability of the Plan and the Company
        therefor.

                                       11.

                               GENERAL PROVISIONS

(a)     SUBSIDIARIES. Any subsidiary of SCA may, upon approval by the Committee,
        become an Employer under the terms of the Plan. Each Employer shall bear
        the costs of the benefits provided under the Plan with respect to
        persons employed by it (subject to the allocation of costs among
        Employers by the Committee, in the case of Participants employed by more
        than one Employer). However, the Company shall be liable to each
        Participant for all payments provided for under the Plan, except as
        otherwise provided in Section 7.1 hereof.

(b)     BINDING ON SUCCESSORS. This Plan shall be binding upon and inure to the
        benefit of SCA, the Company, its subsidiaries, and their successors and
        assigns and the Participant, his or her Beneficiary or designees and his
        or her estate. Nothing in this

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                                      -13-

        Plan shall preclude the Company from consolidating or merging into or
        with, or transferring all or substantially all of its assets to, another
        corporation which assumes this Plan and all obligations of the Company
        hereunder. Upon such a consolidation, merger or transfer of assets and
        assumption, the term "Company" shall refer to such other corporation and
        this Plan shall continue in full force and effect.

(c)     NO RIGHT OF EMPLOYMENT. Neither the Plan nor any action taken hereunder
        shall be construed as giving to a Participant or any employee the right
        to be retained in the employ of an Employer or any other subsidiary of
        SCA or as affecting the right of an Employer or such a subsidiary to
        dismiss any Participant or employee with or without cause.

(d)     WITHHOLDING. The Company may provide for the withholding from any
        benefits payable under this Plan all Federal, state, city or other taxes
        as shall be required pursuant to any law or governmental regulation or
        ruling.

(e)     NOT ASSIGNABLE. No right to any amount payable at any time under the
        Plan may be assigned, transferred, pledged, or encumbered, either
        voluntarily or by operation of law, except (i) as provided expressly
        herein as to payments to a Beneficiary, (ii) other than in the case of
        Grandfathered Benefits, as may be necessary to fulfill a "domestic
        relations order" (as defined in Section 414(p)(1)(B) of the Code), or
        (iii) as may otherwise be required by law.

(f)     INCAPACITY. If the Committee shall find that any person to whom any
        amount is or was payable hereunder is unable to care for his or her
        affairs because of illness or accident, or has died, then the Committee,
        if it so elects, may direct that any payment due him or her or his or
        her estate (unless a prior claim therefore has been made by a duly
        appointed legal representative) or any part thereof be paid or applied
        for the benefit of such person or to or for the benefit of his or her
        spouse, children or other dependents, an institution maintaining or
        having custody of such person, any other person deemed by the Committee
        to be a proper recipient on behalf of such person otherwise entitled to
        payment, or any of them, in such manner and proportion as the Committee
        may deem proper. Any such payment shall be in complete discharge of the
        liability therefor of the Company, the Plan or the Committee or any
        member, officer or employee thereof.

(g)     COMMUNICATIONS TO COMMITTEE. All elections, designations, requests,
        notices, instruction, and other communications from a Participant,
        Beneficiary or other person to the Committee or the Company pursuant to
        the Plan shall be in such form as is prescribed from time to time by the
        Committee, shall be mailed by first-class mail or delivered to such
        location as shall be specified by the Committee, and shall be deemed to
        have been given and delivered only upon actual receipt thereof at such
        location.
<PAGE>
                                      -14-

(h)     OTHER BENEFITS. Except as otherwise expressly provided, the benefits
        payable under this Plan shall be in addition to all other benefits
        provided for employees of SCA and its subsidiaries.

(i)     CAPTIONS. The captions preceding the sections and articles hereof have
        been inserted solely as a matter of convenience and in no way define or
        limit the scope or intent of any provisions of the Plan.

(j)     GOVERNING LAW. To the extent not preempted by Federal law, this Plan
        shall be governed by the laws of the State of New York, without regard
        to the principles of conflict of laws thereof, as from time to time in
        effect.

(k)     SECTION 409A. It is intended that the Plan will comply with Section 409A
        of the Code (and any regulations and guidelines issued thereunder), and
        the Plan shall be interpreted on a basis consistent with such intent.
        The Plan may be amended in any respect deemed by the Board to be
        necessary in order to preserve compliance with Section 409A of the Code.

<PAGE>

                                   Appendix A
                                   ----------

                                CHANGE IN CONTROL

                For purposes of this Plan, "Change in Control" shall mean:

                (a)     the acquisition by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a
"Person"), of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 35% or more of either (1) the then outstanding shares
of common stock of SCA (the "Outstanding SCA Common Stock") or (2) the combined
voting power of the then outstanding voting securities of SCA entitled to vote
generally in the election of directors (the "Outstanding SCA Voting
Securities"); PROVIDED, HOWEVER, that the following acquisitions shall not
constitute a Change in Control: (i) any acquisition directly from SCA (other
than by exercise of a conversion privilege); (ii) any acquisition by SCA or any
of its subsidiaries; (iii) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by SCA or any of its subsidiaries; (iv)
any acquisition by any corporation with respect to which, following such
acquisition, more than 60% of, respectively, the then outstanding shares of
common stock of such corporation and the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the outstanding SCA Common Stock and Outstanding SCA
Voting Securities immediately prior to such acquisition in substantially the
same proportions as their ownership, immediately prior to such acquisition, of
the Outstanding SCA Common Stock and Outstanding SCA Voting Securities, as the
case may be (unless a Person's ownership of the acquiring corporation results in
that Person indirectly owning 35% or more of the Outstanding SCA Common Stock or
Outstanding SCA Voting Securities); or (v) any acquisition by XL Capital Ltd or
its wholly-owned subsidiaries unless, at any time after the Effective Date and
prior to such acquisition, XL Capital Ltd and its subsidiaries own less than 35%
of the Outstanding SCA Voting Securities;

                (b)     during any period of two consecutive years, individuals
who, as of the beginning of such period, constitute the Board of Directors of
SCA (the "Incumbent Board") cease for any reason to constitute at least a
majority of the Board of Directors of SCA; PROVIDED, HOWEVER, that any
individual becoming a director subsequent to the beginning of such period whose
election, or nomination for election by SCA's shareholders, was approved by a
vote of at least a majority of the directors then comprising the Incumbent Board
shall be considered as though such individual were a member of the Incumbent
Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of either

<PAGE>
                                       -2-

an actual or threatened election contest (as such terms are used in Rule 14a-11
of Regulation 14A promulgated under the Exchange Act);

                (c)     consummation of a reorganization, scheme of arrangement,
merger, consolidation or similar transaction (collectively, a "Transaction"), in
each case, with respect to which all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding SCA
Common Stock and outstanding SCA Voting Securities immediately prior to such
Transaction, do not, following such Transaction, beneficially own, directly or
indirectly, more than 60% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case
may be, of the corporation resulting from such Transaction in substantially the
same proportions as their ownership, immediately prior to such Transaction, of
the Outstanding SCA Common Stock and Outstanding SCA Voting Securities, as the
case may be;

                (d)     consummation of a sale or other disposition of all or
substantially all of the assets of SCA, other than to a corporation with respect
to which following such sale or other disposition, more than 60% of,
respectively, the then outstanding shares of common stock of such corporation
and the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding SCA Common Stock and Outstanding SCA Voting Securities immediately
prior to such sale or other disposition in substantially the same proportions as
their ownership, immediately prior to such sale or other disposition, of the
Outstanding SCA Common Stock and Outstanding SCA Voting Securities, as the case
may be; or

                (e)     approval by the shareholders of SCA of a complete
liquidation or dissolution (or similar transaction) of SCA.
<PAGE>

                                   Appendix B
                                   ----------

                      GRANDFATHERED DISTRIBUTION PROCEDURES

        The distribution procedures set forth in this Appendix B apply only to
Grandfathered Benefits. The Investment Options set forth in this Plan shall
apply to Grandfathered Benefits after the Transfer Date. It is intended that a
Participant's rights with respect to his or her Grandfathered Benefits will not
be materially modified for purposes of Section 409A of the Code from those in
effect under the Prior Plan as of October 3, 2004. Accordingly, any right or
benefit provided for under this Plan in addition to a right or benefit under the
Prior Plan shall not apply to the Grandfathered Benefits, unless such right as
benefit can be provided without the Grandfathered Benefits becoming subject to
Section 409A of the Code.

DISTRIBUTION OPTIONS. Except as otherwise provided in this Appendix B,
        Grandfathered Benefits shall be paid to a Participant, in accordance
        with his or her election as provided in Section B.2 hereof, either:

                in a cash lump sum as soon as practicable after the first date
                on which the Participant is no longer employed by an Employer or
                any other subsidiary of SCA (with the payment including all
                deemed earnings or losses calculated in accordance with the
                Investment Options through such date);

        (i)     in a cash lump sum as soon as practicable after the later of
                Retirement of the Participant or the first date on which the
                Participant is no longer employed by an Employer or any other
                subsidiary of SCA (with the payment including all deemed
                earnings or losses calculated in accordance with the Investment
                Options through such date), if elected by the Participant in
                accordance with the provisions of Section B.2;

        (ii)    in annual, monthly or quarterly installments for up to ten years
                following termination of the Participant's employment, as
                elected by the Participant in accordance with the provisions of
                Section B.2; the first such installment shall be payable as soon
                as practicable following the first date on which the Participant
                is no longer employed by an Employer or any other subsidiary of
                SCA; and the amount of each such installment shall be determined
                by dividing the amount of the undistributed Grandfathered
                Benefit of the Participant under the Plan at such date
                (including all deemed earnings or losses, calculated in
                accordance with the Investment Options, credited through such
                date) by the number of installments remaining to be paid, and
                may be subject to minimum periodic payment amounts as set by the
                Committee; or

        (iii)   in annual, monthly or quarterly installments for up to ten years
                following the later of Retirement of the Participant or the
                first date on which the Participant is no longer employed by an
                Employer or any other subsidiary of SCA, as elected by

<PAGE>

                the Participant in accordance with the provisions of Section
                B.2; the first such installment shall be payable as soon as
                practicable following the later of date of such Participant's
                Retirement or termination of employment; and the amount of each
                such installment shall be determined by dividing the amount of
                the undistributed Grandfathered Benefit of the Participant under
                the Plan at such date (including all deemed earnings or losses,
                calculated in accordance with the Investment Options, credited
                through such date) by the number of installments remaining to be
                paid, and may be subject to minimum periodic payment amounts as
                set by the Committee.

B.2.    ELECTION. A Participant's payment election made under the Prior Plan
        shall continue to apply to Grandfathered Benefits under this Plan;
        PROVIDED, HOWEVER, that a Participant may file a new election as to the
        form of payment of Grandfathered Benefits if such election is filed at
        least one year in advance of termination of the Participant's
        employment. In the absence of a payment election by a Participant, the
        Participant shall be deemed to have elected to be paid in a lump sum at
        termination of employment under Section B.1(a).

B.3.    BENEFICIARY PAYMENTS. Upon the death of a Participant, the Participant's
        Grandfathered Benefits shall be paid in a single lump sum to the
        Participant's Beneficiary as soon as practicable following the
        Participant's death.

B.4.    MANDATORY CASH-OUT. If a Participant's entire Account under the Plan is
        less than $100,000 on the first date on which the Participant is no
        longer employed by an Employer or any other subsidiary of the Company,
        such Participant's Grandfathered Benefits shall be paid in a lump sum at
        the time of such termination of employment.

                                      -2-EXHIBIT 10.14

                            MASTER SERVICES AGREEMENT

This Master Services Agreement is made this [ ] day of [ ], 2006 (the "Effective
Date") between X.L. GLOBAL SERVICES INC, a service company incorporated under
the laws of Delaware ("XLGS") (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

<PAGE>

        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.

                                      -2-
<PAGE>

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.

                                      -3-
<PAGE>

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.

                                      -4-
<PAGE>

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 [ ] 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:            [           ]
                                            Telephone:
                                             E-Mail:

                                            [           ]
                                            Telephone:
                                             E-Mail:

        SERVICE PROVIDER REPRESENTATIVES:   [           ]
                                            Telephone:
                                             E-Mail:

                                            [           ]
                                            Telephone:
                                             E-Mail:

                                      -5-
<PAGE>

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.

                                      -6-
<PAGE>

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.

                                      -7-
<PAGE>

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.

                                      -8-
<PAGE>

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

                                      -9-
<PAGE>

        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 XLGS:   [           ]

        If to XLFAS:  [           ]

        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.

                                      -10-
<PAGE>

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. GLOBAL SERVICES INC.               SERVICES INC.

By                                      By:
      -------------------------------         ----------------------------------
Name:                                   Name:
      -------------------------------         ----------------------------------
Title:                                  Title:
      -------------------------------         ----------------------------------
<PAGE>

SCHEDULE #__________

______________________________ SERVICES

I.      DESCRIPTION OF SERVICES

A.      SCOPE

X.L. Global Services Inc. ("XLGS") will provide ______________________________
services to Security Capital Assurance Ltd ("SCA"), either through XLGS'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 SCA, or by contracting with
other independent contractors, all in accordance with Section 2.2 of the
Services Agreement.

                                      -11-
<PAGE>

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

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 depreciation/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 SCA 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 SCA by
                Service Provider on behalf of SCA 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-

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