Document:

EX-10.1

EXECUTION COPY

CREDIT AGREEMENT

dated as of

June 21, 2007

between

XL CAPITAL LTD,

X.L. AMERICA, INC., XL INSURANCE (BERMUDA) LTD and XL RE LTD,

as Account Parties and Guarantors,

The LENDERS Party Hereto

and

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

$4,000,000,000

J.P. MORGAN SECURITIES INC.

and

WACHOVIA CAPITAL MARKETS, LLC

as Joint Lead Arrangers and Joint Bookrunners

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Syndication Agent

THE BANK OF TOKYO-MITSUBISHI LTD., NEW YORK BRANCH,

BAYERISCHE LANDESBANK, NEW YORK BRANCH,

CITIBANK, N.A.,

KEY BANK NATIONAL ASSOCIATION,

GOLDMAN SACHS CREDIT PARTNERS L.P.,

CALYON NEW YORK BRANCH,

ABN AMRO BANK, N.V.

and

DEUTSCHE BANK AG NEW YORK BRANCH,

as Documentation Agents

1

TABLE OF CONTENTS

Page

ARTICLE I

DEFINITIONS

	 	 	 
	SECTION 1.01.

SECTION 1.02.

SECTION 1.03.

	 	Defined Terms

Terms Generally

Accounting Terms; GAAP and SAP

ARTICLE II

THE CREDITS

	 	 	 
	SECTION 2.01.

SECTION 2.02.

SECTION 2.03.

SECTION 2.04.

SECTION 2.05.

SECTION 2.06.

SECTION 2.07.

SECTION 2.08.

SECTION 2.09.

SECTION 2.10.

SECTION 2.11.

SECTION 2.12.

SECTION 2.13.

SECTION 2.14.

SECTION 2.15.

SECTION 2.16.

SECTION 2.17.

SECTION 2.18.

SECTION 2.19.

SECTION 2.20.

SECTION 2.21.

	 	Syndicated Letters of Credit

Issuance and Administration

Reimbursement of LC Disbursements, Etc

Non-Syndicated Letters of Credit

Participated Letters of Credit

Alternative Currency Letters of Credit

Loans and Borrowings

Requests for Borrowings

Funding of Borrowings

Interest Elections

Termination, Reduction and Increase of the Commitments

Repayment of Loans; Evidence of Debt

Prepayment of Loans.

Fees

Interest

Alternate Rate of Interest

Increased Costs

Break Funding Payments

Taxes

Payments Generally; Pro Rata Treatment; Sharing of Set-offs

Mitigation Obligations; Replacement of Lenders

ARTICLE III

GUARANTEE

	 	 	 
	SECTION 3.01.

SECTION 3.02.

SECTION 3.03.

SECTION 3.04.

SECTION 3.05.

SECTION 3.06.

SECTION 3.07.

SECTION 3.08.

	 	The Guarantee

Obligations Unconditional

Reinstatement

Subrogation

Remedies

Continuing Guarantee

Rights of Contribution

General Limitation on Guarantee Obligations

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

	 	 	 
	SECTION 4.01.

SECTION 4.02.

SECTION 4.03.

SECTION 4.04.

SECTION 4.05.

SECTION 4.06.

SECTION 4.07.

SECTION 4.08.

SECTION 4.09.

SECTION 4.10.

SECTION 4.11.

SECTION 4.12.

SECTION 4.13.

SECTION 4.14.

SECTION 4.15.

SECTION 4.16.

	 	Organization; Powers

Authorization; Enforceability

Governmental Approvals; No Conflicts

Financial Condition; No Material Adverse Change

Properties

Litigation and Environmental Matters

Compliance with Laws and Agreements

Investment Company Status

Taxes

ERISA

Disclosure

Use of Credit

Subsidiaries

Withholding Taxes

Stamp Taxes

Legal Form

ARTICLE V

CONDITIONS

	 	 	 
	SECTION 5.01.

SECTION 5.02.

	 	Effective Date

Each Credit Event

ARTICLE VI

AFFIRMATIVE COVENANTS

	 	 	 
	SECTION 6.01.

SECTION 6.02.

SECTION 6.03.

SECTION 6.04.

SECTION 6.05.

SECTION 6.06.

SECTION 6.07.

SECTION 6.08.

SECTION 6.09.

SECTION 6.10.

SECTION 6.11.

	 	Financial Statements and Other Information

Notices of Material Events

Preservation of Existence and Franchises

Insurance

Maintenance of Properties

Payment of Taxes and Other Potential Charges and

Priority Claims; Payment of Other Current Liabilities

Financial Accounting Practices

Compliance with Applicable Laws

Use of Letters of Credit and Proceeds

Continuation of and Change in Businesses

Visitation

ARTICLE VII

NEGATIVE COVENANTS

	 	 	 
	SECTION 7.01.

SECTION 7.02.

SECTION 7.03.

SECTION 7.04.

SECTION 7.05.

SECTION 7.06.

SECTION 7.07.

SECTION 7.08.

SECTION 7.09.

	 	Mergers

Dispositions

Liens

Transactions with Affiliates

Ratio of Total Funded Debt to Total Capitalization

Consolidated Net Worth

Indebtedness

Financial Strength Ratings

Private Act

ARTICLE VIII

EVENTS OF DEFAULT

ARTICLE IX

THE ADMINISTRATIVE AGENT

ARTICLE X

MISCELLANEOUS

	 	 	 
	SECTION 10.01.

SECTION 10.02.

SECTION 10.03.

SECTION 10.04.

SECTION 10.05.

SECTION 10.06.

SECTION 10.07.

SECTION 10.08.

SECTION 10.09.

SECTION 10.10.

SECTION 10.11.

SECTION 10.12.

SECTION 10.13.

SECTION 10.14.

	 	Notices

Waivers; Amendments

Expenses; Indemnity; Damage Waiver

Successors and Assigns

Survival

Counterparts; Integration; Effectiveness

Severability

Right of Setoff

Governing Law; Jurisdiction; Etc

WAIVER OF JURY TRIAL

Headings

Treatment of Certain Information; Confidentiality

Judgment Currency

USA PATRIOT Act

	 	 	 	 	 
	SCHEDULE I

SCHEDULE II

SCHEDULE III

SCHEDULE IV

SCHEDULE V

EXHIBIT A

EXHIBIT B-1

EXHIBIT B-2

EXHIBIT B-3

EXHIBIT B-4

EXHIBIT B-5

EXHIBIT C

EXHIBIT D

	 	–

–

–

–

-

–

–

–

–

–

–

–

–
	 	Commitments

Indebtedness and Liens

Litigation

Environmental Matters

Subsidiaries

Form of Assignment and Assumption

Form of Opinion of Counsel to XL Capital

Form of Opinion of Counsel to XL America

Form of Opinion of Special U.S. Counsel to the Obligors

Form of Opinion of Special Bermuda Counsel to XL Insurance and XL Re

Form of Opinion of Special Cayman Islands Counsel to XL Capital

Form of Opinion of Special New York Counsel to JPMCB

Form of Confirming Lender Agreement

2

CREDIT AGREEMENT dated as of June 21, 2007, between XL CAPITAL LTD, a Cayman Islands
exempted limited liability company (“XL Capital”), X.L. AMERICA, INC., a Delaware
corporation (“XL America”), XL INSURANCE (BERMUDA) LTD, a Bermuda limited liability company
(“XL Insurance”) and XL RE LTD, a Bermuda limited liability company (“XL Re” and,
together with XL Capital, XL America and XL Insurance, each an “Account Party” and each a
“Guarantor” and collectively, the “Account Parties” and the “Guarantors”;
the Account Parties and the Guarantors being collectively referred to as the “Obligors”),
the LENDERS party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent.

The Account Parties have requested that the Lenders issue letters of credit for their account
and make loans to them in an aggregate face or principal amount not exceeding $4,000,000,000 at any
one time outstanding, and the Lenders are prepared to issue such letters of credit and make such
loans upon the terms and conditions hereof. Accordingly, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:

“ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans constituting such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

“Account Parties” means each of XL Capital, XL America, XL Insurance and XL Re.

“Account Party Jurisdiction” means (a) Bermuda, (b) the Cayman Islands and (c) any
other country (i) where any Account Party is licensed or qualified to do business or (ii) from or
through which payments hereunder are made by any Account Party.

“Adjusted LIBO Rate” means, for the Interest Period for any Eurodollar Borrowing, an
interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the
LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate for such
Interest Period.

“Administrative Agent” means JPMCB, in its capacity as administrative agent for the
Lenders hereunder.

“Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

“Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly, Controls or is Controlled by or is under common Control with the Person specified.

“Aggregate Credit Exposure” means the aggregate amount of the Credit Exposures of each
of the Lenders.

“Aggregate Maximum Loan Amount” means $1,000,000,000, as such amount may be reduced
from time to time pursuant to Section 2.11.

“Alternate Base Rate” means, for any day, a rate per annum equal to the greater of
(a) the Prime Rate in effect on such day, and (b) the Federal Funds Effective Rate for such day
plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or
the Federal Funds Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, as the case may be.

“Alternative Currency” means any currency other than Dollars (a) that is freely
transferable and convertible into Dollars in the London foreign exchange market and (b) for which
no central bank or other governmental authorization in the country of issue of such currency is
required to permit use of such currency by any Lender for issuing, renewing, extending or amending
letter of credits or funding or making drawings thereunder and/or to permit any Account Party to
pay the reimbursement obligations and interest thereon, each as contemplated hereunder, unless such
authorization has been obtained and is in full force and effect.

“Alternative Currency LC Exposure” means, at any time, the sum of (a) the Dollar
Equivalent of the aggregate undrawn amount of all outstanding Alternative Currency Letters of
Credit at such time plus (b) the Dollar Equivalent of the aggregate amount of all LC
Disbursements under Alternative Currency Letters of Credit that have not been reimbursed by or on
behalf of the Account Parties at such time. The Alternative Currency LC Exposure of any Lender
shall at any time be such Lender’s share of the total Alternative Currency LC Exposure at such
time.

“Alternative Currency Letter of Credit” means a letter of credit issued by a Lender in
an Alternative Currency pursuant to Section 2.06.

“Alternative Currency Letter of Credit Report” has the meaning set forth in
Section 2.06(b).

“Applicable Additional Margin” means a rate per annum equal to 0.05% for any period
during which the sum of (a) the aggregate outstanding principal amount of the Loans and (b) the
aggregate outstanding principal amount of the Loans under (and as defined in) the Other Credit
Agreement shall be greater than 50% of the Aggregate Maximum Loan Amount then in effect.

“Applicable Margin” means, with respect to any Eurodollar Loan, the rate per annum
specified under the caption “Applicable Margin” in the table contained in the definition of
“Applicable Rate” in this Section or otherwise determined in accordance with such definition.

“Applicable Percentage” means (a) with respect to any Lender under the Letter of
Credit Tranche in relation to its obligations to issue or participate in Letters of Credit (or
related matters), the percentage of the Commitments of all the Lenders under such Tranche
represented by such Lender’s Letter of Credit Commitment, (b) with respect to any Lender under the
Letter of Credit Tranche in relation to its obligation to make Loans (or related matters), the
percentage represented by the amount that such Lender’s Applicable Percentage (as determined under
clause (a) above) of the RC Sublimit bears to the Aggregate Maximum Loan Amount, (c) with respect
to any Lender under the Revolving Credit Tranche, the percentage represented by the amount that the
Revolving Credit Commitment of such Lender bears to the Aggregate Maximum Loan Amount and (d)
otherwise, with respect to any Lender, the percentage of the Commitments of all the Lenders
represented by such Lender’s Commitment. If the Commitments have terminated or expired, the
Applicable Percentages shall be determined based upon the Commitments most recently in effect,
giving effect to any assignments.

“Applicable Rate” means, for any day, with respect to letter of credit fees payable
hereunder, interest margins applicable to Eurodollar Loans or the facility fees payable hereunder,
as the case may be, the applicable rate per annum set forth below under the caption “Applicable
Letter of Credit Fee Rate”, “Applicable Margin ” or “Applicable Facility Fee Rate”, respectively,
based upon the S&P Rating and/or Moody’s Rating, on such date:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	S&P/ Moody’s Ratings
(Senior Unsecured
	 	 	 	 	 	Applicable Margin	 	 	 	 
	Long-Tem Debt
	 	Applicable Letter	 	(for Eurodollar	 	Applicable
	Ratings)
	 	of Credit Fee Rate	 	Loans)	 	Facility Fee Rate
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	> A+/A1
	 	 	0.11	%	 	 	0.11	%	 	 	0.04	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	A/A2
	 	 	0.15	%	 	 	0.15	%	 	 	0.05	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	A-/A3
	 	 	0.19	%	 	 	0.19	%	 	 	0.06	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	BBB+/Baa1
	 	 	0.275	%	 	 	0.275	%	 	 	0.075	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	< BBB/Baa2 or
unrated
	 	 	0.31	%	 	 	0.31	%	 	 	0.09	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 

For purposes of the foregoing, (i) if either Moody’s or S&P shall not have in effect a Moody’s
Rating or a S&P Rating, as the case may be (other than by reason of the circumstances referred to
in the last sentence of this definition), then the Applicable Rate shall be based upon the
remaining rating, (ii) if the Moody’s Rating and the S&P Rating shall fall within different
Categories, the Applicable Rate shall be based on the higher of the two ratings unless one of the
two ratings is two or more Categories higher than the other, in which case the Applicable Rate
shall be determined by reference to the ratings level next above that of the lower of the two
ratings, and (iii) if the Moody’s Rating and the S&P Rating established or deemed to have been
established by Moody’s and S&P, respectively, shall be changed (other than as a result of a change
in the rating system of Moody’s or S&P), such change shall be effective as of the date on which it
is first announced by the applicable rating agency. Each change in the Applicable Rate shall apply
during the period commencing on the effective date of such change and ending on the date
immediately preceding the effective date of the next such change. If the rating system of Moody’s
or S&P shall change, or if either such rating agency shall cease to be in the business of providing
insurance ratings, XL Capital and the Lenders shall negotiate in good faith to amend this
definition to reflect such changed rating system or the unavailability of ratings from such rating
agency and, pending the effectiveness of any such amendment, the Applicable Rate shall be
determined by reference to the rating most recently in effect prior to such change or cessation.

“Approved Fund” means any Person (other than a natural person) that is engaged in
making, purchasing, holding or investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

“Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 10.04),
and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by
the Administrative Agent.

“Availability Period” means the period from and including the Effective Date to and
including the Commitment Termination Date.

“Bermuda Companies Law” means the Companies Act 1981 of Bermuda, as amended, and the
regulations promulgated thereunder.

“Bermuda Insurance Law” means the Insurance Act 1978 of Bermuda, as amended, and the
regulations promulgated thereunder.

“Board” means the Board of Governors of the Federal Reserve System of the United
States of America.

“Borrowing” means, with respect to any Account Party, (a) all ABR Loans of such
Account Party made, converted or continued on the same date or (b) all Eurodollar Loans of such
Account Party that have the same Interest Period.

“Borrowing Request” means a request by an Account Party for a Borrowing in accordance
with Section 2.08.

“Business Day” means any day (a) that is not a Saturday, Sunday or other day on which
commercial banks in New York City, London, the Cayman Islands or Bermuda are authorized or required
by law to remain closed and (b) if such day relates to a borrowing of, a payment or prepayment of
principal of or interest on, a continuation or conversion of or into, or the Interest Period for, a
Eurodollar Loan, or to a notice by an Account Party with respect to any such borrowing, payment,
prepayment, continuation, conversion, or Interest Period, that is also a day on which dealings in
Dollar deposits are carried out in the London interbank market.

“Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

“Change in Control” means the occurrence of any of the following events or conditions:
(a) any Person, including any syndicate or group deemed to be a Person under Section 13(d)(3) of
the Securities Exchange Act of 1934, as amended, acquires beneficial ownership, directly or
indirectly, through a purchase, merger or other acquisition transaction or series of transactions,
of shares of capital stock of XL Capital entitling such Person to exercise 40% or more of the total
voting power of all shares of capital stock of XL Capital that is entitled to vote generally in
elections of directors, other than an acquisition by XL Capital, any of its Subsidiaries or any
employee benefit plans of XL Capital; or (b) XL Capital merges or consolidates with or into any
other Person (other than a Subsidiary), another Person (other than a Subsidiary) merges into XL
Capital or XL Capital conveys, sells, transfers or leases all or substantially all of its assets to
another Person (other than a Subsidiary), other than any transaction: (i) that does not result in a
reclassification, conversion, exchange or cancellation of the outstanding shares of capital stock
of XL Capital (other than the cancellation of any outstanding shares of capital stock of XL Capital
held by the Person with whom it merges or consolidates) or (ii) which is effected solely to change
the jurisdiction of incorporation of XL Capital and results in a reclassification, conversion or
exchange of outstanding shares of capital stock of XL Capital solely into shares of capital stock
of the surviving entity; or (c) a majority of the members of XL Capital’s board of directors are
persons who are then serving on the board of directors without having been elected by the board of
directors or having been nominated for election by its shareholders.

“Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or
(c) compliance by any Lender (or, for purposes of Section 2.17(b), by any lending office of such
Lender or by such Lender’s holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or issued after the
date of this Agreement.

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

“Commitment” means, with respect to any Lender, the Letter of Credit Commitment or the
Revolving Credit Commitment of such Lender, as applicable. The initial aggregate amount of the
Lenders’ Commitments is $4,000,000,000.

“Commitment Termination Date” means June 21, 2012.

“Confirming Lender” means, with respect to any Lender, any other Person which is
listed on the NAIC Approved Bank List that has agreed, by delivery of an agreement between such
Lender and such other Person in substantially the form of Exhibit D or any other form satisfactory
to the Administrative Agent, to honor the obligations of such Lender in respect of a draft
complying with the terms of a Syndicated Letter of Credit or a Non-Syndicated Letter of Credit, as
the case may be, as if, and to the extent, such other Person were the “issuing lender” (in place of
such Lender) named in such Syndicated Letter of Credit or Non-Syndicated Letter of Credit, as the
case may be.

“Consolidated Net Worth” means, at any time, the consolidated stockholders’ equity of
XL Capital and its Subsidiaries, provided that the calculation of such consolidated
stockholders’ equity shall exclude (a) the effect thereon of any adjustments required under
Statement of Financial Accounting Standards No. 115 (“Accounting for Certain Investments in Debt
and Equity Securities”) and (b) any Exempt Indebtedness (and the assets relating thereto) in the
event such Exempt Indebtedness is consolidated on the consolidated balance sheet of XL Capital and
its consolidated Subsidiaries in accordance with GAAP.

“Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

“Credit Documents” means, collectively, this Agreement and the Letter of Credit
Documents.

“Credit Exposure” means, with respect to any Lender at any time, the sum of the
outstanding principal amount of such Lender’s Loans and its LC Exposure at such time.

“Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

“Dollar Equivalent” means, as used in each Alternative Currency Letter of Credit
Report and in respect of any Alternative Currency Letter of Credit, the amount of Dollars obtained
by converting the Alternative Currency LC Exposure with respect to such Alternative Currency Letter
of Credit, as specified in such Alternative Currency Letter of Credit Report, into Dollars at the
spot rate for the purchase of Dollars with such currency as quoted by the Administrative Agent at
approximately 11:00 a.m. (London time) on the second Business Day before the date of such
Alternative Currency Letter of Credit Report (unless another rate or time is agreed to by XL
Capital and the Administrative Agent).

“Dollars” or “$” refers to lawful money of the United States of America.

“Effective Date” means the date on which the conditions specified in Section 5.01 are
satisfied (or waived in accordance with Section 10.02).

“Environmental Laws” means any Law, whether now existing or subsequently enacted or
amended, relating to (a) pollution or protection of the environment, including natural resources,
(b) exposure of Persons, including but not limited to employees, to Hazardous Materials,
(c) protection of the public health or welfare from the effects of products, by-products, wastes,
emissions, discharges or releases of Hazardous Materials or (d) regulation of the manufacture, use
or introduction into commerce of Hazardous Materials, including their manufacture, formulation,
packaging, labeling, distribution, transportation, handling, storage or disposal.

“Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of an
Account Party or any Subsidiary resulting from or based upon (a) violation of any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any
Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release
of any Hazardous Materials into the environment or (e) any contract or agreement pursuant to which
liability is assumed or imposed with respect to any of the foregoing.

“Equity Rights” means, with respect to any Person, any subscriptions, options,
warrants, commitments, preemptive rights or agreements of any kind (including any shareholders’ or
voting trust agreements) for the issuance, sale, registration or voting of, or securities
convertible into, any additional shares of capital stock of any class, or partnership or other
ownership interests of any type in, such Person.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

“ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with any Account Party, is treated as a single employer under Section 414(b) or (c) of the
Code, or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a
single employer under Section 414 of the Code.

“ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by any
Account Party or any of such Account Party’s ERISA Affiliates of any liability under Title IV of
ERISA with respect to the termination of any Plan; (e) the receipt by any Account Party or any
ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by
any Account Party or any of its ERISA Affiliates of any liability with respect to the withdrawal or
partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by any Account Party or
any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from any Account Party
or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

“Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans constituting such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

“Event of Default” has the meaning assigned to such term in Article VIII.

“Excess Funding Guarantor” has the meaning assigned to such term in Section 3.07.

“Excess Payment” has the meaning assigned to such term in Section 3.07.

“Excluded Taxes” means, with respect to the Administrative Agent, any Lender or any
other recipient of any payment to be made by or on account of any obligation of any Account Party
hereunder, (a) Taxes imposed on (or measured by) its net income, net profits or overall gross
receipts (including, without limitation, branch profits or similar taxes) by the United States of
America, or by any jurisdiction under the laws of which such recipient is organized or resident, in
which such recipient has an office or with which such recipient has any other connection (other
than a connection that is deemed to arise solely by reason of both (I) the transactions
contemplated by this Agreement and (II) an Account Party being organized in, maintaining an office
in, conducting business in, or having a connection with, such jurisdiction), (b) any Taxes not
described in clause (a) above (other than Other Taxes) that are imposed as a result of a connection
the recipient has with the relevant jurisdiction (other than a connection that is deemed to arise
solely by reason of both (I) the transactions contemplated by this Agreement and (II) an Account
Party being organized or resident in, maintaining an office in, conducting business in, or having a
connection with, such jurisdiction) and (c) any Tax imposed pursuant to a law in effect at the time
such recipient first becomes a party to this Agreement (or at the time such recipient acquires an
additional interest, but only with respect to Taxes attributable to such additional interest)
except to the extent that such recipient’s assignor, if any, was entitled at the time of the
assignment to receive additional amounts from the Account Parties with respect to such Tax under
Section 2.19(a) or 2.19(c) and (d) any Tax that is attributable to a recipient’s failure or
inability to comply with Section 2.19(e).

“Exempt Indebtedness” means any Indebtedness of any Person (other than XL Capital or
any of its Affiliates) that is consolidated on the balance sheet of XL Capital and its consolidated
Subsidiaries in accordance with GAAP (whether or not required to be so consolidated);
provided that (a) at the time of the incurrence of such Indebtedness by such Person, the
cash flows from the assets of such Person shall reasonably be expected by such Person to liquidate
such Indebtedness and all other liabilities (contingent or otherwise) of such Person and (b) no
portion of such Indebtedness of such Person shall be Guaranteed (other than guarantees of the type
referred to in clause (a) or (b) of the definition of Indebtedness) by, or shall be secured by a
Lien on any assets owned by, XL Capital or any of its Subsidiaries and neither such Person nor any
of the holders of such Indebtedness shall have any direct or indirect recourse to XL Capital or any
of its Subsidiaries (other than in respect of liabilities and guarantees of the type referred to in
clause (a) or (b) of the definition of Indebtedness).

“Existing Credit Agreements” means (a) the 364-Day Credit Agreement dated as of May 9,
2006 among the Account Parties, the lenders party thereto and JPMCB, as administrative agent, and
(b) the Three-Year Credit Agreement dated as of June 23, 2004 among the Account Parties, the
lenders party thereto and JPMCB (formerly known as JPMorgan Chase Bank), as administrative agent.

“Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

“Financial Officer” means, with respect to any Obligor, a principal financial officer
of such Obligor.

“GAAP” means generally accepted accounting principles in the United States of America.

“GIC” means a guaranteed investment contract or funding agreement or other similar
agreement issued by an Account Party or any of its Subsidiaries that guarantees to a counterparty a
rate of return on the invested capital over the life of such contract or agreement.

“Governmental Authority” means the government of the United States of America, or of
any other nation (including the European Union), or any political subdivision thereof, whether
state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
powers or functions of or pertaining to government.

“Granting Lender” has the meaning assigned to such term in Section 10.04.

“Guarantee” means, with respect to any Person, without duplication, any obligations of
such Person (other than endorsements in the ordinary course of business of negotiable instruments
for deposit or collection) guaranteeing or intended to guarantee any Indebtedness of any other
Person in any manner, whether direct or indirect, and including any obligation, whether or not
contingent, (i) to purchase any such Indebtedness or any property constituting security therefor
for the purpose of assuring the holder of such Indebtedness, (ii) to advance or provide funds or
other support for the payment or purchase of any such Indebtedness or to maintain working capital,
solvency or other balance sheet condition of such other Person (including keepwell agreements,
maintenance agreements, comfort letters or similar agreements or arrangements) for the benefit of
any holder of Indebtedness of such other Person, (iii) to lease or purchase property, securities or
services primarily for the purpose of assuring the holder of such Indebtedness, or (iv) to
otherwise assure or hold harmless the holder of such Indebtedness against loss in respect thereof.
The amount of any Guarantee hereunder shall (subject to any limitations set forth therein) be
deemed to be an amount equal to the outstanding principal amount of the Indebtedness in respect of
which such Guarantee is made. The terms “Guarantee” and “Guaranteed” used as a
verb shall have a correlative meaning.

“Guaranteed Obligations” has the meaning assigned to such term in Section 3.01.

“Guarantors” means each of XL Capital, XL America, XL Insurance and XL Re.

“Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

“Hedging Agreement” means any interest rate protection agreement, foreign currency
exchange agreement, commodity price protection agreement or other interest or currency exchange
rate or commodity price hedging arrangement.

“Indebtedness” means, for any Person, without duplication: (i) all indebtedness or
liability for or on account of money borrowed by, or for or on account of deposits with or advances
to (but not including accrued pension costs, deferred income taxes or accounts payable of) such
Person; (ii) all obligations (including contingent liabilities) of such Person evidenced by bonds,
debentures, notes, banker’s acceptances or similar instruments; (iii) all indebtedness or liability
for or on account of property or services purchased or acquired by such Person; (iv) any amount
secured by a Lien on property owned by such Person (whether or not assumed) and Capital Lease
Obligations of such Person (without regard to any limitation of the rights and remedies of the
holder of such Lien or the lessor under such capital lease to repossession or sale of such
property); (v) the maximum available amount of all standby letters of credit issued for the account
of such Person and, without duplication, all drafts drawn thereunder (to the extent unreimbursed);
and (vi) all Guarantees of such Person; provided that the following shall be excluded from
Indebtedness of XL Capital and any of its Subsidiaries for purposes of this Agreement: (a) all
payment liabilities of any such Person under insurance and reinsurance policies from time to time
issued by such Person, including guarantees of any such payment liabilities; (b) all other
liabilities (or guarantees thereof) arising in the ordinary course of any such Person’s business as
an insurance or reinsurance company (including GICs and Stable Value Instruments and any Specified
Transaction Agreement relating thereto), or as a corporate member of The Council of Lloyd’s, or as
a provider of financial or investment services or contracts (including GICs and Stable Value
Instruments and any Specified Transaction Agreement relating thereto); and (c) any Exempt
Indebtedness.

“Indemnified Taxes” means Taxes imposed on the Administrative Agent or any Lender on
or with respect to any payment hereunder, other than Excluded Taxes and Other Taxes.

“Insurance Subsidiary” means any Subsidiary which is subject to the regulation of, and
is required to file statutory financial statements with, any governmental body, agency or official
in any State or territory of the United States or the District of Columbia which regulates
insurance companies or the doing of an insurance business therein.

“Interest Election Request” means a request by an Account Party to convert or continue
a Borrowing in accordance with Section 2.10.

“Interest Payment Date” means (a) with respect to any ABR Loan, each Quarterly Date
and (b) with respect to any Eurodollar Loan, the last day of each Interest Period therefor and, in
the case of any Interest Period of more than three months’ duration, each day prior to the last day
of such Interest Period that occurs at three-month intervals after the first day of such Interest
Period.

“Interest Period” means, for any Eurodollar Loan or Borrowing, the period commencing
on the date of such Loan or Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter, as specified in the applicable
Borrowing Request or Interest Election Request; provided that (i) if any Interest Period
would end on a day other than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless such next succeeding Business Day would fall in the next calendar
month, in which case such Interest Period shall end on the next preceding Business Day, and
(ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day
for which there is no numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such Interest Period. For
purposes hereof, the date of a Loan initially shall be the date on which such Loan is made and
thereafter shall be the effective date of the most recent conversion or continuation of such Loan,
and the date of a Borrowing comprising Loans that have been converted or continued shall be the
effective date of the most recent conversion or continuation of such Loans.

“ISDA” has the meaning assigned to such term in Section 7.03(f).

“Issuing Lender” means (a) with respect to any Participated Letter of Credit, JPMCB,
in its capacity as the issuer of such Participated Letter of Credit hereunder, and its successors
in such capacity as provided in Section 2.05(j), (b) with respect to any Syndicated Letter of
Credit, each Lender, in its capacity as the issuer of such Syndicated Letter of Credit and (c) with
respect to any Non-Syndicated Letter of Credit, the Lender named therein as the issuer thereof.

“JPMCB” means JPMorgan Chase Bank, N.A.

“Law” means any law (including common law), constitution, statute, treaty, regulation,
rule, ordinance, order, injunction, writ, decree or award of any Governmental Authority.

“LC Disbursement” means (a) with respect to any Participated Letter of Credit or
Non-Syndicated Letter of Credit, a payment made by the Issuing Lender thereof pursuant thereto and
(b) with respect to any Syndicated Letter of Credit or Alternative Currency Letter of Credit, a
payment made by a Lender pursuant thereto.

“LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC
Disbursements under Letters of Credit that have not yet been reimbursed by or on behalf of the
Account Parties at such time. The LC Exposure of any Lender at any time shall be the sum of
(i) its Applicable Percentage of the total LC Exposure (excluding any Alternative Currency LC
Exposure) plus (ii) the Alternative Currency LC Exposure (if any) of such Lender at such
time.

“Lenders” means the Persons listed on Schedule I and any other Person that shall have
become a party hereto pursuant to an Assignment and Assumption or an agreement pursuant to the
terms of Section 2.11(c), other than any such Person that ceases to be a party hereto pursuant to
an Assignment and Assumption. For the purposes of Sections 2.01, 2.02, 2.03, 2.04, 2.05 and 2.06,
any reference to the term “Lender” or “Lenders” shall mean a Lender or the Lenders under the Letter
of Credit Tranche.

“Letter of Credit Documents” means, with respect to any Letter of Credit,
collectively, any application therefor and any other agreements, instruments, guarantees or other
documents (whether general in application or applicable only to such Letter of Credit) governing or
providing for the rights and obligations of the parties concerned or at risk with respect to such
Letter of Credit.

“Letter of Credit Commitment” means, with respect to any Lender, the commitment of
such Lender, if any, (a) to issue Syndicated Letters of Credit and Non-Syndicated Letters of Credit
and acquire participations in Participated Letters of Credit and/or (b) to make Loans under Section
2.07(a)(I), in each case expressed as an amount representing the maximum aggregate amount of such
Lender’s Credit Exposure hereunder, as such commitment may be (i) reduced from time to time
pursuant to Section 2.11 and (ii) reduced or increased from time to time pursuant to assignments by
or to such Lender pursuant to Section 10.04. The initial amount of each Lender’s Letter of Credit
Commitment (including such Lender’s allocable portion of the RC Sublimit that may be borrowed under
Section 2.07(a)(I)) is set forth on Schedule I or in the Assignment and Assumption pursuant to
which such Lender shall have assumed its Letter of Credit Commitment, as applicable. The initial
aggregate amount of the Lenders’ Letter of Credit Commitments is $4,000,000,000.

“Letter of Credit Tranche” means the tranche hereunder relating to the Letter of
Credit Commitments, the Letters of Credit issued and the Loans made thereunder and the Lenders
having Letter of Credit Commitments or Credit Exposure in respect of such Letters of Credit and
Loans.

“Letters of Credit” means each of the Syndicated Letters of Credit, the Non-Syndicated
Letters of Credit, the Participated Letters of Credit and the Alternative Currency Letters of
Credit.

“LIBO Rate” means, for the Interest Period for any Eurodollar Borrowing, the rate
appearing on Reuters Page LIBOR01 (or on any successor or substitute page of such Service, or any
successor to or substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the Administrative Agent from
time to time for purposes of providing quotations of interest rates applicable to Dollar deposits
in the London interbank market) at approximately 11:00 a.m., London time, two Business Days prior
to the commencement of such Interest Period, as the rate for the offering of Dollar deposits with a
maturity comparable to such Interest Period. In the event that such rate is not available at such
time for any reason, then the LIBO Rate for such Interest Period shall be the rate at which Dollar
deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the
principal London office of the Administrative Agent in immediately available funds in the London
interbank market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

“Lien” means, with respect to any asset, any mortgage, deed of trust, pledge, lien,
security interest, charge or other encumbrance or security arrangement of any nature whatsoever,
including but not limited to any conditional sale or title retention arrangement, and any
assignment, deposit arrangement or lease intended as, or having the effect of, security.

“Loans” means the loans made by the Lenders under any Tranche to the Account Parties
pursuant to Section 2.07.

“Margin Stock” means “margin stock” within the meaning of Regulations T, U and X of
the Board.

“Material Adverse Effect” means a material adverse effect on: (a) the assets,
business, financial condition or operations of an Account Party and its Subsidiaries taken as a
whole; or (b) the ability of an Account Party to perform any of its payment or other material
obligations under this Agreement.

“Moody’s” means Moody’s Investors Service, Inc., or any successor thereto.

“Moody’s Rating” means, at any time, the rating of XL Capital’s long-term senior
unsecured debt (provided that such debt is not supported by any other Person).

“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

“NAIC” means the National Association of Insurance Commissioners.

“NAIC Approved Bank” means (a) any Person that is a bank listed on the most current
“Bank List” of banks approved by the NAIC (the “NAIC Approved Bank List”) or (b) any Lender
as to which its Confirming Lender is a bank listed on the NAIC Approved Bank List.

“NAIC Approved Bank List” has the meaning assigned to such term in the definition of
“NAIC Approved Bank” in this Section.

“Non-Syndicated Letters of Credit” means letters of credit issued under Section 2.04.

“Non-U.S. Benefit Plan” means any plan, fund (including any superannuation fund) or
other similar program established or maintained outside the United States by any Account Party or
any of their Subsidiaries, with respect to which such Account Party or such Subsidiary has an
obligation to contribute, for the benefit of employees of such Account Party or such Subsidiary,
which plan, fund or other similar program provides, or results in, the type of benefits described
in Section 3(1) or 3(2) of ERISA, and which plan is not subject to ERISA or the Code.

“Obligors” means each of the Account Parties and each of the Guarantors.

“Other Credit Agreement” shall mean the Five-Year Credit Agreement dated as of June
22, 2005 among the Account Parties, the lenders party thereto and JPMCB, as Administrative Agent
(as amended and in effect from time to time, including any renewals, extensions, restatements or
replacements thereof).

“Other Taxes” means any and all present or future stamp or documentary taxes or any
other similar excise or property Taxes, arising from any payment made hereunder or from the
execution, delivery or enforcement of this Agreement, but excluding property or similar Taxes other
than any such Taxes imposed in such circumstances solely as a result of the Account Party being
organized or resident in, maintaining an office in, conducting business in or maintaining property
located in the taxing jurisdiction in question.

“Participant” has the meaning assigned to such term in Section 10.04.

“Participated Letters of Credit” means letters of credit issued under Section 2.05.

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

“Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

“Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which any Account Party or any ERISA Affiliate is (or, if such plan were
terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA.

“Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMCB as its prime rate in effect at its principal office in New York City; each change in the
Prime Rate shall be effective from and including the date such change is publicly announced as
being effective.

“Private Act” means separate legislation enacted in Bermuda with the intention that
such legislation apply specifically to an Account Party, in whole or in part.

“Pro Rata Share” has the meaning assigned to such term in Section 3.07.

“Quarterly Date” means the last Business Day of March, June, September and December in
each year, the first of which shall be the first such day after the date hereof.

“RC Sublimit” means $1,000,000,000, as such amount shall be ratably reduced by the
amount of any reduction of the Aggregate Maximum Loan Amount pursuant to Section 2.11.

“Register” has the meaning assigned to such term in Section 10.04.

“Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

“Required Lenders” means, at any time, Lenders having Commitments representing more
than 50% of the aggregate amount of the Commitments at such time; provided that, if the
Commitments have expired or been terminated, “Required Lenders” means Lenders having more than 50%
of the Aggregate Credit Exposure at such time. The “Required Lenders” of a particular Tranche
means Lenders having Commitments under such Tranche representing more than 50% of the aggregate
Commitments of all the Lenders under such Tranche at such time; provided that, if the
Commitments under such Tranche have expired or been terminated, “Required Lenders” means Lenders
under such Tranche having more than 50% of the aggregate Credit Exposure of the Lenders under such
Tranche at such time.

“Revolving Credit Commitment” means, with respect to any Lender, the commitment of
such Lender, if any, to make Loans under Section 2.07(a)(II), as such commitment may be (a) reduced
from time to time pursuant to Section 2.11 and (b) reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Section 10.04. The initial amount of a Lender’s
Revolving Credit Commitment, if any, is set forth on Schedule I or in the Assignment and Assumption
pursuant to which such Lender shall have assumed its Revolving Credit Commitment, as applicable.
Notwithstanding anything herein to the contrary, there are no Revolving Credit Commitments under
this Agreement as of the Effective Date.

“Revolving Credit Tranche” means the tranche hereunder relating to the Revolving
Credit Commitments, the Loans made thereunder and the Lenders having Revolving Credit Commitments
or Credit Exposure in respect of such Loans.

“S&P” means Standard & Poor’s Ratings, or any successor thereto.

“S&P Rating” means, at any time, the rating of XL Capital’s long-term senior unsecured
debt (provided that such debt is not supported by any other Person).

“SAP” means, as to each Account Party and each Subsidiary that offers insurance
products, the statutory accounting practices prescribed or permitted by the relevant Governmental
Authority for such Account Party’s or such Subsidiary’s domicile for the preparation of its
financial statements and other reports by insurance corporations of the same type as such Account
Party or such Subsidiary in effect on the date such statements or reports are to be prepared,
except if otherwise notified by XL Capital as provided in Section 1.03.

“SCA” means Security Capital Assurance Ltd, a Bermuda limited liability company.

“SCA IPO” means the issuance or sale of common shares of SCA to the public pursuant to
an effective registration statement filed under the Securities Act of 1933, as amended, in
connection with an underwritten offering.

“SEC” means the Securities and Exchange Commission or any successor entity.

“Significant Subsidiary” means, at any time, each Subsidiary of XL Capital that, as of
such time, meets the definition of a “significant subsidiary” under Regulation S-X of the SEC;
provided, however, that for purposes of this Agreement, from and after the
consummation of the SCA IPO, neither SCA nor any of its Subsidiaries shall be a “Significant
Subsidiary” of XL Capital.

“Specified Account Party” has the meaning assigned to such term in Section 2.05.

“Specified Transaction Agreement” means any agreement, contract or documentation with
respect to the following types of transactions: cash pooling arrangements, rate swap transaction,
swap option, basis swap, asset swap, forward rate transaction, commodity swap, commodity option,
equity or equity index swap, equity or equity index option, bond option, interest rate option,
foreign exchange transaction, cap transaction, floor transaction, collar transaction, current swap
transaction, cross-currency rate swap transaction, currency option, credit protection transaction,
credit swap, credit default swap, credit default option, total return swap, credit spread
transaction, repurchase transaction, reverse repurchase transaction, buy/sell-back transaction,
securities lending or borrowing transaction, weather index transaction or forward purchase or sale
of a security, commodity or other financial instrument or interest, and transactions on any
commodity futures or other exchanges, markets and their associated clearing houses (including any
option with respect to any of these transactions).

“SPV” has the meaning assigned to such term in Section 10.04.

“Stable Value Instrument” means any insurance, derivative or similar financial
contract or instrument designed to mitigate the volatility of returns during a given period on a
specified portfolio of securities held by one party (the “customer”) through the commitment
of the other party (the “SVI provider”) to provide the customer with a credited rate of
return on the portfolio, typically determined through an interest-crediting mechanism (and in
exchange for which the SVI provider typically receives a fee).

“Statutory Reserve Rate” means, for any day (or for the Interest Period for any
Eurodollar Borrowing), a fraction (expressed as a decimal), the numerator of which is the number
one and the denominator of which is the number one minus the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board to which the Administrative Agent is subject on such day (or,
with respect to an Interest Period, the denominator of which is the number one minus the
arithmetic mean of such aggregates for the days in such Interest Period) with respect to the
Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency liabilities”
in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to
such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for proration, exemptions or
offsets that may be available from time to time to any Lender under such Regulation D or any
comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

“Subsidiary” means, with respect to any Person (the “parent”), at any date,
any corporation (or similar entity) of which a majority of the shares of outstanding capital stock
normally entitled to vote for the election of directors (regardless of any contingency which does
or may suspend or dilute the voting rights of such capital stock) is at such time owned directly or
indirectly by the parent or one or more subsidiaries of the parent; provided,
however, that for purposes of this Agreement, from and after the consummation of the SCA
IPO, neither SCA nor any of its Subsidiaries shall be a “Subsidiary” of any Account Party. Unless
otherwise specified, “Subsidiary” means a Subsidiary of an Account Party.

“Supplemental Commitment Date” has the meaning assigned to such term in Section
2.11(c).

“Supplemental Lender” has the meaning assigned to such term in Section 2.11(c).

“Syndicated Letters of Credit” means letters of credit issued under Section 2.01.

“Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

“Total Funded Debt” means, at any time, all Indebtedness of XL Capital and its
Subsidiaries and any other Person which would at such time be classified in whole or in part as a
liability on the consolidated balance sheet of XL Capital and its consolidated Subsidiaries in
accordance with GAAP (it being understood for avoidance of doubt that any liability or obligation
excluded from the definition of Indebtedness shall not constitute Indebtedness for purposes of this
definition).

“Tranche” means the Letter of Credit Tranche or the Revolving Credit Tranche, as
applicable.

“Transactions” means the execution, delivery and performance by the Obligors of this
Agreement and the other Credit Documents to which any Account Party is intended to be a party, the
issuance of Letters of Credit, the borrowing of Loans and the use of the proceeds thereof.

“Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans constituting such Borrowing, is determined by reference to
the Adjusted LIBO Rate or the Alternate Base Rate.

“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

“XL Capital Group” means XL Capital Group as determined from time to time by A.M. Best
& Co. (or its successor).

SECTION 1.02. Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights.

SECTION 1.03. Accounting Terms; GAAP and SAP. Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP
or SAP, as the context requires, each as in effect from time to time; provided that, if XL
Capital notifies the Administrative Agent that the Account Parties request an amendment to any
provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or
SAP, as the case may be, or in the application thereof on the operation of such provision (or if
the Administrative Agent notifies the Account Parties that the Required Lenders request an
amendment to any provision hereof for such purpose), regardless of whether any such notice is given
before or after such change in GAAP or SAP, as the case may be, or in the application thereof, then
such provision shall be interpreted on the basis of GAAP or SAP, as the case may be, as in effect
and applied immediately before such change shall have become effective until such notice shall have
been withdrawn or such provision amended in accordance herewith.

ARTICLE II

THE CREDITS

SECTION 2.01. Syndicated Letters of Credit.

(a) General. Subject to the terms and conditions set forth herein, at the request of
any Account Party the Lenders agree at any time and from time to time during the Availability
Period to issue Syndicated Letters of Credit for the account of such Account Party in an aggregate
amount that will not result in the Credit Exposure exceeding the Commitments (it being understood
that Syndicated Letters of Credit may be issued, or be outstanding, for the account of more than
one of the Account Parties at any time). Each Syndicated Letter of Credit shall be in such form as
is consistent with the requirements of the applicable regulatory authorities in Illinois,
California, Wisconsin or New York, as reasonably determined by the Administrative Agent or as
otherwise agreed to by the Administrative Agent and XL Capital; provided that, without the
prior consent of each Lender, no Syndicated Letter of Credit may be issued that would vary the
several and not joint nature of the obligations of the Lenders thereunder as provided in the next
succeeding sentence. Each Syndicated Letter of Credit shall be issued by all of the Lenders,
acting through the Administrative Agent, at the time of issuance as a single multi-bank letter of
credit, but the obligation of each Lender thereunder shall be several and not joint, based upon its
Applicable Percentage of the aggregate undrawn amount of such Syndicated Letter of Credit.

(b) Notice of Issuance, Amendment, Renewal or Extension. To request the issuance of a
Syndicated Letter of Credit (or the amendment, renewal or extension of an outstanding Syndicated
Letter of Credit), an Account Party shall hand deliver or telecopy (or transmit by electronic
communication, if arrangements for doing so have been approved by the Administrative Agent) to the
Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal
or extension) a notice requesting the issuance of a Syndicated Letter of Credit, or identifying the
Syndicated Letter of Credit to be amended, renewed or extended, and specifying the date of
issuance, amendment, renewal or extension, as the case may be (which shall be a Business Day), the
date on which such Syndicated Letter of Credit is to expire (which shall comply with paragraph (d)
of this Section), the amount of such Syndicated Letter of Credit, the name and address of the
beneficiary thereof and the terms and conditions of (and such other information as shall be
necessary to prepare, amend, renew or extend, as the case may be) such Syndicated Letter of Credit.
If any Syndicated Letter of Credit shall provide for the automatic extension of the expiry date
thereof unless the Administrative Agent gives notice that such expiry date shall not be extended,
then the Administrative Agent will give such notice if requested to do so by the Required Lenders
of the Letter of Credit Tranche in a notice given to the Administrative Agent not more than 60
days, but not less than 45 days, prior to the current expiry date of such Syndicated Letter of
Credit. If requested by the Administrative Agent, such Account Party also shall submit a letter of
credit application on JPMCB’s standard form in connection with any request for a Syndicated Letter
of Credit. In the event of any inconsistency between the terms and conditions of this Agreement
and the terms and conditions of any form of letter of credit application or other agreement
submitted by any Account Party to, or entered into by any Account Party with, the Administrative
Agent relating to any Syndicated Letter of Credit, the terms and conditions of this Agreement shall
control.

(c) Limitations on Amounts. A Syndicated Letter of Credit shall be issued, amended,
renewed or extended only if (and upon such issuance, amendment, renewal or extension of each
Syndicated Letter of Credit the Account Parties shall be deemed to represent and warrant that),
after giving effect to such issuance, amendment, renewal or extension, (i) the Aggregate Credit
Exposure of the Lenders under the Letter of Credit Tranche shall not exceed the aggregate amount of
the Letter of Credit Commitments and (ii) the Credit Exposure (excluding any Alternative Currency
LC Exposure) of each Lender under the Letter of Credit Tranche shall not exceed the Letter of
Credit Commitment of such Lender.

(d) Expiry Date. Each Syndicated Letter of Credit shall expire at or prior to the
close of business on the date one year after the date of the issuance of such Syndicated Letter of
Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension); provided that in no event shall any Syndicated Letter of Credit have an expiry
date after the first anniversary of the Commitment Termination Date.

(e) Obligation of Lenders. The obligation of any Lender under any Syndicated Letter
of Credit shall be several and not joint and shall at any time be in an amount equal to such
Lender’s Applicable Percentage of the aggregate undrawn amount of such Syndicated Letter of Credit,
and each Syndicated Letter of Credit shall expressly so provide.

(f) Continuation of Existing Syndicated Letters of Credit. Subject to the terms and
conditions hereof, each Syndicated Letter of Credit under (and as defined in) either of the
Existing Credit Agreements which is outstanding on the Effective Date and listed in the notice
provided by XL Capital to the Administrative Agent pursuant to Section 5.01(f) shall automatically
be deemed continued hereunder by all of the Lenders having Commitments on the Effective Date. The
obligation of each such Lender in respect of each such continued Syndicated Letter of Credit shall
be several and not joint, based upon its Applicable Percentage and the aggregate undrawn amount
thereof, and each such Syndicated Letter of Credit shall be deemed a Syndicated Letter of Credit
for all purposes of this Agreement as of the Effective Date. The Administrative Agent shall, on
the Effective Date or as promptly as practicable thereafter, notify the beneficiary of each such
Syndicated Letter of Credit that is being continued hereunder as to the names of the Lenders that,
as of the Effective Date, will be issuing lenders under, and party to, such Syndicated Letter of
Credit and the Lenders’ respective Applicable Percentages thereunder as of the Effective Date.

(g) Adjustment of Applicable Percentages. Upon (i) each increase of the Commitments
pursuant to Section 2.11(c) or (ii) the assignment by a Lender of all or a portion of its
Commitment and its interests in the Syndicated Letters of Credit pursuant to an Assignment and
Assumption, the Administrative Agent shall promptly notify each beneficiary under an outstanding
Syndicated Letter of Credit of the Lenders that are parties to such Syndicated Letter of Credit and
their respective Applicable Percentages as of the effective date of, and after giving effect to,
such increase or assignment, as the case may be.

SECTION 2.02. Issuance and Administration. Each Syndicated Letter of Credit shall be
executed and delivered by the Administrative Agent in the name and on behalf of, and as
attorney-in-fact for, each Lender party to such Syndicated Letter of Credit, and the Administrative
Agent shall act under each Syndicated Letter of Credit, and each Syndicated Letter of Credit shall
expressly provide that the Administrative Agent shall act, as the agent of each Lender to (a)
receive drafts, other demands for payment and other documents presented by the beneficiary under
such Syndicated Letter of Credit, (b) determine whether such drafts, demands and documents are in
compliance with the terms and conditions of such Syndicated Letter of Credit and (c) notify such
Lender and the Account Parties that a valid drawing has been made and the date that the related LC
Disbursement is to be made; provided that the Administrative Agent shall have no obligation or
liability for any LC Disbursement under such Syndicated Letter of Credit, and each Syndicated
Letter of Credit shall expressly so provide. Each Lender hereby irrevocably appoints and
designates the Administrative Agent as its attorney-in-fact, acting through any duly authorized
officer of JPMCB, to execute and deliver in the name and on behalf of such Lender each Syndicated
Letter of Credit to be issued by such Lender hereunder. Promptly upon the request of the
Administrative Agent, each Lender will furnish to the Administrative Agent such powers of attorney
or other evidence as any beneficiary of any Syndicated Letter of Credit may reasonably request in
order to demonstrate that the Administrative Agent has the power to act as attorney-in-fact for
such Lender to execute and deliver such Syndicated Letter of Credit. Notwithstanding anything in
this Agreement to the contrary, the Administrative Agent has no responsibility hereunder with
respect to the issuance, renewal, extension, amendment or other administration of any Alternative
Currency Letter of Credit, except as expressly set forth in Section 2.06.

SECTION 2.03. Reimbursement of LC Disbursements, Etc.

(a) Reimbursement. If any Lender shall make any LC Disbursement in respect of any
Syndicated Letter of Credit or Alternative Currency Letter of Credit, regardless of the identity of
the Account Party of such Syndicated Letter of Credit or Alternative Currency Letter of Credit, as
the case may be, the Account Parties jointly and severally agree that they shall reimburse such
Lender in respect of such LC Disbursement under (x) a Syndicated Letter of Credit by paying to the
Administrative Agent an amount equal to such LC Disbursement not later than noon, New York City
time, on (i) the Business Day that the Account Parties receive notice of such LC Disbursement, if
such notice is received prior to 10:00 a.m., New York City time, or (ii) the Business Day
immediately following the day that the Account Parties receive such notice, if such notice is not
received prior to such time and (y) an Alternative Currency Letter of Credit, by paying such Lender
on the date, in the currency and amount thereof, together with interest thereon (if any), and in
the manner (including the place of payment) as such Lender and such Account Party shall have
separately agreed pursuant to Section 2.06.

(b) Reimbursement Obligations Absolute. The Account Parties’ joint and several
obligations to reimburse LC Disbursements as provided in paragraph (a) of this Section shall be
absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the
terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack
of validity or enforceability of any Syndicated Letter of Credit or any term or provision therein,
(ii) any draft or other document presented under a Syndicated Letter of Credit proving to be
forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in
any respect, (iii) payment under a Syndicated Letter of Credit against presentation of a draft or
other document that does not comply strictly with the terms of such Syndicated Letter of Credit
(provided that the Account Parties shall not be obligated to reimburse such LC
Disbursements unless payment is made against presentation of a draft or other document that at
least substantially complies with the terms of such Syndicated Letter of Credit), (iv) at any time
or from time to time, without notice to any Account Party, the time for any performance of or
compliance with any of such reimbursement obligations of any other Account Party shall be waived,
extended or renewed, (v) any of such reimbursement obligations of any other Account Party being
amended or otherwise modified in any respect, or any guarantee of any of such reimbursement
obligations being released, substituted or exchanged in whole or in part or otherwise dealt with,
(vi) the occurrence of any Default, (vii) the existence of any proceedings of the type described in
clause (g) or (h) of Article VIII with respect to any other Account Party or any guarantor of any
of such reimbursement obligations, (viii) any lack of validity or enforceability of any of such
reimbursement obligations against any other Account Party or any guarantor of any of such
reimbursement obligations, or (ix) any other event or circumstance whatsoever, whether or not
similar to any of the foregoing, that might, but for the provisions of this Section, constitute a
legal or equitable discharge of the obligations of any Account Party hereunder.

Neither the Administrative Agent, nor any Lender nor any of their Related Parties shall have
any liability or responsibility by reason of or in connection with the issuance or transfer of any
Syndicated Letter of Credit or any payment or failure to make any payment thereunder (irrespective
of any of the circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or other communication
under or relating to any Syndicated Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any consequence arising from
causes beyond their control; provided that the foregoing shall not be construed to excuse
the Administrative Agent or a Lender from liability to any Account Party to the extent of any
direct damages (as opposed to consequential damages, claims in respect of which are hereby waived
by the Account Parties to the extent permitted by applicable law) suffered by any Account Party
that are caused by the gross negligence or willful misconduct of the Administrative Agent or a
Lender. The parties hereto expressly agree that:

(i) the Administrative Agent may accept documents that appear on their face to be in
substantial compliance with the terms of a Syndicated Letter of Credit without
responsibility for further investigation, regardless of any notice or information to the
contrary, and may make payment upon presentation of documents that appear on their face to
be in substantial compliance with the terms of such Syndicated Letter of Credit;

(ii) the Administrative Agent shall have the right, in its sole discretion, to decline
to accept such documents and to make such payment if such documents are not in strict
compliance with the terms of such Syndicated Letter of Credit; and

(iii) this sentence shall establish the standard of care to be exercised by the
Administrative Agent when determining whether drafts and other documents presented under a
Syndicated Letter of Credit comply with the terms thereof (and the parties hereto hereby
waive, to the extent permitted by applicable law, any standard of care inconsistent with the
foregoing).

(c) Disbursement Procedures. The Administrative Agent shall, within a reasonable time
following its receipt thereof, examine all documents purporting to represent a demand for payment
under any Syndicated Letter of Credit. The Administrative Agent shall promptly after such
examination (i) notify each of the Lenders and the Account Parties by telephone (confirmed by
telecopy) of such demand for payment and (ii) deliver to each Lender a copy of each document
purporting to represent a demand for payment under such Syndicated Letter of Credit. With respect
to any drawing properly made under a Syndicated Letter of Credit, each Lender will make an LC
Disbursement in respect of such Syndicated Letter of Credit in accordance with its liability under
such Syndicated Letter of Credit and this Agreement, such LC Disbursement to be made to the account
of the Administrative Agent most recently designated by it for such purpose by notice to the
Lenders. The Administrative Agent will make any such LC Disbursement available to the beneficiary
of such Syndicated Letter of Credit by promptly crediting the amounts so received, in like funds,
to the account identified by such beneficiary in connection with such demand for payment. Promptly
following any LC Disbursement by any Lender in respect of any Syndicated Letter of Credit, the
Administrative Agent will notify the Account Parties of such LC Disbursement; provided that
any failure to give or delay in giving such notice shall not relieve the Account Parties of their
obligation to reimburse the Lenders with respect to any such LC Disbursement.

(d) Interim Interest. If any LC Disbursement with respect to a Syndicated Letter of
Credit is made, then, unless the Account Parties shall reimburse such LC Disbursement in full on
the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day
from and including the date such LC Disbursement is made to but excluding the date that the Account
Parties reimburse such LC Disbursement, at the rate per annum equal to (i) 1% plus the
Alternate Base Rate to but excluding the date three Business Days after such LC Disbursement is
made and (ii) from and including the date three Business Days after such LC Disbursement is made,
3% plus the Alternate Base Rate.

(e) Right of Contribution. The Account Parties hereby agree, as between themselves,
that if any Account Party shall pay any reimbursement obligation in respect of any LC Disbursement
with respect to a Syndicated Letter of Credit issued to support the obligations of another Account
Party (the “Specified Account Party”), the Specified Account Party shall, on demand (but
subject to the next sentence), pay to such first Account Party an amount equal to the amount of
such reimbursement. The payment obligation of a Specified Account Party to another Account Party
under this paragraph (e) shall be subordinate and subject in right of payment to the prior payment
in full of the obligations of the Specified Account Party under this Agreement and each other
Credit Document, and such other Account Party shall not exercise any right or remedy with respect
to such reimbursement until payment and satisfaction in full of all of such obligations of the
Specified Account Party.

SECTION 2.04. Non-Syndicated Letters of Credit.

(a) General. Subject to the terms and conditions set forth herein, at the request of
any Account Party the Lenders agree at any time and from time to time during the Availability
Period to issue Non-Syndicated Letters of Credit for the account of such Account Party in an
aggregate amount that will not result in the Credit Exposure exceeding the Commitments (it being
understood that Non-Syndicated Letters of Credit may be issued, or be outstanding, for the account
of more than one of the Account Parties at any time). Each Non-Syndicated Letter of Credit shall
be in such form as is consistent with the requirements of the applicable regulatory authorities in
the jurisdiction of issue as reasonably determined by the Administrative Agent or as otherwise
agreed to by the Administrative Agent and XL Capital. Each Non-Syndicated Letter of Credit shall
be issued by the respective Issuing Lender thereof, through the Administrative Agent as provided in
Section 2.04(c), in the amount of such Issuing Lender’s Applicable Percentage of the aggregate
amount of Non-Syndicated Letters of Credit being requested by such Account Party at such time, and
(notwithstanding anything herein or in any other Letter of Credit Document to the contrary) such
Non-Syndicated Letter of Credit shall be the sole responsibility of such Issuing Lender (and of no
other Person, including any other Lender or the Administrative Agent). Notwithstanding anything to
the contrary in this Agreement, no Non-Syndicated Letter of Credit may be requested hereunder for
any jurisdiction unless XL Capital provides evidence reasonably satisfactory to the Administrative
Agent that Syndicated Letters of Credit do not comply with the insurance laws of such jurisdiction.

(b) Notice of Issuance, Amendment, Renewal or Extension. To request the issuance of
Non-Syndicated Letters of Credit (or the amendment, renewal or extension of outstanding
Non-Syndicated Letters of Credit), an Account Party shall hand deliver or telecopy (or transmit by
electronic communication, if arrangements for doing so have been approved by the Administrative
Agent) to the Administrative Agent (reasonably in advance of the requested date of issuance,
amendment, renewal or extension) a notice requesting the issuance of Non-Syndicated Letters of
Credit, or identifying the Non-Syndicated Letters of Credit to be amended, renewed or extended, and
specifying the date of issuance, amendment, renewal or extension, as the case may be (which shall
be a Business Day), the date on which such Non-Syndicated Letters of Credit are to expire (which
shall comply with paragraph (e) of this Section), the aggregate amount of all Non-Syndicated
Letters of Credit to be issued in connection with such request, the name and address of the
beneficiary thereof and the terms and conditions of (and such other information as shall be
necessary to prepare, amend, renew or extend, as the case may be) such Non-Syndicated Letters of
Credit. If Non-Syndicated Letters of Credit issued in connection with the same request shall
provide for the automatic extension of the expiry date thereof unless the Issuing Lender thereof or
the Administrative Agent gives notice that such expiry date shall not be extended, then the
Administrative Agent (acting on behalf of the relevant Issuing Lenders) will give such notice for
all such Non-Syndicated Letters of Credit if requested to do so by the Required Lenders of the
Letter of Credit Tranche in a notice given to the Administrative Agent not more than 60 days, but
not less than 45 days, prior to the current expiry date of such Non-Syndicated Letter of Credit.
If requested by the Administrative Agent, such Account Party also shall submit a letter of credit
application on JPMCB’s standard form in connection with any request for a Non-Syndicated Letter of
Credit. In the event of any inconsistency between the terms and conditions of this Agreement and
the terms and conditions of any form of letter of credit application or other agreement submitted
by any Account Party to, or entered into by any Account Party with, the Administrative Agent
(acting on behalf of the relevant Issuing Lenders) relating to any Non-Syndicated Letter of Credit,
the terms and conditions of this Agreement shall control.

(c) Issuance and Administration. Each Non-Syndicated Letter of Credit shall be
executed and delivered by the Administrative Agent (which term, for purposes of this Section 2.04
and any other provisions of this Agreement, including Article IX and Section 10.03, relating to
Non-Syndicated Letters of Credit, shall be deemed to refer to, unless the context otherwise
requires, JPMCB acting in its capacity as the Administrative Agent or in its individual capacity,
in either case as attorney-in-fact for the respective Issuing Lender), acting through any duly
authorized officer of JPMCB, in the name and on behalf of, and as attorney-in-fact for, the Issuing
Lender party to such Non-Syndicated Letter of Credit. With respect to each Non-Syndicated Letter
of Credit, the Administrative Agent shall act in the name and on behalf of, and as attorney-in-fact
for, the Lender issuing such Non-Syndicated Letter of Credit and in that capacity shall, and each
Lender hereby irrevocably appoints and designates the Administrative Agent, acting through any duly
authorized officer of JPMCB, to so act in the name and on behalf of, and as attorney-in-fact for,
each Lender with respect to each Non-Syndicated Letter of Credit to be issued by such Lender
hereunder and, without limiting any other provision of this Agreement, to, (i) execute and deliver
in the name and on behalf of such Lender each Non-Syndicated Letter of Credit to be issued by such
Lender hereunder, (ii) receive drafts, other demands for payment and/or other documents presented
by the beneficiary thereunder, (iii) determine whether such drafts, demands and/or documents are in
compliance with the terms and conditions thereof, (iv) notify the beneficiary of any such
Non-Syndicated Letter of Credit of the expiration or non-renewal thereof in accordance with the
terms thereof, (v) advise such beneficiary of any change in the office for presentation of drafts
under any such Non-Syndicated Letter of Credit, (vi) enter into with the Account Parties any such
letter of credit application or similar agreement with respect to any such Non-Syndicated Letter of
Credit as the Administrative Agent shall require, (vii) remit to the beneficiary of any such
Non-Syndicated Letter of Credit any payment made by such Lender and received by the Administrative
Agent in connection with a drawing thereunder, (viii) perform any and all other acts which in the
sole opinion of the Administrative Agent may be necessary or incidental to the performance of the
powers herein granted with respect to such Non-Syndicated Letter of Credit, (ix) notify such Lender
and the Account Parties that a valid drawing has been made and the date that the related LC
Disbursement is to be made; provided that the Administrative Agent shall have no obligation
or liability for any LC Disbursement under such Non-Syndicated Letter of Credit and (x) delegate to
any agent of JPMCB and such agent’s Related Parties, or any of them, the performance of any of such
powers. Each Lender hereby ratifies and confirms (and undertakes to ratify and confirm from time
to time upon the request of the Administrative Agent) whatsoever the Administrative Agent (or any
Related Party thereof) shall do or purport to do by virtue of the power herein granted. Promptly
upon the request of the Administrative Agent, each Lender will furnish to the Administrative Agent
such powers of attorney or other evidence as any beneficiary of any Non-Syndicated Letter of Credit
may reasonably request in order to demonstrate that the Administrative Agent has the power to act
as attorney-in-fact for such Lender with respect to such Non-Syndicated Letter of Credit (together
with such evidence of the due authorization, execution, delivery and validity of such power of
attorney as the Administrative Agent may reasonably request). Without limiting any provision of
Article IX, the Administrative Agent may perform any and all of its duties and exercise any and all
of its rights and powers under this Section through its Related Parties.

(d) Limitations on Amounts. Non-Syndicated Letters of Credit shall be issued,
amended, renewed or extended only if (and upon such issuance, amendment, renewal or extension of
each Non-Syndicated Letter of Credit the Account Parties shall be deemed to represent and warrant
that), after giving effect to such issuance, amendment, renewal or extension, (i) the aggregate
Credit Exposure of the Lenders under the Letter of Credit Tranche shall not exceed the aggregate
amount of the Letter of Credit Commitments and (ii) the Credit Exposure (excluding any Alternative
Currency LC Exposure) of each Lender under the Letter of Credit Tranche shall not exceed the Letter
of Credit Commitment of such Lender.

(e) Expiry Date. Each Non-Syndicated Letter of Credit shall expire at or prior to the
close of business on the date one year after the date of the issuance of such Non-Syndicated Letter
of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension); provided that in no event shall any Non-Syndicated Letter of Credit have an
expiry date after the first anniversary of the Commitment Termination Date.

(f) Participations. By the issuance of a Non-Syndicated Letter of Credit (or an
amendment to a Non-Syndicated Letter of Credit increasing the amount thereof) by the respective
Issuing Lender, and without any further action on the part of such Issuing Lender or the Lenders,
such Issuing Lender hereby grants to each Lender (other than the Issuing Lender itself), and each
such Lender hereby acquires from such Issuing Lender, a participation in such Non-Syndicated Letter
of Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be
drawn under such Non-Syndicated Letter of Credit. Each Lender acknowledges and agrees that its
obligation to acquire participations pursuant to this paragraph in respect of Non-Syndicated Letter
of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever,
including any amendment, renewal or extension of any Non-Syndicated Letter of Credit or the
occurrence and continuance of a Default or reduction or termination of the Commitments. In
consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for account of the respective Issuing
Lender, such Lender’s Applicable Percentage of each LC Disbursement made by an Issuing Lender in
respect of any Non-Syndicated Letter of Credit promptly upon the request of the Administrative
Agent at any time from the time such LC Disbursement is made until such LC Disbursement is
reimbursed by the Account Parties or at any time after any reimbursement payment is required to be
refunded to the Account Parties for any reason. Such payment shall be made without any offset,
abatement, withholding or reduction whatsoever. Promptly following receipt by the Administrative
Agent of any payment from the Account Parties pursuant to the next following paragraph, the
Administrative Agent shall distribute such payment to the respective Issuing Lender or, to the
extent that the Lenders have made payments pursuant to this paragraph to reimburse such Issuing
Lender, then to such Lenders and such Issuing Lender as their interests may appear. Any payment
made by a Lender pursuant to this paragraph to reimburse an Issuing Lender for any LC Disbursement
shall not relieve the Account Parties of their obligation to reimburse such LC Disbursement.

(g) Reimbursement. If any Issuing Lender shall make any LC Disbursement in respect of
any Non-Syndicated Letter of Credit, regardless of the identity of the Account Party of such
Non-Syndicated Letter of Credit, the Account Parties jointly and severally agree that they shall
reimburse such Issuing Lender in respect of such LC Disbursement by paying to the Administrative
Agent an amount equal to such LC Disbursement not later than noon, New York City time, on (i) the
Business Day that the Account Parties receive notice of such LC Disbursement, if such notice is
received prior to 10:00 a.m., New York City time, or (ii) the Business Day immediately following
the day that the Account Parties receive such notice, if such notice is not received prior to such
time.

If the Account Parties fail to make such payment when due, the Administrative Agent shall
notify each Lender of the applicable LC Disbursement, the payment then due from the Account Parties
in respect thereof and such Lender’s Applicable Percentage thereof.

(h) Obligations Absolute. The Account Parties’ joint and several obligations to
reimburse LC Disbursements in respect of any Non-Syndicated Letter of Credit as provided in
paragraph (g) of this Section shall be absolute, unconditional and irrevocable, and shall be
performed strictly in accordance with the terms of this Agreement under any and all circumstances
whatsoever and irrespective of (i) any lack of validity or enforceability of any Non-Syndicated
Letter of Credit, or any term or provision therein, (ii) any draft or other document presented
under a Non-Syndicated Letter of Credit proving to be forged, fraudulent or invalid in any respect
or any statement therein being untrue or inaccurate in any respect, (iii) payment by the Issuing
Lender under a Non-Syndicated Letter of Credit against presentation of a draft or other document
that does not comply strictly with the terms of such Non-Syndicated Letter of Credit
(provided that the Account Parties shall not be obligated to reimburse such LC
Disbursements unless payment is made against presentation of a draft or other document that at
least substantially complies with the terms of such Non-Syndicated Letter of Credit), (iv) at any
time or from time to time, without notice to any Account Party, the time for any performance of or
compliance with any of such reimbursement obligations of any other Account Party being waived,
extended or renewed, (v) any of such reimbursement obligations of any other Account Party being
amended or otherwise modified in any respect, or any guarantee of any of such reimbursement
obligations being released, substituted or exchanged in whole or in part or otherwise dealt with,
(vi) the occurrence of any Default, (vii) the existence of any proceedings of the type described in
clause (g) or (h) of Article VIII with respect to any other Account Party or any guarantor of any
of such reimbursement obligations, (viii) any lack of validity or enforceability of any of such
reimbursement obligations against any other Account Party or any guarantor of any of such
reimbursement obligations, or (ix) any other event or circumstance whatsoever, whether or not
similar to any of the foregoing, that might, but for the provisions of this Section, constitute a
legal or equitable discharge of the obligations of any Account Party hereunder.

Neither the Administrative Agent, the Lenders nor any Issuing Lender, nor any of their
respective Related Parties, shall have any liability or responsibility by reason of or in
connection with the payment or failure to make any payment under a Non-Syndicated Letter of Credit
(irrespective of any of the circumstances referred to in the preceding sentence) as a result of
determining whether drafts or other documents presented under a Non-Syndicated Letter of Credit
comply with the terms thereof, or any error, omission, interruption, loss or delay in transmission
or delivery of any draft, notice or other communication under or relating to any Non-Syndicated
Letter of Credit (including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from causes beyond the control of an
Issuing Lender; provided that the foregoing shall not be construed to excuse the
Administrative Agent or a Lender from liability to the Account Parties to the extent of any direct
damages (as opposed to consequential damages, claims in respect of which are hereby waived by the
Account Parties to the extent permitted by applicable law) suffered by the Account Parties that are
caused by the gross negligence or willful misconduct of the Administrative Agent or a Lender when
determining whether drafts and other documents presented under a Non-Syndicated Letter of Credit
comply with the terms thereof. The parties hereto expressly agree that:

(i) the Administrative Agent may accept documents that appear on their face to be in
substantial compliance with the terms of a Non-Syndicated Letter of Credit without
responsibility for further investigation, regardless of any notice or information to the
contrary, and may make payment upon presentation of documents that appear on their face to
be in substantial compliance with the terms of such Non-Syndicated Letter of Credit;

(ii) the Administrative Agent shall have the right, in its sole discretion, to decline
to accept such documents and to make such payment if such documents are not in strict
compliance with the terms of such Non-Syndicated Letter of Credit; and

(iii) this sentence shall establish the standard of care to be exercised by the
Administrative Agent when determining whether drafts and other documents presented under a
Non-Syndicated Letter of Credit comply with the terms thereof (and the parties hereto hereby
waive, to the extent permitted by applicable law, any standard of care inconsistent with the
foregoing).

(i) Disbursement Procedures. The Administrative Agent shall, within a reasonable time
following its receipt thereof, examine all documents purporting to represent a demand for payment
under any Non-Syndicated Letter of Credit. The Administrative Agent shall promptly after such
examination (i) notify each of the Lenders and the Account Parties by telephone (confirmed by
telecopy) of such demand for payment and (ii) deliver to each Lender (including the Issuing Lender)
a copy of each document purporting to represent a demand for payment under such Non-Syndicated
Letter of Credit. With respect to any drawing properly made under a Non-Syndicated Letter of
Credit, the Issuing Lender thereof will make an LC Disbursement in respect of such Non-Syndicated
Letter of Credit in accordance with its liability under such Non-Syndicated Letter of Credit and
this Agreement, such LC Disbursement to be made to the account of the Administrative Agent most
recently designated by it for such purpose by notice to the Lenders. The Administrative Agent will
make any such LC Disbursement available to the beneficiary of such Non-Syndicated Letter of Credit
by promptly crediting the amounts so received, in like funds, to the account identified by such
beneficiary in connection with such demand for payment. Promptly following any LC Disbursement by
any Issuing Lender in respect of any Non-Syndicated Letter of Credit, the Administrative Agent will
notify the Account Parties of such LC Disbursement; provided that any failure to give or
delay in giving such notice shall not relieve the Account Parties of their obligation to reimburse
such Issuing Lender with respect to any such LC Disbursement.

(j) Interim Interest. If any LC Disbursement with respect to a Non-Syndicated Letter
of Credit is made, then, unless the Account Parties shall reimburse such LC Disbursement in full on
the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day
from and including the date such LC Disbursement is made to but excluding the date that the Account
Parties reimburse such LC Disbursement, at the rate per annum equal to (i) 1% plus the
Alternate Base Rate to but excluding the date three Business Days after such LC Disbursement is
made and (ii) from and including the date three Business Days after such LC Disbursement is made,
3% plus the Alternate Base Rate.

(k) Right of Contribution. The Account Parties hereby agree, as between themselves,
that if any Account Party shall pay any reimbursement obligation in respect of any LC Disbursement
with respect to a Non-Syndicated Letter of Credit issued to support the obligations of another
Account Party (the “Specified Account Party”), the Specified Account Party shall, on demand
(but subject to the next sentence), pay to such first Account Party an amount equal to the amount
of such reimbursement. The payment obligation of a Specified Account Party to another Account
Party under this paragraph (k) shall be subordinate and subject in right of payment to the prior
payment in full of the obligations of the Specified Account Party under this Agreement and each
other Credit Document, and such other Account Party shall not exercise any right or remedy with
respect to such reimbursement until payment and satisfaction in full of all of such obligations of
the Specified Account Party.

(l) Continuation of Existing Non-Syndicated Letters of Credit. Subject to the terms
and conditions hereof, each Non-Syndicated Letter of Credit under (and as defined in) either of the
Existing Credit Agreements which is outstanding on the Effective Date and listed in the notice
provided by XL Capital to the Administrative Agent pursuant to Section 5.01(f) shall, effective as
of the Effective Date, be deemed continued hereunder and shall be amended by the respective Issuing
Lender (through the Administrative Agent) to reflect the Lenders under the Letter of Credit Tranche
as of the Effective Date and, with respect to each such Non-Syndicated Letter of Credit issued by a
Lender that is party to either of the Existing Credit Agreements, a face amount based upon the
respective Lender’s Applicable Percentage of the Letter of Credit Commitments as in effect on the
Effective Date, and each such Non-Syndicated Letter of Credit, as so amended, shall be deemed
continued hereunder as a Non-Syndicated Letter of Credit issued by such Lender for all purposes of
this Agreement as of the Effective Date.

(m) Adjustments to Non-Syndicated Letters of Credit. Upon each increase of the
Commitments pursuant to Section 2.11(c), (i) each Non-Syndicated Letter of Credit then outstanding
hereunder shall, as of the effective date of such increase, be amended by the respective Issuing
Lenders thereof (through the Administrative Agent) to reflect the Lenders having Commitments after
giving effect to such increase and having, with respect to each such Non-Syndicated Letter of
Credit issued by an existing Lender, a face amount based upon such Lender’s Applicable Percentage
of such Commitments and/or (ii) as applicable, new Non-Syndicated Letters of Credit shall be issued
hereunder as of such effective date by each Supplemental Lender which has undertaken a new or
incremental Commitment in connection with such increase in a face amount based upon such
Supplemental Lender’s Applicable Percentage of such Commitments. Upon the assignment by a Lender
of all or a portion of its Commitment and its interests in the Non-Syndicated Letters of Credit
pursuant to an Assignment and Assumption, (i) XL Capital shall, at the reasonable request of the
Administrative Agent, execute such documents as may be necessary in connection with amendments to
each Non-Syndicated Letter of Credit issued by such assigning Lender then outstanding hereunder (or
to replace each such Non-Syndicated Letter of Credit with a new Non-Syndicated Letter of Credit of
such assigning Lender) to reflect such assigning Lender’s Commitment and with a face amount based
upon such Lender’s Applicable Percentage after giving effect to such assignment and/or (ii) as
applicable, a new Non-Syndicated Letter of Credit shall be issued hereunder as of the effective
date of such assignment by the assignee Lender which has undertaken a new or incremental Commitment
in connection with such assignment in a face amount based upon such assignee Lender’s Applicable
Percentage of the Commitments after giving effect to such assignment.

SECTION 2.05. Participated Letters of Credit.

(a) General. Subject to the terms and conditions set forth herein, any Account Party
may request the Issuing Lender to issue, at any time and from time to time during the Availability
Period, Participated Letters of Credit for its own account. Each Participated Letter of Credit
shall be in such form as is consistent with the requirements of the applicable regulatory
authorities in Illinois, California, Wisconsin or New York as reasonably determined by the
Administrative Agent or as otherwise agreed to by the Administrative Agent and XL Capital.
Participated Letters of Credit issued hereunder shall constitute utilization of the Commitments.

(b) Notice of Issuance, Amendment, Renewal or Extension. To request the issuance of a
Participated Letter of Credit (or the amendment, renewal or extension of an outstanding
Participated Letter of Credit), an Account Party shall hand deliver or telecopy (or transmit by
electronic communication, if arrangements for doing so have been approved by the Issuing Lender) to
the Issuing Lender and the Administrative Agent (reasonably in advance of the requested date of
issuance, amendment, renewal or extension) a notice requesting the issuance of a Participated
Letter of Credit, or identifying the Participated Letter of Credit to be amended, renewed or
extended, and specifying the date of issuance, amendment, renewal or extension (which shall be a
Business Day), the date on which such Participated Letter of Credit is to expire (which shall
comply with paragraph (d) of this Section), the amount of such Participated Letter of Credit, the
name and address of the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Participated Letter of Credit. If requested by the Issuing
Lender, such Account Party also shall submit a letter of credit application on the Issuing Lender’s
standard form in connection with any request for a Participated Letter of Credit. In the event of
any inconsistency between the terms and conditions of this Agreement and the terms and conditions
of any form of letter of credit application or other agreement submitted by such Account Party to,
or entered into by any Account Party with, the Issuing Lender relating to any Participated Letter
of Credit, the terms and conditions of this Agreement shall control.

(c) Limitations on Amounts. A Participated Letter of Credit shall be issued, amended,
renewed or extended only if (and upon issuance, amendment, renewal or extension of each
Participated Letter of Credit each Account Party shall be deemed to represent and warrant that),
after giving effect to such issuance, amendment, renewal or extension (i) the sum of (A) the
LC Exposure of the Issuing Lender with respect to Participated Letters of Credit (determined for
these purposes without giving effect to the participations therein of the Lenders pursuant to
paragraph (e) of this Section) and (B) with respect to the Other Credit Agreement, the LC Exposure
of the Issuing Lender with respect to Participated Letters of Credit (determined for these purposes
without giving effect to the participations therein of the Lenders pursuant to Section 2.05(e) of
the Other Credit Agreement) (the terms used in this clause (B) having the definitions assigned to
them in the Other Credit Agreement) shall not exceed $100,000,000 and (ii) the Aggregate Credit
Exposure of the Lenders under the Letter of Credit Tranche shall not exceed the aggregate amount of
the Letter of Credit Commitments.

(d) Expiry Date. Each Participated Letter of Credit shall expire at or prior to the
close of business on the date one year after the date of the issuance of such Participated Letter
of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension); provided that in no event shall any Participated Letter of Credit have an
expiry date after the first anniversary of the Commitment Termination Date.

(e) Participations. By the issuance of a Participated Letter of Credit (or an
amendment to a Participated Letter of Credit increasing the amount thereof) by the Issuing Lender,
and without any further action on the part of the Issuing Lender or the Lenders, the Issuing Lender
hereby grants to each Lender, and each Lender hereby acquires from the Issuing Lender, a
participation in such Participated Letter of Credit equal to such Lender’s Applicable Percentage of
the aggregate amount available to be drawn under such Participated Letter of Credit. Each Lender
acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in
respect of Participated Letters of Credit is absolute and unconditional and shall not be affected
by any circumstance whatsoever, including any amendment, renewal or extension of any Participated
Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the
Commitments. In consideration and in furtherance of the foregoing, each Lender hereby absolutely
and unconditionally agrees to pay to the Administrative Agent, for account of the Issuing Lender,
such Lender’s Applicable Percentage of each LC Disbursement made by the Issuing Lender in respect
of any Participated Letter of Credit promptly upon the request of the Issuing Lender at any time
from the time such LC Disbursement is made until such LC Disbursement is reimbursed by the Account
Parties or at any time after any reimbursement payment is required to be refunded to the Account
Parties for any reason. Such payment shall be made without any offset, abatement, withholding or
reduction whatsoever. Promptly following receipt by the Administrative Agent of any payment from
the Account Parties pursuant to the next following paragraph, the Administrative Agent shall
distribute such payment to the Issuing Lender or, to the extent that the Lenders have made payments
pursuant to this paragraph to reimburse the Issuing Lender, then to such Lenders and the Issuing
Lender as their interests may appear. Any payment made by a Lender pursuant to this paragraph to
reimburse the Issuing Lender for any LC Disbursement shall not relieve the Account Parties of their
obligation to reimburse such LC Disbursement.

(f) Reimbursement. If any Lender shall make any LC Disbursement in respect of any
Participated Letter of Credit, regardless of the identity of the Account Party of such Participated
Letter of Credit, the Account Parties jointly and severally agree that they shall reimburse such
Lender in respect of such LC Disbursement by paying to the Administrative Agent an amount equal to
such LC Disbursement not later than noon, New York City time, on (i) the Business Day that the
Account Parties receive notice of such LC Disbursement, if such notice is received prior to
10:00 a.m., New York City time, or (ii) the Business Day immediately following the day that the
Account Parties receive such notice, if such notice is not received prior to such time.

If the Account Parties fail to make such payment when due, the Administrative Agent shall
notify each Lender of the applicable LC Disbursement, the payment then due from the Account Parties
in respect thereof and such Lender’s Applicable Percentage thereof.

(g) Obligations Absolute. The Account Parties’ joint and several obligations to
reimburse LC Disbursements in respect of any Participated Letter of Credit as provided in
paragraph (f) of this Section shall be absolute, unconditional and irrevocable, and shall be
performed strictly in accordance with the terms of this Agreement under any and all circumstances
whatsoever and irrespective of (i) any lack of validity or enforceability of any Participated
Letter of Credit, or any term or provision therein, (ii) any draft or other document presented
under a Participated Letter of Credit proving to be forged, fraudulent or invalid in any respect or
any statement therein being untrue or inaccurate in any respect, (iii) payment by the Issuing
Lender under a Participated Letter of Credit against presentation of a draft or other document that
does not comply strictly with the terms of such Participated Letter of Credit (provided
that the Account Parties shall not be obligated to reimburse such LC Disbursements unless payment
is made against presentation of a draft or other document that at least substantially complies with
the terms of such Participated Letter of Credit), (iv) at any time or from time to time, without
notice to any Account Party, the time for any performance of or compliance with any of such
reimbursement obligations of any other Account Party shall be waived, extended or renewed, (v) any
of such reimbursement obligations of any other Account Party shall be amended or otherwise modified
in any respect, or any guarantee of any of such reimbursement obligations shall be released,
substituted or exchanged in whole or in part or otherwise dealt with, (vi) the occurrence of any
Default, (vii) the existence of any proceedings of the type described in clause (g) or (h) of
Article VIII with respect to any other Account Party or any guarantor of any of such reimbursement
obligations, (viii) any lack of validity or enforceability of any of such reimbursement obligations
against any other Account Party or any guarantor of any of such reimbursement obligations, or
(ix) any other event or circumstance whatsoever, whether or not similar to any of the foregoing,
that might, but for the provisions of this Section, constitute a legal or equitable discharge of
the obligations of any Account Party hereunder.

Neither the Administrative Agent, the Lenders nor the Issuing Lender, nor any of their
respective Related Parties, shall have any liability or responsibility by reason of or in
connection with the payment or failure to make any payment under a Participated Letter of Credit
(irrespective of any of the circumstances referred to in the preceding sentence) as a result of
determining whether drafts or other documents presented under a Participated Letter of Credit
comply with the terms thereof, or any error, omission, interruption, loss or delay in transmission
or delivery of any draft, notice or other communication under or relating to any Participated
Letter of Credit (including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from causes beyond the control of the
Issuing Lender; provided that the foregoing shall not be construed to excuse the Issuing
Lender from liability to the Account Parties to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by the Account Parties to the
extent permitted by applicable law) suffered by the Account Parties that are caused by the Issuing
Lender’s gross negligence or willful misconduct when determining whether drafts and other documents
presented under a Participated Letter of Credit comply with the terms thereof. The parties hereto
expressly agree that:

(i) the Issuing Lender may accept documents that appear on their face to be in
substantial compliance with the terms of a Participated Letter of Credit without
responsibility for further investigation, regardless of any notice or information to the
contrary, and may make payment upon presentation of documents that appear on their face to
be in substantial compliance with the terms of such Participated Letter of Credit;

(ii) the Issuing Lender shall have the right, in its sole discretion, to decline to
accept such documents and to make such payment if such documents are not in strict
compliance with the terms of such Participated Letter of Credit; and

(iii) this sentence shall establish the standard of care to be exercised by the Issuing
Lender when determining whether drafts and other documents presented under a Participated
Letter of Credit comply with the terms thereof (and the parties hereto hereby waive, to the
extent permitted by applicable law, any standard of care inconsistent with the foregoing).

(h) Disbursement Procedures. The Issuing Lender shall, within a reasonable time
following its receipt thereof, examine all documents purporting to represent a demand for payment
under a Participated Letter of Credit. The Issuing Lender shall promptly after such examination
notify the Administrative Agent and XL Capital by telephone (confirmed by telecopy) of such demand
for payment and whether the Issuing Lender has made or will make an LC Disbursement thereunder;
provided that any failure to give or delay in giving such notice shall not relieve the
Account Parties of their obligation to reimburse the Issuing Lender and the Lenders with respect to
any such LC Disbursement.

(i) Interim Interest. If any LC Disbursement is made with respect to a Participated
Letter of Credit, then, unless the Account Parties shall reimburse such LC Disbursement in full on
the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day
from and including the date such LC Disbursement is made to but excluding the date that the Account
Parties reimburse such LC Disbursement, at the rate per annum equal to (i) 1% plus the
Alternate Base Rate to but excluding the date three Business Days after such LC Disbursement is
made and (ii) from and including the date three Business Days after such LC Disbursement is made,
3% plus the Alternate Base Rate. Interest accrued pursuant to this paragraph shall be for
account of the Issuing Lender, except that interest accrued on and after the date of payment by any
Lender pursuant to paragraph (f) of this Section to reimburse the Issuing Lender shall be for
account of such Lender to the extent of such payment.

(j) Replacement of the Issuing Lender. The Issuing Lender may be replaced at any time
by written agreement between XL Capital, the Administrative Agent, the replaced Issuing Lender and
the successor Issuing Lender. The Administrative Agent shall notify the Lenders of any such
replacement of the Issuing Lender. At the time any such replacement shall become effective, the
Account Parties shall pay all unpaid fees accrued for account of the replaced Issuing Lender
pursuant to Section 2.14(d). From and after the effective date of any such replacement, (i) the
successor Issuing Lender shall have all the rights and obligations of the replaced Issuing Lender
under this Agreement with respect to Participated Letters of Credit to be issued thereafter and
(ii) references herein to the term “Issuing Lender” shall be deemed to refer to such successor or
to any previous Issuing Lender, or to such successor and all previous Issuing Lenders, as the
context shall require. After the replacement of an Issuing Lender hereunder, the replaced Issuing
Lender shall remain a party hereto and shall continue to have all the rights and obligations of an
Issuing Lender under this Agreement with respect to Participated Letters of Credit issued by it
prior to such replacement, but shall not be required to issue additional Participated Letters of
Credit.

(k) Right of Contribution. The Account Parties hereby agree, as between themselves,
that if any Account Party shall pay any reimbursement obligation in respect of any LC Disbursement
with respect to a Participated Letter of Credit issued to support the obligations of another
Account Party (the “Specified Account Party”), the Specified Account Party shall, on demand
(but subject to the next sentence), pay to such first Account Party an amount equal to the amount
of such reimbursement. The payment obligation of a Specified Account Party to another Account
Party under this paragraph (k) shall be subordinate and subject in right of payment to the prior
payment in full of the obligations of the Specified Account Party under this Agreement and each
other Credit Document, and such other Account Party shall not exercise any right or remedy with
respect to such reimbursement until payment and satisfaction in full of all of such obligations of
the Specified Account Party.

(l) Continuation of Existing Participated Letters of Credit. Subject to the terms and
conditions hereof, each Participated Letter of Credit under (and as defined in) either of the
Existing Credit Agreements which is outstanding on the Effective Date and listed in the notice
provided by XL Capital to the Administrative Agent pursuant to Section 5.01(f) shall automatically
be deemed continued hereunder on the Effective Date by the Issuing Lender of such Participated
Letter of Credit, and as of the Effective Date the Lenders shall acquire a participation therein as
if such Participated Letter of Credit were issued hereunder, and each such Participated Letter of
Credit shall be deemed a Participated Letter of Credit for all purposes of this Agreement as of the
Effective Date.

(m) Adjustment of Applicable Percentages. Notwithstanding anything herein to the
contrary, upon (i) each increase of the Commitments pursuant to Section 2.11(c), each Lender’s
participation in each Participated Letter of Credit then outstanding shall automatically be
adjusted to reflect its Applicable Percentage after giving effect to such increase and (ii) the
assignment by a Lender of all or a portion of its Commitment and its interests in the Participated
Letters of Credit pursuant to an Assignment and Assumption, the respective assigning Lender’s
participation in each Participated Letter of Credit then outstanding shall automatically be
adjusted to reflect, and the respective assignee Lender shall be deemed to acquire a participation
in each such Participated Letter of Credit in an amount equal to, its Applicable Percentage after
giving effect to such assignment.

SECTION 2.06. Alternative Currency Letters of Credit.

(a) Requests for Offers. From time to time during the Availability Period, an Account
Party may request any or all of the Lenders to make offers to issue an Alternative Currency Letter
of Credit for account of such Account Party. Each Lender may, but shall have no obligation to,
make such offers on terms and conditions that are satisfactory to such Lender, and such Account
Party may, but shall have no obligation to, accept any such offers. An Alternative Currency Letter
of Credit shall be issued, amended, renewed or extended only if (and upon such issuance, amendment,
renewal or extension of each Alternative Currency Letter of Credit the Account Parties shall be
deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or
extension, the Aggregate Credit Exposure shall not exceed the aggregate amount of the Commitments.
Each such Alternative Currency Letter of Credit shall be issued, and subsequently, renewed,
extended, amended and confirmed, on such terms as XL Capital, the applicable Account Party and such
Lender shall agree, including expiry, drawing conditions, reimbursement, interest, fees and
provision of cover; provided that the expiry of any Alternative Currency Letter of Credit
shall not be later than the one-year anniversary from the date of issuance thereof (or, in the case
of any renewal or extension thereof, one-year after such renewal or extension).

(b) Reports to Administrative Agent. The Account Parties shall deliver to the
Administrative Agent and each of the Lenders a report in respect of each Alternative Currency
Letter of Credit (an “Alternative Currency Letter of Credit Report”) on and as of the date
(i) on which such Alternative Currency Letter of Credit is issued, (ii) of the issuance, renewal,
extension or amendment of a Syndicated Letter of Credit or a Non-Syndicated Letter of Credit, if
any Alternative Currency Letter of Credit is then outstanding and (iii) on which the Commitments
are to be reduced pursuant to Section 2.11, specifying for each such Alternative Currency Letter of
Credit (after giving effect to issuance thereof, as applicable):

(A) the date on which such Alternative Currency Letter of Credit was or is
being issued;

(B) the Alternative Currency of such Alternative Currency Letter of Credit;

(C) the aggregate undrawn amount of such Alternative Currency Letter of Credit
(in such Alternative Currency);

(D) the aggregate unpaid amount of LC Disbursements under such Alternative
Currency Letter of Credit (in such Alternative Currency);

(E) the Alternative Currency LC Exposure (in Dollars) in respect of such
Alternative Currency Letter of Credit; and

(F) the aggregate amount of Alternative Currency LC Exposures (in Dollars).

Each Alternative Currency Letter of Credit Report shall be delivered to the Administrative
Agent and each of the Lenders by 10:00 a.m. (New York City time) on the date on which it is
required to be delivered.

SECTION 2.07. Loans and Borrowings.

(a) Loans. Subject to the terms and conditions set forth herein, (I) each Lender
under the Letter of Credit Tranche agrees to make Loans and (II) each Lender under the Revolving
Credit Tranche agrees to make Loans, in each case, to an Account Party from time to time during the
Availability Period in an aggregate principal amount that will not result in (i) such Lender’s
outstanding Loans exceeding such Lender’s Applicable Percentage of the Aggregate Maximum Loan
Amount, (ii) such Lender’s Credit Exposure (excluding any Alternative Currency LC Exposure)
exceeding such Lender’s respective Commitment, (iii) the aggregate Credit Exposures of all Lenders
under the Letter of Credit Tranche exceeding the aggregate Letter of Credit Commitments of all
Lenders, (iv) the aggregate outstanding principal amount of the Loans under the Letter of Credit
Tranche exceeding the RC Sublimit, (v) the aggregate outstanding principal amount of the Loans
under the Revolving Credit Tranche exceeding the total Revolving Credit Commitments or (vi) the sum
of (A) the aggregate outstanding principal amount of the Loans and (B) the aggregate outstanding
principal amount of the Loans under (and as defined in) the Other Credit Agreement exceeding the
Aggregate Maximum Loan Amount. Loans may be made, or be outstanding, to more than one of the
Account Parties at any time. Within the foregoing limits and subject to the terms and conditions
set forth herein, the Account Parties may borrow, prepay and reborrow Loans under the Tranches.

(b) Obligations of Lenders. Except as provided herein, each Loan shall be made as
part of a Borrowing consisting of Loans of the same Type made by the Lenders ratably in accordance
with their respective Applicable Percentage of the Aggregate Maximum Loan Amount. The failure of
any Lender to make any Loan required to be made by it shall not relieve any other Lender of its
obligations hereunder; provided that the Commitments of the Lenders to make Loans hereunder
are several and no Lender shall be responsible for any other Lender’s failure to make Loans as
required.

(c) Type of Loans. Subject to Section 2.15, each Borrowing shall be constituted
entirely of ABR Loans or of Eurodollar Loans as any Account Party may request in accordance
herewith. Each Lender at its option may make any Eurodollar Loan by causing any domestic or
foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of
such option shall not affect the obligation of the Account Parties to repay such Loan in accordance
with the terms of this Agreement.

(d) Minimum Amounts; Limitation on Number of Borrowings. Each Eurodollar Borrowing
shall be in an aggregate amount of $10,000,000 or a larger multiple of $1,000,000. Each
ABR Borrowing shall be in an aggregate amount equal to $10,000,000 or a larger multiple of
$1,000,000; provided that an ABR Borrowing may be in an aggregate amount that is equal to
the entire unused balance of the Aggregate Maximum Loan Amount or that is requested to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.03(a). Borrowings of more than
one Type may be outstanding at the same time; provided that there shall not at any time be
more than a total of ten Eurodollar Borrowings outstanding.

(e) Limitations on Interest Periods. Notwithstanding any other provision of this
Agreement, no Account Party shall be entitled to request (or to elect to convert to or continue as
a Eurodollar Borrowing) any Borrowing if the Interest Period requested therefor would end after the
Commitment Termination Date.

(f) Non-Pro Rata Borrowings and Prepayments. Except as provided in this paragraph
(f), Loans made as part of a Borrowing shall be made by the Lenders under both Tranches ratably in
accordance with their respective Applicable Percentage of the Aggregate Maximum Loan Amount and
each request for a Borrowing under Section 2.08 shall be a request for a Borrowing under both
Tranches; provided that, notwithstanding anything herein to the contrary:

(i) if (but only if), at the time of any requested Borrowing, Letters of Credit shall
be outstanding under the Letter of Credit Tranche in such amounts that the Account Parties
would not be able to borrow on a ratable basis the full amount of such requested Borrowing
in accordance with the foregoing provisions, the relevant Account Party requesting such
Borrowing shall be permitted only (A) to borrow hereunder the maximum aggregate principal
amount of Loans from the Lenders under both Tranches, such that, after giving effect to such
Borrowing, the Lenders shall have Loans then outstanding ratably in accordance with their
respective Applicable Percentage of the Aggregate Maximum Loan Amount and/or (B)
simultaneously, to borrow from the Lenders having Revolving Credit Commitments hereunder on
a non-pro rata basis (such Loans from such Lenders being referred to herein as “Non-Pro
Rata Loans”) and to borrow under the Other Credit Agreement, such that, after giving
effect to such borrowings, each Lender with a Revolving Credit Commitment shall have Loans
then outstanding in an aggregate principal amount not exceeding its Applicable Percentage of
the sum of the aggregate outstanding principal amount of the Loans (including Non-Pro Rata
Loans) and the Loans under (and as defined in) the Other Credit Agreement (it being
understood, for the avoidance of doubt, that Non-Pro Rata Loans may not be made to the
extent that Loans hereunder and/or Loans under (and as defined in) the Other Credit
Agreement are not available to be made);

(ii) (subject to clause (i) above) if, at the time of any Borrowing, Non-Pro Rata Loans
are outstanding, such Borrowing shall be made from the Lenders under the Letter of Credit
Tranche and/or the Lenders under the Revolving Credit Tranche hereunder in amounts (as
reasonably determined by the Administrative Agent) such that, after giving effect to such
Borrowing, the Lenders shall have Loans then outstanding ratably in accordance with their
respective Applicable Percentage of the Aggregate Maximum Loan Amount (or as nearly thereto
as possible);

(iii) if, at the time of any prepayment of Loans, Non-Pro Rata Loans are outstanding,
such prepayment shall be applied first to the prepayment of Non-Pro Rata Loans to the extent
necessary to ensure that, after giving effect to such prepayment, the Loans are held by the
Lenders ratably in accordance with their respective Applicable Percentage of the Aggregate
Maximum Loan Amount (or as nearly thereto as possible); and

(iv) if, at the time of any prepayment of loans under the Other Credit Agreement,
Non-Pro Rata Loans are outstanding, the relevant Account Parties shall simultaneously prepay
Non-Pro Rata Loans pursuant to Section 2.13 to the extent necessary to ensure that, after
giving effect to such prepayment, the Loans are held by the Lenders ratably in accordance
with their respective Applicable Percentage of the Aggregate Maximum Loan Amount (or as
nearly thereto as possible).

SECTION 2.08. Requests for Borrowings.

(a) Notice by the Account Parties. To request a Borrowing, XL Capital shall notify
the Administrative Agent of such request by telephone (i) in the case of a Eurodollar Borrowing,
not later than 11:00 a.m., New York City time, three Business Days before the date of the proposed
Borrowing or (ii) in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time,
on the date of the proposed Borrowing; provided that any such notice of an ABR Borrowing to
finance the reimbursement of an LC Disbursement as contemplated by Section 2.03(a) may be given not
later than 11:00 a.m., New York City time, on the date of the proposed Borrowing. Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery
or telecopy to the Administrative Agent of a written Borrowing Request in a form approved by the
Administrative Agent and signed by XL Capital.

(b) Content of Borrowing Requests. Each telephonic and written Borrowing Request
shall specify the following information in compliance with Section 2.07:

(i) the relevant Account Party;

(ii) the aggregate amount of the requested Borrowing;

(iii) the date of such Borrowing, which shall be a Business Day;

(iv) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing (and,
if applicable, the relevant Tranche under which such Borrowing is to be made);

(v) in the case of a Eurodollar Borrowing, the Interest Period therefor, which shall be
a period contemplated by the definition of the term “Interest Period” and permitted under
Section 2.07(e); and

(vi) the location and number of such Account Party’s account to which funds are to be
disbursed, which shall comply with the requirements of Section 2.09.

(c) Notice by the Administrative Agent to the Lenders. Promptly following receipt of
a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each
relevant Lender of the details thereof and of the amount of such Lender’s Loan to be made as part
of the requested Borrowing.

(d) Failure to Elect. If no election as to the Type of a Borrowing is specified, then
the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect
to any requested Eurodollar Borrowing, then the requested Borrowing shall be made instead as an
ABR Borrowing.

SECTION 2.09. Funding of Borrowings.

(a) Funding by Lenders. Each Lender shall make each Loan to be made by it hereunder
on the proposed date thereof by wire transfer of immediately available funds by 12:00 noon, New
York City time (or 1:00 p.m., New York City time with respect to ABR Loans requested by XL Capital
no later than 11:00 a.m. on the same day), to the account of the Administrative Agent most recently
designated by it for such purpose by notice to the Lenders. The Administrative Agent will make
such Loans available to the relevant Account Party by promptly crediting the amounts so received,
in like funds, to an account of such Account Party maintained with the Administrative Agent in New
York City and designated by such Account Party in the applicable Borrowing Request.

(b) Presumption by the Administrative Agent. Unless the Administrative Agent shall
have received notice from a Lender prior to the proposed date of any Borrowing (or in the case of
any ABR Borrowing, on or prior to the proposed date of such Borrowing) that such Lender will not
make available to the Administrative Agent such Lender’s share of such Borrowing, the
Administrative Agent may assume that such Lender has made such share available on such date in
accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make
available to the relevant Account Party a corresponding amount. In such event, if a Lender has not
in fact made its share of the applicable Borrowing available to the Administrative Agent, then the
applicable Lender and the relevant Account Party severally agree to pay to the Administrative Agent
forthwith on demand such corresponding amount with interest thereon, for each day from and
including the date such amount is made available to such Account Party to but excluding the date of
payment to the Administrative Agent, at (i) in the case of such Lender, the Federal Funds Effective
Rate or (ii) in the case of such Account Party, the interest rate applicable to ABR Loans. If such
Lender pays such amount to the Administrative Agent, then such amount shall constitute such
Lender’s Loan included in such Borrowing.

SECTION 2.10. Interest Elections.

(a) Elections by the Account Parties. The Loans constituting each Borrowing initially
shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar
Borrowing, shall have the Interest Period specified in such Borrowing Request. Thereafter, the
relevant Account Party may elect to convert such Borrowing to a Borrowing of a different Type or to
continue such Borrowing as a Borrowing of the same Type and, in the case of a Eurodollar Borrowing,
may elect the Interest Period therefor, all as provided in this Section. The relevant Account
Party may elect different options with respect to different portions of the affected Borrowing, in
which case each such portion shall be allocated ratably among the Lenders holding the Loans
constituting such Borrowing, and the Loans constituting each such portion shall be considered a
separate Borrowing.

(b) Notice of Elections. To make an election pursuant to this Section, XL Capital
shall notify the Administrative Agent of such election by telephone by the time that a Borrowing
Request would be required under Section 2.08 if XL Capital were requesting a Borrowing of the Type
resulting from such election to be made on the effective date of such election. Each such
telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Interest Election Request in a form
approved by the Administrative Agent and signed by XL Capital.

(c) Content of Interest Election Requests. Each telephonic and written Interest
Election Request shall specify the following information in compliance with Section 2.07:

(i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) of this paragraph shall be specified for each resulting
Borrowing);

(ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

(iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and

(iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period therefor
after giving effect to such election, which shall be a period contemplated by the definition
of the term “Interest Period” and permitted under Section 2.07(e).

(d) Notice by the Administrative Agent to the Lenders. Promptly following receipt of
an Interest Election Request, the Administrative Agent shall advise each Lender of the details
thereof and of such Lender’s portion of each resulting Borrowing.

(e) Failure to Elect; Events of Default. If XL Capital fails to deliver a timely and
complete Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the
Interest Period therefor, then, unless such Borrowing is repaid as provided herein, at the end of
such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any
contrary provision hereof, if an Event of Default has occurred and is continuing and the
Administrative Agent, at the request of the Required Lenders, so notifies XL Capital, then, so long
as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued
as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to
an ABR Borrowing at the end of the Interest Period therefor.

SECTION 2.11. Termination, Reduction and Increase of the Commitments.

(a) Scheduled Termination. Unless previously terminated, the Commitments shall
terminate at the close of business on the Commitment Termination Date.

(b) Voluntary Termination or Reduction. The Account Parties may at any time
terminate, or from time to time reduce, the Commitments and/or may reduce at any time the Aggregate
Maximum Loan Amount; provided that (i) each reduction of the Commitments or the Aggregate
Maximum Loan Amount shall be in an amount that is $25,000,000 or a larger multiple of $5,000,000,
(ii) the Account Parties shall not terminate or reduce the Commitments if the Aggregate Credit
Exposure would exceed the Commitments, (iii) the Account Parties shall not reduce the Aggregate
Maximum Loan Amount if the outstanding Loans would exceed the Aggregate Maximum Loan Amount and
(iv) the Account Parties shall not reduce the Aggregate Maximum Loan Amount unless the RC Sublimit
under (and as defined in) the Other Credit Agreement shall be reduced in a corresponding amount.
XL Capital shall notify the Administrative Agent of any election to terminate or reduce the
Commitments or the Aggregate Maximum Loan Amount under this paragraph (b) at least three Business
Days prior to the effective date of such termination or reduction, specifying such election and the
effective date thereof, provided that no reduction of the Aggregate Maximum Loan Amount
shall occur in connection with a reduction of the Commitments unless specified in such notice,
except that upon the earlier of (x) the termination of the Commitments and (y) the Commitment
Termination Date, the Aggregate Maximum Loan Amount shall automatically be reduced to zero.
Promptly following receipt of any such notice, the Administrative Agent shall advise the Lenders of
the contents thereof. Each notice delivered by XL Capital pursuant to this paragraph (b) shall be
irrevocable; provided that a notice of termination of the Commitments delivered by XL
Capital may state that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by XL Capital (by notice to the Administrative
Agent on or prior to the specified effective date) if such condition is not satisfied. Subject to
the proviso in the immediately preceding sentence, any termination or reduction of the Commitments
or the Aggregate Maximum Loan Amount shall be permanent. Each reduction of the Commitments shall
be made ratably among the Lenders in accordance with their respective Commitments.

(c) Increases to Commitments. XL Capital shall have the right, at any time by notice
to the Administrative Agent, to increase the Commitments hereunder (i) by including as a Lender
hereunder with a new Commitment, any Person which is a NAIC Approved Bank that is not an existing
Lender or (ii) by having an existing Lender increase its Commitment then in effect (with the
consent of such Lender in its sole discretion) (each new or increasing Lender, a “Supplemental
Lender”) in each case with the approval (not to be unreasonably withheld) of the Administrative
Agent, which notice shall specify the name of each Supplemental Lender, the aggregate amount of
such increase and the portion thereof being assumed by each such Supplemental Lender, and the date
on which such increase is to become effective (each a “Supplemental Commitment Date”)
(which shall be a Business Day at least three Business Days after the delivery of such notice and
30 days prior to the Commitment Termination Date); provided that (w) the aggregate amount
of increases of the Commitments under this paragraph shall not exceed $500,000,000, (x) the
Commitment of any Supplemental Lender that is not an existing Lender shall be in an amount of at
least $25,000,000, (y) the aggregate amount of the increase of the Commitments effected on any day
shall be in an aggregate amount of at least $25,000,000 and larger multiples of $1,000,000 and
(z) any increase of Commitments shall be only in respect of Letter of Credit Commitments. Each
such Supplemental Lender shall enter into an agreement in form and substance satisfactory to XL
Capital and the Administrative Agent pursuant to which such Supplemental Lender shall, as of the
applicable Supplemental Commitment Date, undertake a Commitment (or, if any such Supplemental
Lender is an existing Lender, pursuant to which such Supplemental Lender’s Commitment shall be
increased in the agreed amount on such date) and such Supplemental Lender shall thereupon become
(or, if it is already a Lender, continue to be) a “Lender” for all purposes hereof;
provided that, in the case of any Supplemental Lender that is not a Lender immediately
prior to such Supplemental Commitment Date and is not listed on the NAIC Approved Bank List, such
Supplemental Lender and its Confirming Lender shall have entered into an agreement of the type
contemplated in the definition of “Confirming Lender” in Section 1.01.

Notwithstanding the foregoing, no increase in the Commitments hereunder pursuant to this
Section shall be effective unless on the applicable Supplemental Commitment Date:

(i) no Default shall have occurred and be continuing;

(ii) the representations and warranties of the Obligors set forth in this Agreement
(other than in Section 4.04(b)) shall be true and correct on and as of such date (or, if any
such representation or warranty is expressly stated to have been made as of a specific date,
as of such specific date); and

(iii) no Loans are outstanding and no notices in respect of the issuance, amendment,
renewal or extension of any Letter of Credit or of any Borrowing are pending, unless the
Administrative Agent otherwise agrees.

Each such notice shall be deemed to constitute a representation and warranty by XL Capital as to
the matters specified in clauses (i) and (ii) of the immediately preceding sentence as of such
date.

SECTION 2.12. Repayment of Loans; Evidence of Debt.

(a) Repayment. Each Account Party hereby unconditionally promises to pay to the
Administrative Agent for account of the relevant Lenders the outstanding principal amount of the
Loans made to such Account Party on the Commitment Termination Date.

(b) Manner of Payment. Prior to any repayment or prepayment of any Borrowings
hereunder, XL Capital shall select the Borrowing or Borrowings to be paid and shall notify the
Administrative Agent by telephone (confirmed by telecopy) of such selection not later than
11:00 a.m., New York City time, three Business Days before the scheduled date of such repayment;
provided that each repayment of Borrowings shall be applied to repay any outstanding
ABR Borrowings before any other Borrowings. If XL Capital fails to make a timely selection of the
Borrowing or Borrowings to be repaid or prepaid, such payment shall be applied, first, to pay any
outstanding ABR Borrowings and, second, to other Borrowings in the order of the remaining duration
of their respective Interest Periods (the Borrowing with the shortest remaining Interest Period to
be repaid first). Each payment of a Borrowing shall be applied ratably to the Loans included in
such Borrowing.

(c) Maintenance of Records by Lenders. Each Lender shall maintain in accordance with
its usual practice records evidencing the indebtedness of each Account Party to such Lender
resulting from each Loan made by such Lender to such Account Party, including the amounts of
principal and interest payable and paid to such Lender from time to time hereunder.

(d) Maintenance of Records by the Administrative Agent. The Administrative Agent
shall maintain records in which it shall record (i) the amount of each Loan made to each Account
Party hereunder, the Type thereof and each Interest Period therefor, (ii) the amount of any
principal or interest due and payable or to become due and payable from such Account Party to each
Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for
account of the Lenders and each Lender’s share thereof.

(e) Effect of Entries. The entries made in the records maintained pursuant to
paragraph (c) or (d) of this Section shall be prima facie evidence of the existence
and amounts of the obligations recorded therein; provided that the failure of any Lender or
the Administrative Agent to maintain such records or any error therein shall not in any manner
affect the obligation of the Account Parties to repay the Loans in accordance with the terms of
this Agreement.

(f) Promissory Notes. Any Lender may request that Loans made by it to any Account
Party be evidenced by a promissory note of such Account Party. In such event, each Account Party
shall prepare, execute and deliver to such Lender a promissory note payable to such Lender (or, if
requested by such Lender, to such Lender and its registered assigns) and in a form approved by the
Administrative Agent. Thereafter, the Loans evidenced by such promissory note and interest thereon
shall at all times (including after assignment pursuant to Section 10.04) be represented by one or
more promissory notes in such form payable to the payee named therein (or, if such promissory note
is a registered note, to such payee and its registered assigns).

SECTION 2.13. Prepayment of Loans.

(a) Right to Prepay Borrowings. The Account Parties shall have the right at any time
and from time to time to prepay any Borrowing in whole or in part, subject to the requirements of
this Section.

(b) Notices, Etc. XL Capital shall notify the Administrative Agent by telephone
(confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar
Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of
prepayment or (ii) in the case of prepayment of an ABR Borrowing, not later than 11:00 a.m., New
York City time, one Business Day before the date of prepayment. Each such notice shall be
irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or
portion thereof to be prepaid; provided that, if a notice of prepayment is given in
connection with a conditional notice of termination of the Commitments as contemplated by
Section 2.11, then such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 2.11. Promptly following receipt of any such notice relating to
a Borrowing, the Administrative Agent shall advise the relevant Lenders of the contents thereof.
Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case
of a Borrowing of the same Type as provided in Section 2.07. Each prepayment of a Borrowing shall
be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be
accompanied by accrued interest to the extent required by Section 2.15 and shall be made in the
manner specified in Section 2.12(b).

SECTION 2.14. Fees.

(a) Facility Fee. XL Capital agrees to pay to the Administrative Agent for account of
each Lender a facility fee which shall accrue at a rate per annum equal to the Applicable Rate (i)
prior to the termination of such Lender’s Commitment, on the daily amount of such Commitment
(whether used or unused) during the period from and including the Effective Date to but excluding
the earlier of the date on which such Commitment terminates and the Commitment Termination Date and
(ii) if such Lender continues to have any Credit Exposure after its Commitment terminates, on the
daily amount of such Lender’s Credit Exposure from and including the date on which such Lender’s
Commitment terminates to but excluding the date on which such Lender ceases to have any Credit
Exposure. Accrued facility fees shall be payable on each Quarterly Date and on the earlier of the
date the Commitments terminate and the Commitment Termination Date; provided that any
facility fees accruing after such earlier date shall be payable on demand.

(b) Syndicated Letter of Credit Fees. XL Capital agrees to pay to the Administrative
Agent for account of each Lender under the Letter of Credit Tranche a letter of credit fee which
shall accrue at a rate per annum equal to the Applicable Rate on the average daily aggregate
undrawn amount of all outstanding Syndicated Letters of Credit during the period from and including
the Effective Date to but excluding the later of the date on which such Lender’s Letter of Credit
Commitment terminates and the date on which such Lender ceases to have any LC Exposure. Syndicated
Letter of Credit fees accrued through and including each Quarterly Date shall be payable on the
third Business Day following such Quarterly Date, commencing on the first such date to occur after
the Effective Date; provided that all such fees shall be payable on the date on which the
Letter of Credit Commitments terminate and any such fees accruing after the date on which the
Letter of Credit Commitments terminate shall be payable on demand.

(c) Non-Syndicated Letter of Credit Fees. XL Capital agrees to pay to the
Administrative Agent for account of each Lender under the Letter of Credit Tranche a letter of
credit fee which shall accrue at a rate per annum equal to the Applicable Rate on the average daily
aggregate undrawn amount of all outstanding Non-Syndicated Letters of Credit during the period from
and including the Effective Date to but excluding the later of the date on which such Lender’s
Letter of Credit Commitment terminates and the date on which such Lender ceases to have any LC
Exposure. Non-Syndicated Letter of Credit fees accrued through and including each Quarterly Date
shall be payable on the third Business Day following such Quarterly Date, commencing on the first
such date to occur after the Effective Date; provided that all such fees shall be payable
on the date on which the Letter of Credit Commitments terminate and any such fees accruing after
the date on which the Letter of Credit Commitments terminate shall be payable on demand.

(d) Participated Letter of Credit Fees. XL Capital agrees to pay (i) to the
Administrative Agent for account of each Lender under the Letter of Credit Tranche a participation
fee with respect to its participations in Participated Letters of Credit, which shall accrue at a
rate per annum equal to the Applicable Rate on the average daily amount of such Lender’s
LC Exposure in respect of Participated Letters of Credit (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and including the Effective
Date to but excluding the later of the date on which such Lender’s Letter of Credit Commitment
terminates and the date on which such Lender ceases to have any such LC Exposure, and (ii) to the
Issuing Lender a fronting fee which shall accrue at a rate per annum as agreed in writing between
XL Capital and the Issuing Lender on the average daily amount of the LC Exposure in respect of
Participated Letters of Credit (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the Effective Date to but excluding the later
of the date of termination of the Letter of Credit Commitments and the date on which there ceases
to be any such LC Exposure. Participation fees and fronting fees accrued through and including
each Quarterly Date shall be payable on the third Business Day following such Quarterly Date,
commencing on the first such date to occur after the Effective Date; provided that all such
fees shall be payable on the date on which the Letter of Credit Commitments terminate and any such
fees accruing after the date on which the Letter of Credit Commitments terminate shall be payable
on demand.

(e) LC Administrative Fees. XL Capital agrees to pay to the Administrative Agent, for
its own account, within 10 Business Days after demand the Administrative Agent’s standard
administrative fees with respect to the issuance, amendment, renewal or extension of any Letter of
Credit or processing of drawings thereunder.

(f) Administrative Agent Fees. XL Capital agrees to pay to the Administrative Agent,
for its own account, fees payable in the amounts and at the times separately agreed upon between XL
Capital and the Administrative Agent.

(g) Payment and Computation of Fees. All fees payable hereunder shall be paid on the
dates due, in immediately available funds, to the Administrative Agent for distribution, in the
case of the fees referred to in paragraphs (a) through (d) of this Section, to the Lenders entitled
thereto. Fees paid shall not be refundable under any circumstances. All fees payable under
paragraphs (a) through (d) of this Section shall be computed on the basis of a year of 360 days and
shall be payable for the actual number of days elapsed (including the first day but excluding the
last day).

SECTION 2.15. Interest.

(a) ABR Loans. The Loans constituting each ABR Borrowing shall bear interest at a
rate per annum equal to the Alternate Base Rate plus the Applicable Additional Margin, if
any.

(b) Eurodollar Loans. The Loans constituting each Eurodollar Borrowing shall bear
interest at a rate per annum equal to the Adjusted LIBO Rate for the Interest Period for such
Borrowing plus the Applicable Margin plus the Applicable Additional Margin, if any.

(c) Default Interest. Notwithstanding the foregoing, if any principal of or interest
on any Loan or any fee or other amount payable (other that in respect of any LC Disbursement under
Sections 2.03(d), 2.04(j), and 2.05(i)) by the Account Parties hereunder is not paid when due,
whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear
interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue
principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided above
or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as
provided in paragraph (a) of this Section.

(d) Payment of Interest. Accrued interest on each Loan shall be payable by the
applicable Account Party in arrears on each Interest Payment Date for such Loan and upon the date
the Commitments terminate; provided that (x) interest accrued pursuant to paragraph (c) of
this Section shall be payable on demand, (y) in the event of any repayment or prepayment of any
Loan (other than a prepayment of an ABR Loan prior to the Commitment Termination Date), accrued
interest on the principal amount repaid or prepaid shall be payable on the date of such repayment
or prepayment and (z) in the event of any conversion of any Eurodollar Borrowing prior to the end
of the Interest Period therefor, accrued interest on such Borrowing shall be payable on the
effective date of such conversion.

(e) Computation. All interest hereunder shall be computed on the basis of a year of
360 days, except that interest computed by reference to the Alternate Base Rate at times when the
Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days
(or 366 days in a leap year), and in each case shall be payable for the actual number of days
elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate
or Adjusted LIBO Rate shall be determined by the Administrative Agent, and such determination shall
be conclusive absent manifest error.

SECTION 2.16. Alternate Rate of Interest. If prior to the commencement of the
Interest Period for any Eurodollar Borrowing:

(a) the Administrative Agent determines in good faith (which determination shall be
conclusive absent manifest error) that adequate and reasonable means do not exist for
ascertaining the Adjusted LIBO Rate for such Interest Period; or

(b) the Administrative Agent is advised by the Required Lenders (acting in good faith)
that the Adjusted LIBO Rate for such Interest Period will not adequately and fairly reflect
the cost to such Lenders of making or maintaining their respective Loans included in such
Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to XL Capital and the Lenders by telephone
or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies XL
Capital and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any
Interest Election Request that requests the conversion of any Borrowing to, or the continuation of
any Borrowing as, a Eurodollar Borrowing shall be ineffective and such Borrowing (unless prepaid)
shall be continued as, or converted to, an ABR Borrowing and (ii) if any Borrowing Request requests
a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing.

SECTION 2.17. Increased Costs.

(a) Increased Costs Generally. If any Change in Law shall:

(i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for account of, or credit extended by, any
Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or

(ii) impose on any Lender or the London interbank market any other condition affecting
this Agreement, any Letter of Credit (or any participation therein) or any Eurodollar Loan
made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining, or participating in, any Letter of Credit (or of maintaining any participation
therein) or Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to reduce
the amount of any sum received or receivable by such Lender hereunder (whether of principal,
interest or otherwise), then the Account Parties jointly and severally agree that they will pay to
such Lender such additional amount or amounts as will compensate such Lender for such additional
costs incurred or reduction suffered.

(b) Capital Requirements. If any Lender determines that any Change in Law regarding
capital requirements has or would have the effect of reducing the rate of return on such Lender’s
capital or on the capital of such Lender’s holding company, if any, as a consequence of this
Agreement or the Letters of Credit issued or participated in, or the Loans made, by such Lender to
a level below that which such Lender or such Lender’s holding company could have achieved but for
such Change in Law (taking into consideration such Lender’s policies and the policies of such
Lender’s holding company with respect to capital adequacy), then from time to time the Account
Parties will pay to such Lender such additional amount or amounts as will compensate such Lender or
such Lender’s holding company for any such reduction suffered.

(c) Certificates from Lenders. A certificate of a Lender setting forth such Lender’s
good faith determination of the amount or amounts necessary to compensate such Lender or its
holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be
delivered to XL Capital and shall be conclusive absent manifest error. The Account Parties shall
pay such Lender the amount shown as due on any such certificate within 10 days after receipt
thereof by XL Capital.

(d) Delay in Requests. Failure or delay on the part of any Lender to demand
compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to
demand such compensation; provided that the Account Parties shall not be required to
compensate a Lender pursuant to this Section for any increased costs or reductions incurred more
than 90 days prior to the date that such Lender notifies XL Capital of the Change in Law giving
rise to such increased costs or reductions and of such Lender’s intention to claim compensation
therefor; provided further that, if the Change in Law giving rise to such increased
costs or reductions is retroactive, then the 90 day period referred to above shall be extended to
include the period of retroactive effect thereof.

(e) Application to Taxes. Notwithstanding anything in this Section to the contrary,
this Section shall not apply to Taxes, which shall be governed solely by Section 2.19.

SECTION 2.18. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurodollar Loan other than on the last day of an Interest Period therefor
(including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other
than on the last day of an Interest Period therefor, (c) the failure to borrow, convert, continue
or prepay any Loan on the date specified in any notice delivered pursuant hereto (regardless of
whether such notice is permitted to be revocable under Section 2.13(b) and is revoked in accordance
herewith), or (d) the assignment as a result of a request by XL Capital pursuant to Section 2.21(b)
of any Eurodollar Loan other than on the last day of an Interest Period therefor, then, in any such
event, the Account Parties shall compensate each Lender for the loss attributable to such event.
The loss to any Lender attributable to any such event shall be deemed to be an amount determined by
such Lender to be equal to the excess, if any, of (i) the amount of interest that such Lender would
pay for a deposit equal to the principal amount of such Loan for the period from the date of such
payment, conversion, failure or assignment to the last day of the then current Interest Period for
such Loan (or, in the case of a failure to borrow, convert or continue, the duration of the
Interest Period that would have resulted from such borrowing, conversion or continuation) if the
interest rate payable on such deposit were equal to the Adjusted LIBO Rate for such Interest
Period, over (ii) the amount of interest that such Lender would earn on such principal
amount for such period if such Lender were to invest such principal amount for such period at the
interest rate that would be bid by such Lender (or an affiliate of such Lender) for Dollar deposits
from other banks in the eurodollar market at the commencement of such period. A certificate of any
Lender setting forth such Lender’s good faith determination of any amount or amounts that such
Lender is entitled to receive pursuant to this Section shall be delivered to XL Capital and shall
be conclusive absent manifest error. The Account Parties shall pay such Lender the amount shown as
due on any such certificate within 10 days after receipt thereof by XL Capital.

SECTION 2.19. Taxes.

(a) Payments Free of Taxes. Any and all payments by or on account of any obligation
of the Account Parties hereunder shall be made free and clear of and without deduction for any
Indemnified Taxes; provided that if any Account Party shall be required to deduct any
Indemnified Taxes from such payments, then (i) the sum payable shall be increased as necessary so
that after making all required deductions (including deductions applicable to additional sums
payable under this Section) the Administrative Agent or Lender (as the case may be) receives an
amount equal to the sum it would have received had no such deductions been made, (ii) such Account
Party shall make such deductions and (iii) such Account Party shall pay the full amount deducted to
the relevant Governmental Authority in accordance with applicable law.

(b) Payment of Other Taxes by the Account Parties. In addition, each Account Party
shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.

(c) Indemnification by the Account Parties. The Account Parties shall indemnify the
Administrative Agent and each Lender, within 10 days after written demand to XL Capital therefor,
for the full amount of any Indemnified Taxes and Other Taxes (including Indemnified Taxes imposed
or asserted on or attributable to amounts payable under this Section) paid by the Administrative
Agent or such Lender, as the case may be, and any penalties, interest and reasonable expenses
arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes, as
the case may be, were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate setting forth the Administrative Agent’s or such Lender’s, as the case
may be, good faith determination of the amount of such payment or liability (along with a
reasonably detailed explanation and computation of such payment or liability) delivered to XL
Capital by a Lender, or by the Administrative Agent on its own behalf or on behalf of a Lender,
shall be conclusive as between such Lender or the Administrative Agent, as the case may be, and the
Account Parties absent manifest error.

(d) Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by any Account Party to a Governmental Authority, XL Capital on behalf of such
Account Party shall deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably satisfactory to the
Administrative Agent.

(e) Exemptions. Each Lender and the Administrative Agent shall, at the written
request of XL Capital, provide to any Account Party such form, certification or similar
documentation, if any (each duly completed, accurate and signed) as is currently required by any
Account Party Jurisdiction or any other jurisdiction, or comply with such other requirements, if
any, as is currently applicable in such Account Party Jurisdiction or any other jurisdiction, in
order to obtain an exemption from, or reduced rate of, deduction, payment or withholding of
Indemnified Taxes or Other Taxes to which such Lender or the Administrative Agent is entitled
pursuant to an applicable tax treaty or the law of such Account Party Jurisdiction or any other
jurisdiction; provided that XL Capital shall have furnished to such Lender or the
Administrative Agent in a reasonably timely manner copies of such documentation and notice of such
requirements together with applicable instructions. Upon the reasonable request of XL Capital in
writing, each Lender and the Administrative Agent will provide to XL Capital such form,
certification or similar documentation (each duly completed, accurate and signed) as may in the
future be required by any Account Party Jurisdiction or any other jurisdiction, or comply with such
other requirements, if any, as may be applicable in such Account Party Jurisdiction or any other
jurisdiction in order to obtain an exemption from, or reduced rate of, deduction, payment or
withholding of Indemnified Taxes or Other Taxes to which such Lender or the Administrative Agent is
entitled pursuant to an applicable tax treaty or the law of the relevant jurisdiction. In
addition, each Lender agrees from time to time when a lapse in time or change in circumstances
renders the previous documentation obsolete or inaccurate in any material respect, it will deliver
to the Account Parties such properly completed and executed documentation as will permit such
payments to continue to be made without withholding or at a reduced rate, or notify the Account
Parties that it is unable to do so.

(f) If the Administrative Agent or a Lender determines, in its reasonable discretion, that it
has received a refund from the relevant Governmental Authority (in cash or as an offset against
another tax liability owing to such Governmental Authority) of any Taxes or Other Taxes as to which
it has been indemnified by an Account Party or with respect to which an Account Party has paid
additional amounts pursuant to this Section, it shall pay over such refund to such Account Party
(but only to the extent of indemnity payments made, or additional amounts paid, by such Account
Party under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net
of all out-of-pocket expenses of the Administrative Agent or such Lender and without interest
(other than any interest paid by the relevant Governmental Authority with respect to such refund);
provided that such Account Party, upon the request of the Administrative Agent or such
Lender, agrees to repay the amount paid over to such Account Party (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such
Lender in the event the Administrative Agent or such Lender is required to repay such refund to
such Governmental Authority. This Section shall not be construed to require the Administrative
Agent or any Lender to make available its tax returns (or any other information relating to its
taxes not expressly required to be made available hereunder which it reasonably deems confidential)
to any Account Party or any other Person.

SECTION 2.20. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

(a) Payments by the Account Parties. The Account Parties shall make each payment
required to be made by them hereunder (whether of principal, interest, fees or reimbursement of LC
Disbursements, under Section 2.17, 2.18 or 2.19, or otherwise) or under any other Credit Document
(except to the extent otherwise provided therein) prior to 12:00 noon, New York City time, on the
date when due, in immediately available funds, without set-off or counterclaim; provided
that any payments in respect of Alternative Currency Letters of Credit shall be made in the manner
(including the time and place of payment) as shall have been separately agreed between the relevant
Account Party and Lender pursuant to Section 2.06. Any amounts received after such time on any
date may, in the discretion of the Administrative Agent, be deemed to have been received on the
next succeeding Business Day for purposes of calculating interest thereon. All such payments shall
be made to the Administrative Agent at its offices at 270 Park Avenue, New York, New York, except
payments pursuant to Sections 2.17, 2.18, 2.19 and 10.03, which shall be made directly to the
Persons entitled thereto. The Administrative Agent shall distribute any such payments received by
it for account of any other Person to the appropriate recipient promptly following receipt thereof.
If any payment hereunder shall be due on a day that is not a Business Day, the date for payment
shall be extended to the next succeeding Business Day and, in the case of any payment accruing
interest, interest thereon shall be payable for the period of such extension. All payments
hereunder shall be made in Dollars.

(b) Application of Insufficient Payments. If at any time insufficient funds are
received by and available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied
(i) first, to pay interest and fees then due hereunder, ratably among the parties entitled thereto
in accordance with the amounts of interest and fees then due to such parties, and (ii) second, to
pay principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then
due to such parties.

(c) Pro Rata Treatment. Except to the extent otherwise provided herein: (i) each
reimbursement of LC Disbursements (other than in respect of Alternative Currency Letters of Credit)
shall be made to the relevant Lenders, each Borrowing shall be made from the Lenders, each payment
of fees under Section 2.14 shall be made for account of the relevant Lenders, and each termination
or reduction of the amount of the Commitments under Section 2.11 shall be applied to the respective
Commitments (or, in the case of any Borrowing, the respective commitment to make Loans hereunder)
of the Lenders, in each case pro rata according to the amounts of their respective Commitments (or,
in the case of any Borrowing, the respective commitment to make Loans hereunder or, in the case of
any such reimbursement or payment after the termination of the Commitments, pro rata according to
the Aggregate Credit Exposure); (ii) each Borrowing shall be allocated pro rata among the Lenders
according to the amounts of their respective Commitments (in the case of the making of Loans) or
their respective Loans that are to be included in such Borrowing (in the case of conversions and
continuations of Loans); (iii) each payment or prepayment of principal of Loans by any Account
Party shall be made for account of the Lenders pro rata according to the respective unpaid
principal amounts of the Loans of such Account Party; and (iv) each payment of interest on Loans by
an Account Party shall be made for account of the Lenders pro rata according to the amounts of
interest on such Loans then due and payable thereunder.

(d) Sharing of Payments by Lenders. If any Lender shall, by exercising any right of
set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on
any of its Loans or LC Disbursements (other than with respect to Alternative Currency Letters of
Credit) resulting in such Lender receiving payment of a greater proportion of the aggregate amount
of its Loans and/or LC Disbursements (other than with respect to Alternative Currency Letters of
Credit) and accrued interest thereon then due than the proportion received by any other relevant
Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value)
participations in the Loans and/or LC Disbursements (other than with respect to Alternative
Currency Letters of Credit) of such other Lenders to the extent necessary so that the benefit of
all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of
principal of and accrued interest on their respective Loans and/or LC Disbursements (other than
with respect to Alternative Currency Letters of Credit); provided that (i) if any such
participations are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price restored to the extent of
such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed
to apply to any payment made by any Account Party pursuant to and in accordance with the express
terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of
or sale of a participation in any of its Loans or LC Disbursements to any assignee or participant,
other than to any Account Party or any Subsidiary or Affiliate thereof (as to which the provisions
of this paragraph shall apply). Each Account Party consents to the foregoing and agrees, to the
extent it may effectively do so under applicable law, that any Lender acquiring a participation
pursuant to the foregoing arrangements may exercise against such Account Party rights of set-off
and counterclaim with respect to such participation as fully as if such Lender were a direct
creditor of such Account Party in the amount of such participation.

(e) Presumptions of Payment. Unless the Administrative Agent shall have received
notice from an Account Party prior to the date on which any payment is due to the Administrative
Agent for account of the relevant Lenders hereunder that such Account Party will not make such
payment, the Administrative Agent may assume that such Account Party has made such payment on such
date in accordance herewith and may, in reliance upon such assumption, distribute to the relevant
Lenders the amount due. In such event, if the relevant Account Party has not in fact made such
payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith
on demand the amount so distributed to such Lender with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the Federal Funds Effective Rate.

(f) Certain Deductions by the Administrative Agent. If any Lender shall fail to make
any payment required to be made by it pursuant to Section 2.20(e), then the Administrative Agent
may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for account of such Lender to satisfy such Lender’s
obligations under such Sections until all such unsatisfied obligations are fully paid.

SECTION 2.21. Mitigation Obligations; Replacement of Lenders.

(a) Designation of a Different Lending Office. If any Lender requests compensation
under Section 2.17, or if any Account Party is required to pay any additional amount or
indemnification payment to any Lender or any Governmental Authority for account of any Lender
pursuant to Section 2.19, then such Lender shall use reasonable efforts to designate a different
lending office for funding or booking its Loans and/or Letters of Credit hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or Affiliates, if, in the
reasonable judgment of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.17 or 2.19, as the case may be, in the future and (ii) would
not subject such Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender. Each Account Party hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or assignment.

(b) Replacement of Lenders. If any Lender requests compensation under Section 2.17,
or if any Account Party is required to pay any additional amount to any Lender or any Governmental
Authority for account of any Lender pursuant to Section 2.19, or if any Lender defaults in its
obligation to fund Loans or to make LC Disbursements hereunder, or if any Lender under the Letter
of Credit Tranche ceases to be a NAIC Approved Bank, then XL Capital may, at its sole expense and
effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions contained in
Section 10.04), all its interests, rights and obligations under this Agreement to an assignee
selected by XL Capital that shall assume such obligations (which assignee may be another Lender, if
a Lender accepts such assignment); provided that (i) XL Capital shall have received the
prior written consent of the Administrative Agent, which consent shall not unreasonably be
withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and/or LC Disbursements, accrued interest thereon, accrued fees and all
other amounts payable to it hereunder, from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the relevant Account Party (in the case of all other
amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under
Section 2.17 or payments required to be made pursuant to Section 2.19, such assignment will result
in a reduction in such compensation or payments. A Lender shall not be required to make any such
assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise,
the circumstances entitling the relevant Account Party to require such assignment and delegation
cease to apply.

ARTICLE III

GUARANTEE

SECTION 3.01. The Guarantee. Each Guarantor hereby jointly and severally guarantees
to each Lender and the Administrative Agent and their respective successors and assigns the prompt
payment in full when due (whether at stated maturity, by acceleration or otherwise) of the
principal of and interest on the Loans and LC Disbursements (and interest thereon) made by the
Lenders to each of the Account Parties (other than such Guarantor in its capacity as an Account
Party hereunder) and all other amounts from time to time owing to the Lenders or the Administrative
Agent by such Account Parties under this Agreement, in each case strictly in accordance with the
terms thereof (such obligations being herein collectively called the “Guaranteed
Obligations”). Each Guarantor hereby further jointly and severally agrees that if any Account
Party (other than such Guarantor in its capacity as an Account Party hereunder) shall fail to pay
in full when due (whether at stated maturity, by acceleration or otherwise) any of the Guaranteed
Obligations, such Guarantor will promptly pay the same, without any demand or notice whatsoever,
and that in the case of any extension of time of payment or renewal of any of the Guaranteed
Obligations, the same will be promptly paid in full when due (whether at extended maturity, by
acceleration or otherwise) in accordance with the terms of such extension or renewal.

SECTION 3.02. Obligations Unconditional. The obligations of the Guarantors under
Section 3.01 are absolute and unconditional, joint and several, irrespective of the value,
genuineness, validity, regularity or enforceability of the obligations of the Account Parties under
this Agreement or any other agreement or instrument referred to herein or therein, or any
substitution, release or exchange of any other guarantee of or security for any of the Guaranteed
Obligations, and, to the fullest extent permitted by applicable law, irrespective of any other
circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense
of a surety or guarantor, it being the intent of this Article that the obligations of the
Guarantors hereunder shall be absolute and unconditional, joint and several, under any and all
circumstances. Without limiting the generality of the foregoing, it is agreed that the occurrence
of any one or more of the following shall not alter or impair the liability of the Guarantors
hereunder, which shall remain absolute and unconditional as described above:

(i) at any time or from time to time, without notice to the Guarantors, the time for
any performance of or compliance with any of the Guaranteed Obligations shall be extended,
or such performance or compliance shall be waived;

(ii) any of the acts mentioned in any of the provisions of this Agreement or any other
agreement or instrument referred to herein shall be done or omitted; or

(iii) the maturity of any of the Guaranteed Obligations shall be accelerated, or any of
the Guaranteed Obligations shall be modified, supplemented or amended in any respect, or any
right under this Agreement or any other agreement or instrument referred to herein shall be
waived or any other guarantee of any of the Guaranteed Obligations or any security therefor
shall be released or exchanged in whole or in part or otherwise dealt with.

The Guarantors hereby expressly waive diligence, presentment, demand of payment, protest and all
notices whatsoever, and any requirement that the Administrative Agent or any Lender exhaust any
right, power or remedy or proceed against any Account Party under this Agreement or any other
agreement or instrument referred to herein, or against any other Person under any other guarantee
of, or security for, any of the Guaranteed Obligations.

SECTION 3.03. Reinstatement. The obligations of the Guarantors under this Article
shall be automatically reinstated if and to the extent that for any reason any payment by or on
behalf of any Account Party in respect of the Guaranteed Obligations is rescinded or must be
otherwise restored by any holder of any of the Guaranteed Obligations, whether as a result of any
proceedings in bankruptcy or reorganization or otherwise, and the Guarantors jointly and severally
agree that they will indemnify the Administrative Agent and each Lender on demand for all
reasonable costs and expenses (including reasonable fees of counsel) incurred by the Administrative
Agent or such Lender in connection with such rescission or restoration, including any such costs
and expenses incurred in defending against any claim alleging that such payment constituted a
preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

SECTION 3.04. Subrogation. The Guarantors hereby jointly and severally agree that
until the payment and satisfaction in full of all Guaranteed Obligations and the expiration and
termination of the Commitments they shall not exercise any right or remedy arising by reason of any
performance by them of their guarantee in Section 3.01, whether by subrogation or otherwise,
against any Account Party or any other guarantor of any of the Guaranteed Obligations or any
security for any of the Guaranteed Obligations.

SECTION 3.05. Remedies. The Guarantors jointly and severally agree that, as between
the Guarantors and the Lenders, the obligations of the Account Parties under this Agreement may be
declared to be forthwith due and payable as provided in Article VIII (and shall be deemed to have
become automatically due and payable in the circumstances provided in Article VIII) for purposes of
Section 3.01 notwithstanding any stay, injunction or other prohibition preventing such declaration
(or such obligations from becoming automatically due and payable) as against any Account Party and
that, in the event of such declaration (or such obligations being deemed to have become
automatically due and payable), such obligations (whether or not due and payable by any Account
Party) shall forthwith become due and payable by the Guarantors for purposes of Section 3.01.

SECTION 3.06. Continuing Guarantee. The guarantee in this Article is a continuing
guarantee, and shall apply to all Guaranteed Obligations whenever arising.

SECTION 3.07. Rights of Contribution. The Guarantors (other than XL Capital) hereby
agree, as between themselves, that if any such Guarantor shall become an Excess Funding Guarantor
(as defined below) by reason of the payment by such Guarantor of any Guaranteed Obligations, each
other Guarantor (other than XL Capital) shall, on demand of such Excess Funding Guarantor (but
subject to the next sentence), pay to such Excess Funding Guarantor an amount equal to such
Guarantor’s Pro Rata Share (as defined below and determined, for this purpose, without reference to
the properties, debts and liabilities of such Excess Funding Guarantor) of the Excess Payment (as
defined below) in respect of such Guaranteed Obligations. The payment obligation of a Guarantor to
any Excess Funding Guarantor under this Section shall be subordinate and subject in right of
payment to the prior payment in full of the obligations of such Guarantor under the other
provisions of this Article III and such Excess Funding Guarantor shall not exercise any right or
remedy with respect to such excess until payment and satisfaction in full of all of such
obligations.

For purposes of this Section, (i) “Excess Funding Guarantor” means, in respect of any
Guaranteed Obligations, a Guarantor that has paid an amount in excess of its Pro Rata Share of such
Guaranteed Obligations, (ii) “Excess Payment” means, in respect of any Guaranteed
Obligations, the amount paid by an Excess Funding Guarantor in excess of its Pro Rata Share of such
Guaranteed Obligations and (iii) “Pro Rata Share” means, for any Guarantor, the ratio
(expressed as a percentage) of (x) the amount by which the aggregate present fair saleable value of
all properties of such Guarantor (excluding any shares of stock of any other Guarantor) exceeds the
amount of all the debts and liabilities of such Guarantor (including contingent, subordinated,
unmatured and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder
and any obligations of any other Guarantor that have been Guaranteed by such Guarantor) to (y) the
amount by which the aggregate fair saleable value of all properties of all of the Guarantors (other
than XL Capital) exceeds the amount of all the debts and liabilities (including contingent,
subordinated, unmatured and unliquidated liabilities, but excluding the obligations of the
Guarantors under this Article III) of all of the Guarantors (other than XL Capital), determined
(A) with respect to any Guarantor that is a party hereto on the date hereof, as of the date hereof,
and (B) with respect to any other Guarantor, as of the date such Guarantor becomes a Guarantor
hereunder.

SECTION 3.08. General Limitation on Guarantee Obligations. In any action or
proceeding involving any corporate law, or any bankruptcy, insolvency, reorganization or other law
affecting the rights of creditors generally, if the obligations of any Guarantor under Section 3.01
would otherwise, taking into account the provisions of Section 3.07, be held or determined to be
void, invalid or unenforceable, or subordinated to the claims of any other creditors, on account of
the amount of its liability under Section 3.01, then, notwithstanding any other provision hereof to
the contrary, the amount of such liability shall, without any further action by such Guarantor, any
Lender, the Administrative Agent or any other Person, be automatically limited and reduced to the
highest amount that is valid and enforceable and not subordinated to the claims of other creditors
as determined in such action or proceeding.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

Each Account Party represents and warrants to the Lenders that:

SECTION 4.01. Organization; Powers. Such Account Party and each of its Significant
Subsidiaries is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite power and authority to carry on its business as
now conducted and, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and
is in good standing in, every jurisdiction where such qualification is required.

SECTION 4.02. Authorization; Enforceability. The Transactions are within such Account
Parties’ corporate powers and have been duly authorized by all necessary corporate and, if
required, by all necessary shareholder action. This Agreement has been duly executed and delivered
by such Account Party and constitutes a legal, valid and binding obligation of such Account Party,
enforceable against such Account Party in accordance with its terms, except as such enforceability
may be limited by (a) bankruptcy, insolvency, reorganization, moratorium, examination or similar
laws of general applicability affecting the enforcement of creditors’ rights and (b) the
application of general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

SECTION 4.03. Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of (including any exchange control approval), registration or
filing with, or any other action by, any Governmental Authority, except such as have been obtained
or made and are in full force and effect, (b) will not violate any applicable law or regulation or
the charter, by-laws or other organizational documents of such Account Party or any of its
Significant Subsidiaries or any order of any Governmental Authority, (c) will not violate or result
in a default under any material indenture, agreement or other instrument binding upon such Account
Party or any of its Significant Subsidiaries or assets, or give rise to a right thereunder to
require any payment to be made by any such Person, and (d) will not result in the creation or
imposition of any Lien on any asset of such Account Party or any of its Significant Subsidiaries.

SECTION 4.04. Financial Condition; No Material Adverse Change.

(a) Financial Condition. Such Account Party (other than XL America) has heretofore
furnished to the Lenders the balance sheet and statements of income, stockholders’ equity and cash
flows of such Account Party and (other than for XL Insurance or XL Re) its consolidated
Subsidiaries (A) as of and for the fiscal year ended December 31, 2006, reported on by
PricewaterhouseCoopers LLP, independent public accountants (as provided in XL Capital’s Report on
Form 10-K filed with the SEC for the fiscal year ended December 31, 2006), and (B) as of and for
the fiscal quarter ended March 31, 2007, as provided in XL Capital’s Report on Form 10-Q filed with
the SEC for the fiscal quarter ended March 31, 2007. Such financial statements present fairly, in
all material respects, the financial position and results of operations and cash flows of such
Account Party and (other than for XL Insurance or XL Re) its respective consolidated Subsidiaries
as of such dates and for such periods in accordance with GAAP or (in the case of XL Insurance or XL
Re) SAP, subject to year-end audit adjustments and the absence of footnotes in the case of the
statements referred to in clause (B) of the first sentence of this paragraph.

(b) No Material Adverse Change. Since December 31, 2006, there has been no material
adverse change in the assets, business, financial condition or operations of such Account Party and
its Subsidiaries, taken as a whole.

SECTION 4.05. Properties.

(a) Property Generally. Such Account Party and each of its Significant Subsidiaries
has good title to, or valid leasehold interests in, all its real and personal property material to
its business, subject only to Liens permitted by Section 7.03 and except for minor defects in title
that do not interfere with its ability to conduct its business as currently conducted or to utilize
such properties for their intended purposes.

(b) Intellectual Property. Such Account Party and each of its Significant
Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other
intellectual property material to its business, and the use thereof by such Account Party and its
Subsidiaries does not infringe upon the rights of any other Person, except for any such
infringements that, individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

SECTION 4.06. Litigation and Environmental Matters.

(a) Actions, Suits and Proceedings. Except as disclosed in Schedule III or as
routinely encountered in claims activity, there are no actions, suits or proceedings by or before
any arbitrator or Governmental Authority now pending against or, to the knowledge of such Account
Party, threatened against or affecting such Account Party or any of its Subsidiaries (i) as to
which there is a reasonable possibility of an adverse determination and that could reasonably be
expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that
involve this Agreement or the Transactions.

(b) Environmental Matters. Except as disclosed in Schedule IV and except with respect
to any other matters that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect, neither such Account Party nor any of its Subsidiaries (i) has
failed to comply with any Environmental Law or to obtain, maintain or comply with any permit,
license or other approval required for its business under any Environmental Law, (ii) has incurred
any Environmental Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental Liability.

Schedules III and IV referred to in this Section 4.06 shall be deemed automatically updated
from time to time to include disclosures included in filings made by XL Capital with the SEC
pursuant to the Securities Exchange Act of 1934, as amended, after the Effective Date, it being
understood, however, that any such updates shall not affect or limit in any manner any of the
obligations of the Account Parties under this Agreement in effect immediately prior to such
disclosure and shall not be taken into account for purposes of the last paragraph of Section
2.11(c), Section 5.02 and clause (c) of Article VIII.

SECTION 4.07. Compliance with Laws and Agreements. Such Account Party and each of its
Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other instruments binding upon
it or its property, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect. No Default has occurred and is
continuing.

SECTION 4.08. Investment Company Status. Such Account Party is not an “investment
company” as defined in, or subject to regulation under, the Investment Company Act of 1940.

SECTION 4.09. Taxes. Such Account Party and each of its Subsidiaries has timely filed
or caused to be filed all Tax returns and reports required to have been filed and has paid or
caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being
contested in good faith by appropriate proceedings and for which such Person has set aside on its
books adequate reserves or (b) to the extent that the failure to file any such Tax return or pay
any such Taxes could not reasonably be expected to result in a Material Adverse Effect.

SECTION 4.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the
most recent financial statements reflecting such amounts, exceed the fair market value of the
assets of such Plan by an amount that could reasonably be expected to result in a Material Adverse
Effect.

Except as could not reasonably be expected to result in a Material Adverse Effect, (i) all
contributions required to be made by any Account Party or any of their Subsidiaries with respect to
a Non-U.S. Benefit Plan have been timely made, (ii) each Non-U.S. Benefit Plan has been maintained
in compliance with its terms and with the requirements of any and all applicable laws and has been
maintained, where required, in good standing with the applicable Governmental Authority and (iii)
neither any Account Party nor any of their Subsidiaries has incurred any obligation in connection
with the termination or withdrawal from any Non-U.S. Benefit Plan.

SECTION 4.11. Disclosure. The reports, financial statements, certificates or other
information furnished by such Account Party to the Lenders in connection with the negotiation of
this Agreement or delivered hereunder (taken as a whole) do not contain any material misstatement
of fact or omit to state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided that, with respect to
projected financial information, such Account Party represents only that such information was
prepared in good faith based upon assumptions believed to be reasonable at the time.

SECTION 4.12. Use of Credit. Neither such Account Party nor any of its Subsidiaries
is engaged principally, or as one of its important activities, in the business of extending credit
for the purpose, whether immediate, incidental or ultimate, of buying or carrying Margin Stock, and
no Letter of Credit will be used in connection with buying or carrying any Margin Stock. No part
of the proceeds of any Loan hereunder will be used to buy or carry any Margin Stock (except for
repurchases of the capital stock of XL Capital and purchases of Margin Stock in accordance with XL
Capital’s Statement of Investment Policy Objectives and Guidelines as in effect on the date hereof
or as it may be changed from time to time by a resolution duly adopted by the board of directors of
XL Capital (or any committee thereof)). The purchase of any Margin Stock with the proceeds of any
Loan will not be in violation of Regulation U or X of the Board and, after applying the proceeds of
such Loan, not more than 25% of the value of the assets of XL Capital and its Subsidiaries taken as
a whole consists or will consist of Margin Stock.

SECTION 4.13. Subsidiaries. Set forth in Schedule V is a complete and correct list of
all of the Subsidiaries of XL Capital as of March 31, 2007, together with, for each such
Subsidiary, (i) the jurisdiction of organization of such Subsidiary, (ii) each Person holding
ownership interests in such Subsidiary and (iii) the percentage of ownership of such Subsidiary
represented by such ownership interests. Except as disclosed in Schedule V, (x) each of XL Capital
and its Subsidiaries owns, free and clear of Liens, and has the unencumbered right to vote, all
outstanding ownership interests in each Person shown to be held by it in Schedule V, (y) all of the
issued and outstanding capital stock of each such Person organized as a corporation is validly
issued, fully paid and nonassessable and (z) except as disclosed in filings of XL Capital with the
SEC prior to the date hereof, there are no outstanding Equity Rights with respect to any Account
Party.

SECTION 4.14. Withholding Taxes. Based upon information with respect to each Lender
provided by each Lender to the Administrative Agent, as of the date hereof, the payment of the LC
Disbursements and interest thereon, principal of and interest on the Loans, the fees under Section
2.14 and all other amounts payable hereunder will not be subject, by withholding or deduction, to
any Indemnified Taxes imposed by Bermuda or the Cayman Islands.

SECTION 4.15. Stamp Taxes. To ensure the legality, validity, enforceability or
admissibility in evidence of this Agreement or any promissory notes evidencing Loans made (or to be
made), it is not necessary, as of the date hereof, that this Agreement or such promissory notes or
any other document be filed or recorded with any Governmental Authority in Bermuda or the Cayman
Islands, or that any stamp or similar tax be paid on or in respect of this Agreement in any such
jurisdiction, or such promissory notes or any other document other than such filings and
recordations that have already been made and such stamp or similar taxes that have been paid.

SECTION 4.16. Legal Form. Each of this Agreement and any promissory notes evidencing
Loans made (or to be made) is in proper legal form under the laws of any Account Party Jurisdiction
for the admissibility thereof in the courts of such Account Party Jurisdiction.

ARTICLE V

CONDITIONS

SECTION 5.01. Effective Date. The obligations of the Lenders (or the Issuing Lender,
as the case may be) to issue or continue Letters of Credit and to make Loans hereunder are subject
to the receipt by the Administrative Agent of each of the following documents, each of which shall
be satisfactory to the Administrative Agent (and to the extent specified below, to each Lender) in
form and substance (or such condition shall have been waived in accordance with Section 10.02):

(a) Executed Counterparts. From each party hereto either (i) a counterpart of
this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the
Administrative Agent (which may include telecopy transmission of a signed signature page to
this Agreement) that such party has signed a counterpart of this Agreement.

(b) Opinions of Counsel to the Obligors. Opinions, each dated the Effective
Date, of (i) Kirstin R. Gould, Esq., counsel to XL Capital, substantially in the form of
Exhibit B-1, (ii) Richard G. McCarty, Esq., counsel to XL America, substantially in the form
of Exhibit B-2, (iii) Cahill Gordon & Reindel llp, special U.S. counsel for the
Obligors, substantially in the form of Exhibit B-3, (iv) Conyers, Dill & Pearman, special
Bermuda counsel to XL Insurance and XL Re, substantially in the form of Exhibit B-4 and (v)
Appleby, special Cayman Islands counsel to XL Capital, substantially in the form of
Exhibit B-5.

(c) Opinion of Special New York Counsel to JPMCB. An opinion, dated the
Effective Date, of Milbank, Tweed, Hadley & McCloy LLP, special New York counsel to JPMCB,
substantially in the form of Exhibit C (and JPMCB hereby instructs such counsel to deliver
such opinion to the Lenders).

(d) Corporate Documents. Such documents and certificates as the Administrative
Agent or its counsel may reasonably request relating to the organization, existence and good
standing, if applicable, of the Obligors, the authorization of the Transactions and any
other legal matters relating to the Obligors, this Agreement or the Transactions, all in
form and substance reasonably satisfactory to the Administrative Agent and its counsel.

(e) Officer’s Certificate. A certificate, dated the Effective Date and signed
by the President, a Vice President or a Financial Officer of XL Capital, confirming
compliance with the conditions set forth in clauses (a) and (b) of the first sentence of
Section 5.02.

(f) Existing Credit Agreements; Existing Letters of Credit. Evidence that (i)
the Account Parties shall have paid in full all principal of and interest accrued on the
loans and reimbursement obligations under the Existing Credit Agreements and all fees,
expenses and other amounts owing by the Account Parties thereunder and (ii) the Commitments
under (and as defined in) the Existing Credit Agreements have terminated. In addition, the
Administrative Agent shall have (i) received a notice satisfactory to the Administrative
Agent from XL Capital designating whether any of the Syndicated Letters of Credit,
Non-Syndicated Letters of Credit and/or Participated Letters of Credit under (and as defined
in) the Existing Credit Agreements outstanding immediately prior to the Effective Date are
to be continued under this Agreement and (ii) with respect to each such Non-Syndicated
Letters of Credit to be continued hereunder, evidence that such Non-Syndicated Letters of
Credit shall have been either amended in the manner contemplated by Section 2.04(l) or
replaced with one or more Non-Syndicated Letters of Credit in favor of the relevant
beneficiary issued by the Lenders having Commitments hereunder as of the Effective Date (or
arrangements satisfactory to the Administrative Agent for such amendment or replacement, as
applicable, as promptly as practicable following the Effective Date shall have been made).
The Obligors and each Lender party hereto that is also a party to either of the Existing
Credit Agreements hereby agree that, as of the Effective Date, the Commitments (as defined
in the respective Existing Credit Agreement) under such Existing Credit Agreement shall be
terminated automatically (it being agreed that this Agreement constitutes notice of such
termination to each such Lender and that pursuant hereto the requirement under Section
2.11(b) of such Existing Credit Agreements for prior notice of such termination is hereby
waived by each such Lender).

(g) Other Documents. Such other documents as the Administrative Agent or any
Lender or special New York counsel to JPMCB may reasonably request.

The obligation of any Lender to make its initial extension of credit hereunder is also subject
to the payment by XL Capital of such fees as XL Capital shall have agreed to pay to any Lender or
the Administrative Agent in connection herewith, including the reasonable fees and expenses of
Milbank, Tweed, Hadley & McCloy LLP, special New York counsel to JPMCB, in connection with the
negotiation, preparation, execution and delivery of this Agreement and the other Credit Documents
and the extensions of credit hereunder (to the extent that reasonably detailed statements for such
fees and expenses have been delivered to XL Capital).

The Administrative Agent shall notify the Account Parties and the Lenders of the Effective
Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the
obligations of the Lenders (or the Issuing Lender, as the case may be) to issue or continue,
Letters of Credit or to make Loans hereunder shall not become effective unless each of the
foregoing conditions is satisfied (or waived pursuant to Section 10.02) at or prior to 5:00 p.m.,
New York City time, on June 22, 2007 (and, in the event such conditions are not so satisfied or
waived, the Commitments shall terminate at such time).

SECTION 5.02. Each Credit Event. The obligation of each Lender to issue, continue,
amend, renew or extend any Letter of Credit or to make any Loan is additionally subject to the
satisfaction of the following conditions:

(a) the representations and warranties of the Obligors set forth in this Agreement
(other than, at any time after the Effective Date, in Section 4.04(b)) shall be true and
correct on and as of the date of issuance, continuation, amendment, renewal or extension of
such Letter of Credit or the date of such Loan, as applicable (or, if any such
representation or warranty is expressly stated to have been made as of a specific date, as
of such specific date);

(b) at the time of and immediately after giving effect to the issuance, amendment,
renewal or extension of such Letter of Credit or such Loan, as applicable, no Default shall
have occurred and be continuing; and

(c) in the case of any Alternative Currency Letter of Credit, receipt by the
Administrative Agent of a request for offers as required by Section 2.06(a).

Each issuance, continuation, amendment, renewal or extension of a Letter of Credit and each
Borrowing shall be deemed to constitute a representation and warranty by the Obligors on the date
thereof as to the matters specified in clauses (a) and (b) of the immediately preceding sentence.

ARTICLE VI

AFFIRMATIVE COVENANTS

Until the Commitments have expired or been terminated, the principal of and interest on each
Loan and all fees payable hereunder shall have been paid in full, all Letters of Credit shall have
expired or terminated and all LC Disbursements shall have been reimbursed, the Account Parties
covenant and agree with the Lenders that:

SECTION 6.01. Financial Statements and Other Information. Each Account Party will
furnish to the Administrative Agent and each Lender:

(a) (i) by April 10 of each year, the audited balance sheet and related statements of
operations, stockholders’ equity and cash flows of XL Capital and its consolidated
Subsidiaries as of the end of and for the immediately preceding fiscal year, setting forth
in comparative form the figures for (or, in the case of the balance sheet, as of the end of)
the previous fiscal year (if such figures were already produced for such corresponding
period), reported on by independent public accountants of recognized national standing
(without a “going concern” or like qualification or exception and without any qualification
or exception as to the scope of such audit) to the effect that such financial statements
present fairly in all material respects the financial condition and results of operations of
XL Capital and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied (it being understood that delivery to the Lenders of XL Capital’s
Report on Form 10-K filed with the SEC shall satisfy the financial statement delivery
requirements under this clause (i) so long as the financial information required to be
contained in such report is substantially the same as the financial information required
under this clause (i)); and (ii) by May 15 of each year, the audited balance sheet and
related statements of operations, stockholders’ equity and cash flows of each of XL
Insurance and XL Re as of the end of and for the immediately preceding year, setting forth
in each case in comparative form the figures for (or, in the case of the balance sheet, as
of the end of) the previous fiscal year (if such figures were already produced for such
corresponding period), in each case reported on by independent public accountants of
recognized national standing (without a “going concern” or like qualification or exception
and without any qualification or exception as to the scope of such audit) to the effect that
such financial statements present fairly in all material respects the financial condition
and results of operations of XL Insurance or XL Re, as the case may be, in accordance with
SAP consistently applied;

(b) by June 15 of each year, (i) the unaudited consolidated balance sheet and related
statements of operations, stockholders’ equity and cash flows of XL America and its
consolidated Subsidiaries as of the end of and for the immediately preceding fiscal year,
setting forth in each case in comparative form the figures for (or, in the case of the
balance sheet, as of the end of) the previous fiscal year (if such figures were already
produced for such corresponding period), certified by a Financial Officer of XL America as
presenting fairly in all material respects the financial condition and results of operations
of XL America and its consolidated Subsidiaries on a consolidated basis in accordance with
GAAP consistently applied, subject to normal year-end audit adjustments and the absence of
footnotes; and (ii) audited statutory financial statements for each Insurance Subsidiary of
XL America as of the end of and for the immediately preceding fiscal year, in each case
reported on by independent public accountants of recognized national standing (without a
“going concern” or like qualification or exception and without any qualification or
exception as to the scope of such audit) to the effect that such audited financial
statements present fairly in all material respects the financial condition and results of
operations of such Insurance Subsidiary in accordance with SAP consistently applied;

(c) within 60 days after the end of each of the first three fiscal quarters of each
fiscal year of XL Capital, (i) the unaudited consolidated balance sheet and related
statements of operations, stockholders’ equity and cash flows of XL Capital and its
consolidated Subsidiaries as of the end of and for such fiscal quarter and the then elapsed
portion of the fiscal year, setting forth in each case in comparative form the figures for
(or, in the case of the balance sheet, as of the end of) the corresponding period or periods
of the previous fiscal year (if such figures were already produced for such corresponding
period or periods), all certified by a Financial Officer of XL Capital as presenting fairly
in all material respects the financial condition and results of operations of XL Capital and
its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied, subject to normal year-end audit adjustments and the absence of footnotes (it being
understood that delivery to the Lenders of XL Capital’s Report on Form 10-Q filed with the
SEC shall satisfy the financial statement delivery requirements under this clause (i) so
long as the financial information required to be contained in such report is substantially
the same as the financial information required under this clause (i)); and (ii) an unaudited
consolidated balance sheet and related statements of operations, stockholders’ equity and
cash flows of each of XL America, XL Insurance and XL Re and its consolidated Subsidiaries
as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal
year, setting forth in each case in comparative form the figures for (or, in the case of the
balance sheet, as of the end of) the corresponding period or periods of the previous fiscal
year (if such figures were already produced for such corresponding period or periods), all
certified by a Financial Officer of the respective Account Party as presenting fairly in all
material respects the financial condition and results of operations of such Account Party
and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the absence of
footnotes;

(d) concurrently with any delivery of financial statements under paragraph (a), (b) or
(c) of this Section, a certificate signed on behalf of each Account Party by a Financial
Officer (i) certifying as to whether a Default has occurred and, if a Default has occurred,
specifying the details thereof and any action taken or proposed to be taken with respect
thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with
Sections 7.03, 7.05, 7.06 and 7.07 and (iii) stating whether any change in GAAP or (in the
case of XL Insurance, XL Re and any Insurance Subsidiary of XL America) SAP or in the
application thereof has occurred since the date of the audited financial statements referred
to in Section 4.04 and, if any such change has occurred, specifying any material effect of
such change on the financial statements accompanying such certificate;

(e) concurrently with any delivery of financial statements under paragraphs (a) and
(b)(ii) of this Section, a certificate of the accounting firm that reported on such
financial statements stating whether they obtained knowledge during the course of their
examination of such financial statements of any Default (which certificate may be limited to
the extent required by accounting rules or guidelines);

(f) promptly after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by such Account Party or any of its
respective Subsidiaries with the SEC, or any Governmental Authority succeeding to any or all
of the functions of said Commission, or with any U.S. or other securities exchange, or
distributed by such Account Party to its shareholders generally, as the case may be;

(g) concurrently with any delivery of financial statements under paragraph (a), (b) or
(c) of this Section, a certificate of a Financial Officer of XL Capital, setting forth on a
consolidated basis for XL Capital and its consolidated Subsidiaries as of the end of the
fiscal year or quarter to which such certificate relates (i) the aggregate book value of
assets which are subject to Liens permitted under Section 7.03(h) and the aggregate book
value of liabilities which are subject to Liens permitted under Section 7.03(h)(it being
understood that the reports required by paragraphs (a), (b) and (c) of this Section shall
satisfy the requirement of this clause (i) of this paragraph (g) if such reports set forth
separately, in accordance with GAAP, line items corresponding to such aggregate book values)
and (ii) a calculation showing the portion of each of such aggregate amounts which portion
is attributable to transactions among wholly-owned Subsidiaries of XL Capital;

(h) within 90 days after the end of each of the first three fiscal quarters of each
fiscal year and within 135 days after the end of each fiscal year of XL Capital (commencing
with the fiscal year ending December 31, 2007), a statement of a Financial Officer of XL
Capital listing, as of the end of the immediately preceding fiscal quarter of XL Capital,
the amount of cash and the securities of the Account Parties and their Subsidiaries that
have been posted as collateral under Section 7.03(f); and

(i) promptly following any request therefor, such other information regarding the
operations, business affairs and financial condition of XL Capital or any of its
Subsidiaries, or compliance with the terms of this Agreement, as the Administrative Agent or
any Lender may reasonably request.

SECTION 6.02. Notices of Material Events. Each Account Party will furnish to the
Administrative Agent and each Lender prompt written notice of the following:

(a) the occurrence of any Default; and

(b) any event or condition constituting, or which could reasonably be expected to have
a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer
or other executive officer of the relevant Account Party setting forth the details of the event or
development requiring such notice and any action taken or proposed to be taken by such Account
Party with respect thereto.

SECTION 6.03. Preservation of Existence and Franchises. Each Account Party will, and
will cause each of its Significant Subsidiaries to, maintain its corporate existence and its
material rights and franchises in full force and effect in its jurisdiction of incorporation;
provided that the foregoing shall not prohibit any merger or consolidation permitted under
Section 7.01. Each Account Party will, and will cause each of its Subsidiaries to, qualify and
remain qualified as a foreign corporation in each jurisdiction in which failure to receive or
retain such qualification would have a Material Adverse Effect.

SECTION 6.04. Insurance. Each Account Party will, and will cause each of its
Significant Subsidiaries to, maintain with financially sound and reputable insurers, insurance with
respect to its properties in such amounts as is customary in the case of corporations engaged in
the same or similar businesses having similar properties similarly situated.

SECTION 6.05. Maintenance of Properties. Each Account Party will, and will cause each
of its Subsidiaries to, maintain or cause to be maintained in good repair, working order and
condition the properties now or hereafter owned, leased or otherwise possessed by and used or
useful in its business and will make or cause to be made all needful and proper repairs, renewals,
replacements and improvements thereto so that the business carried on in connection therewith may
be properly conducted at all times except if the failure to do so would not have a Material Adverse
Effect, provided, however, that the foregoing shall not impose on such Account
Party or any Subsidiary of such Account Party any obligation in respect of any property leased by
such Account Party or such Subsidiary in addition to such Account Party’s obligations under the
applicable document creating such Account Party’s or such Subsidiary’s lease or tenancy.

SECTION 6.06. Payment of Taxes and Other Potential Charges and Priority Claims; Payment of
Other Current Liabilities. Each Account Party will, and will cause each of its Subsidiaries
to, pay or discharge:

(a) on or prior to the date on which penalties attach thereto, all taxes, assessments
and other governmental charges or levies imposed upon it or any of its properties or income;

(b) on or prior to the date when due, all lawful claims of materialmen, mechanics,
carriers, warehousemen, landlords and other like Persons which, if unpaid, might result in
the creation of a Lien upon any such property; and

(c) on or prior to the date when due, all other lawful claims which, if unpaid, might
result in the creation of a Lien upon any such property (other than Liens not forbidden by
Section 7.03) or which, if unpaid, might give rise to a claim entitled to priority over
general creditors of such Account Party or such Subsidiary in any proceeding under the
Bermuda Companies Law, or Bermuda Insurance Law, or any insolvency proceeding, liquidation,
receivership, rehabilitation, dissolution or winding-up involving such Account Party or such
Subsidiary;

provided that unless and until foreclosure, distraint, levy, sale or similar proceedings
shall have been commenced, such Account Party or such Subsidiary need not pay or discharge any such
tax, assessment, charge, levy or claim (i) so long as the validity thereof is contested in good
faith and by appropriate proceedings diligently conducted and so long as such reserves or other
appropriate provisions as may be required by GAAP or SAP, as the case may be, shall have been made
therefor or (ii) so long as such failure to pay or discharge would not have a Material Adverse
Effect.

SECTION 6.07. Financial Accounting Practices. Such Account Party will, and will cause
each of its consolidated Subsidiaries to, make and keep books, records and accounts which, in
reasonable detail, accurately and fairly reflect its transactions and dispositions of its assets
and maintain a system of internal accounting controls sufficient to provide reasonable assurances
that transactions are recorded as necessary to permit preparation of financial statements required
under Section 6.01 in conformity with GAAP and SAP, as applicable, and to maintain accountability
for assets.

SECTION 6.08. Compliance with Applicable Laws. Each Account Party will, and will
cause each of its Subsidiaries to, comply with all applicable Laws (including but not limited to
the Bermuda Companies Law or Bermuda Insurance Law) in all respects; provided that such
Account Party or any Subsidiary of such Account Party will not be deemed to be in violation of this
Section as a result of any failure to comply with any such Law which would not (i) result in fines,
penalties, injunctive relief or other civil or criminal liabilities which, in the aggregate, would
have a Material Adverse Effect or (ii) otherwise impair the ability of such Account Party to
perform its obligations under this Agreement.

SECTION 6.09. Use of Letters of Credit and Proceeds. No part of the proceeds of any
Loan and no Letter of Credit will be used, whether directly or indirectly, for any purpose that
entails a violation of any of the Regulations of the Board, including Regulations U and X. Each
Account Party will use the Letters of Credit issued for its account hereunder in the ordinary
course of business of, and will use the proceeds of all Loans made to it for the general corporate
purposes of, such Account Party and its Affiliates. For the avoidance of doubt, the parties agree
that any Account Party may apply for a Letter of Credit hereunder to support the obligations of any
Affiliate of XL Capital, it being understood that such Account Party shall nonetheless remain the
account party and as such be liable with respect to such Letter of Credit. Notwithstanding
anything in this Section to the contrary, from and after the SCA IPO, no Account Party will issue
any Letter of Credit, or renew or permit to renew any Letter of Credit existing as of the SCA IPO,
or use the proceeds of any Loan, to support the obligations of, or otherwise primarily for the
general corporate purposes of, SCA and its Subsidiaries.

SECTION 6.10. Continuation of and Change in Businesses. Each Account Party and its
Significant Subsidiaries will continue to engage in substantially the same business or businesses
it engaged in (or proposes to engage in) on the date of this Agreement and businesses related or
incidental thereto.

SECTION 6.11. Visitation. Each Account Party will permit such Persons as any Lender
may reasonably designate to visit and inspect any of the properties of such Account Party, to
discuss its affairs with its financial management, and provide such other information relating to
the business and financial condition of such Account Party at such times as such Lender may
reasonably request. Each Account Party hereby authorizes its financial management to discuss with
any Lender the affairs of such Account Party.

ARTICLE VII

NEGATIVE COVENANTS

Until the Commitments have expired or terminated, the principal of and interest on each Loan
and all fees payable hereunder have been paid in full, all Letters of Credit have expired or
terminated and all LC Disbursements have been reimbursed, each of the Account Parties covenants and
agrees with the Lenders that:

SECTION 7.01. Mergers. No Account Party will merge with or into or consolidate with
any other Person, except that if no Default shall occur and be continuing or shall exist at the
time of such merger or consolidation or immediately thereafter and after giving effect thereto (a)
any Account Party may merge or consolidate with any other corporation, including a Subsidiary, if
such Account Party shall be the surviving corporation, (b) XL Capital may merge with or into or
consolidate with any other Person in a transaction that does not result in a reclassification,
conversion, exchange or cancellation of the outstanding shares of capital stock of XL Capital
(other than the cancellation of any outstanding shares of capital stock of XL Capital held by the
Person with whom it merges or consolidates) and (c) any Account Party may enter into a merger or
consolidation which is effected solely to change the jurisdiction of incorporation of such Account
Party and results in a reclassification, conversion or exchange of outstanding shares of capital
stock of such Account Party solely into shares of capital stock of the surviving entity.

SECTION 7.02. Dispositions. No Account Party will, nor will it permit any of its
Significant Subsidiaries to, sell, convey, assign, lease, abandon or otherwise transfer or dispose
of, voluntarily or involuntarily (any of the foregoing being referred to in this Section as a
“Disposition” and any series of related Dispositions constituting but a single
Disposition), any of its properties or assets, tangible or intangible (including but not limited to
sale, assignment, discount or other disposition of accounts, contract rights, chattel paper or
general intangibles with or without recourse), except:

(a) Dispositions in the ordinary course of business involving current assets or other
invested assets classified on such Account Party’s or its respective Subsidiaries’ balance
sheet as available for sale or as a trading account;

(b) sales, conveyances, assignments or other transfers or dispositions in immediate
exchange for cash or tangible assets, provided that any such sales, conveyances or
transfers shall not individually, or in the aggregate for the Account Parties and their
respective Subsidiaries, exceed $500,000,000 in any calendar year;

(c) Dispositions of equipment or other property which is obsolete or no longer used or
useful in the conduct of the business of such Account Party or its Subsidiaries; or

(d) Dispositions from an Account Party or a wholly-owned Subsidiary to any other
Account Party or wholly-owned Subsidiary.

SECTION 7.03. Liens. No Account Party will, nor will it permit any of its
Subsidiaries to, create, incur, assume or permit to exist any Lien on any property or assets,
tangible or intangible, now owned or hereafter acquired by it, except:

(a) Liens existing on the date hereof (and extension, renewal and replacement Liens
upon the same property, provided that the amount secured by each Lien constituting
such an extension, renewal or replacement Lien shall not exceed the amount secured by the
Lien theretofore existing) and listed on Part B of Schedule II;

(b) Liens arising from taxes, assessments, charges, levies or claims described in
Section 6.06 that are not yet due or that remain payable without penalty or to the extent
permitted to remain unpaid under the provision of Section 6.06;

(c) Liens on property securing all or part of the purchase price thereof to such
Account Party and Liens (whether or not assumed) existing on property at the time of
purchase thereof by such Account Party (and extension, renewal and replacement Liens upon
the same property); provided (i) each such Lien is confined solely to the property
so purchased, improvements thereto and proceeds thereof, and (ii) the aggregate amount of
the obligations secured by all such Liens on any particular property at any time purchased
by such Account Party, as applicable, shall not exceed 100% of the lesser of the fair market
value of such property at such time or the actual purchase price of such property;

(d) zoning restrictions, easements, minor restrictions on the use of real property,
minor irregularities in title thereto and other minor Liens that do not in the aggregate
materially detract from the value of a property or asset to, or materially impair its use in
the business of, such Account Party or any such Subsidiary;

(e) Liens securing Indebtedness permitted by Section 7.07(b) covering assets whose
market value is not materially greater than the amount of the Indebtedness secured thereby
plus a commercially reasonable margin;

(f) Liens on cash and securities of an Account Party or any of its Subsidiaries
incurred as part of the management of its investment portfolio including, but not limited
to, pursuant to any International Swaps and Derivatives Association, Inc. (“ISDA”)
documentation or any Specified Transaction Agreement in accordance with XL Capital’s
Statement of Investment Policy Objectives and Guidelines as in effect on the date hereof or
as it may be changed from time to time by a resolution duly adopted by the board of
directors of XL Capital (or any committee thereof);

(g) Liens on cash and securities not to exceed $500,000,000 in the aggregate securing
obligations of an Account Party or any of its Subsidiaries arising under any ISDA
documentation or any other Specified Transaction Agreement (it being understood that in no
event shall this clause (g) preclude any Person (other than any Subsidiary of XL Capital) in
which XL Capital or any of its Subsidiaries shall invest (each an “investee”) from
granting Liens on such Person’s assets to secure hedging obligations of such Person, so long
as such obligations are non-recourse to XL Capital or any of its Subsidiaries (other than
any investees)), provided that, for purposes of determining the aggregate amount of
cash and/or securities subject to such Liens under this clause (g), the aggregate amount of
cash and/or securities on which any Account Party or any Subsidiary shall have granted a
Lien in favor of a counterparty at any time shall be netted against the aggregate amount of
cash and/or securities on which such counterparty shall have granted a Lien in favor of such
Account Party or such Subsidiary, as the case may be, at such time, so long as the relevant
agreement between such Account Party or such Subsidiary, as the case may be, provides for
the netting of their respective obligations thereunder;

(h) Liens on (i) assets received, and on actual or imputed investment income on such
assets received incurred as part of its business including activities utilizing ISDA
documentation or any Specified Transaction Agreement relating and identified to specific
insurance payment liabilities or to liabilities arising in the ordinary course of any
Account Parties’ or any of their Subsidiary’s business as an insurance or reinsurance
company (including GICs and Stable Value Instruments) or corporate member of The Council of
Lloyd’s or as a provider of financial or investment services or contracts, or the proceeds
thereof (including GICs and Stable Value Instruments), in each case held in a segregated
trust, trust or other account and securing such liabilities, (ii) assets securing Exempt
Indebtedness of any Person (other than XL Capital or any of its Affiliates) in the event
such Exempt Indebtedness is consolidated on the consolidated balance sheet of XL Capital and
its consolidated Subsidiaries in accordance with GAAP or (iii) any other assets subject to
any trust or other account arising out of or as a result of contractual, regulatory or any
other requirements; provided that in no case shall any such Lien secure Indebtedness
and any Lien which secures Indebtedness shall not be permitted under this clause (h);

(i) statutory and common law Liens of materialmen, mechanics, carriers, warehousemen
and landlords and other similar Liens arising in the ordinary course of business; and

(j) Liens existing on property of a Person immediately prior to its being consolidated
with or merged into any Account Party or any of their Subsidiaries or its becoming a
Subsidiary, and Liens existing on any property acquired by any Account Party or any of their
Subsidiaries at the time such property is so acquired (whether or not the Indebtedness
secured thereby shall have been assumed) (and extension, renewal and replacement Liens upon
the same property, provided that the amount secured by each Lien constituting such
an extension, renewal or replacement Lien shall not exceed the amount secured by the Lien
theretofore existing), provided that (i) no such Lien shall have been created or
assumed in contemplation of such consolidation or merger or such Person’s becoming a
Subsidiary or such acquisition of property and (ii) each such Lien shall extend solely to
the item or items of property so acquired and, if required by terms of the instrument
originally creating such Lien, other property which is an improvement to or is acquired for
specific use in connection with such acquired property.

SECTION 7.04. Transactions with Affiliates. No Account Party will, nor will it permit
any of its Significant Subsidiaries to, enter into or carry out any transaction with (including
purchase or lease property or services to, loan or advance to or enter into, suffer to remain in
existence or amend any contract, agreement or arrangement with) any Affiliate of such Account
Party, or directly or indirectly agree to do any of the foregoing, except (i) transactions
involving guarantees or co-obligors with respect to any Indebtedness described in Part A of
Schedule II, (ii) transactions among the Account Parties and their wholly-owned Subsidiaries and
(iii) transactions with Affiliates in good faith in the ordinary course of such Account Party’s
business consistent with past practice and on terms no less favorable to such Account Party or any
Subsidiary than those that could have been obtained in a comparable transaction on an arm’s length
basis from an unrelated Person.

SECTION 7.05. Ratio of Total Funded Debt to Total Capitalization. XL Capital will not
permit at any time its ratio of (a) Total Funded Debt to (b) the sum of Total Funded Debt
plus Consolidated Net Worth to be greater than 0.35:1.00.

SECTION 7.06. Consolidated Net Worth. XL Capital will not permit at any time its
Consolidated Net Worth to be less than the sum of (a) $6,000,000,000 plus (b) 25% of consolidated
net income (if positive) of XL Capital and its Subsidiaries for each fiscal quarter ending on or
after June 30, 2007.

SECTION 7.07. Indebtedness. No Account Party will, nor will it permit any of its
Subsidiaries to, at any time create, incur, assume or permit to exist any Indebtedness, or agree,
become or remain liable (contingent or otherwise) to do any of the foregoing, except:

(a) Indebtedness created hereunder;

(b) secured Indebtedness (including secured reimbursement obligations with respect to
letters of credit) of any Account Party or any Subsidiary in an aggregate principal amount
(for all Account Parties and their respective Subsidiaries) not exceeding at any time
outstanding 15% of Consolidated Net Worth;

(c) other unsecured Indebtedness, so long as upon the incurrence thereof no Default
would occur or exist;

(d) Indebtedness consisting of accounts or claims payable and accrued and deferred
compensation (including options) incurred in the ordinary course of business by any Account
Party or any Subsidiary;

(e) Indebtedness incurred in transactions described in Section 7.03(f) and (g); and

(f) Indebtedness existing on the date hereof and described in Part A of Schedule II and
extensions, renewals and replacements of any such Indebtedness that do not increase the
outstanding principal amount thereof.

SECTION 7.08. Financial Strength Ratings. None of XL Capital Group, XL Insurance and
XL Re will permit at any time its financial strength ratings to be less than “A-” from A.M. Best &
Co. (or its successor).

SECTION 7.09. Private Act. No Account Party will become subject to a Private Act
other than the X.L. Insurance Company, Ltd. Act, 1989.

ARTICLE VIII

EVENTS OF DEFAULT

If any of the following events (“Events of Default”) shall occur:

(a) any Account Party shall fail to pay any principal of any Loan or any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become due and
payable, whether at the due date thereof or at a date fixed for prepayment thereof or
otherwise;

(b) any Account Party shall fail to pay any interest on any Loan or LC Disbursement or
any fee payable under this Agreement or any other amount (other than an amount referred to
in clause (a) of this Article) payable under this Agreement, when and as the same shall
become due and payable, and such failure shall continue unremedied for a period of 5 or more
days;

(c) any representation or warranty made or deemed made by any Account Party in or in
connection with this Agreement or any amendment or modification hereof, or in any
certificate or financial statement furnished pursuant to the provisions hereof, shall prove
to have been false or misleading in any material respect as of the time made (or deemed
made) or furnished;

(d) any Account Party shall fail to observe or perform any covenant, condition or
agreement contained in Article VII;

(e) any Obligor shall fail to observe or perform any covenant, condition or agreement
contained in this Agreement (other than those specified in clause (a), (b) or (d) of this
Article or the reporting requirement pursuant to Section 6.01(h)) and such failure shall
continue unremedied for a period of 20 or more days after notice thereof from the
Administrative Agent (given at the request of any Lender) to such Obligor;

(f) any Account Party or any of its Subsidiaries shall default (i) in any payment of
principal of or interest on any other obligation for borrowed money in principal amount of
$50,000,000 or more, or any payment of any principal amount of $50,000,000 or more under
Hedging Agreements, in each case beyond any period of grace provided with respect thereto,
or (ii) in the performance of any other agreement, term or condition contained in any such
agreement (other than Hedging Agreements) under which any such obligation in principal
amount of $50,000,000 or more is created, if the effect of such default is to cause or
permit the holder or holders of such obligation (or trustee on behalf of such holder or
holders) to cause such obligation to become due prior to its stated maturity or to terminate
its commitment under such agreement, provided that this clause (f) shall not apply
to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of
the property or assets securing such Indebtedness;

(g) a decree or order by a court having jurisdiction in the premises shall have been
entered adjudging any Account Party a bankrupt or insolvent, or approving as properly filed
a petition seeking reorganization of such Account Party under the Bermuda Companies Law or
the Cayman Islands Companies Law or any other similar applicable Law, and such decree or
order shall have continued undischarged or unstayed for a period of 60 days; or a decree or
order of a court having jurisdiction in the premises for the appointment of an examiner,
receiver or liquidator or trustee or assignee in bankruptcy or insolvency of such Account
Party or a substantial part of its property, or for the winding up or liquidation of its
affairs, shall have been entered, and such decree or order shall have continued undischarged
and unstayed for a period of 60 days;

(h) any Account Party shall institute proceedings to be adjudicated a voluntary
bankrupt, or shall consent to the filing of a bankruptcy proceeding against it, or shall
file a petition or answer or consent seeking reorganization under the Bermuda Companies Law
or the Cayman Islands Companies Law or any other similar applicable Law, or shall consent to
the filing of any such petition, or shall consent to the appointment of an examiner,
receiver or liquidator or trustee or assignee in bankruptcy or insolvency of it or a
substantial part of its property, or shall make an assignment for the benefit of creditors,
or shall admit in writing its inability to pay its debts generally as they become due, or
corporate or other action shall be taken by such Account Party in furtherance of any of the
aforesaid purposes;

(i) one or more judgments for the payment of money in an aggregate amount in excess of
$100,000,000 shall be rendered against any Account Party or any of its Subsidiaries or any
combination thereof and the same shall not have been vacated, discharged, stayed (whether by
appeal or otherwise) or bonded pending appeal within 45 days from the entry thereof;

(j) an ERISA Event (or similar event with respect to any Non-U.S. Benefit Plan) shall
have occurred that, in the opinion of the Required Lenders, when taken together with all
other ERISA Events and such similar events that have occurred, could reasonably be expected
to result in liability of the Account Parties and their Subsidiaries in an aggregate amount
exceeding $100,000,000;

(k) a Change in Control shall occur;

(l) XL Capital shall cease to own, beneficially and of record, directly or indirectly
all of the outstanding voting shares of capital stock of XL Insurance, XL Re or XL America;
or

(m) the guarantee contained in Article III shall terminate or cease, in whole or
material part, to be a legally valid and binding obligation of each Guarantor or any
Guarantor or any Person acting for or on behalf of any of such parties shall contest such
validity or binding nature of such guarantee itself or the Transactions, or any other Person
shall assert any of the foregoing;

then, and in every such event (other than an event with respect to any Account Party described in
clause (g) or (h) of this Article), and at any time thereafter during the continuance of such
event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to
the Account Parties, take either or both of the following actions, at the same or different times:
(i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and
(ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case
any principal not so declared to be due and payable may thereafter be declared to be due and
payable), and thereupon the principal of the Loans so declared to be due and payable, together with
accrued interest thereon and all fees and other obligations of the Account Parties accrued
hereunder, shall become due and payable immediately, without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by the Account Parties; and in case of any event
with respect to any Account Party described in clause (g) or (h) of this Article, the Commitments
shall automatically terminate and the principal of the Loans then outstanding, together with
accrued interest thereon and all fees and other obligations of the Account Parties accrued
hereunder, shall automatically become due and payable, without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by the Account Parties.

If an Event of Default shall occur and be continuing and XL Capital receives notice from the
Administrative Agent or the Required Lenders demanding the deposit of cash collateral for the
aggregate LC Exposure of all the Lenders pursuant to this paragraph, the Account Parties shall
immediately deposit into an account established and maintained on the books and records of the
Administrative Agent, which account may be a “securities account” (within the meaning of
Section 8-501 of the Uniform Commercial Code as in effect in the State of New York (the
“Uniform Commercial Code”)), in the name of the Administrative Agent and for the benefit of
the Lenders, an amount in cash equal to the total LC Exposure as of such date plus any
accrued and unpaid interest thereon; provided that the obligation to deposit such cash
collateral shall become effective immediately, and such deposit shall become immediately due and
payable, without demand or other notice of any kind, upon the occurrence of any Event of Default
with respect to any Account Party described in clause (g) or (h) of this Article. Such deposit
shall be held by the Administrative Agent as collateral for the LC Exposure under this Agreement,
and for this purpose each of the Account Parties hereby grant a security interest to the
Administrative Agent for the benefit of the Lenders in such collateral account and in any financial
assets (as defined in the Uniform Commercial Code) or other property held therein.

In addition to the provisions of this Article, each Account Party agrees that upon the
occurrence and during the continuance of any Event of Default any Lender which has issued any
Alternative Currency Letter of Credit may, by notice to XL Capital and the Administrative Agent:
(a) declare that all fees and other obligations of the Account Parties accrued in respect of
Alternative Currency Letters of Credit issued by such Lender shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by each Account Party and (b) demand the deposit (without duplication of any amounts
deposited with the Administrative Agent under the preceding paragraph) of cash collateral from the
Account Parties in immediately available funds in the currency of such Alternative Currency Letter
of Credit or, at the option of such Lender, in Dollars in an amount equal to the then aggregate
undrawn face amount of all such Alternative Currency Letters of Credit and in such manner as
previously agreed to by the Account Parties and such Lender; provided that, in the case of
any of the Events of Default specified in clause (g) or (h) of this Article, without any notice to
any Account Party or any other act by the Administrative Agent or the Lenders, all fees and other
obligations of the Account Parties accrued in respect of all Alternative Currency Letters of Credit
shall become due and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by each Account Party. If the Administrative Agent
receives any notice from a Lender pursuant to the previous sentence, then it will promptly give
notice thereof to the other Lenders.

ARTICLE IX

THE ADMINISTRATIVE AGENT

Each of the Lenders hereby irrevocably appoints the Administrative Agent as its agent and
authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers
as are delegated to the Administrative Agent by the terms hereof, together with such actions and
powers as are reasonably incidental thereto.

The Person serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such Person and its Affiliates may accept deposits from, lend money to
and generally engage in any kind of business with any Account Party or any Subsidiary or other
Affiliate thereof as if it were not the Administrative Agent hereunder.

The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby that the Administrative Agent is required to exercise in writing by
the Required Lenders, and (c) except as expressly set forth herein, the Administrative Agent shall
not have any duty to disclose, and shall not be liable for the failure to disclose, any information
relating to any Account Party or any of their Subsidiaries that is communicated to or obtained by
the bank serving as Administrative Agent or any of its Affiliates in any capacity. The
Administrative Agent shall not be liable for any action taken or not taken by it with the consent
or at the request of the Required Lenders or in the absence of its own gross negligence or willful
misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default unless
and until written notice thereof is given to the Administrative Agent by an Account Party or a
Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or
inquire into (i) any statement, warranty or representation made in or in connection with this
Agreement, (ii) the contents of any certificate, report or other document delivered hereunder or in
connection herewith, (iii) the performance or observance of any of the covenants, agreements or
other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness or
genuineness of this Agreement or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article V or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Administrative Agent.

The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for any
Account Party), independent accountants and other experts selected by it, and shall not be liable
for any action taken or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any
such sub-agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as Administrative Agent.

The Administrative Agent may resign at any time by notifying the Lenders and the Account
Parties. Upon any such resignation, the Required Lenders shall have the right, in consultation
with XL Capital, to appoint a successor. If no successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring Administrative Agent’s
resignation shall nonetheless become effective and (1) the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder and (2) the Required Lenders shall perform the
duties of the Administrative Agent (and all payments and communications provided to be made by, to
or through the Administrative Agent shall instead be made by or to each Lender directly) until such
time as the Required Lenders appoint a successor agent as provided for above in this paragraph.
Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such
successor shall succeed to and become vested with all the rights, powers, privileges and duties of
the retiring (or retired) Administrative Agent and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder (if not already discharged therefrom as
provided above in this paragraph). The fees payable by XL Capital to a successor Administrative
Agent shall be the same as those payable to its predecessor unless otherwise agreed between XL
Capital and such successor. After the Administrative Agent’s resignation hereunder, the provisions
of this Article and Section 10.03 shall continue in effect for its benefit in respect of any
actions taken or omitted to be taken by it while it was acting as Administrative Agent.

Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any related agreement or any document furnished hereunder or thereunder.

Notwithstanding anything herein to the contrary, the Joint Lead Arrangers and Joint
Bookrunners, the Syndication Agent and the Documentation Agents named on the cover page of this
Agreement shall not have any duties or liabilities under this Agreement, except in their capacity,
if any, as Lenders.

ARTICLE X

MISCELLANEOUS

SECTION 10.01. Notices. Except in the case of notices and other communications
expressly permitted to be given by telephone, all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopy, as follows:

(a) if to any Account Party, to XL Capital at XL House, One Bermudiana Road, Hamilton
HM 11 Bermuda, Attention of Roderick Gray (Telecopy No. (441) 296-6399); with a copy to
Kirstin R. Gould, Esq. at the same address and telecopy number (441) 294-7307;

(b) if to the Administrative Agent, to JPMorgan Chase Bank, N.A., 1111 Fannin Street,
10th Floor, Houston, Texas 77002-6925, Attention of Loan and Agency Services
Group (Telecopy No. (713) 750-2782; Telephone No. (713) 750-2102), with a copy to JPMorgan
Chase Bank, N.A., 270 Park Avenue, 4th Floor, New York, New York 10017, Attention
of Erin O’Rourke (Telecopy No. (212) 270-7449; Telephone No. (212) 270-1504); and

(c) if to a Lender, to it at its address (or telecopy number) set forth in its
Administrative Questionnaire.

Any party hereto may change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto (or, in the case of any such change by a Lender, by
notice to the Account Parties and the Administrative Agent). All notices and other communications
given to any party hereto in accordance with the provisions of this Agreement shall be deemed to
have been given on the date of receipt.

Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Article II unless
otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent
or any Account Party may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or communications. Without
limiting the foregoing, the Account Parties may furnish to the Administrative Agent and the Lenders
the financial statements required to be furnished by it pursuant to Section 6.01(a), 6.01(b) or
6.01(c) by electronic communications pursuant to procedures approved by the Administrative Agent.

SECTION 10.02. Waivers; Amendments.

(a) No Deemed Waivers; Remedies Cumulative. No failure or delay by the Administrative
Agent or any Lender in exercising any right or power hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of the Administrative
Agent and the Lenders hereunder are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of this Agreement or consent to any
departure by the Account Parties therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only
in the specific instance and for the purpose for which given. Without limiting the generality of
the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a
waiver of any Default, regardless of whether the Administrative Agent or any Lender may have had
notice or knowledge of such Default at the time.

(b) Amendments. Neither this Agreement nor any provision hereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing entered into by the
Obligors and the Required Lenders or by the Obligors and the Administrative Agent with the consent
of the Required Lenders; provided that no such agreement shall:

(i) increase the Commitment of any Lender without the written consent of such Lender,

(ii) reduce the principal amount of any Loan or the amount of any reimbursement
obligation of an Account Party in respect of any LC Disbursement or reduce the rate of
interest thereon, or reduce any fees or other amounts payable hereunder, without the written
consent of each Lender directly affected thereby,

(iii) postpone the scheduled date of payment of the principal amount of any Loan or for
reimbursement of any LC Disbursement, or any interest thereon, or any fees payable
hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the
scheduled date of expiration of any Commitment or any Letter of Credit (other than an
extension thereof pursuant to an “evergreen” provision” to the extent permitted hereunder),
without the written consent of each Lender directly affected thereby,

(iv) change Section 2.20(c) or 2.20(d) without the consent of each Lender directly
affected thereby,

(v) release any of the Guarantors from any of their guarantee obligations under
Article III without the written consent of each Lender, and

(vi) change any of the provisions of this Section or the percentage in the definition
of the term “Required Lenders” or any other provision hereof specifying the number or
percentage of Lenders required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of each Lender;

and provided further that no such agreement shall amend, modify or otherwise affect
the rights or duties of the Administrative Agent hereunder without the prior written consent of the
Administrative Agent.

SECTION 10.03. Expenses; Indemnity; Damage Waiver.

(a) Costs and Expenses. The Account Parties jointly and severally agree to pay
(i) all reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates,
including the reasonable fees, charges and disbursements of counsel for the Administrative Agent,
in connection with the syndication of the credit facilities provided for herein, the preparation
and administration of this Agreement or any amendments, modifications or waivers of the provisions
hereof (whether or not the transactions contemplated hereby or thereby shall be consummated), and
(ii) all out-of-pocket expenses incurred by the Administrative Agent or any Lender, including the
fees, charges and disbursements of one legal counsel for the Administrative Agent and one legal
counsel for the Lenders, in connection with the enforcement or protection of its rights in
connection with this Agreement, including its rights under this Section, or in connection with the
Loans made or Letters of Credit issued hereunder, including in connection with any workout,
restructuring or negotiations in respect thereof.

(b) Indemnification by the Account Parties. The Account Parties shall jointly and
severally indemnify the Administrative Agent and each Lender, and each Related Party of any of the
foregoing Persons (each such Person being called an “Indemnitee”) against, and to hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses,
including the fees, charges and disbursements of any counsel for any Indemnitee (but not including
Excluded Taxes), incurred by or asserted against any Indemnitee arising out of, in connection with,
or as a result of (i) the execution or delivery of this Agreement or any agreement or instrument
contemplated hereby, the performance by the parties hereto of their respective obligations
hereunder or the consummation of the Transactions or any other transactions contemplated hereby,
(ii) any Loan or the use of the proceeds thereof or any Letter of Credit or the use thereof
(including any refusal by any Lender to honor a demand for payment under a Letter of Credit if the
documents presented in connection with such demand do not strictly comply with the terms of such
Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or
from any property owned or operated by any Account Party or any of its Subsidiaries, or any
Environmental Liability related in any way to any Account Party or any of its Subsidiaries, or
(iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory and regardless of whether any
Indemnitee is a party thereto; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related
expenses result from or arise out of the gross negligence or willful misconduct of such Indemnitee.

(c) Reimbursement by Lenders. To the extent that the Account Parties fail to pay any
amount required to be paid by them to the Administrative Agent under paragraph (a) or (b) of this
Section, each Lender severally agrees to pay to the Administrative Agent such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment
is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified
loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent in its capacity as such.

(d) Waiver of Consequential Damages, Etc. To the extent permitted by applicable law,
no Account Party shall assert, and each Account Party hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or as a result of,
this Agreement or any agreement or instrument contemplated hereby, the Transactions, any Loan or
Letter of Credit or the use of the proceeds thereof.

(e) Payments. All amounts due under this Section shall be payable promptly after
written demand therefor.

SECTION 10.04. Successors and Assigns.

(a) Assignments Generally. The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns permitted
hereby, except that (i) no Account Party may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by an Account Party without such consent shall be null and void) and (ii) no
Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance
with this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and assigns permitted
hereby, Participants (to the extent provided in paragraph (c) of this Section) and, to the extent
expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the
Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

(b) Assignments by Lenders. (i) Subject to the conditions set forth in paragraph
(b)(ii) of this Section, any Lender may assign all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitment and the Loans and LC Disbursements at
the time owing to it) to one or more NAIC Approved Banks (or, in the case of any assignment by a
Lender under the Revolving Credit Tranche, to one or more Persons) with the prior written consent
(such consent not to be unreasonably withheld) of:

(A) the Account Parties, provided that no consent of any Account Party
shall be required for an assignment to a Lender, an Affiliate of a Lender, an
Approved Fund or, if an Event of Default under clause (a), (b), (g) or (h) of
Article VIII has occurred and is continuing, any other assignee; and

(B) the Administrative Agent; and

(C) the Issuing Lender with respect to Participated Letters of Credit.

(ii) Assignments shall be subject to the following additional conditions:

(A) except in the case of an assignment to a Lender, an Approved Fund or an
Affiliate of a Lender or an assignment of the entire remaining amount of the
assigning Lender’s Commitment, the amount of the Commitment of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative Agent)
shall not be less than $5,000,000 unless each of the Account Parties and the
Administrative Agent otherwise consent, provided that no such consent of the
Account Parties shall be required if an Event of Default under clause (a), (b), (g)
or (h) of Article VIII has occurred and is continuing;

(B) each partial assignment shall be made as an assignment of a proportionate
part of all the assigning Lender’s rights and obligations under this Agreement;

(C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of $3,500; and

(D) the assignee, if it shall not be a Lender, shall deliver an Administrative
Questionnaire to the Administrative Agent (with a copy to XL Capital).

(iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(v) of this
Section, from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party hereto and, to the extent of the interest assigned by
such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned
by such Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a party hereto
but shall continue to be entitled to the benefits of Sections 2.17, 2.18, 2.19 and 10.03).
Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this Section 10.04 shall be treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section.

(iv) Notwithstanding anything to the contrary contained herein, any Lender (a
“Granting Lender”) may grant to a special purpose vehicle (an “SPV”) of such
Granting Lender, identified as such in writing from time to time by the Granting Lender to
the Administrative Agent and the Account Parties, the option to provide to the Account
Parties all or any part of any Loan or LC Disbursement that such Granting Lender would
otherwise be obligated to make to the Account Parties pursuant to Section 2.01,
provided that (i) nothing herein shall constitute a commitment by any SPV to make
any Loan or LC Disbursement, (ii) if an SPV elects not to exercise such option or otherwise
fails to provide all or any part of such Loan or LC Disbursement, the Granting Lender shall
be obligated to make such Loan or LC Disbursement pursuant to the terms hereof and (iii) the
Account Parties may bring any proceeding against either or both the Granting Lender or the
SPV in order to enforce any rights of the Account Parties hereunder. The making of a Loan
or LC Disbursement by an SPV hereunder shall utilize the Commitment of the Granting Lender
to the same extent, and as if, such Loan or LC Disbursement were made by the Granting
Lender. Each party hereto hereby agrees that no SPV shall be liable for any payment under
this Agreement for which a Lender would otherwise be liable, for so long as, and to the
extent, the related Granting Lender makes such payment. In furtherance of the foregoing,
each party hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the payment in full of
all outstanding commercial paper or other senior indebtedness of any SPV, it will not
institute against, or join any other person in instituting against, such SPV any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or similar proceedings
under the laws of the United States or any State thereof arising out of any claim against
such SPV under this Agreement. In addition, notwithstanding anything to the contrary
contained in this Section, any SPV may with notice to, but without the prior written consent
of, the Account Parties or the Administrative Agent and without paying any processing fee
therefor, assign all or a portion of its interests in any Loan or Letter of Credit to its
Granting Lender or to any financial institutions (consented to by the Account Parties and
the Administrative Agent) providing liquidity and/or credit support (if any) with respect to
commercial paper issued by such SPV to fund such Loans and to issue such Letters of Credit
and such SPV may disclose, on a confidential basis, confidential information with respect to
any Account Party and its Subsidiaries to any rating agency, commercial paper dealer or
provider of a surety, guarantee or credit liquidity enhancement to such SPV.
Notwithstanding anything to the contrary in this Agreement, no SPV shall be entitled to any
greater rights under Section 2.17 or Section 2.19 than its Granting Lender would have been
entitled to absent the use of such SPV. This paragraph may not be amended without the
consent of any SPV at the time holding Loans or LC Disbursements under this Agreement.

(v) The Administrative Agent, acting for this purpose as an agent of the Account
Parties, shall maintain at one of its offices in New York City a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of
the Lenders, the Commitment of, and principal amount of the Loans and LC Disbursements owing
to, each Lender pursuant to the terms hereof from time to time (the “Register”).
The entries in the Register shall be conclusive, and the Account Parties, the Administrative
Agent and the Lenders shall treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by
any Account Party and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

(vi) Upon its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire
(unless the assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b)(ii)(C) of this Section and any written consent to such
assignment required by paragraph (b)(i) of this Section, the Administrative Agent shall
accept such Assignment and Assumption and record the information contained therein in the
Register. No assignment shall be effective for purposes of this Agreement unless it has
been recorded in the Register as provided in this paragraph.

(c) Participations. (i) Any Lender may, without the consent of the Account Parties,
the Administrative Agent or any Issuing Lender, sell participations to one or more banks or other
entities (a “Participant”) in all or a portion of such Lender’s rights and obligations
under this Agreement and the other Credit Documents (including all or a portion of its Commitment,
the Loans and LC Disbursements owing to it); provided that (A) any such participation sold
to a Participant which is not a Lender, an Approved Fund or a Federal Reserve Bank shall be made
only with the consent (which in each case shall not be unreasonably withheld) of XL Capital and the
Administrative Agent, unless a Default has occurred and is continuing, in which case the consent of
XL Capital shall not be required, (B) such Lender’s obligations under this Agreement and the other
Credit Documents shall remain unchanged, (C) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (D) the Account Parties, the
Administrative Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Agreement and the other
Credit Documents. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to enforce this Agreement
and the other Credit Documents and to approve any amendment, modification or waiver of any
provision of this Agreement or the other Credit Documents; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the Participant, agree to
any amendment, modification or waiver described in the first proviso to Section 10.02(b) that
affects such Participant. Subject to paragraph (c)(ii) of this Section, the Account Parties agree
that each Participant shall be entitled to the benefits of Sections 2.17, 2.18 and 2.19 (subject to
the requirements of such Sections) to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 10.08 as though it were a
Lender, provided such Participant agrees to be subject to Section 2.20(d) as though it were a
Lender.

(ii) A Participant shall not be entitled to receive any greater payment under Section
2.17, 2.18 or 2.19 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant or the Lender interest assigned,
unless (A) the sale of the participation to such Participant is made with the Account
Parties’ prior written consent and (B) in the case of Section 2.17 or 2.19, the entitlement
to greater payment results solely from a Change in Law formally announced after such
Participant became a Participant.

(iii) In the event that any Lender sells participations in a Loan or Commitment, such
Lender, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall
maintain a register on which it enters the name of all participants in the Loans and
Commitments held by it (the “Participant Register”). The entries in the Participant
Register shall be conclusive in the absence of manifest error, and the participating Lender
shall treat each Person whose name is recorded in the Participant Register as the
Participant for all purposes of this Agreement and the other Credit Documents,
notwithstanding any notice to the contrary.

(d) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations of such Lender,
including any such pledge or assignment to secure obligations to a Federal Reserve Bank, and this
Section shall not apply to any such pledge or assignment of a security interest; provided
that no such pledge or assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

(e) No Assignments to Account Parties or Affiliates. Anything in this Section to the
contrary notwithstanding, no Lender may assign or participate any interest in any Loan or LC
Exposure held by it hereunder to any Account Party or any of its Affiliates or Subsidiaries without
the prior consent of each Lender.

SECTION 10.05. Survival. All covenants, agreements, representations and warranties
made by the Account Parties herein and in the certificates or other instruments delivered in
connection with or pursuant to this Agreement shall be considered to have been relied upon by the
other parties hereto and shall survive the execution and delivery of this Agreement and the making
of any Loans and the issuance of any Letters of Credit, regardless of any investigation made by any
such other party or on its behalf and notwithstanding that the Administrative Agent or any Lender
may have had notice or knowledge of any Default or incorrect representation or warranty at the time
any credit is extended hereunder, and shall continue in full force and effect as long as the
principal of, or any accrued interest on, any Loan or any fee or any other amount payable under
this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the
Commitments have not expired or terminated. The provisions of Sections 2.17, 2.18, 2.19 and 10.03
and Article IX shall survive and remain in full force and effect regardless of the consummation of
the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of
the Letters of Credit and the expiration or termination of the Commitments or the termination of
this Agreement or any provision hereof.

SECTION 10.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and any separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract between and among the parties relating to the
subject matter hereof and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof. Except as provided in Section 5.01, this Agreement
shall become effective when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page to this Agreement by telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement.

SECTION 10.07. Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

SECTION 10.08. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender is hereby authorized at any time and from time to time, to the fullest
extent permitted by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any time owing by such
Lender to or for the credit or the account of any Account Party against any of and all the
obligations of such Account Party now or hereafter existing under this Agreement held by such
Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement
and although such obligations may be unmatured. The rights of each Lender under this Section are
in addition to other rights and remedies (including other rights of setoff) which such Lender may
have.

SECTION 10.09. Governing Law; Jurisdiction; Etc.

(a) Governing Law. This Agreement shall be construed in accordance with and governed
by the law of the State of New York.

(b) Submission to Jurisdiction. Each Obligor hereby irrevocably and unconditionally
submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the
State of New York sitting in New York County and of the United States District Court of the
Southern District of New York, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in such New York
State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in
this Agreement shall affect any right that the Administrative Agent or any Lender may otherwise
have to bring any action or proceeding relating to this Agreement against any Obligor or its
properties in the courts of any jurisdiction.

(c) Waiver of Venue. Each Obligor hereby irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating
to this Agreement in any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

(d) Service of Process. By the execution and delivery of this Agreement, XL Capital
Ltd, XL Insurance (Bermuda) Ltd and XL Re Ltd acknowledge that they have by a separate written
instrument, designated and appointed CT Corporation System, 111 Eighth Avenue, 13th
floor, New York, New York 10011 (or any successor entity thereto), as its authorized agent upon
which process may be served in any suit or proceeding arising out of or relating to this Agreement
that may be instituted in any federal or state court in the State of New York. Each party to this
Agreement irrevocably consents to service of process in the manner provided for notices in
Section 10.01. Nothing in this Agreement will affect the right of any party to this Agreement to
serve process in any other manner permitted by law.

(e) Waiver of Immunities. To the extent that any Account Party has or hereafter may
acquire any immunity from jurisdiction of any court or from any legal process (whether through
service of notice, attachment prior to judgment, attachment in aid of execution or execution, on
the ground of sovereignty or otherwise) with respect to itself or its property, it hereby
irrevocably waives, to the fullest extent permitted by applicable law, such immunity in respect of
its obligations under this Agreement.

SECTION 10.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION.

SECTION 10.11. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

SECTION 10.12. Treatment of Certain Information; Confidentiality.

(a) Treatment of Certain Information. Each of the Account Parties acknowledge that
from time to time financial advisory, investment banking and other services may be offered or
provided to any Account Party or one or more of their Subsidiaries (in connection with this
Agreement or otherwise) by any Lender or by one or more subsidiaries or affiliates of such Lender
and each of the Account Parties hereby authorizes each Lender to share any information delivered to
such Lender by such Account Party and its Subsidiaries pursuant to this Agreement, or in connection
with the decision of such Lender to enter into this Agreement, to any such subsidiary or affiliate,
it being understood that (i) any such information shall be used only for the purpose of advising
the Account Parties or preparing presentation materials for the benefit of the Account Parties and
(ii) any such subsidiary or affiliate receiving such information shall be bound by the provisions
of paragraph (b) of this Section as if it were a Lender hereunder. Such authorization shall
survive the repayment of the Loans, the expiration or termination of the Letters of Credit, the
expiration or termination of the Commitments or the termination of this Agreement or any provision
hereof.

(b) Confidentiality. Each of the Administrative Agent, the Lenders and each SPV
agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (i) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (ii) to the extent requested by
any regulatory authority (including self-regulating organizations) having jurisdiction over the
Administrative Agent or any Lender (or any Affiliate thereof), (iii) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party
to this Agreement, (v) in connection with the exercise of any remedies hereunder or any suit,
action or proceeding relating to this Agreement or the enforcement of rights hereunder,
(vi) subject to an agreement in writing containing provisions substantially the same as those of
this paragraph and for the benefit of the Account Parties, to (a) any assignee of or Participant
in, or any prospective assignee of or Participant in, any of its rights or obligations under this
Agreement or (b) any actual or prospective counterparty (or its advisors) to any swap or derivative
transaction relating to any Account Party and its obligations, (vii) with the consent of the
Account Parties or (viii) to the extent such Information (A) becomes publicly available other than
as a result of a breach of this paragraph or (B) becomes available to the Administrative Agent or
any Lender on a nonconfidential basis from a source other than an Account Party. For the purposes
of this paragraph, “Information” means all information received from an Account Party
relating to an Account Party or its business, other than any such information that is available to
the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by such
Account Party; provided that, in the case of information received from an Account Party
after the date hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information. Notwithstanding the foregoing, each of
the Administrative Agent and the Lenders agree that they will not trade the securities of any of
the Account Parties based upon non-public Information that is received by them.

SECTION 10.13. Judgment Currency. This is an international loan transaction in which
the obligations of each Account Party under this Agreement to make payment hereunder shall be
satisfied only in Dollars and only if such payment shall be made in New York City, and the
obligations of each Account Party under this Agreement to make payment to (or for account of) a
Lender in Dollars shall not be discharged or satisfied by any tender or recovery pursuant to any
judgment expressed in or converted into any other currency or in another place except to the extent
that such tender or recovery results in the effective receipt by such Lender in New York City of
the full amount of Dollars payable to such Lender under this Agreement. If for the purpose of
obtaining judgment in any court it is necessary to convert a sum due hereunder in Dollars into
another currency (in this Section called the “judgment currency”), the rate of exchange
that shall be applied shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase such Dollars at the principal office of the Administrative
Agent in New York City with the judgment currency on the Business Day next preceding the day on
which such judgment is rendered. The obligation of each Account Party in respect of any such sum
due from it to the Administrative Agent or any Lender hereunder (in this Section called an
“Entitled Person”) shall, notwithstanding the rate of exchange actually applied in
rendering such judgment, be discharged only to the extent that on the Business Day following
receipt by such Entitled Person of any sum adjudged to be due hereunder in the judgment currency
such Entitled Person may in accordance with normal banking procedures purchase and transfer Dollars
to New York City with the amount of the judgment currency so adjudged to be due; and each Account
Party hereby, as a separate obligation and notwithstanding any such judgment, agrees to indemnify
such Entitled Person against, and to pay such Entitled Person on demand, in Dollars, the amount (if
any) by which the sum originally due to such Entitled Person in Dollars hereunder exceeds the
amount of the Dollars so purchased and transferred.

SECTION 10.14. USA PATRIOT Act. Each Lender hereby notifies the Account Parties that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)), such Lender is required to obtain, verify and record information that
identifies the Account Parties, which information includes the name and address of the Account
Parties and other information that will allow such Lender to identify each Account Party in
accordance with said Act.

3

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
by their respective authorized officers as of the day and year first above written.

	 	 	 
	X.L. AMERICA, INC.,

	 	

	as an Account Party and a Guarantor

	By

	 	     /s/Gabriel G. Carino     
	
 
	 	 

	 	 	 
	Name: Gabriel G. Carino
	Title: Vice President
	U.S. Federal Tax Identification No.:	 	06-1516268
	XL INSURANCE (BERMUDA) LTD,
	as an Account Party and a Guarantor
	By __/s/C. Stanley Lee______________________

	 	 	 
	Name: C. Stanley Lee
	Title: Chief Financial Officer
	U.S. Federal Tax Identification No.:	 	98-0354869
	XL RE LTD,
	as an Account Party and a Guarantor
	By __/s/Derrick A. Irby______________________

	 	 	Name: Derrick A. Irby

Title: SVP & Chief Financial Officer

U.S. Federal Tax Identification No.:
98-0351953

4

	 	 	 
	XL CAPITAL LTD,

	 	

	as an Account Party and a Guarantor

	By

	 	     /s/Fiona E. Luck
	
 
	 	 

	 	 	Name: Fiona E. Luck

Title: Executive Vice President, Chief of Staff

and Intern Chief Financial Officer

U.S. Federal Tax Identification No.:
98-0191089

5

	 	 	 
	LENDERS

	 	

	 

	JPMORGAN CHASE BANK, N.A.,

	 	

	individually and as Administrative Agent

	By

	 	     /s/Erin O’Rourke     
	
 
	 	 

	 	 	 
	Name: Erin O’Rourke
	Title: Executive Director
	WACHOVIA BANK, NATIONAL ASSOCIATION
	By __/s/Joan Anderson________________________

	 	 	Name: Joan Anderson

Title: Director

6

	 	 	 
	ABN AMRO Bank N.V.

	 	

	By:__/s/Michael DeMarco__________________

	 

	Name:

Title:

	 	Michael DeMarco

Vice President
	By:__/s/David W. Stack____________________

	 

	Name:

Title:

	 	David W. Stack

Senior Vice President

7

8

	 	 	 
	 	 	The Bank of Tokyo-Mitsubishi UFJ, Ltd,
	 	 	New York Branch
	 	 	By:__/s/Chimie T. Pemba___________________
	 	 	Name: Chimie T. Pemba
	 	 	Title: Authorized Signatory

9

	 	 	 
	 	 	BAYERISCHE LANDESBANK, New York Branch
	 	 	By:__/s/Steven Fielitz_______________________
	 	 	Name:	 	 	Steven Fielitz
	 	 	Title:	 	 	Second Vice President
	 	 	By:__/s/Donna M. Quilty____________________
	 	 	Name:	 	 	Donna M. Quilty
	 	 	Title:	 	 	Vice President

10

	 	 	 
	 	 	CALYON NEW YORK BRANCH
	 	 	By:__/s/Sebastian Rocco____________________
	 	 	Name:	 	 	Sebastian Rocco
	 	 	Title:	 	 	Managing Director
	 	 	By:__/s/Gina Harth-Cryde__________________
	 	 	Name:	 	 	Gina Harth-Cryde
	 	 	Title:	 	 	Managing Director

11

	 	 	 
	 	 	DEUTSCHE BANK AG NEW YORK BRANCH
	 	 	By:__/s/Richard Herder_____________________
	 	 	Name:	 	 	Richard Herder
	 	 	Title:	 	 	Managing Director
	 	 	By:__/s/Michael Campites___________________
	 	 	Name:	 	 	Michael Campites
	 	 	Title:	 	 	Vice President

12

13

	 	 	 
	 	 	BANK OF AMERICA, N.A.
	 	 	By:__/s/Debra Basier_____________________
	 	 	Name: Debra Basier
	 	 	Title: Senior Vice President
	 	 	BNP Paribas
	 	 	By:__/s/Peter A. Nikitaidis__________________
	 	 	Name: Peter A. Nikitaidis
	 	 	Title: Director
	 	 	By:__/s/Nair P. Raghu_____________________
	 	 	Name: Nair P. Raghu
	 	 	Title: Vice President

14

	 	 	 
	 	 	HSBC Bank USA, N.A.
	 	 	By:__/s/Dennis Cogan_____________________
	 	 	Name: Dennis Cogan
	 	 	Title: Managing Director

15

	 	 	 
	 	 	ING Bank N.V., London Branch
	 	 	By:__/s/MER Sharman_____________________
	 	 	Name:	 	 	MER Sharman
	 	 	Title:	 	 	Managing Director
	 	 	By:__/s/I Taylor__________________________
	 	 	Name:	 	 	I. Taylor
	 	 	Title:	 	 	Managing Director

16

	 	 	 
	 	 	Lehman Brothers Bank, FSB
	 	 	By:__/s/Janine Shugan___________________
	 	 	Name: Janine Shugan
	 	 	Title: Authorized Signatory

17

	 	 	 
	 	 	LLOYDS TSB BANK plc
	 	 	By: __/s/Michael J. Gilligan_________________
	 	 	Name:Michael J. Gilligan
	 	 	Title:Managing Director
	 	 	Financial Institutions, USA G311
	 	 	By:__/s/Candi Obrentz____________________
	 	 	 	 	 	Name:Candi Obrentz
	 	 	 	 	 	Title:Associate Director
	 	 	Financial Institutions, USA O013

18

	 	 	 
	 	 	MELLON BANK, N.A.
	 	 	As a Lender
	 	 	By:__/s/Donald G. Cassidy, Jr._____________
	 	 	Name: Donald G. Cassidy, Jr.
	 	 	Title: Senior Vice President

19

	 	 	 
	 	 	MORGAN STANLEY BANK
	 	 	By:__/s/Daniel Twenge____________________
	 	 	Name:Daniel Twenge
	 	 	Title:Authorized Signatory
	 	 	Morgan Stanley Bank

	 	 	[LENDER]

The Royal Bank of Scotland plc

	 	 	 	 	 
	By:	 	Greenwich Capital Markets, Inc., as agent
	 	 	for The Royal Bank of Scotland plc
	
 
	 	By:
	 	     /s/David Howes     
	
 
	 	 	 	 
	
 
	 	Name:

Title:
	 	Davis Howes

Vice President

20

21

	 	 	 	 	 
	 	 	UBS AG, STAMFORD BRANCH
	 	 	By:__/s/David B. Julie______________________
	 	 	Name:David B. Julie
	 	 	Title:Associate Director
	 	 	Banking Products Services, US
	 	 	By:__/s/Richard L. Tayron__________________
	 	 	 	 	 	Name:Richard L. Tayron
	 	 	 	 	 	Title:Director
	 	 	Banking Products Services, US

22

	 	 	 	 	 
	 	 	COMERICA BANK	 
	 	 	By:__/s/Chatphet Saipetch________________	 
	 	 	Name:	 	 	Chatphet Saipetch
	 	 	Title:	 	 	Vice President

	 	 	Commerzbank AG, New York and Grand Cayman Branches

	 	 	 
	By:__/s/Arndt E. Bruns_____________________

	 

	Name:

Title:

	 	Arndt E. Bruns

Vice President
	By:__/s/Joseph J. Hayes____________________

	 

	Name:

Title:

	 	Joseph J. Hayes

Vice President

23

24

	 	 	 
	 	 	Credit Suisse, Cayman Islands Branch
	 	 	By:__/s/Jay Chall_________________________
	 	 	Name:	 	 	Jay Chall
	 	 	Title:	 	 	Director
	 	 	By:__/s/Alain Schmid_____________________
	 	 	Name:	 	 	Alain Schmid
	 	 	Title:	 	 	Assistant Vice President

	 	 	MERRILL LYNCH COMMERCIAL FINANCE CORPORATION

	 	 	 
	By:__/s/Louis Alder_______________________

	 

	Name:

Title:

	 	Louis Alder

Director

25

26

	 	 	 
	 	 	Mizuho Corporate Bank, Ltd.
	 	 	By:__/s/Hidekatsu_Take___________________
	 	 	Name: Hidekatsu Take
	 	 	Title: Deputy General Manager

	 	 	LANDESBANK HESSEN-THÛRINGEN NEW YORK BRANCH

	 	 	 
	By:__/s/Samuel W. Bridges__________________

	 

	Name:

Title:

Institutions Public Finance

	 	Samuel W. Bridges

Senior Vice President Financial

	By:__/s/Irina Rakhlis_______________________

	 

	Name:

Title:

	 	Irina Rakhlis

Assistant Vice President

27

28

	 	 	 
	 	 	The Bank of Nova Scotia
	 	 	By:__/s/Dan Foote_________________________
	 	 	Name: Dan Foote
	 	 	Title: Director

	 	 	 
	[LENDER] Fortis
	By:__/s/H.F. de Vlaming____________________
	Name:	 	H.F. de Vlaming
	Title:	 	Head Institutional Banking N.L.
	By:__/s/A.P. Verkerk_______________________
	Name:	 	A.P. Verkerk

	 	 	Title: Credit Manager Institutional Banking N.L.

29

	 	 	 
	KEYBANK NATIONAL ASSOCIATION

	 	

	By:__/s/Mary K. Young____________________

	 

	Name:

Title:

	 	Mary K. Young

Senior Vice President

30

	 	 	 
	CITIBANK, N.A.

By:     /s/Michael Taylor     

	 	

     
	 

	 	 
	Name:

Title:

	 	Michael Taylor

Managing Director

31

	 	 	 
	 	 

            GOLDMAN SACHS BANK USA                                 }
            By:__/s/William M. Hartnett________________            }

            Name:                             William M. Hartnett
            Title:                            Vice President
GOLDMAN SACHS BANK USA

	 	 	By:__/s/William M. Hartnett________________
	 	 	Name: William M. Hartnett
	 	 	Title: Vice President

32EX-10.1

EXHIBIT 10.1

June 7, 2007

CryoCath Technologies Inc.

16771 Chemin Ste-Marie

Montreal, Quebec

H9H 5H3

Canada

ATS Medical, Inc.

3905 Annapolis Lane #105

Minneapolis, MN 55447

Ladies and Gentlemen:

This letter (this “Letter Agreement”) shall serve as evidence of our agreement to the bifurcation
of the Asset Purchase and Technology License Agreement between CryoCath Technologies, Inc.
(“CryoCath”) and Endocare, Inc. (“Endocare”) dated April 14, 2003 (the “Existing CryoCath
Agreement”) and the assignment of one of the two resulting bifurcated agreements to ATS Medical,
Inc. (“ATS”), all on the terms and subject to the conditions set forth in this letter. Capitalized
terms used but not otherwise defined herein shall have the respective definitions given to such
terms in the Existing CryoCath Agreement.

Endocare understands that CryoCath and ATS are currently contemplating a transaction (the
“Contemplated Transaction”) whereby ATS will acquire from CryoCath certain assets related to
CryoCath’s cardiac cryoablation surgical business. As a part of the Contemplated Transaction, both
CryoCath and ATS wish to bifurcate the licensee rights with respect to the license granted in
Section 2 of the Existing CryoCath Agreement, with (i) ATS having the exclusive right to use,
modify, enhance, develop, make derivatives, amend and/or change the Technology to develop,
manufacture, promote, market, offer for sale, sell, distribute and/or commercialize Licensed
Cardiovascular Products solely for Cardiovascular Uses within the ATS Field of Use, and
(ii) CryoCath having the exclusive right to use, modify, enhance, develop, make derivatives, amend
and/or change the Technology to develop, manufacture, promote, market, offer for sale, sell,
distribute and/or commercialize Licensed Cardiovascular Products solely for Cardiovascular Uses
within the CryoCath Field of Use.

If the closing of the Contemplated Transaction does not occur on or before July 31, 2007 (the
“Closing Deadline”), then, unless all parties otherwise agree in writing, this Letter Agreement
(except for the last paragraph hereof) shall terminate automatically on the first calendar day
after the Closing Deadline and be of no force or effect. The last paragraph of this Letter
Agreement shall survive any such termination.

For the purposes of this Letter Agreement “ATS Field of Use” shall mean, with respect to the
Licensed Cardiovascular Products, such products that are sold or marketed to cardiac, thoracic or
cardiothoracic surgeons and which are used in cardiac cryoablation surgery. “CryoCath Field of
Use” means, with respect to the Licensed Cardiosvascular Products, all products that are not in the
ATS Field of Use. The CryoCath Field of Use and the ATS Field of Use are collectively referred to
herein as the “Fields of Use”.

For avoidance of doubt, notwithstanding anything to the contrary in this Letter Agreement or any
other communication between any of the parties hereto, the rights and licenses granted to ATS and
CryoCath under this Letter Agreement (by means of the New ATS Agreement and the Modified CryoCath
Agreement described below) do not and shall not expressly or by implication exceed the scope of the
rights and licenses granted by Endocare to CryoCath in the Existing CryoCath Agreement.

Endocare recognizes that having each of CryoCath and ATS market products in their respective Fields
of Use would potentially give rise to an obligation to pay royalty payments to Endocare and
therefore may potentially be of benefit to Endocare. Each of ATS and CryoCath recognizes that
having the exclusive rights as a licensee in their respective Fields of Use as contemplated herein
would be of benefit to such party. Therefore, each of Endocare, CryoCath and ATS agrees with the
other parties to this Letter Agreement as follows:

	 	1.	 	Contingent and effective upon the closing of the Contemplated Transaction on or before
the Closing Deadline: (i) a new agreement shall be deemed to be automatically created
between ATS and Endocare (the “New ATS Agreement”), which in all respects will be identical
to the Existing CryoCath Agreement, except as provided below in Section 1(a), (b), (c), (d)
and (e); and (ii) the Existing CryoCath Agreement shall be deemed to be automatically
modified (as modified, the “Modified CryoCath Agreement”) as provided below in Section
1(a), (b), (c), (d) and (e):

	 	(a)	 	The Technology licensed under Section 2 of the New ATS Agreement may only be
used to develop, manufacture, promote, market, offer for sale, sell, distribute and/or
commercialize Licensed Cardiovascular Products for Cardiovascular Uses within the ATS
Field of Use, and under the New Agreement only ATS will have the exclusive right to use
the Technology to develop, manufacture, promote, market, offer for sale, sell,
distribute and/or commercialize Licensed Cardiovascular Products for Cardiovascular
Uses within the ATS Field of Use;

	 	(b)	 	The Technology licensed under Section 2 of the Modified CryoCath Agreement may
only be used to develop, manufacture, promote, market, offer for sale, sell, distribute
and/or commercialize Licensed Cardiovascular Products for Cardiovascular Uses within
the CryoCath Field of Use, and under the Modified CryoCath Agreement only CryoCath will
have the exclusive right to use the Technology to develop, manufacture, promote,
market, offer for sale, sell, distribute and/or commercialize Licensed Cardiovascular
Products for Cardiovascular Uses within the CryoCath Field of Use;

	 	(c)	 	The Endocare covenant not to compete contained in the Existing CryoCath
Agreement (Section 21.1 of the Existing CryoCath Agreement) shall be bifurcated and
shall be deemed to be automatically modified such that (i) the Endocare covenant not to
compete contained in the New ATS Agreement shall allow ATS the right to enforce such
covenant not to compete only in the ATS Field of Use, and (ii) the Endocare covenant
not to compete contained in the Modified CryoCath Agreement shall allow CryoCath the
right to enforce such covenant not to compete only in the CryoCath Field of Use;

	 	(d)	 	Notwithstanding anything in the New ATS Agreement to the contrary, no assets
are being sold by Endocare under the New ATS Agreement and all provisions regarding any
such sale shall be disregarded and of no force or effect; and

	 	(e)	 	No further fees shall be payable under Section 8 of the Existing CryoCath
Agreement or the Modified CryoCath Agreement and no fees shall be payable under Section
8 of the New ATS Agreement.

	 	2.	 	Except as expressly amended by this Letter Agreement (which such amendments shall be
contingent and effective upon the closing of the Contemplated Transaction on or before the
Closing Deadline), the Existing CryoCath Agreement shall remain in full force and effect in
accordance with its terms.

	 	3.	 	Contingent and effective upon the closing of the Contemplated Transaction on or before
the Closing Deadline: (i) the New ATS Agreement shall become effective; (ii) ATS shall be
legally bound by the provisions of the New ATS Agreement, including, without limitation,
all restrictions, covenants and obligations set forth in the New ATS Agreement, which in
all respects shall be identical to the restrictions, covenants and obligations to which
CryoCath is subject under the Existing CryoCath Agreement, except as provided above in
Section 1(a), (b), (c), (d) and (e); and (iii) CryoCath shall be legally bound by the
provisions of the Modified CryoCath Agreement, including, without limitation, all
restrictions, covenants and obligations set forth in the Modified CryoCath Agreement, which
in all respects shall be identical to the restrictions, covenants and obligations to which
CryoCath is subject under the Existing CryoCath Agreement, except as provided above in
Section 1(a), (b), (c), (d) and (e).

	 	4.	 	Without limiting the generality of this Letter Agreement, the CryoCath obligation to
indemnify an Endocare Indemnified Party contained in the Existing CryoCath Agreement
(Section 18.3 of the Existing CryoCath Agreement) shall be bifurcated and shall be deemed
to be automatically modified such that (i) with respect to events and circumstances
occurring prior to the closing of the Contemplated Transaction, the obligation to indemnify
an Endocare Indemnified Party under the Existing CryoCath Agreement and/or the Modified
CryoCath Agreement shall be solely the responsibility of CryoCath and (ii) with respect to
events and circumstances occurring subsequent to the closing of the Contemplated
Transaction (a) the obligation to indemnify an Endocare Indemnified Party contained in the
New ATS Agreement shall be an obligation of ATS only in the ATS Field of Use, and (b) the
obligation to indemnify an Endocare Indemnified Party contained in the Modified CryoCath
Agreement shall be an obligation of CryoCath only in the CryoCath Field of Use. For
greater certainty, with respect to events and circumstances occurring subsequent to the
closing of the Contemplated Transaction, an Endocare Indemnified Party will only be able to
seek indemnification from CryoCath or ATS following the closing of the Contemplated
Transaction with respect to their particular Fields of Use.

	 	5.	 	For greater certainty and without limiting the generality of the foregoing, the parties
hereto acknowledge and agree that any and all royalties payable to Endocare in connection
with the sale of the SurgiFrost and Frostbyte probes and consoles (as such probes and
consoles are currently sold by CryoCath) following the closing of the Contemplated
Transaction will only be payable by ATS pursuant to the New ATS Agreement. Without
limiting the generality of the foregoing, the parties hereto recognize and understand that
following the closing of the Contemplated Transaction, CryoCath will continue, pursuant to
a manufacturing agreement to be entered into between ATS and CryoCath concurrently with
such closing, to manufacture the SurgiFrost and Frostbyte probes and consoles for and on
behalf of ATS. Although CryoCath will be paid by ATS for such SurgiFrost and Frostbyte
probes and consoles, no royalties will be payable by CryoCath to Endocare for such sales
(or the sale of its inventory of the SurgiFrost and Frostbyte probes and consoles to ATS in
connection with the Contemplated Transaction) and Endocare will only be entitled to receive
royalty payments from ATS on the subsequent sales of such SurgiFrost and Frostbyte probes
and consoles by ATS. Other than the aforementioned sales to ATS, CryoCath will not sell any
of the SurgiFrost or Frostbyte probes and consoles following the closing of the
Contemplated Transaction.

Each of Endocare, CryoCath and ATS agrees that the other parties to this Letter Agreement may
negotiate with each other without consulting the party that is not participating in such
negotiations. Without limiting the generality of the foregoing statement, (i) CryoCath agrees that
Endocare and ATS may agree to modify the New ATS Agreement in any matter that Endocare and ATS
agree upon without further consultation with CryoCath, with such modification not to become
effective any earlier than the time at which the New ATS Agreement comes into effect as
contemplated above in Section 3, so long as such modifications do not infringe upon CryoCath’s
exclusive rights with respect to the use of the Technology in the CryoCath Field of Use, and (ii)
ATS agrees that Endocare and CryoCath may agree to modify the Existing CryoCath Agreement or the
Modified CryoCath Agreement in any matter that Endocare and CryoCath agree upon without further
consultation with ATS, so long as such modifications do not infringe upon ATS’ exclusive rights
with respect to the use of the Technology in the ATS Field of Use. Endocare, CryoCath and ATS also
hereby agree to execute any document reasonably required from time to time to give effect to the
subject matter of this Letter Agreement.

This letter agreement, along with the letter among the parties hereto dated June 7, 2007,
constitutes the entire agreement between Endocare, ATS and CryoCath with respect to the subject
matter hereof and supersedes all prior agreements and understandings, oral and written, between or
among any of the parties with respect to the subject matter hereof. Each of Endocare, ATS and
CryoCath represents to the other parties that this Letter Agreement constitutes the valid and
binding obligations of such party, enforceable against it in accordance with its terms. This
letter agreement shall be governed by the substantive laws of the State of New York and all parties
hereto agree to keep the existence and the terms of this Letter Agreement strictly confidential
except to the extent disclosure is required under applicable law.

Within 30 days of being presented with copies of invoices therefore, ATS shall pay the legal fees
of outside counsel that Endocare incurs in connection with this Letter Agreement, with such
obligation of not to exceed $5,000. The parties to this letter agreement agree to maintain the
confidentiality of the terms and conditions of this letter agreement except as may required by
applicable law. In the event that disclosure of this letter agreement is required, the parties
will use commercially reasonable efforts to promptly notify in writing the other parties hereto
prior to any disclosure.

1

Very truly yours,

	 	 	 
	
 
	 	ACKNOWLEDGED AND AGREED TO:
	ENDOCARE, INC.

By: Craig Davenport

Its: CEO and President

	 	CRYOCATH TECHNOLOGIES INC.

By: Jan Keltjens

Its: President and CEO
	
 
	 	and

ATS MEDICAL, INC.

By: Rick Curtis

Its: Vice President, Corporate Development

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]