Document:

Dendrite 401(k) Plan

	

SEPARATION
AGREEMENT AND GENERAL RELEASE

        This
Separation Agreement and General Release (the “Agreement”) confirms
the following understandings and agreements between DENDRITE INTERNATIONAL,
INC. (“Employer”), and TERESA F. WINSLOW (“Employee”) concerning Employee’s employment and termination
thereof. 

	
        
1.     Employment Status:

        (a)     Unless  Employee is sooner  terminated  for Cause as defined in the Amendment  dated as of May 26, 1999 (the
“Amendment”) to Employee’s Employment Agreement dated as of October 1, 1991 (the “Employment  Agreement”)),  she will continue to serve
as  President,  Dendrite  Americas of Employer  through  December 31, 2001 and receive her base salary and benefits  through such date.
Employee agrees to perform her duties in a competent and professional  manner through such date,  including but not limited to devoting
her best  efforts,  skill and  ability to promote  the  Company’s  interests  and  assisting  in an  orderly  transition  of her former
responsibilities for Employer.

        (b)     Commencing  on January 1, 2002 and  continuing  through the  Termination  Date, as defined  below,  Employee
shall remain  available to render  services as the Company may  reasonably  request.  Unless  Employee’s  employment is terminated  for
“Cause” or she breaches the terms of this  agreement,  Employee’s  last date of  employment  with  Employer  will be the earlier of (i)
December 31, 2002 or (ii) the date Employee’s  secures  full-time  employment (the “Termination  Date”).  Employee agrees that from the
date hereof  through the  Termination  Date,  she will take all such actions as may be necessary to transition the management of client
accounts  (including but not limited to, Pfizer,  Lilly,  J&J, BMS and Pharmacia),  in an orderly manner to such other employees of the
Company as may be designated by the  President  with the view of  maintaining  the Company’s  relationship  with such clients after the
Employee’s termination of employment.

        2.  Payments and Benefits:

        (a)     After  December 31, 2001, in the event (i) Employee is not  terminated  for Cause (as defined  above),  (ii)
she complies with her  obligations  hereunder and (iii) she  re-executes  the Agreement  after January 1, 2002 as provided in paragraph
15(e) below, she will be paid her base salary of $300,000 in accordance with normal payroll practices through the Termination Date.

        (b)     In the event (i) the  Termination  Date occurs prior to December 31, 2002,  (ii) Employee is not  terminated
for Cause prior to December 31, 2002,  (iii) she complies  with her  obligations  hereunder,  and (iv) after the  Termination  Date she
re-executes  this  Agreement as provided in paragraph  15(e) below,  Employee  will be paid the  remaining  unpaid  portion of her base
salary of $300,000  through  December 31, 2002. Such payments will be made to Employee in accordance with normal payroll  practices and
will commence in the payroll period following the eighth day after  Employee’s  re-execution of this Agreement as provided in paragraph
15(e).

        (c)     Employee  will be  eligible  to receive a  discretionary  bonus in  respect  of the third and fourth  fiscal
quarters of 2001,  payable in the next payroll  period  occurring at least two weeks after  Dendrite  publicly  discloses its financial
results in such  fiscal  quarter;  provided,  however,  that the  payment of the Bonus is subject  to: (a)  Dendrite’s  achievement  of
quarterly  financial goals as set forth in the Board approved annual  business plan as subsequently  modified,  (b) such other personal
and divisional  objectives as set by Employer,  including those referenced in the letters addressed to senior management of the Company
dated  August 29, 2001 and October 23,  2001,  (c)  Employee  remaining in the employ of Dendrite as of the end of any such quarter and
(d) Dendrite’s annual bonus “hold back” policy as such policy generally applies to Dendrite senior executives.

        (d)     Provided  (i)  Employee  re-executes  this  Agreement  on or  after  the  Termination  Date as set  forth in
paragraph 15 (e), (ii) complies with her obligations under this Agreement,  and (iii) competently and  professionally  transitions,  to
the best of her abilities,  her  responsibilities  on her accounts including but not limited to, the objectives  identified on Schedule
A, Dendrite  will pay Winslow an  additional  $150,000.  Such amount will be payable in the payroll  period  following the later of the
date she re-executes the Agreement as set forth in paragraph 15 (e) or January 1, 2003.

        (e)     Employee’s  health coverage under the Employer’s  group health plan will terminate on the Termination  Date.
Thereafter,  Employee will be provided an  opportunity to continue  health  coverage for herself and  qualifying  dependents  under the
Employer’s group health plan in accordance with the Consolidated Omnibus Budget Reconciliation Act (“COBRA”).

        (f)     Through the  Termination  Date,  Employee  will be eligible to (i)  continue  vesting in options to Purchase
stock of Employer which were previously  granted to her, subject to the terms of the Company's Stock Option Plans,  (ii) continue to be
eligible to participate in the deferred  compensation  plan,  subject to the terms and  conditions of the deferred  compensation  plan,
(iii)  continue to be  eligible  to  participate  in the  Employer’s  401(k)  Plan and Stock  Purchase  Plan,  subject to the terms and
conditions of such plans.

        (g)     Employer  will provide  Employee with  reimbursement  for all  reasonable  travel,  entertainment  and other
reasonable and necessary  out-of-pocket  expenses  incurred by Employee in connection with the  performance of her duties  hereunder as
may be  requested  by Employer  from  time-to-time.  Reimbursement  will be made upon the  submission  by the  Employee of  appropriate
documentation and verification of the expenses in accordance with Employer’s policy.

        (h)     Employee  shall be  entitled  to  reimbursement  up to $10,000  for  financial  planning  reimbursement  for
calendar year 2002, in accordance with Employer policy.

        (i)     Employee shall be entitled to  reimbursement  up to a maximum of $47,000 for tuition and  associated  travel
and other  out-of-pocket  expenses for executive  management  program(s)  approved by Employer  (such  approval not to be  unreasonably
withheld) during the calendar year 2002,  provided she supplies the Employer with appropriate  documentation.  For the purposes of this
provision, the Harvard Executive Management Program is approved by Employer.

        (j)     Employee shall be entitled to  reimbursement  up to a maximum of $10,000 for  participation  in outplacement
services of her choice, provided she supplies the Employer with appropriate documentation.

        (k)     Except as otherwise set forth in this  Agreement,  from and after  December 31, 2001,  Employee shall not be
entitled to receive any further  compensation  or monies from Employer or to receive any benefits or participate in any benefit plan or
program of Employer.

        (l)     The  payments  and benefits  set forth in this  paragraph 2 are all subject to Employee  complying  with the
terms of this Agreement.

        3.  
Full Release:  In consideration of the compensation and benefits
provided in paragraph 2 herein, Employee, for herself, her heirs, executors,
administrator, successors, and assigns (hereinafter referred to as the
“Releasors”) hereby fully releases and discharges Employer, and its
subsidiaries, parents, affiliates, successors or assigns together with their
respective officers, directors, employees, agents, insurers, underwriters (all
such persons, firms, corporations and entities being deemed beneficiaries hereof
and are referred to herein as the “Releasees”), from any and all
actions, causes of action, claims, obligations, costs, losses, liabilities,
damages, attorneys’ fees, and demands of whatsoever character, whether or
not known, suspected or claimed, which the Releasors have, or hereafter may
have, against the Releasees by reason of any matter, fact or cause whatsoever
from the beginning of time to the Effective Date of this Agreement, including,
without limitation, all claims arising out of or in any way related to
Employee’s employment or the termination of her employment. Nothing in this
paragraph 3 shall affect any of Employee’s rights to indemnification under
the Indemnification Agreement dated October 28, 1998. 

        This
Agreement of Employee shall be binding on the executors, heirs, administrators,
successors and assigns of Employee and shall inure to the benefit of the
respective executors, heirs, administrators, successors and assigns of the
Releasees. 

        4.  
Confidentiality:  Employee agrees that the terms of this Agreement
have been and shall be held strictly confidential by her and her attorneys and
accountants, and that she shall not, and shall instruct her attorneys and
accountants not to disclose any such information, orally or in writing, to
anyone else, including without limitation, any past, present or future employee
or agent of the Employer. Employee recognizes that, in the event she or her
attorneys disclose any information contrary to the confidentiality provisions of
this Agreement, any such disclosure would be a material breach of the Agreement
for which the Employer shall be entitled to cease making any payments or
providing any benefits under paragraph 2, in addition to its other remedies in
law, equity, and under this Agreement. 

        5.
Return of Property:  Upon termination of Employee’s employment
or at any time upon the request of Employer, Employee agrees to return to
Employer all property which Employee received, prepared or helped to prepare in
connection with her employment including, but not limited to, all confidential
information and all disks, notes, notebooks, blueprints, customer lists or other
papers or material in any tangible media or computer readable form belonging to
Employer or any of its customers, clients or suppliers, Employee agrees she will
not retain any copies, duplicates or excerpts of any of the foregoing materials.
If Employee fails to comply with her obligations under this paragraph 5,
Employer will have no obligation to provide payments or benefits pursuant to
paragraph 2. 

        6.  Non-Disparagement:  
Employee  agrees  that  she  will  not at  any  time  make  any  statements  or  communicate  any
information (whether oral or written) that disparages or reflects negatively on the Employer or any of the Releasees.

        7.  
No Effect on Duties, Obligations or Restrictions Contained in Employment
Agreement:  This Agreement does not amend, modify, waive or affect in any
way Employee’s duties, obligations or restrictions under Sections 6, 7, 8,
9, 10(A) (a) through (e), 11, 12, 13, 14, 15, 16, 17 and 18 of the Employment
Agreement. In further consideration of this Agreement, such Sections are hereby
incorporated by reference and Employee agrees to abide by such provisions.
Notwithstanding anything herein or the Employment Agreement or the Amendment to
the contrary, and irrespective of when the Termination Date occurs, Employee and
Employer agree that (i) the three (3) year period during which there are certain
restrictions on Employee’s future employment pursuant to Section 10 (A) (a)
through (e) of the Employment Agreement shall expire on December 31, 2004 and
(ii) the payments and benefits set forth in this Agreement are being provided to
Employee in lieu of any obligations to provide compensation to Employee pursuant
to Sections 10(B), 10(C) or 10(D) of the Employment Agreement. 

        8.  
Releasees’  Express  Denial of  Liability:  The payment by the Releasees of the amount  specified  herein above shall
not be deemed an admission  that any  liability  of the  Releasees  exists,  and in making such  payment  Releasees  do not admit,  and
expressly deny, any liability.

        9.  
Waiver of Rights Under Other Statutes:  Employee understands that
this Agreement includes the waiver of claims and rights Employee may have under
other applicable statutes, including without limitation, Title VII of the Civil
Rights Act of 1964; the Civil Rights Act of 1991; the Employee Retirement Income
Security Act; the Equal Pay Act; the Rehabilitation Act of 1973; the Americans
with Disabilities Act; the Age Discrimination in Employment Act; the Family and
Medical Leave Act; the New Jersey Family Leave Act; the New Jersey Law Against
Discrimination; the Fair Labor Standards Act; the New Jersey Wage and Hour Act;
and/or the New Jersey Conscientious Employee Protection Act, and any and all
amendments to any of same. 

        10.  
Waiver of Rights Under the Age Discrimination Act:  Employee
understands that this Agreement, and the release contained herein, waives claims
and rights Employee might have under the Age Discrimination in Employment Act
(“ADEA”). The monies and other benefits offered to Employee in this
Agreement are in addition to any sums or benefits that Employee would be
entitled without signing this Agreement. For a period of seven (7) days
following execution of this Agreement, Employee may revoke the terms of this
Agreement by a written document received by Employer on or before the end of the
seven (7) day period (the “Effective Date”). The Agreement will not be
effective until said revocation period has expired. Employee acknowledges that
she been given up to twenty-one (21) days to decide whether to sign this
Agreement. Employee has been advised to consult with an attorney prior to
executing this Agreement. 

        11.  
No Suit:  Employee represents that she has not filed or permitted
to be filed against the Employer or any of the other Releasees, individually or
collectively, any lawsuits, and she covenants and agrees that she will not do so
at any time hereafter with respect to the subject matter of this Agreement and
claims released pursuant to this Agreement, except as may be necessary to
enforce this Agreement or to challenge the validity of the release of her rights
under the ADEA. Except as otherwise provided in the preceding sentence, Employee
will not voluntarily participate in any judicial proceeding against any of the
Releasees that in any way involve the allegations and facts that she could have
raised against any of the Releasees in any forum as of the date hereof. Employee
agrees that she will not encourage or cooperate with any other current or former
employee of Employer or any potential plaintiff to commence any legal action or
make any claim against the Employer or against the Releasees in respect of such
persons employment with the Employer or otherwise. 

        12.  
Remedies:  In the event Employee breaches any of the provisions of
this Agreement (and in addition to any other legal or equitable remedy it may
have), the Employer shall be entitled to cease making any payments or providing
any benefits to Employee under paragraph 2 of this Agreement, and recover the
reasonable costs and attorneys’ fees incurred in seeking relief for any
such alleged breach. The remedies set forth in this paragraph 12 shall not apply
to any challenge to the validity of the waiver and release of Employee’s
rights under the ADEA. In the event Employee challenges the validity of the
waiver and release of her rights under the ADEA, then Employer’s right to
attorney’s fees and costs shall be governed by the provisions of the ADEA,
so that Employer may recover such fees and costs if the lawsuit is brought by
Employee in bad faith. Nothing herein shall affect in any way any of
Employee’s obligations under this Agreement, including, but not limited to,
her release of claims under paragraphs 3, 9 and 10. Employee further agrees that
nothing in this Agreement shall preclude Employer from recovering
attorneys’ fees, costs or any other remedies specifically authorized under
applicable law. 

        13.  
Cooperation:   Employee agrees to cooperate with Employer and its
counsel in connection with any investigation, administrative proceeding or
litigation relating to any matter in which she was involved or of which she has
knowledge as a result of her employment with Employer. Employer agrees to
reimburse Employee for the reasonable and necessary out-of-pocket expenses
incurred by her in connection with her obligations under this paragraph 13. 

        14.  
Entire  Agreement:  Except as otherwise set forth herein,  this Agreement sets forth the entire agreement between the
parties  relating to the subject  matter hereof and  supersedes  the  Employment  Agreement and  Amendment.  This  Agreement may not be
changed orally but changed only in a writing signed by both parties.

        15.  
Miscellaneous:

        (a)     
This Agreement shall be governed in all respects by laws of the State of New Jersey.

        (b)     In the event that any one or more of the  provisions  of this  Agreement  is held to be invalid,  illegal or
unenforceable,  the  validity,  legality and  enforceability  of the remaining  provisions  will not in any way be affected or impaired
thereby.  Moreover,  if any one or more of the provisions  contained in this Agreement is held to be excessively  broad as to duration,
scope,  activity or subject,  such  provisions  will be construed by limiting and reducing them so as to be  enforceable to the maximum
extent compatible with the applicable law.

        (c)     The paragraph  headings used in this Agreement are included  solely for  convenience and shall not affect or
be used in connection with the interpretation of this Agreement.

        (d)     Employee  represents  that in  executing  this  Agreement,  she has not relied  upon any  representation  or
statement, whether oral or written, not set forth herein.

        (e)     In order to be  entitled  to the  payments  and  benefits  set forth in  paragraph  2 above,  Employee  must
re-execute this Agreement on the earlier of the date she obtains alternate  full-time  employment or December 31, 2002. If this General
Release is not  re-executed  or  subsequently  revoked as provided  herein,  Employer  will not be  obligated  to make the payments and
benefits set forth in paragraph 2. This in no way affects  Employee's  prior release of claims under this  Agreement.  Within seven (7)
days of  re-executing  this  Agreement,  Employee  will have the right to revoke  such  re-execution  of this  Agreement.  In the event
Employee  revokes her  re-execution of this Agreement,  Employer will have no obligation to provide the payments and benefits set forth
in paragraph 2. By  Employee's  re-execution  of this  Agreement,  the releases set forth in  paragraphs 3, 9 and 10 shall be deemed to
cover any claims  which she has,  may have had, or  thereafter  may have  existing or occurring at any time on or before the date which
she re-executes this Agreement.

        IN WITNESS  THEREOF,  Employer and Employee have executed this  Separation  Agreement and General Release on this 2nd
day of January, 2001.

			DENDRITE INTERNATIONAL, INC.

By:  PAUL ZAFFARONI
——————————————

Date:  1/2/02

			

    TERESA F. WINSLOW
——————————————

Date:  1/2/02

Re-Executed:

——————————————

Date:————————————

	

Schedule A

Key
Objectives for Transition

		•		Finalize
and obtain signature for the Pfizer U.S. services contract 

		•		Available
as needed from time-to-time for executive calls, provision of historical account
information, etc.Exhibit 10.58

                              EMPLOYMENT AGREEMENT

          THIS AGREEMENT is made and entered into on April, 1, 2002, by and
among, XL Capital Ltd, a Cayman Islands corporation ("XL"), XL Insurance, Inc.,
a Delaware corporation ("XLI") and XL America, Inc. (the "Company"), and
Nicholas M. Brown, Jr. (the "Executive").

          WHEREAS, the Executive has been in the employ of the Company;

          WHEREAS, the Company and the Executive desire to continue such
employment and to memorialize the terms and conditions of such employment by
this agreement;

          NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the Company, XL,
XLI and the Executive (the "Parties") agree as follows:

          1. EMPLOYMENT.

          The Company hereby employs the Executive, and the Executive hereby
accepts employment with the Company, for the term of this Agreement as set forth
in Section 2, below, in the positions and with duties and responsibilities set
forth in Section 3, below, and upon such other terms and conditions as are
hereinafter stated.

          2. TERM OF EMPLOYMENT.

          The stated term of employment under this Agreement shall commence on
January 1, 2002 (the "Date of the Agreement") and shall continue through the
close of business on the third anniversary of the Date of the Agreement, subject
to earlier termination as provided in Section 8 below. Notwithstanding anything
herein to the contrary, the expiration of this Agreement on the third
anniversary of the Date of the Agreement shall not constitute a termination of
the Executive's employment by the Company or by the Executive.

<PAGE>

          3. POSITIONS, DUTIES AND RESPONSIBILITIES.

          (a) GENERAL. The Executive shall be employed as (a) the Chief
Executive of Insurance Operations for XL; (b) Executive Vice President of XL;
(c) Chief Executive Officer of XLI; and (d) a senior executive officer of the
Company, or, if the Company assigns this Agreement to an Affiliate (as defined
in Section 11, below) in accordance with the provisions of Section 16, a senior
executive officer of such Affiliate, but in any event not reporting to any
person other than the Chief Executive Officer of XL. In his capacity as Chief
Executive of Insurance Operations for XL and Executive Vice President of XL the
Executive shall report to the Chief Executive Officer of XL, and in his other
capacities the Executive shall report the Board of Directors of the Company (or
an Affiliate thereof if this Agreement is assigned to such Affiliate). The
Executive will have such duties and responsibilities as are customary for such
positions in an insurance company, subject to such limitations as the Company
may reasonably impose due to legal, regulatory or tax requirements of the
Company or its Affiliates. During the term of this Agreement, the Executive
shall devote his full business time to the business and affairs of XL, the
Company and their Affiliates, as appropriate.

          (b) PERFORMANCE OF SERVICES. The Executive's services under this
Agreement (i) on behalf of XL shall be performed outside the United States and
generally in Bermuda or (ii) on behalf of the Company and the other employers
primarily in Stamford, Connecticut, and the area within a 50 mile radius
thereof, in each case unless the Executive and XL mutually agree in writing to
the performance of such services in another location. The Executive may travel
to any location in connection with the performance of the Executive's duties
hereunder provided that such travel is in accordance with the guidelines
established by the Company from time to time. The allocation of the Executive's
business time between services on behalf of XL and services on behalf of the
Company and the other employers shall be comparable to the allocation of the
Executive's time prior to the Date of the Agreement.

          (c) PERMITTED ACTIVITIES; DIRECTORSHIPS. Anything in this Section 3 to
the contrary notwithstanding, nothing shall preclude the Executive from (i)
serving on the boards of directors of a reasonable number of other corporations
or the boards of a reasonable number of trade associations and/or charitable
organizations, (ii) engaging in

                                       2
<PAGE>

charitable activities and community affairs and (iii) managing his personal
investments and affairs; provided such activities do not materially interfere
with the proper performance of his duties and responsibilities hereunder or as
an officer or director of XL, the Company or their Affiliates, or create an
actual or potential conflict of interest or the appearance thereof, as
determined in good faith by the XL Board of Directors. It is agreed that the
Executive will be considered for membership on the XL Board of Directors if the
current practice of restricting membership to one member of management is
revised.

          4. BASE SALARY.

          The Executive shall be paid a Base Salary by the Company equal to his
base salary as in effect on the date hereof, payable in accordance with the
Company's regular pay practices. Such Base Salary shall be subject to annual
review in accordance with the Company's practices for comparable executives as
in effect from time to time and may be increased (but not decreased) at the
discretion of the Compensation Committee of the XL Board of Directors (the
"Compensation Committee").

          5. BONUSES.

          (a) In addition to the Base Salary provided for in Section 4, above,
the Executive shall be eligible for an annual cash bonus under the Company's
bonus plan as in effect from time to time. The Executive may be awarded such
annual bonuses thereunder as may be approved by the Compensation Committee based
on corporate, individual and business unit performance measures, as appropriate,
established or approved from time to time, by the Compensation Committee after
good faith consultation between the Executive and the Chief Executive Officer of
XL. The Executive shall have an annual target bonus equal to 90% of Base Salary
(within a range of 45% of Base Salary for threshold performance to 270% of Base
Salary for superior performance), based on corporate, business unit and
individual performance measures comparable to those used for comparable senior
executives. Any annual bonus shall be paid in cash in a lump sum promptly
following approval thereof or, at Executive's option, deferred in accordance
with any bonus deferral plans of the Company in effect from time to time.
Nothing in this Section 5(a) shall confer upon the Executive any right to a
minimum annual bonus if one or more performance targets are not achieved.

                                       3
<PAGE>

          (b) SPECIAL BONUS AND VESTING. In recognition of the Executive's
service to XL and in consideration for his entering into this Agreement, on the
effective date of this Agreement the Executive shall be entitled to a special
bonus in the amount of US$2,600,000 which shall be paid to him as soon as
practicable thereafter. In addition, XL shall (i) cause the restricted stock and
option awards listed in Exhibit C hereto that would otherwise vest in June, 2002
to become fully vested to the extent not then otherwise fully vested, upon the
Executive's termination of employment by the Company in accordance with the
provisions of Sections 8(d)(ii) or 8(d)(iii) hereof, the Executive's termination
of employment in accordance with the provisions of Sections 8(d)(iii) or
8(d)(iv) hereof or upon the Executive's death or disability and (ii) cause the
restricted stock and option awards listed in Exhibit C hereto that would
otherwise vest in June, 2003 to become fully vested to the extent not then
otherwise fully vested, upon the termination of Executive's employment with the
Company for any reason or no reason by the Company or the Executive.

          6. EMPLOYEE BENEFIT PROGRAMS.

          During the term of the Executive's employment under this Agreement,
the Executive shall be entitled to participate in all employee benefit programs
of the Company and its Affiliates applicable to the Executive as are in effect
from time to time and in which senior U.S.-based executives of the Company and
its Affiliates are eligible to participate, including medical, hospitalization,
life, travel and accident insurance, disability protection and retirement
benefits, at a level commensurate with his positions. The Executive shall also
be entitled to receive the same life insurance benefits provided to other senior
executive officers of XL residing in Bermuda. The Executive will also be
eligible, on the same basis as comparable executives of XL, to participate in
the XL 1991 Performance Incentive Program (or any successor plan) as determined
in the discretion of the committee administering the 1991 Performance Incentive
Program (or its successor). The Executive shall be entitled to no less than five
(5) weeks of paid vacation per year. The Company shall pay to the Executive a
mortgage subsidy of US$65,000 per year in equal monthly installments.

          7. BUSINESS EXPENSE REIMBURSEMENT AND FRINGE BENEFITS.

          (a) EXPENSE REIMBURSEMENT. During the term of the Executive's
employment under this Agreement, the Execu-

                                       4
<PAGE>

tive shall be entitled to receive reimbursement by the Company for all
reasonable out-of-pocket travel expenses, entertainment expenses and other
expenses incurred by him in performing his duties under this Agreement, provided
that the Executive submits reasonable documentation with respect to such
expenses. This shall include, without limitation, reimbursements of any such
costs for air fare, hotel accommodations and meals, in each case at the same
level and class as other comparable senior executives.

          (b) FRINGE BENEFITS. During the term of the Executive's employment
under this Agreement, the Executive shall be entitled to participate in any of
the Company's executive fringe benefits in accordance with the terms and
conditions of such arrangements as are in effect from time to time for the
Company's senior executives. In all events, without limiting the foregoing, the
Executive shall be entitled during the period he is employed to the following:

          (i) use of an automobile of a make and model commensurate with the
     Executive's position, plus maintenance, licensing and insurance costs,

          (ii) direct payment or reimbursement by the Company for the reasonable
     cost of financial and tax planning, such payment or reimbursement not to
     exceed US$10,000 per year, and

          (iii) such other benefits for which a Grade 11 executive based in the
     United States shall be eligible from time to time.

8.   TERMINATION OF EMPLOYMENT.

          (a) TERMINATION DUE TO DEATH. In the event the Executive dies during
the term of employment hereunder, the Executive's spouse, if the spouse survives
the Executive, shall be entitled to receive the Base Salary as provided in
Section 4, above, at the rate in effect at the time of Executive's death, to be
paid in accordance with the Company's regular payroll practices or in a lump
sum, at the Company's option, through the end of the sixth month after the month
in which the Executive dies. In the event that the Executive's spouse does not
survive him, the estate or other legal representative of the Executive shall be
entitled to receive the Base Salary as provided in Section 4, above, at the rate
in effect at the time of the Executive's death, to be paid in accordance with
the Company's regular payroll

                                       5
<PAGE>

practices or in a lump sum, at the Company's option, through the end of the
sixth month after the month in which the Executive dies. In addition to the
above, the estate or other legal representative of the Executive shall be
entitled to:

          (i) any annual bonus earned in accordance with the Company's bonus
     program or awarded but not yet paid under Section 5(a), above, (which shall
     be deemed earned if Executive is employed hereunder on the last day of the
     fiscal year ending on or immediately preceding the date of termination),

          (ii) a pro rata bonus for the year of death in an amount determined by
     the Compensation Committee, but in no event less than a pro rata portion of
     the Executive's target bonus for the year,

          (iii) full and immediate vesting as of the date of death of all rights
     under any options to purchase equity securities of the Company or other
     rights with respect to equity securities of the Company, including any
     restricted stock or other securities, held by the Executive,

          (iv) full and immediate vesting under the Company's pension plans as
     of the date of death, to the extent permitted by applicable law; provided,
     however, that to the extent such vesting cannot be effected under
     applicable law, economically equivalent benefits determined on an after-tax
     basis to the Executive shall be provided through arrangements outside such
     pension plans in lieu thereof, and

          (v) any other rights and benefits, if any, available under employee
     benefit programs of the Company, or their equivalent, as provided in
     Section 6, above, and under business expense reimbursement and fringe
     benefits programs as described in Section 7, above, determined in
     accordance with the applicable terms and provisions of such programs,
     PROVIDED that such rights and benefits (excluding any right to be
     considered for additional grants under XL's stock option and other
     stock-based compensation or incentive plans), or the economic equivalent
     thereof on an after-tax basis to the Executive's estate or other legal
     representative, shall continue for at least six months (or such longer
     continuation period as then provided by the Company and its Affiliates to
     other senior executives generally) following the end of the month in which
     the Executive dies.

                                       6
<PAGE>

          (b) TERMINATION DUE TO DISABILITY. In the event the Executive's
employment hereunder is terminated due to his disability, as determined under
the Company's long-term disability plan, the Executive shall be entitled to:

          (i) the Base Salary as provided in Section 4, above, at the rate in
     effect at the time of Executive's termination due to disability, to be paid
     in accordance with regular payroll practices or in a lump sum, at the
     Company's option, through the end of the sixth month after the month in
     which the Executive's employment terminates due to disability,

          (ii) any annual bonus earned in accordance with the Company's bonus
     program or awarded but not yet paid under Section 5(a)(which shall be
     deemed earned if Executive is employed hereunder on the last day of the
     fiscal year ending on or immediately preceding the date of termination),

          (iii) a pro rata bonus for the year of disability in an amount
     determined by the Compensation Committee, but in no event less than a pro
     rata portion of the Executive's target bonus for the year,

          (iv) full and immediate vesting as of the date of disability of all
     rights under any options to purchase equity securities of the Company or
     other rights with respect to equity securities of the Company, including
     any restricted stock or other securities, held by the Executive,

          (v) full and immediate vesting under the Company's pension plans as of
     the date of disability, to the extent permitted by applicable law;
     provided, however, that to the extent such vesting cannot be effected under
     applicable law, economically equivalent benefits determined on an after-tax
     basis to the Executive shall be provided through arrangements outside such
     pension plans in lieu thereof, and

          (vi) any other rights and benefits, if any, available under employee
     benefit programs of the Company, or their equivalent, as provided in
     Section 6, above, including, without limitation, the terms of any long-term
     disability plan, and under the business expense reimbursement and fringe
     benefits programs as described in Section 7, above, determined in
     accordance with the applicable terms and provisions of such programs,
     PROVIDED that such rights and

                                       7
<PAGE>

     benefits (excluding any right to be considered for additional grants under
     XL's stock option and other stock-based compensation or incentive plans),
     or the economic equivalent thereof on an after-tax basis to the Executive,
     shall continue for at least six months (or such longer continuation period
     as then provided by the Company and its Affiliates to other senior
     executives generally) following the end of the month in which the
     Executive's employment is terminated due to disability.

          (c) TERMINATION FOR CAUSE.

          (i) The employment of the Executive under this Agreement may be
     terminated by the Company for Cause, such termination to be effective upon
     the Company giving the Executive written notice of termination in
     accordance with the provisions of this Agreement. For this purpose, "Cause"
     shall mean:

               (A) conviction of the Executive of a felony involving moral
          turpitude, dishonesty or laws to which the Company or its Affiliates
          are subject in connection with the conduct of its or their business,
          or

               (B) the Executive, in carrying out his duties for the Company
          under this Agreement, has been guilty of (1) willful misconduct in
          connection with the performance of the Executive's duties hereunder
          that is materially injurious to the Company or its reputation or (2)
          substantial and continual refusal by the Executive to attempt
          substantially to perform the duties assigned to the Executive pursuant
          to the terms hereof (other than any such failure resulting from
          incapacity due to physical or mental illness which failure is not
          remedied within 10 business days of written notice from the Company
          specifying the details thereof, provided that alcohol or substance
          abuse shall not be deemed a physical or mental illness); --------
          provided, however, that any act or failure to act by the Executive
          shall not constitute -------- ------- Cause for purposes of this
          Section 8(c)(i)(B) if such act or failure to act was committed, or
          omitted, by the Executive in good faith and in a manner he reasonably
          believed to be in the overall best interests of the Company, as the
          case may be.

               (C) the Executive's continued willful refusal to obey any
          material, lawful written policy or re-

                                       8
<PAGE>

          quirement, not constituting a breach of this Agreement, duly adopted
          by the Board of Directors of XL or the Board of Directors of the
          Company and the continuance of such refusal after receipt of written
          notice.

          (ii) In the event of a termination for Cause under Section 8(c)(i),
     above, the Executive shall be entitled only to:

               (A) Base Salary as provided in Section 4, above, at the rate in
          effect at the time of his termination of employment for Cause, through
          the date on which termination for Cause occurs,

               (B) the rights under any options to purchase equity securities of
          XL or other rights with respect to equity securities of XL, including
          any restricted stock or other securities, held by the Executive,
          determined in accordance with the terms thereof and hereof, and

               (C) any other rights and benefits, if any, available under
          employee benefit programs of the Company, or their equivalent, as
          provided in Section 6, above, and under the business expense
          reimbursement and fringe benefits programs as described in Section 7,
          above, determined in accordance with the applicable terms and
          provisions of such programs; PROVIDED that the Executive shall not be
          entitled to any such rights or benefits unless the terms and
          provisions of such programs expressly state that the Executive shall
          be entitled thereto in the event his employment is terminated for
          Cause (as defined in this Agreement or otherwise); PROVIDED FURTHER
          that any such continued coverage shall be offset by comparable
          coverage provided to the Executive in connection with subsequent
          full-time employment.

          (d)  TERMINATION WITHOUT CAUSE.

          (i) Anything in this Agreement to the contrary notwithstanding, the
     Executive's employment may be terminated by the Company without Cause as
     provided in this Section 8(d) upon at least 60 days' prior written notice
     to the Executive. A termination due to death or disability, as described in
     Section 8(a) or (b), above, or a termination for Cause, as described in
     Section 8(c), above, shall not

                                       9
<PAGE>

     be deemed a termination without Cause under this Section 8(d).

          (ii) In the event the Executive's employment is terminated by the
     Company without Cause (x) prior to a Change in Control (other than as
     provided in the last paragraph of Section 8(d)(iii), in which case the
     provisions of Section 8(d)(iii) shall apply in lieu of this Section
     8(d)(ii)) or (y) following the Post-Change Period (as hereinafter defined),
     the Executive shall be entitled to:

               (A) Base Salary as provided in Section 4, above, at the rate in
          effect at the time of his termination of employment without Cause,
          through the date on which termination without Cause occurs,

               (B) a cash lump sum payment equal to (x) the amount of the
          Executive's Base Salary, at the annual rate in effect in accordance
          with Section 4, above, immediately prior to such termination, which
          would have been payable to the Executive over twenty-four months and
          (y) two times (or one times if the date of such termination is after
          January 1, 2003) the higher of the targeted annual bonus for the year
          of such termination or the bonus actually awarded to the Executive for
          the year immediately preceding the year of termination,

               (C) any annual bonus earned in accordance with the Company's
          bonus program or awarded but not yet paid under Section 5(a), above
          (which shall be deemed earned if Executive is employed hereunder on
          the last day of the fiscal year ending or immediately preceding the
          date of termination),

               (D) a pro rata bonus for the year of termination in an amount
          determined by the Compensation Committee, based on actual achievement
          of corporate, business unit and individual performance results for the
          fiscal year of termination and the portion of the fiscal year in which
          the Executive was employed by the Company in the year of termination,
          provided, however, that the determination of the achievement of
          individual performance results shall be determined by the Compensation
          Committee in good faith following the completion of such fiscal year,

                                       10
<PAGE>

               (E) the rights under any options to purchase equity securities of
          XL or other rights with respect to equity securities of XL, including
          any restricted stock or other securities, held by the Executive,
          determined in accordance with the terms thereof and hereof, and

               (F) any other rights and benefits, if any, available under the
          employee benefit programs of the Company, or their equivalent, as
          provided in Section 6(a) above, and under the business expense
          reimbursement and fringe benefits programs as described in Section 7,
          above, determined in accordance with the applicable terms and
          provisions of such programs, for the remainder of the stated term of
          the agreement from termination or until the second anniversary of the
          date of termination, whichever is shorter; PROVIDED, HOWEVER, that any
          such continued coverage shall be offset by comparable coverage
          provided to the Executive in connection with subsequent full-time
          employment and to the extent the Company is unable to continue such
          coverage, the Company shall provide the Executive with economically
          equivalent benefits determined on an after-tax basis to the Executive;
          PROVIDED FURTHER, HOWEVER, that in no event shall the Executive have a
          right to be considered for additional grants under XL's stock option
          and other stock-based compensation or incentive plans or be eligible
          for employer contributions under the Company's retirement benefit
          plans (other than to the extent specifically required in the
          supplemental retirement benefit agreement of even date herewith) at
          any time in whole or in part following the Executive's termination of
          employment pursuant to this Section 8(d)(ii).

          (iii) In the event the Executive's employment is terminated by (x) the
     Company without Cause within the twenty-four month period following a
     Change in Control (as defined in Exhibit A hereto) and, if the Change in
     Control is stockholder approval of an Event (as defined in Exhibit A),
     prior to a termination of the agreement to effect the Event (the
     "Post-Change Period") or (y) the Executive terminates his employment for
     "Good Reason" (as defined in Exhibit B hereto) during the Post-Change
     Period, the Executive shall be entitled to:

                                       11
<PAGE>

               (A) Base Salary as provided in Section 4, above, at the rate in
          effect at the time of his termination of employment, through the date
          on which termination occurs,

               (B) a cash lump sum payment equal to two times the Executive's
          annual Base Salary, at the annual rate in effect in accordance with
          Section 4, above, immediately prior to such termination or Change in
          Control, whichever is greater,

               (C) a cash lump sum payment equal to two times the largest annual
          bonus awarded to the Executive in the three-year period prior to the
          year in which the Change in Control occurs, provided such bonuses
          shall be at least equal to the targeted annual bonus for the year of
          such termination,

               (D) an amount equal to (i) the higher of (x) the bonus actually
          awarded to the Executive for the year immediately preceding the year
          in which the Change in Control occurs or (y) the targeted amount of
          bonus that would have been awarded to the Executive in respect of the
          year in which the termination of employment occurs, multiplied by (ii)
          a fraction, the numerator of which is the number of months or fraction
          thereof in which the Executive was employed by the Company in the year
          of termination of employment, and the denominator of which is 12,

               (E) full and immediate vesting as of the date of termination of
          all rights under any options to purchase equity securities of XL or
          other rights with respect to equity securities of XL held by the
          Executive outstanding on the Date of this Agreement to the extent
          specified in the individual award agreement (which XL and the Company
          acknowledge is the case with regard to all grants heretofore made but
          based on the definition of change in control (or words of like import)
          in such grants) or herein, which shall continue to be exercisable for
          three years from the date of termination of employment,
          notwithstanding the Executive's termination of employment, or the
          original full term of the option or other right, if shorter,

               (F) any other rights and benefits, if any, available under the
          employee and fringe benefit pro-

                                       12
<PAGE>

          grams of the Company, or their equivalent, as provided in Sections 6
          and 7, above, in which the Executive was participating at the time of
          his termination of employment for a two-year period from termination,
          as determined in accordance with the applicable terms and provisions
          of such programs; PROVIDED, HOWEVER, that any such continued coverage
          shall be offset by comparable coverage provided to the Executive in
          connection with subsequent full-time employment and, to the extent the
          Company unable to continue such coverage, the Company shall provide
          the Executive with economically equivalent benefits determined on an
          after-tax basis to the Executive; PROVIDED FURTHER, HOWEVER, that in
          no event shall the Executive have a right to be considered for
          additional grants under XL's stock option and other stock-based
          compensation or incentive plans at any time in whole or in part
          following the Executive's termination of employment pursuant to this
          Section 8(d)(iii),

               (G) full and immediate vesting under the Company's pension plans
          as of the date of termination, to the extent permitted by applicable
          law; provided, however, that to the extent such vesting cannot be
          effected under applicable law, economically equivalent benefits
          determined on an after-tax basis to the Executive shall be provided
          through arrangements outside such pension plans in lieu thereof,

               (H) continued coverage under and contributions by the Company to
          the Executive's accounts under the Company's pension plans for two
          years following the Executive's termination of employment, such
          contributions to be based on the Executive's compensation and the
          Company's practices as in effect at the time of such termination or
          Change in Control, whichever is greater; PROVIDED, HOWEVER, that if
          such continued coverage and contributions cannot be provided under the
          pension plans under applicable law, then economically equivalent
          benefits determined on an after-tax basis to the Executive shall be
          provided through arrangements outside the applicable pension plans,
          and

               (I) any annual bonus earned in accordance with the Company's
          bonus program or awarded but not yet paid under Section 5(a), above
          (which shall be deemed earned if Executive is employed hereunder on
          the last

                                       13

<PAGE>

          day of the fiscal year ending on or immediately preceding the date of
          termination).

          Anything in this Agreement to the contrary notwithstanding, the
     Executive shall be entitled to the benefits described in (A)-(I) above
     (subject to reduction or offset for any payments or benefits received under
     Section 8(d)(ii)), if the Executive's employment or status as an elected
     officer with the Company is terminated (other than due to death or
     disability or for Cause) within one year prior to the date on which a
     Change in Control occurs, and it is reasonably demonstrated that such
     termination (i) was at the request of a third party who has taken steps
     reasonably calculated or intended to effect a Change in Control or (ii)
     otherwise arose in connection with or anticipation of a Change in Control.

          (iv) If, in situations where Section 8(d)(iii) does not apply, at any
     time during the term of the Executive's employment hereunder, without the
     Executive's consent, (A) the Executive fails to be appointed (or
     re-appointed, as appropriate) to the positions set forth in Section 3(a)
     hereof (or, if agreed in writing by the Executive, an equivalent or
     superior position), (B) duties are assigned to the Executive that are
     inconsistent with his positions set forth in Section 3(a) hereof or a
     material reduction or diminution in the Executive's authorities, duties or
     responsibilities or reporting requirements with the Company or XL as set
     forth in Section 3(a) hereof, (C) the Executive's annual base salary as in
     effect on the Date of the Agreement, or as the same may be increased from
     time to time, is reduced, (D) the Executive is based at any office or
     located more than 50 miles from Stamford, Connecticut, except for travel
     reasonably required in the performance of the Executive's duties, (E) there
     is a substantial reduction in the employee pension and welfare benefit
     plans provided to the Executive on the Date of the Agreement, or (F) there
     is a material breach by the Company of any provision of this Agreement,
     which, in any such case described in any of clauses (A) through (F) hereof,
     the Company does not cure within 20 calendar days following written notice
     of same by the Executive, then the Executive shall have the right to
     terminate his employment within 30 calendar days of such failure to cure
     and such termination shall be deemed a termination by the Company without
     Cause under Section 8(d)(ii), above.

                                       14
<PAGE>

          (e)  VOLUNTARY TERMINATION BY THE EXECUTIVE. The Executive may
voluntarily terminate his employment prior to the expiration of the term of this
Agreement upon at least 60 days' prior written notice to the Company. Such
termination shall constitute a voluntary termination and, except as provided in
Section 8(d)(iii) or Section 8(d)(iv), above, in such event the Executive shall
be limited to the same rights and benefits as applicable to a termination by the
Company for Cause as provided in Section 8(c), above. A voluntary termination in
accordance with this Section 8(e) shall not be deemed a breach of this
Agreement. A termination of the Executive's employment due to disability or
death as described in Section 8(b) or 8(a), above, a termination by the
Executive which the Executive is entitled to treat as a termination by the
Company pursuant to Section 8(d)(iii), above, or a termination by the Executive
under Section 8(d)(iv), above, shall not be deemed a voluntary termination
within the meaning of this Section 8(e).

          (f)  ACCRUED BENEFITS. In the event of any termi-nation pursuant to
this Section 8, the Executive shall also be entitled to receive (i)
reimbursement for any unreim-bursed expenses incurred through the date of
termination; (ii) any accrued vacation; (iii) benefits under the supple-mental
retirement benefit agreement of even date herewith and (iv) all other payments,
benefits or fringe benefits to which the Executive may be entitled under the
terms of any applicable employee benefit program of the Company, as pro-vided in
Section 6, above, or under the fringe benefits pro-grams, as provided in Section
7(b), above, or this Agree-ment. Nothing in this Section 8(f) shall result in
duplication of payments or benefits otherwise provided in Section 8.

          9.   CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

          (a) Anything in this Agreement to the contrary notwithstanding, in the
event it shall be determined that (i) any payment or distribution made, or
benefit provided (including, without limitation, the acceleration of any
payment, distribution or benefit or accelerated vesting or exercisability of any
award) by the Company or any Affiliate (or by any person whose actions result in
a change of ownership or effective control of the Company covered by Section
280G(b)(2) of the United States Internal Revenue Code of 1986, as amended (the
"Code") or any person affiliated with the Company or any Affiliate or such
person to or for the benefit of the Executive (whether paid or payable or dis-

                                       15
<PAGE>

tributed or distributable pursuant to the terms of this Agreement or otherwise,
but determined without regard to any additional payments required under this
Section 9) (a "Payment") would be subject to the excise tax imposed by Section
4999 of the Code (or any successor provision or similar excise tax), or any
interest or penalties are incurred by the Executive with respect to such excise
tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the "Excise Tax"), (ii) the aggregate
amount of the Executive's Parachute Payments (as defined in Section
280G(b)(2)(A) of the Code) is less than 3.25 times the Executive's Base Amount
(as defined in Section 280G(b)(3)(A) of the Code), and (iii) no such Payment
would be subject to the Excise Tax if the payments set forth in Section
8(d)(iii)(B) and (C) hereof were each reduced by up to 20 percent, then the
payments set forth in Section 8(d)(iii)(B) and (C) will each be reduced to the
smallest extent possible (and in no event by more than 20 percent in the
aggregate) such that no Payment is subject to the Excise Tax.

          (b) Anything in this Agreement to the contrary notwithstanding, in the
event it shall be determined that (i) the aggregate amount of the Executive's
Parachute Payments equals or exceeds 3.25 times the Executive's Base Amount,
(ii) the aggregate amount of the Executive's Parachute Payments is less than
3.25 times the Base Amount but one or more Payments would be subject to the
Excise Tax even if the payments set forth in Section 8(d)(iii)(B) and (C) hereof
were each reduced by 20 percent, or (iii) notwithstanding a reduction in
payments pursuant to Section 9(a) above, an Excise Tax is payable by the
Executive on one or more Payments, then, in any such case, Payments shall not be
reduced and the Executive shall be entitled to receive an additional payment (a
"Gross-Up Payment") in an amount such that after payment by the Executive of all
taxes (including any income or Excise Tax) imposed upon the Gross-Up Payment and
any interest or penalties imposed with respect to such taxes, the Executive
retains from the Gross-Up Payment an amount equal to the Excise Tax imposed upon
the Payments.

          (c) Subject to the provisions of Section 9(d), all determinations
required to be made under this Section 9, including determination of whether a
Gross-Up Payment is required and of the amount of any such Gross-Up Payment,
shall be made by a nationally recognized public accounting firm selected by the
Executive (the "Accounting Firm") which shall provide detailed supporting
calculations both to the

                                       16
<PAGE>

Company and the Executive within 15 business days of the date of termination of
the Executive's employment, if applicable, or such earlier time as is requested.
The initial Gross-Up Payment, if any, as determined pursuant to this Section
9(c), shall be paid to the Executive within five business days of the receipt of
the Accounting Firm's determination. If the Accounting Firm determines that no
Excise Tax is payable by the Executive, it shall furnish the Executive with a
written opinion that he has substantial authority not to report any Excise Tax
on his Federal income tax return. Any determination by the Accounting Firm
meeting the requirements of this Section 9(c) shall be binding upon the Company
and the Executive, subject only to payments pursuant to the following sentence
based on a determination that additional Gross-Up Payments should have been
made, consistent with the calculations required to be made hereunder (the amount
of such additional payments are referred to herein as the "Gross-Up
Underpayment"). In the event that the Company exhausts its remedies pursuant to
Section 9(d) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Gross-Up
Underpayment that has occurred and any such Gross-Up Underpayment shall be
promptly paid by the Company to or for the benefit of the Executive. The fees
and disbursements of the Accounting Firm shall be paid by the Company.

          (d) The Executive shall notify the Company in writing of any claim by
the United States Internal Revenue Service that, if successful, would require
the payment by the Executive of any Excise Tax and, therefore, the payment by
the Company of a Gross-Up Payment. Such notification shall be given as soon as
practicable but not later than 30 business days after the Executive receives
written notice of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. The Executive
shall not pay such claim prior to the expiration of the 30-day period following
the date on which he gives such notice to the Company (or such shorter period
ending on the date that any payment of taxes with respect to such claim is due).
If the Company notifies the Executive in writing prior to the expiration of such
period that it desires, in good faith, to contest such claim (which notice shall
set forth the bases for such contest) and that it will bear the costs and
provide the indemnification as required by this sentence, the Executive shall,
in good faith:

                                       17
<PAGE>

          (i) give the Company any information reasonably requested by the
     Company relating to such claim,

          (ii) take such action in connection with contesting such claim as the
     Company shall, in good faith, reasonably request in writing from time to
     time, including, without limitation, accepting legal representation with
     respect to such claim by an attorney selected by the Company and reasonably
     acceptable to the Executive,

          (iii) cooperate with the Company in good faith in order effectively to
     contest such claim, and

          (iv) permit the Company to participate, in good faith, in any
     proceedings relating to such claim;

PROVIDED, HOWEVER, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis to the Executive, for any Excise Tax or income tax, including
interest and penalties with respect thereto, imposed as a result of such
representation and payment of all costs and expenses.

          Without limitation on the foregoing provisions of this Section 9(d),
the Company shall, exercising good faith, control all proceedings taken in
connection with such contest and, at its sole option (but in good faith), may
pursue or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option (but in good faith), either direct the Executive to pay the tax
claimed and sue for a refund or contest the claim in any permissible manner, and
the Executive agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more
appellate courts, as the Company shall determine; PROVIDED, HOWEVER, that if the
Company directs the Executive to pay such claim and sue for a refund, the
Company shall advance the amount of such payment to the Executive, on an
interest-free basis and shall indemnify and hold the Executive harmless, on an
after-tax basis to the Executive, from any Excise Tax or income tax, including
interest or penalties with respect thereto, imposed with respect to such advance
or with respect to any imputed income with respect to such advance; AND FURTHER
PROVIDED that any extension of the statute of limitations relating to the
payment of taxes for the taxable year of the Executive with respect to which
such contested

                                       18
<PAGE>

amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Company's control of the contest shall be limited to issues
with respect to which a Gross-Up Payment would be payable hereunder and the
Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing authority. If,
after the receipt by the Executive of an amount advanced by the Company pursuant
to Section 9(d), the Executive becomes entitled to receive any refund with
respect to such claim, the Executive shall (subject to the Company's complying
with the requirements of Section 9(d)) promptly pay to the Company, as the case
may be, the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by the Executive
of an amount advanced by the Company pursuant to Section 9(d), a determination
is made that the Executive shall not be entitled to any refund with respect to
such claim and the Company does not notify the Executive in writing of its
intent to contest such denial of refund prior to the expiration of 30 days after
such determination, then any obligation of the Executive to repay such advance
shall be forgiven and the amount of such advance shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid.

          Notwithstanding any provision herein to the contrary, the Executive's
failure to strictly comply with the notice provisions set forth in this Section
9, so long as such failure does not prevent the Company from contesting an
excise tax claim, shall not adversely affect the Executive's rights under this
Section 9.

          10.  NO MITIGATION; NO OFFSET.

          In the event of any termination of employment under Section 8, above,
the Executive shall be under no obligation to mitigate damages or seek other
employment, and, except as expressly set forth herein, there shall be no offset
against amounts due the Executive under this Agreement on account of any
remuneration attributable to any subsequent employment that he may obtain.
Except as set forth in this Agreement, the Company's obligation to make the
payments provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any circumstances, including without
limitation, set-off, counterclaim, recoupment, defense or other claim, right or
action which the Company may have against the Executive or others, PROVIDED,
HOWEVER, that the Company's obligation to make the payments provided for in this
Agreement

                                       19
<PAGE>

may be reduced by any fixed amount due and owing from the Executive to the
Company.

          11.  NONCOMPETITION AND NONSOLICITATION.

          The Executive represents and warrants that, to the best of his
knowledge, he is not using the confidential or proprietary information of any
other person in violation of any agreement or rights of others known to him. The
Executive agrees that the products of the Company and its Affiliates shall
constitute the exclusive property of the Company and its Affiliates.

          For the avoidance of doubt, all trademarks, policy language or forms,
products or services (including products and services under development), trade
names, trade secrets, service marks, designs, computer programs and software,
utility models, copyrights, know-how and confidential information, applications
for registration of any of the foregoing and the right to apply for them in any
part of the world (whether any of the foregoing shall be registered or
unregistered) created or discovered or participated in by the Executive during
the course of his employment (whether or not pursuant to the terms of this
Agreement) or under the instructions of the Company or its Affiliate are and
shall be the absolute property of the Company and its Affiliates, as
appropriate. Without limiting the foregoing, the Executive hereby assigns to the
Company any and all of the Executive's right, title and interest, if any,
pertaining to the insurance and reinsurance (including, without limitation,
finite insurance and reinsurance), risk assumption, risk management, brokerage,
financial and other products or services developed or improved upon by the
Executive (including, without limitation, any related "know-how") while employed
by the Company or its Affiliates, including any patent, trademark, trade name,
copyright, ownership or other right that may pertain thereto.

          Since Executive has obtained and is likely to obtain in the course of
Executive's employment with the Company and its Affiliates knowledge of trade
names, trade secrets, know-how, products and services (including products and
services under development), techniques, methods, lists, computer programs and
software and other confidential information relating to the Company and its
Affiliates, and their employees, clients, business or business opportunities,
Executive hereby undertakes that:

                                       20
<PAGE>

          (i) Executive will not (either alone or jointly with or on behalf of
     others and whether directly or indirectly) solicit or endeavor to solicit,
     or hire or cause to be hired any officer or employee of the Company or its
     Affiliates away from employment with any such entity or to violate the
     terms of any employment agreement or arrangement between any such officer
     or employee and the Company or any of its Affiliates provided that the
     foregoing shall not preclude the Executive from serving as a reference for
     any officer or employee of the Company or its Affiliates or, while
     employed, from encouraging any officer or employee of the Company or its
     Affiliates to terminate employment with the Company or its Affiliates if
     such encouragement is consistent with the good faith performance of the
     Executive's duties hereunder;

          (ii) Executive will, not directly or indirectly, personally interfere
     with or disrupt or seek to personally interfere with or disrupt (A) the
     relationships between the Company and its Affiliates, on the one hand, and
     any customer or client of the Company and its Affiliates, on the other
     hand, (including any insured or reinsured party) who during the period of
     twelve months immediately preceding such termination shall have been such a
     customer or client, or (B) the supply to the Company and its Affiliates of
     any services by any supplier or agent or broker who during the period of
     twelve months immediately preceding such termination shall have supplied
     services to any such person, nor will Executive, directly or indirectly,
     personally interfere or seek to interfere with the terms on which such
     supply or agency or brokering services during such period as aforesaid have
     been made or provided, however, this Section 11(ii) shall not be violated
     unless such interference or disruption occurs as a result of an effort
     targeted at customers, clients, suppliers, agents or brokers of the Company
     and its Affiliates as opposed to general marketing in which such customers,
     clients, suppliers, agents or brokers are included; and

          (iii) Executive will not (either alone or jointly with or on behalf of
     others and whether directly or indirectly) whether as an employee,
     director, consultant, partner, principal, agent, distributor,
     representative or stockholder (except solely as a less than two percent
     stockholder of a publicly traded company), engage in any activities in
     Bermuda or North America if such activities are competitive with the
     property and casualty insurance or reinsurance businesses that (i) are then
     being con-

                                       21
<PAGE>

     ducted by the Company or its Affiliates and (ii) during the period of the
     Executive's employment were either being conducted by the Company or its
     Affiliates or actively being developed by the Company or its Affiliates;
     PROVIDED, that the foregoing shall not be violated by involvement with an
     entity that is only incidentally competitive with the foregoing (when
     looking at the entity and XL as whole units) so long as the Executive is
     not directly involved in the day-to-day operations of such competitive
     units and PROVIDED FURTHER that activities on behalf of insurance brokers
     are not competitive with the Company and its Affiliates.

          The provisions of the immediately preceding sentence shall continue as
long as the Executive is employed by the Company or its Affiliates under this
Agreement and shall continue in effect after such employment is terminated for
any reason until the earlier of (A) the third anniversary of the Date of this
Agreement and (B) the first anniversary of the earlier of such termination and
the receipt of notice of termination delivered pursuant to Sections 8(d) or
8(e), provided that if such employment is terminated by the Company prior to the
end of the stated term other than for Cause, or is terminated by the Executive
under Section 8(d)(iii) or Section 8(d)(iv), the provisions of clauses (ii) and
(iii) shall automatically terminate upon the termination of such employment,
unless the Company elects, in writing delivered at the same time as the notice
of termination if termination is by the Company or, within 10 days thereafter if
termination is by the Executive, upon such termination to continue the
provisions of clauses (ii) and (iii) in effect through the six-month anniversary
of such termination of employment (but in no event beyond the third anniversary
of the Date of this Agreement) in which case the Company shall be obligated to
continue (through such six-month anniversary of termination) to pay the
Executive, in addition to any of the Executive's rights under Section 8(d)(ii),
8(d)(iii) or Section 8(d)(iv), his Base Salary and the pro rata portion of the
Executive's target annual bonus for the year of termination, and such bonus
shall be payable at the times annual bonuses for such year are payable to other
executives. Notwithstanding any other provision of this paragraph, in the event
that the Executive's employment is terminated in accordance with the provisions
(including notice requirements) of Sections 8(d) or 8(e), above, and clauses
(ii) and (iii) continue in effect after termination of employment, the Executive
may elect to terminate such clauses (save as provided below) by (x) delivering a
written notice to that effect to XL and the Company and (y) paying to XL the
Required Sum (as defined below);

                                       22
<PAGE>

PROVIDED, HOWEVER, that Executive shall not be permitted under any circumstances
to terminate clauses (ii) and (iii) pursuant to this sentence in order to engage
in any activity proscribed by such clauses for the benefit of or on behalf of,
directly or indirectly, any one or more of the companies and their Affiliates
listed or described in the letter of even date herewith from the Company to the
Executive referencing this section of the Agreement except to the extent, and
subject to the terms and conditions, described therein. XL may substitute in
writing to the Executive at any time at least 60 days prior to the date of
termination of the Executive's employment, one or more other competitors for any
of those specifically named in the letter referred to above so long as the total
number of such companies does not exceed nine, not including any "Excluded
Offshore Company" as defined in such letter. "Required Sum" shall mean (i) U.S.
$2,600,000 with regard to the entities in the letter described above, (ii) the
"Pro-Rata Amount" (as defined below) with regard to any corporation, company,
partnership, firm, association or other entity or organization having alone or
together with its Affiliates capital and surplus of U.S. $500,000,000 or more
and (iii) the lesser of $500,000 or the Pro-Rata Amount with regard to other
entities. "Pro-Rata Amount" means U.S. $2,600,000 multiplied by the faction with
a numerator equal to 36 months less the number of months (or partial months)
from the Date of the Agreement during which the Executive was employed by the
Company and a denominator equal to 36.

          For purposes of this Agreement, an "Affiliate" of the Company (or
other person or entity) includes any person, directly or indirectly, through one
or more intermediaries, controlling, controlled by, or under common control with
the Company (or other person or entity), and such term shall specifically
include in the case of the Company, without limitation, XL and XL's
majority-owned subsidiaries.

          While the restrictions aforesaid are considered by the parties hereto
to be reasonable in all the circumstances it is recognized that restrictions of
the nature in question may fail for reasons unforeseen and accordingly it is
hereby declared and agreed that if any of such restrictions or the geographic or
other scope thereof shall be adjudged to be void as going beyond what is
reasonable in the circumstances for the protection of the interests of the
Company and its Affiliates but would be valid if part of the wording thereof
were deleted and/or the periods (if any) thereof reduced and/or geographic or
other area dealt with thereby reduced in scope then said re-

                                       23
<PAGE>

strictions shall apply with such modifications as may be necessary to make them
valid and effective.

          Nothing contained in this Section 11 shall limit in any manner any
additional obligations to which Executive may be bound pursuant to any other
agreement or any applicable law, rule or regulation and Section 11 shall apply,
subject to its terms, after employment has terminated for any reason.

          12.  CONFIDENTIAL INFORMATION.

          The Executive covenants that he shall not, without the prior written
consent of the Company, disclose to any person (other than an employee, officer
or director of the Company and its Affiliates) other than as the Executive
determines in his good faith judgment to be necessary or desirable by the
Executive in performing his duties hereunder, any confidential, proprietary,
secret, or privileged information about the Company or its Affiliates or their
business or operations, including, but not limited to, information concerning
trade secrets, know-how, software, data processing systems, policy language and
forms, inventions, designs, processes, formulae, notations, improvements,
financial information, business plans, prospects, referral sources, lists of
suppliers and customers, legal advice and other information with respect to the
affairs, business, clients, customers, agents or other business relationships of
the Company or its Affiliates unless and until such information has become known
to the public generally (other than as a result of unauthorized disclosure by
the Executive) or unless he is required to disclose such information by a court
or by a governmental body with apparent authority to require such disclosure.
Executive shall hold in a fiduciary capacity for the benefit of the Company all
secret, confidential proprietary or privileged information or data relating to
the Company or any of its Affiliates or predecessor companies, and their
respective businesses, which shall have been obtained by Executive during his
employment, unless and until such information has become known to the public
generally (other than as a result of unauthorized disclosure by the Executive)
or unless he is required to disclose such information by a court or by a
governmental body with apparent authority to require such disclosure. The
foregoing covenant by the Executive shall be without limitation as to time and
geographic application and this Section 12 shall apply in accordance with its
terms after employment has terminated for any reason. The Executive acknowledges
and agrees that he shall have no authority to waive any attorney-client or other
privilege without the express prior written consent of the Compensation
Committee as evi-

                                       24
<PAGE>

denced by the signature of XL's General Counsel. Without implication as to any
other provision, the provisions of this Section 12 shall survive any termination
of this Agreement.

          13.  WITHHOLDING.

          Anything in this Agreement to the contrary notwithstanding, all
payments required to be made by the Company hereunder to the Executive shall be
subject to withholding of such amounts relating to taxes as the Company may
reasonably determine should be withheld pursuant to any applicable law or
regulation. In lieu of withholding such amounts, in whole or in part, the
Company may, in its sole discretion, accept other provision for payment of taxes
as required by law, provided it is satisfied that all requirements of law
affecting its responsibilities to withhold such taxes have been satisfied.

          14.  GUARANTY AND AFFILIATE SERVICES.

          (a) LIABILITY. XL, XLI and the Company hereby agree to be jointly and
severally liable for the performance of all obligations and duties, and the
payment of all amounts, due to the Executive under this Agreement.

          (b) RESPONSIBILITY. All of the other terms and provisions of this
Agreement relating to the Executive's employment by the Company shall likewise
apply MUTATIS MUTANDIS to the Executive's employment by any of its Affiliates,
it being understood that if the Executive's employment with the Company is
terminated, his employment with its Affiliates shall also be terminated and the
Executive shall be required to resign immediately from all directorships and
other positions held by the Executive in the Company and its Affiliates or in
any other entities in respect of which the Executive was acting as a
representative or designee of the Company or its Affiliates in connection with
his employment.

          15.  ENTIRE AGREEMENT.

          This Agreement, together with the Exhibits, contains the entire
agreement between the Parties concerning the subject matter hereof and
supersedes all prior agreements, understandings, discussions, negotiations and
undertakings, whether written or oral, between the Company and the Executive
with respect thereto. Without limiting the generality of the foregoing, this
Agreement supersedes the Amended and Restated Employment Agreement made as of
June 18, 1999 by and among XL Capital Ltd, Dasher Acquisition Corp., NAC Re
Corporation and NAC Reinsur-

                                       25
<PAGE>

ance Corporation and the Executive and all other agreements, understandings or
arrangements relating thereto, and the Executive hereby releases all of such
entities from any and all liability under such agreement and all other
agreements, understandings or arrangements relating thereto.

          16.  ASSIGNABILITY; BINDING NATURE.

          This Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors, heirs and assigns. No rights or
obligations of the Executive under this Agreement may be assigned or transferred
by the Executive other than his right to compensation and benefits hereunder,
which may be transferred by will or operation of law subject to the limitations
of this Agreement. No rights or obligations of the Company or XL under this
Agreement may be assigned or transferred by the Company or XL except that such
rights or obligations may be assigned or transferred to an Affiliate or pursuant
to a merger or consolidation or amalgamation or scheme of arrangement in which
the Company or XL, as the case may be, is not the continuing entity, or the sale
or liquidation of all or substantially all of the assets of the Company or XL,
provided that the assignee or transferee is the successor to all or
substantially all of the assets of the Company or XL and such assignee or
transferee assumes by operation of law or in writing duly executed by the
assignee or transferee all of the liabilities, obligations and duties of the
Company or XL, as contained in this Agreement, either contractually or as a
matter of law.

          17.  INDEMNIFICATION.

          The Executive shall be provided indemnification by the Company to the
maximum extent permitted by applicable law and its charter documents. In
addition, the Executive shall be covered by a directors' and officers' liability
policy with coverage for all directors and officers of the Company in an amount
equal to at least US$75,000,000 (but in any event no less than that provided to
other officers of XL or any other entity for which the Executive performs
services). Such directors' and officers' liability insurance shall be maintained
in effect both during and while potential liability exists for a period of six
years (or such longer period as then provided to other officers of XL or any
other entity for which the Executive performs services) following termination of
the Executive's employment.

                                       26
<PAGE>

          18.  SETTLEMENT OF DISPUTES.

          (a)  Any dispute between the Parties arising from or relating to the
terms of this Agreement or the Executive's employment with the Company or its
Affiliates shall, except as provided in Section 18(b) or Section 18(c), be
resolved by arbitration held in New York City in accordance with the rules of
the American Arbitration Association.

          (b) Executive acknowledges that the Company and its Affiliates will
suffer irreparable injury, not readily susceptible of valuation in monetary
damages, if Executive breaches his obligations under Section 11 or 12.
Accordingly, Executive agrees that the Company and its Affiliates will be
entitled, in addition to any other available remedies, to obtain injunctive
relief against any breach or threatened breach by Executive of his obligations
under Section 11 or 12 in any Federal or state court sitting in the City and
State of New York or, solely with regard to obtaining injunctive relief against
any breach or threatened breach by Executive of such provisions with regard to
Excluded Offshore Companies, court sitting in Bermuda, or, at the Company's or
any Affiliate's election, in any other jurisdiction in which Executive maintains
his residence or his principal place of business. Executive hereby submits to
the non-exclusive jurisdiction of all those courts for the purposes of any
actions or proceedings instituted by the Company or its Affiliates to obtain
such injunctive relief, and Executive agrees that process in any or all of those
actions or proceedings may be served by registered mail or delivery, addressed
to the last address of Executive known to the Company or its Affiliates, or in
any other manner authorized by law.

          (c) Notwithstanding any other provision of this Agreement, the
Executive may elect to resolve any dispute involving a breach or alleged breach
of Section 8(d)(iii) in any Federal or State court sitting in the City and State
of New York or court sitting in Bermuda. The Company, XL and the Guarantor
hereby submit to the non-exclusive jurisdiction of all those courts for the
purposes of any actions or proceedings instituted by the Executive to enforce
Section 8(d)(iii), and the Company, XL and the Guarantor agree that process in
any or all of such actions or proceedings may be served by registered mail or
delivery, addressed to the Company and XL as set forth in Section 20, or in any
other manner authorized by law. The Company, XL and the Guarantor shall pay all
costs associated with any court pro-

                                       27
<PAGE>

ceeding under this Section 18(c), including all legal fees and expenses of the
Executive, who shall be reimbursed for all such costs promptly upon written
demand therefor by the Executive.

          (d) All costs associated with any proceeding under Sections 18(a) or
18(b) hereof, including all legal fees and expenses, for all Parties shall be
borne by the Company, except to the extent that (x) the Executive's employment
has not terminated pursuant to Section 8(d)(ii), 8(d)(iii) or Section 8(d)(iv),
(y) the dispute relates to Section 11 or 12 and (z) the dispute results in the
grant of injunctive relief against the Executive, in which case each Party shall
bear its own expenses. The Executive shall be reimbursed by the Company for all
such costs promptly upon written demand therefor by the Executive.

          19.  AMENDMENT OR WAIVER.

          No provision in this Agreement may be amended unless such amendment is
agreed to in writing, signed by the Executive and by a duly authorized officer
of the Company, XL and the Guarantor. No waiver by any Party of any breach by
the other Party of any condition or provision of this Agreement to be performed
by such other Party shall be deemed a waiver of a similar or dissimilar
condition or provision at the same or any prior or subsequent time. Any waiver
must be in writing and signed by the Executive or a duly authorized officer of
the Company, XL and the Guarantor, as the case may be.

          20.  NOTICES.

          Any notice required or permitted to be given under this Agreement
shall be in writing and shall be deemed to have been given when delivered
personally or sent by courier, or by certified or registered mail, postage
prepaid, return receipt requested, duly addressed to the Party concerned at the
address indicated below or to such changed address as such Party may
subsequently by similar process give notice of:

          If to XL, XLI or the Company:

               XL Capital Ltd
               XL HouseOne Bermudiana Road
               Hamilton HM11 Bermuda
               Att'n: General Counsel

                                       28
<PAGE>

          If to the Executive:

               At the last address shown
               in the records of the Company

          21.  SEVERABILITY.

          In the event that any provision or portion of this Agreement shall be
determined to be invalid or unenforceable for any reason, in whole or in part,
the remaining provisions of this Agreement shall be unaffected thereby and shall
remain in full force and effect to the fullest extent permitted by law.

          22.  SURVIVORSHIP.

          The respective rights and obligations of the Parties shall survive any
termination of this Agreement to the extent necessary to the intended
preservation of such rights and obligations.

          23.  REFERENCE.

          In the event of the Executive's death or a judicial determination of
his incompetence, reference in this Agreement to the Executive shall be deemed,
where appropriate, to refer to his estate or other legal representative.

          24.  GOVERNING LAW.

          This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the State of New York without reference to the
principles of conflict of laws.

          25.  HEADINGS.

          The heading of the sections contained in this Agreement are for
convenience only and shall not be deemed to control or affect the meaning or
construction of any provision of this Agreement.

          26.  COUNTERPARTS.

          This Agreement may be executed in one or more counterparts.

                                       29
<PAGE>

          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first written above.

                                           XL CAPITAL LTD

                                           By:
                                              ----------------------------------

                                           XL INSURANCE, INC.

                                           By:
                                              ----------------------------------

                                           XL AMERICA, INC.

                                           By:
                                              ----------------------------------

                                           NICHOLAS M. BROWN, JR.

                                           By:
                                              ----------------------------------

                                       30
<PAGE>

                                                                       EXHIBIT A

                                CHANGE IN CONTROL

          A "Change in Control" shall be deemed to have occurred:

          (i) if any person (which, for all purposes hereof, shall include,
     without limitation, an individual, sole proprietorship, partnership,
     unincorporated association, unincorporated syndicate, unincorporated
     organization, trust, body corporate and a trustee, executor, administrator
     or other legal representative)(a "Person") or any group, as defined in
     Sections 13(d) or 14(d) of the United States Securities Exchange Act of
     1934 (other than a group of which the Executive is a member or which has
     been organized by the Executive), becomes the beneficial owner, directly or
     indirectly, of securities of XL representing, or acquires the right to
     control or direct, or to acquire through the conversion of securities or
     the exercise of warrants or other rights to acquire securities, 30% or more
     of either (I) the outstanding Ordinary Shares of XL; (II) the outstanding
     securities of XL having a right to vote in the election of directors or
     (III) the combined voting power of the outstanding securities of XL having
     a right to vote in the election of directors; or

          (ii) if there shall be elected or appointed to the Board of Directors
     of XL (the "Board") any director or directors whose appointment or election
     by the Board or nomination for election by XL's shareholders was not
     approved by a vote of at least a majority of the directors then still in
     office who were either directors on the date of execution of this Agreement
     or whose election or appointment or nomination for election was previously
     so approved; or

          (iii) if there occurs a reorganization, scheme of arrangement, merger,
     consolidation, combination, amalgamation, corporate restructuring,
     liquidation, winding up, exchange of securities, or similar transaction, or
     stockholder approval of any of the foregoing, (each, an "Event"), in each
     case, in respect of which the beneficial owners of the outstanding XL
     Ordinary Shares immediately prior to such Event do not or will not,
     following such Event, beneficially own, directly or indirectly, more than

<PAGE>

     60% of each of the outstanding equity share capital and the combined voting
     power of the then outstanding voting securities entitled to vote in the
     election of the directors, of XL and any resulting entity, in substantially
     the same proportions as their ownership, immediately prior to such Event,
     of the Ordinary Shares and voting power of XL; or

          (iv) if there occurs an Event involving XL as a result of which 25% of
     more of the members of the Board of XL are not persons who were members of
     the Board immediately prior to the earlier of (x) the Event, (y) execution
     of an agreement, the consummation of which would result in the Event, or
     (z) announcement by XL of an intention to effect the Event; or

          (v) approval by the stockholders of XL of a plan of complete
     liquidation of XL or the closing of the sale or disposition by XL of all or
     more than 80% of XL's consolidated assets other than the sale of all or 80%
     of the consolidated assets of XL to a person or persons who beneficially
     own, directly or indirectly, at least 50% or more of the combined voting
     power of the outstanding voting securities of XL at the time of the sale;
     or

          (vi) the Board adopts a resolution to the effect that, for purposes of
     this Agreement, a Change in Control has occurred.

<PAGE>

                                                                       EXHIBIT B

                                   GOOD REASON

          For purposes of this Agreement, "Good Reason" shall mean any of the
following, unless done with the prior express written consent of the Executive:

          (i) (A) The assignment to Executive of duties inconsistent with
     Executive's position (including duties, responsibilities, status, titles or
     offices) as set forth in Section 3 hereof; or (B) any elimination,
     diminution or reduction of Executive's status, titles, offices, duties or
     responsibilities except in connection with the termination of Executive's
     employment for Cause, disability or as a result of Executive's death or by
     Executive other than for Good Reason;

          (ii) The (A) reduction in Executive's Base Salary from the level in
     effect immediately prior to the Change in Control, or (B) payment of an
     annual bonus in an amount less than the lesser of (x) the most recent
     annual bonus paid prior to the Change in Control or (y) the greater of (I)
     the most recent target bonus established prior to the Change in Control or
     (II) the annual average bonus paid for the preceding three complete years
     prior to the Change in Control (or such lesser number of complete years as
     the Executive shall have been employed by the Company);

          (iii) The failure by the Company, XL or the Guarantor to obtain the
     specific written assumption of this Agreement by any successor or assign of
     the Company, XL or the Guarantor or any person acquiring substantially all
     of the Company's, XL's or the Guarantor's assets;

          (iv) Any breach by the Company, XL or the Guarantor of any provision
     of this Agreement or any agreements entered into pursuant thereto that
     remains uncured for 20 calendar days following written notice of same by
     the Executive;

          (v) Requiring the Executive to be based at any office or location more
     than 50 miles from Stamford, Connecticut, except for travel reasonably
     required in the performance of the Executive's responsibilities;

<PAGE>

          (vi) During the Post Change Period, (A) the failure to continue in
     effect any compensation or incentive plan in which Executive participates
     immediately prior to the time of the Change in Control unless an equitable
     arrangement (embodied in an ongoing substitute or alternative plan
     providing Executive with at least the same aggregate economic opportunity
     on an after-tax basis available to the Executive immediately prior to the
     Change in Control) has been made with respect to such plan in connection
     with the Change in Control, or the failure to continue Executive's
     participation therein on substantially the same basis both in terms of the
     amount of benefits provided and the level of his participation relative to
     other participants, as existed at the time of the Change in Control; or (B)
     the failure to continue to provide Executive with benefits and coverage at
     least as favorable in the aggregate as those enjoyed by him under the
     Company's pension, life insurance, medical, health and accident,
     disability, deferred compensation or savings plans in which he was
     participating at the time of the Change in Control; or

          (vii) The failure by the Company to pay within 7 calendar days of the
     due date any amounts due under any benefit or compensation plan, including
     any deferred compensation plan.

<PAGE>

                                                                       EXHIBIT C

                       RESTRICTED STOCK AND OPTION AWARDS
           THAT VEST IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5(b)
           -----------------------------------------------------------

                                                 Vesting       Options Scheduled
                 Plan Name        Grant Date       Date             to Vest
                 ---------        ----------       ----        -----------------

1997 Incent. & Cap. Acc. Plan      6/10/1997        6/10/02          6,291
1997 Incent. & Cap. Acc. Plan      6/10/1998        6/10/02          6,405
1997 Incent. & Cap. Acc. Plan      6/10/1998        6/10/03          6,405
1997 Incent. & Cap. Acc. Plan      6/10/1998        6/10/02         22,875
1997 Incent. & Cap. Acc. Plan      6/10/1998        6/10/03         22,875
1997 Incent. & Cap. Acc. Plan      6/29/1999        6/29/02         11,333
                                                    TOTAL:          76,184

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