Document:

Exhibit 4.50

                                 XL CAPITAL LTD

                     Liquid Yield Option(TM) Notes due 2021

No.                                  CUSIP:

Issue Date:                                 Original Issue Discount: $ (for each
Issue Price: $ (for each $1,000 principal   $1,000 principal amount at maturity)
amount at maturity)

                  XL CAPITAL LTD, a Cayman Islands exempted limited company,
promises to pay to Cede & Co. or registered assigns, the principal amount of
       dollars (U.S.$            ) (subject to increase in certain circumstances
as described on the other side of this Security) on September 7, 2021.

                  This Security shall not bear interest except as specified on
the other side of this Security. This Security shall accrete original issue
discount as specified on the other side of this Security. This Security is
convertible as specified on the other side of this Security.

                  Additional provisions of this Security are set forth on the
other side of this Security.

Dated: September 7, 2001                                 XL CAPITAL LTD

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

                                            Title:
                                                  -----------------------

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

STATE STREET BANK AND TRUST COMPANY,
as Trustee, certifies that this is one
of the Securities referred to in the
within-mentioned Indenture.

By
  ------------------------------
        Authorized Signatory

Dated:

<PAGE>

                      [FORM OF REVERSE OF GLOBAL SECURITY]

                     Liquid Yield Option(TM) Notes due 2021

                  The Company issued the Securities under an Indenture dated as
of September 7, 2001 (the "Indenture"), between the Company and the Trustee. The
terms of the Securities include those stated in the Indenture and those made
part of the Indenture by reference to the Trust Indenture Act of 1939, as in
effect from time to time (the "TIA"). Capitalized terms used herein and not
defined herein have the meanings ascribed thereto in the Indenture.

1. INTEREST.

                  Except as provided below, this Security shall not bear
periodic interest.

                  This Security shall accrete original issue discount at a rate
of 2.875 % per annum, on a semi-annual bond equivalent basis using a 360-day
year composed of twelve 30-day months, commencing on the Issue Date of this
Security.

                  GENERAL. Except as described below under "-Contingent Cash
Interest," we will not make periodic payments of interest on the Securities.
Each Security will be issued at an issue price of $565.01 per Security. However,
the Securities will accrue original issue discount while they remain
outstanding. Original issue discount is the difference between the issue price
and the principal amount at maturity of a Security. Original issue discount will
be calculated on a semi-annual bond equivalent basis at the yield to maturity of
the Securities, using a 360-day year comprised of twelve 30-day months. The
expected issue date for the Securities and the commencement date for the accrual
of original issue discount will be September 7, 2001. Contingent Cash Interest
on Securities converted after a record date but prior to the corresponding
interest payment date will be paid to the Holder of the Securities on the record
date but, upon conversion the Holder must pay the Company the interest which has
accrued and will be paid on such interest payment date. No such payment need be
made with respect to Securities which will be redeemed after a record date and
prior to the corresponding interest payment date.

                  If the Purchase Price, Redemption Price, Change in Control
Purchase Price Additional Amounts, Liquidated Damages or Accreted Value, as
applicable, of a Security or any portion of such Purchase Price, Redemption
Price, Change in Control Purchase Price, Additional Amounts, Liquidated Damages
or Accreted Value, as applicable, is not paid when due (whether upon
acceleration pursuant to Section 8.2 of the Indenture, upon the date set for
payment of the Redemption Price pursuant to Paragraph 7 hereof, upon the date
set for payment of the Purchase Price or the Change in Control Purchase Price
pursuant to Paragraph 9 hereof, or upon the Stated Maturity of this Security),
then in each such case the overdue amount shall, to the extent permitted by law,
bear interest at the rate of 2.875% per annum, compounded semi-annually, which
interest shall accrue from the date such overdue amount was originally due to
the date payment of such amount, including interest thereon, has been made or
duly provided for. All such interest shall be payable on demand and shall be
based on a 360-day year comprised of twelve 30-day months.

<PAGE>

2. CONTINGENT CASH INTEREST.

                  (a) Commencing after September 7, 2004 the Company shall make
Contingent Cash Interest payments to the Holders of Securities, as below, during
any Semiannual Period if, but only if, the average Securities' Market Price of
one Security for the five Trading Days in the relevant Five-Trading-Day
Measurement Period equals 120% or more of the Accreted Value of such Security.
During any Semiannual Period when Contingent Cash Interest is payable pursuant
to this Paragraph, each Contingent Cash Interest payment due and payable
pursuant to this Paragraph on each $1,000 Principal amount at maturity of
Securities shall be calculated for any quarterly period of the applicable
Semiannual Period, and in each instance shall equal the greater of (i) $ .46
multiplied by 5.277 or (ii) the sum of all Regular Cash Dividends paid by the
Company per share on the Ordinary Shares during the applicable quarter of such
Semiannual Period multiplied by the then applicable Conversion Rate.

                  Contingent Cash Interest, if any, shall accrue as of the 15th
day preceding the last day of the relevant Semiannual Period (each a "Contingent
Cash Interest Record Date"), or, if the Company pays Regular Cash Dividends on
its Ordinary Shares during a quarter within the relevant Semiannual Period, as
of the Ordinary Shares Record Date. If we only pay Regular Cash Dividends for
one quarter within the relevant Semiannual Period, the remaining Contingent Cash
Interest will accrue as of the Contingent Cash Interest Record Date.

                  The Original Issue Discount of the Securities will continue to
accrue whether or not Contingent Cash Interest payments are made or any
Contingent Additional Principal accrues.

                  (b) PAYMENT OF CONTINGENT CASH INTEREST. Accrued and unpaid
Contingent Cash Interest, if any, shall be paid on the last day of such
Semiannual Period or, if the Company pays a Regular Cash Dividends on the
Ordinary Shares during a Semiannual Period, on the payment date for the related
Ordinary Shares dividend (in each case, a "Contingent Cash Interest Payment
Date"). Contingent Cash Interest payments on any Security that are payable, and
are punctually paid or duly provided for, on any Contingent Cash Interest
Payment Date shall be paid to the Person who is the Holder of that Security on
the Contingent Cash Interest Record Date or the Ordinary Shares Record Date, as
applicable, at the office or agency of the Company maintained for such purpose.
Each payment of Contingent Cash Interest on any Security shall be paid (A) if
such Security is held in the form of a Global Security, in same-day funds by
transfer to an account maintained by the payee located inside the United States,
or (B) if such Security is held in the form of a Certificated Security, by
check, mailed to the address of such Holder as set forth in the Security
Register. In the case of a Global Security, Contingent Cash Interest payable,
will be paid on the applicable Contingent Cash Interest Payment Date to the
Depositary for the purpose of permitting DTC to credit the interest received by
it in respect of such Global Security to the accounts of the beneficial owners
thereof.

                  (c) NOTICE. Upon determination that Holders of Securities will
be entitled to receive Contingent Cash Interest during a Semiannual Period,
prior to the start of such Semiannual Period, the Company will disseminate a
press release through Dow Jones & Company, Inc. or Bloomberg Business News
containing this information or publish the information on its Web site or
through such other public medium as it may use at that time.

                                       2
<PAGE>

                  (d) BID SOLICITATION AGENT. The Bid Solicitation Agent shall
solicit bids from securities dealers which the Company indicates that it
believes are willing to bid for the Securities. The Company initially appoints
the Trustee to act as the Bid Solicitation Agent. The Company may change the Bid
Solicitation Agent at its discretion; provided, however, the Bid Solicitation
Agent may not be an Affiliate of the Company.

3. CONTINGENT ADDITIONAL PRINCIPAL.

                  (a) On September 7, 2002 and September 7, 2003, if the Sale
Price of the Ordinary Shares is at or below the Ordinary Shares Threshold Price
(as set forth in the first column under the schedule below) for at least 20
Trading Days during the Thirty-Trading-Day Measurement Period prior to that
date, Contingent Additional Principal shall accrue on the Securities commencing
on such date at a rate of either 0.50% or .645% per year, computed on a
semiannual bond equivalent basis, on the sum of the Issue Price plus accrued
Original Issue Discount to such date for a period of one year, in accordance
with the schedule set forth below:

                                September 7, 2002
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
              Ordinary Shares Threshold Price               Contingent Additional   Adjusted Yield
   (expressed as a percentage of the Accreted Conversion          Principal
                 Price of the Securities)
<S>                                                                  <C>            <C>
-----------------------------------------------------------------------------------------------------
               Equal to or less than 69% and                         .50%           3.375%
                     greater than 65%
-----------------------------------------------------------------------------------------------------
                 Equal to or less than 65%                          .645%           3.52%
-----------------------------------------------------------------------------------------------------
</TABLE>

                                September 7, 2003
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
              Ordinary Shares Threshold Price               Contingent Additional   Adjusted Yield
   (expressed as a percentage of the Accreted Conversion          Principal
                 Price of the Securities)
<S>                                                                  <C>            <C>
-----------------------------------------------------------------------------------------------------
               Equal to or less than 75% and                         .50%           3.375%
                     greater than 72%
-----------------------------------------------------------------------------------------------------
                 Equal to or less than 72%                          .645%           3.52%
-----------------------------------------------------------------------------------------------------
</TABLE>

                  No Contingent Additional Principal will accrue after September
7, 2004.

                  (b) PAYMENT OF CONTINGENT ADDITIONAL PRINCIPAL. If payable,
the Contingent Additional Principal shall be paid on the Stated Maturity of the
Securities. Contingent Additional Principal shall be calculated on a semiannual
bond equivalent basis, using a 360-day year consisting of twelve 30-day months.

                  (c) Notice. In the event that any Contingent Additional
Principal accrues on the Securities, the Company will disseminate a press
release through Dow Jones & Company, Inc. or Bloomberg Business News containing
this information or publish the information on its Web site or through such
other public medium as it may use at that time. The Company shall also notify
the Trustee annually in writing, at such time that the Company files with the
Trustee

                                       3
<PAGE>

its annual reports or other information or documents pursuant to Section 6.2 of
the Indenture, of any accrual of Contingent Additional Principal and the
resulting increase in the Principal amount at maturity per Security. Following
its receipt of such notice, the Trustee shall provide such information to DTC
for dissemination to the participants of DTC.

4. METHOD OF PAYMENT.

                  Subject to the terms and conditions of the Indenture and
except as provided above in the case of Contingent Cash Interest, the Company
will make payments in cash at Stated Maturity and payments in cash, Ordinary
Shares or a combination thereof, as the case may be, in respect of Redemption
Prices, Purchase Prices and Change in Control Purchase Prices to Holders who
surrender Securities to a Paying Agent to collect such payments in respect of
the Securities. The Company will pay cash amounts in money of the United States
that at the time of payment is legal tender for payment of public and private
debts. However, the Company may make such cash payments by wire transfers of
immediately available funds or, at the Company's option, by check payable in
such money.

5. PAYING AGENT, CONVERSION AGENT AND REGISTRAR.

                  Initially, the Trustee will act as Paying Agent, Conversion
Agent and Registrar. The Company may appoint and change any Paying Agent,
Conversion Agent or Registrar without notice, other than notice to the Trustee;
provided that the Company will maintain at least one Paying Agent in the State
of New York, City of New York, Borough of Manhattan, which shall initially be an
office or agency of the Trustee. The Company or any of its Subsidiaries or any
of their Affiliates may act as Paying Agent, Conversion Agent or Registrar.

6. INDENTURE.

                  The Company issued the Securities under an Indenture dated as
of September 7, 2001 (the "Indenture"), between the Company and the Trustee. The
terms of the Securities include those stated in the Indenture and those made
part of the Indenture by reference to the Trust Indenture Act of 1939, as in
effect from time to time (the "TIA"). Capitalized terms used herein and not
defined herein have the meanings ascribed thereto in the Indenture. The
Securities are subject to all such terms, and Securityholders are referred to
the Indenture and the TIA for a statement of those terms.

                  The Securities are general unsecured obligations of the
Company limited to $508,842,000 aggregate principal amount at maturity (subject
to adjustments for Contingent Additional Principal and Contingent Cash Interest,
if any). The Indenture does not limit other indebtedness of the Company, secured
or unsecured.

7. REDEMPTION AT THE OPTION OF THE COMPANY.

                  No sinking fund is provided for the Securities. Subject to the
terms and conditions of this Indenture, the Securities are redeemable at the
option of the Company in whole or in part, at any time or from time to time on,
or after September 7, 2004 for a cash price equal to the Accreted Value plus
accrued and unpaid Contingent Cash Interest, if any, up to the Redemption Date
(the "Redemption Price").

                                       4
<PAGE>

8. NOTICE OF REDEMPTION.

                  Notice of redemption pursuant to Paragraph 7 of this Security
will be mailed at least 15 days but not more than 60 days before the Redemption
Date to each Holder of Securities to be redeemed at the Holder's registered
address. If money sufficient to pay the Redemption Price of all Securities (or
portions thereof) to be redeemed on the Redemption Date is deposited with the
Paying Agent prior to or on the Redemption Date, interest ceases to accrue on
such Securities or portions thereof on and after the Redemption Date. Securities
in denominations larger than $1,000 of principal amount may be redeemed in part
but only in integral multiples of $1,000 of principal amount.

9. PURCHASE BY THE COMPANY AT THE OPTION OF THE HOLDER.

                  (a) Subject to the terms and conditions of the Indenture, the
Company shall become obligated to purchase, at the option of the Holder, all or
any portion of the Securities held by such Holder on September 7, 2002,
September 7, 2003, September 7, 2004, September 7, 2006, September 7, 2008,
September 7, 2011 and September 7, 2016 or the next Business Day following such
dates to the extent such dates are not Business Days, in integral multiples of
$1,000 at a Purchase Price equal to the Accreted Value plus accrued and unpaid
Contingent Cash Interest, if any, on the Purchase Date. To exercise such right,
a Holder shall deliver to the Company a Purchase Notice containing the
information set forth in the Indenture, at any time from the opening of business
on the date that is 20 Business Days prior to such Purchase Date until the close
of business on the last day prior to such Purchase Date, and shall deliver the
Securities to the Paying Agent as set forth in the Indenture.

                  The Purchase Price may be paid, at the option of the Company,
in cash or by the issuance and delivery of Ordinary Shares, or in any
combination thereof.

                  (b) At the option of the Holder and subject to the terms and
conditions of the Indenture, the Company shall become obligated to offer to
purchase the Securities held by such Holder within 30 days (which purchase shall
occur 45 days after the date of the Company's notice) after the occurrence of a
Change in Control of the Company (as defined in the Indenture) for a Change in
Control Purchase Price equal to the Accreted Value plus accrued and unpaid
Contingent Cash Interest, if any, on the Change in Control Purchase Date, which
Change in Control Purchase Price shall be paid in cash or, at the Company's
option, Ordinary Shares (as calculated in accordance with Section 5.7 of the
Indenture).

                  (c) Holders have the right to withdraw any Purchase Notice
delivered pursuant to Paragraph 9(a) above or Change in Control Purchase Notice
delivered pursuant to Paragraph 9(c), as the case may be, by delivering to the
Paying Agent a written notice of withdrawal in accordance with the provisions of
the Indenture.

                  If cash (and/or Ordinary Shares if permitted under the
Indenture) sufficient to pay the Purchase Price or Change in Control Purchase
Price, as the case may be, of all Securities or portions thereof to be purchased
as of the Purchase Date or the Change in Control Purchase Date, as the case may
be, is deposited with the Paying Agent on the Business Day following the
Purchase Date or the Change in Control Purchase Date and other interest ceases
to accrue on

                                       5
<PAGE>

such Securities (or portions thereof) immediately after such Purchase Date or
Change in Control Purchase Date, and the Holder thereof shall have no other
rights as such other than the right to receive the Purchase Price or Change in
Control Purchase Price upon surrender of such Security.

10. CONVERSION.

                  (a) The initial Conversion Rate is 5.277 Ordinary Shares per
$1,000 principal amount at maturity of Securities, subject to adjustment in
certain events described in the Indenture. A Holder that surrenders Securities
for conversion will receive cash in lieu of any fractional Ordinary Share based
on the closing price of the Ordinary Shares of the Company on the Trading Day
immediately prior to the conversion date.

                  (b) During any Conversion Period, Holders may surrender
Securities for conversion into Ordinary Shares if the Sale Prices of the
Ordinary Shares for a period of at least 20 Trading Days in the 30 consecutive
Trading Day period ending on the first day of such Conversion Period is more
than 110% of the Accreted Conversion Price per Ordinary Share as determined by
the Conversion Agent on the first day of the Conversion Period. A "Conversion
Period" will be the period from and including the thirtieth Trading Day in a
fiscal quarter to but not including the thirtieth Trading Day in the immediately
following fiscal quarter.

                  (c) A Holder may also surrender for conversion a Security or
portion of a Security which has been called for redemption pursuant to Paragraph
7 hereof, and such Securities may be surrendered for conversion until the close
of business on the Business Day immediately preceding the Redemption Date. A
Security in respect of which a Holder has delivered a Purchase Notice or a
Change in Control Purchase Notice exercising the option of such Holder to
require the Company to purchase such Security may be converted only if such
notice of exercise is withdrawn in accordance with the terms of the Indenture.

                  (d) (i) Holders may also surrender Securities for conversion
into Ordinary Shares during the five consecutive Trading Day period beginning 10
Business Days following any 10 consecutive trading-day period in which the
average of the Trading Prices for a Security was less than 95% of the average
Parity Value (as defined below) for that period.

                  The "Trading Price" of the Securities on any date of
determination means the average of the secondary market bid quotations per
Security obtained by State Street Bank and Trust Company for $10,000,000
principal amount at maturity of the Securities at approximately 4:00 p.m., New
York City time, on such determination date from three independent nationally
recognized securities dealers selected by the Company; provided that if at least
three such bids cannot reasonably be obtained by State Street Bank and Trust
Company, but two such bids are obtained, then the average of the two bids shall
be used, and if only one such bid can reasonably be obtained by State Street
Bank and Trust Company, this one bid shall be used. If State Street Bank and
Trust Company cannot reasonably obtain at least one bid for $10,000,000
principal amount of maturity of the Securities from a nationally recognized
securities dealer or in the reasonable judgment of the Company, the bid
quotations are not indicative of the secondary market value of the Securities,
then the trading price of the Securities will equal (a) the then-applicable
conversion rate of the Securities multiplied by (b) the closing price on the New
York Stock Exchange of the Company's Ordinary Shares on such determination date;
provided that the
                                       6
<PAGE>

Trustee shall not determine the trading price of the Securities unless requested
by the Company; and provided, further, that the Company shall have no obligation
to make such request unless a holder of Securities provides the Company with
reasonable evidence that the trading price of the Security may be less than 95%
of the average Parity Value; and at which time, the Company shall instruct the
Trustee to determine the trading price of the Securities beginning on the next
Trading Day on each successive Trading Day until the Trading Price is greater
than or equal to 95% of the Parity Value of the Securities. The Trustee shall be
entitled to select the appropriate method for determining the trading price of
the Securities and shall be entitled to all of the rights of the trustee set
forth in the Indenture in connection with any such determination. Any such
determination shall be conclusive absent manifest error. The "Parity Value" of
the Securities on any date of determination means the product of (x) the Sale
Price of the Ordinary Shares on such date and (y) the number of Ordinary Shares
including fractional shares into which such Securities are convertible on such
date.

                  (ii) Notwithstanding paragraph (a)(ii) above, if at conversion
the Sales Price of the Ordinary Shares is greater than 100% of the Accreted
Conversion Price but less than or equal to 110% of the Accreted Conversion
Price, then the Holders will receive, in lieu of Ordinary Shares based on the
applicable Conversion Rate, cash or Ordinary Shares, or a combination of both
cash and Ordinary Shares, with a value equal to the then Accreted Value of the
Securities on the Conversion Date (an " Accreted Value Conversion"). If there is
an Accreted Value Conversion, the Ordinary Shares will be valued at 100% of the
average Sales Price for the five Trading Days ending on the third day prior to
the date of conversion. If the Company elects to pay all or a portion of the
Accreted Value upon an Accreted Value Conversion in Ordinary Shares, the Company
will notify holders not less than five Business Days prior to the beginning of
the five day period in which Holders can convert their Securities pursuant to an
Accreted Value Conversion.

                  (e) In the event that the Company declares a dividend or
distribution described in Section 10.7 of the Indenture, or a dividend or a
distribution described in Section 10.8 of the Indenture where the fair market
value of such dividend or distribution per Ordinary Share, as determined in the
Indenture, exceeds 12.5% of the Sale Price of an Ordinary Share as of the
Business Day prior to the date of declaration for such distribution, the
Securities may be surrendered for conversion beginning on the date the Company
gives notice to the Holders of such right, which shall be not less than 20 days
prior to the Ex-Dividend Time for such dividend or distribution and Securities
may be surrendered for conversion at any time thereafter until the close of
business on the Business Day prior to the Ex-Dividend Time or until the Company
announces that such distribution will not take place.

                   (f) A Holder may surrender for conversion a Security or
portion of a Security during such period, if any, as (i) the credit rating
assigned to the Securities by Standard & Poor's Rating Group (or its successors)
is below BBB+, (ii) the credit rating assigned to the Securities by such rating
agency is suspended or withdrawn or (iii) such rating agency is no longer rating
the Securities.

                  (g) In the event the Company is a party to a consolidation,
merger or binding share exchange, as set forth in Section 7.1 of the Indenture,
pursuant to which the Ordinary Shares would be converted into cash, securities
or other property as set forth in Section 12.15 of

                                       7
<PAGE>

the Indenture, the Securities may be surrendered for conversion at any time from
and after the date which is 15 days prior to the date the Company announces as
the anticipated effective time until 15 days after the actual date of such
transaction.

                  (h) To surrender a Security for conversion, a Holder must (1)
complete and manually sign the irrevocable conversion notice below (or complete
and manually sign a facsimile of such notice) and deliver such notice to the
Conversion Agent, (2) surrender the Security to the Conversion Agent, (3)
furnish appropriate endorsements and transfer documents and (4) pay any transfer
or similar tax, if required.

                  (i) A Holder may convert a portion of a Security if the
principal amount at maturity of such portion is $1,000 or an integral multiple
of $1,000. No payment or adjustment will be made for dividends on the Ordinary
Shares except as provided in the Indenture. Except as provided in Paragraph 1
hereof, on conversion of a Security, the Holder will not receive any cash
payment representing accrued interest with respect to the converted Securities.
Instead, upon conversion the Company will deliver to the Holder a fixed number
of Ordinary Shares and any cash payment to account for fractional shares.
Accrued interest will be deemed paid in full rather than canceled, extinguished
or forfeited. The Company will not adjust the Conversion Rate to account for
accrued interest.

                  (j) The Conversion Rate will be adjusted as provided in
Article XII of the Indenture. The Company may increase the Conversion Rate for
at least 20 days, so long as the increase is irrevocable during such period.

                  (k) If the Company is a party to a consolidation, merger or
binding share exchange or a transfer of all or substantially all of its assets
as set forth in Section 7.1 of the Indenture, or upon certain distributions
described in Section 12.8 of the Indenture, the right to convert a Security into
Ordinary Shares may be changed into a right to convert it into securities, cash
or other assets of the Company or another person.

11. CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION.

                  A Holder may surrender for conversion any of the Securities
called for redemption at any time prior to the close of business one Business
Day prior to the Redemption Date, even if it is not otherwise convertible at
such time. If a Holder has already delivered a Purchase Notice or a Change in
Control Purchase Notice with respect to a Security, however, the Holder may not
surrender that Security for conversion until the Holder has withdrawn the notice
in accordance with the Indenture.

12. DENOMINATIONS; TRANSFER; EXCHANGE.

                  The Securities are in fully registered form, without coupons,
in denominations of $1,000 of principal amount at maturity and integral
multiples of $1,000. A Holder may transfer or exchange Securities in accordance
with the Indenture. The Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture. The Registrar need not
transfer or exchange any Securities selected for redemption (except, in the case
of a Security to be redeemed in part, the portion of the Security not to be
redeemed) or any Securities in respect of which a

                                       8
<PAGE>

Purchase Notice or Change in Control Purchase Notice has been given and not
withdrawn (except, in the case of a Security to be purchased in part, the
portion of the Security not to be purchased) or any Securities for a period of
15 days before the mailing of a notice of redemption of Securities to be
redeemed.

13. PERSONS DEEMED OWNERS.

                  The registered Holder of this Security may be treated as the
owner of this Security for all purposes.

14. UNCLAIMED MONEY OR SECURITIES.

                  The Trustee and the Paying Agent shall return to the Company
upon written request any money or securities held by them for the payment of any
amount with respect to the Securities that remains unclaimed for two years,
subject to applicable unclaimed property law. After return to the Company,
Holders entitled to the money or securities must look to the Company for payment
as general creditors unless an applicable abandoned property law designates
another person.

15. TRUSTEE DEALINGS WITH THE COMPANY.

                  Subject to certain limitations imposed by the TIA, the Trustee
under the Indenture, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it were
not Trustee.

16. CALCULATIONS IN RESPECT OF SECURITIES.

                  The Company will be responsible for making all calculations
called for under the Securities. These calculations include, but not limited to,
determinations of the market prices of the Securities and the Ordinary Shares,
any accrued Contingent Cash Interest payable on the Securities, the Accreted
Value of the Securities and the Accreted Conversion Price of the Securities. The
Company will make these calculations in good faith and, absent manifest error,
the calculations will be final and binding on Holders of the Securities. The
Company will provide to the Trustee a schedule of its calculations, and the
Trustee is entitled to rely upon the accuracy of such calculations without
independent verification. The Trustee will forward the Company's calculations to
any Holder of the Securities upon the request of such Holder.

17. NO RECOURSE AGAINST OTHERS.

                  A director, officer, employee or shareholder, as such, of the
Company shall not have any liability for any obligations of the Company under
the Securities or the Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. By accepting a Security, each
Securityholder waives and releases all such liability. The waiver and release
are part of the consideration for the issue of the Securities.

                                       9
<PAGE>

18. AUTHENTICATION.

                  This Security shall not be valid until an authorized signatory
of the Trustee manually signs the Trustee's Certificate of Authentication on the
other side of this Security.

19. ABBREVIATIONS.

                  Customary abbreviations may be used in the name of a
Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT
(=tenants by the entireties), JT TEN (=joint tenants with right of survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to
Minors Act).

20. GOVERNING LAW.

                  THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE
AND THIS SECURITY.

                  The Company will furnish to any Securityholder upon written
request and without charge a copy of the Indenture which has in it the text of
this Security in larger type. Requests may be made to:

                  XL Capital Ltd
                  XL House
                  One Bermudiana Road
                  Hamilton, Bermuda HM11
                  Attn:  Gavin R. Arton

21. REGISTRATION RIGHTS.

                  The Holders of the Securities are entitled to the benefits of
the Registration Rights Agreement, dated as of September 7, 2001, between the
Company and Merrill Lynch & Co., Inc., Merrill Lynch, Pierce, Fenner & Smith
Incorporated including the receipt of liquidated damages ("Liquidated Damages")
upon a registration default (as defined in such agreement).

                                       10
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
               ASSIGNMENT FORM                                    CONVERSION NOTICE
--------------------------------------------------------------------------------------------------
<S>                                                   <C>
To assign this Security, fill in the form below:      To convert this Security into Ordinary
                                                      Shares of the Company, check the box [   ]
--------------------------------------------------------------------------------------------------

I or we assign and transfer this Security to          To convert only part of this Security,
                                                      state the principal amount to be converted
-------------------------                             (which must be $1,000 or an integral
                                                      multiple of $1,000):
-------------------------
(Insert assignee's soc. sec. or tax ID no.)

-------------------------                             If you want the stock certificate made out
                                                      in another person's name fill in the form
-------------------------                             below:

-------------------------                             -------------------------
(Print or type assignee's name, address and zip
code)                                                 -------------------------
                                                      (Insert the other person's soc. sec. tax
and irrevocably appoint                               ID no.)

                       agent to transfer
---------------------- this Security on the books     --------------------------
of the Company. The agent may substitute another
to act for him.                                       --------------------------

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

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

                                                      --------------------------
                                                      (Print or type other person's name,
                                                      address and zip code)
--------------------------------------------------------------------------------------------------
</TABLE>

Date:            Your Signature:
     -----------                ----------------------------------------

------------------------------------------------------------------------
(Sign exactly as your name appears on the other side of this Security)

Signature Guaranteed

---------------------------------------
Participant in a Recognized Signature
Guarantee Medallion Program

By:
   ------------------------------------
           Authorized Signatory

                                       11
<PAGE>

             SCHEDULE OF INCREASES AND DECREASES OF GLOBAL SECURITY

Initial Principal amount at maturity of Global Security: _________($__________).

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
          Date        Amount of Increase   Amount of Decrease in  Principal amount at       Notation by
                      in principal amount   principal amount at   maturity of Global       Registrar or
                        at maturity of       maturity of Global     Security After      Security Custodian
                        Global Security           Security       Increase or Decrease
-------------------------------------------------------------------------------------------------------------
<S>                   <C>                    <C>                      <C>                    <C>
-------------------------------------------------------------------------------------------------------------

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

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

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

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

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

-------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                                                       EXHIBIT B

                     Liquid Yield Option(TM) Notes due 2021

                              Transfer Certificate

                  In connection with any transfer of any of the Securities
within the period prior to the expiration of the holding period applicable to
the sales thereof under Rule 144(k) under the Securities Act of 1933, as amended
(the "Securities Act") (or any successor provision), the undersigned registered
owner of this Security hereby certifies with respect to $____________ principal
amount at maturity of the above-captioned Securities presented or surrendered on
the date hereof (the "Surrendered Securities") for registration of transfer, or
for exchange or conversion where the securities issuable upon such exchange or
conversion are to be registered in a name other than that of the undersigned
registered owner (each such transaction being a "transfer"), that such transfer
complies with the restrictive legend set forth on the face of the Surrendered
Securities for the reason checked below:

                  [_]    A transfer of the Surrendered Securities is made to the
                         Company or any of its subsidiaries; or

                  [_]    The transfer of the Surrendered Securities complies
                         with Rule 144A under the Securities Act; or

                  [_]    The transfer of the Surrendered Securities is pursuant
                         to an effective registration statement under the
                         Securities Act, or

                  [_]    The transfer of the Surrendered Securities
                         is pursuant to another available exemption
                         from the registration requirements of the
                         Securities Act.

                  and unless the box below is checked, the undersigned confirms
that, to the undersigned's knowledge, such Securities are not being transferred
to an "affiliate" of the Company as defined in Rule 144 under the Securities Act
(an "Affiliate").

                  [_]    The transferee is an Affiliate of the Company.

DATE:
                     ---------------------------

                            Signature(s)

                  (If the registered owner is a corporation, partnership or
fiduciary, the title of the person signing on behalf of such registered owner
must be stated.)

<PAGE>

                                                                               2

Signature Guaranteed

------------------------------------------
Participant in a Recognized Signature

Guarantee Medallion Program

By:
   ---------------------------------------
            Authorized SignatoryExhibit 4.51

                                 XL CAPITAL LTD

                     LIQUID YIELD OPTION(TM) NOTES DUE 2021

                          REGISTRATION RIGHTS AGREEMENT

                                                               September 7, 2001
Merrill Lynch, Pierce, Fenner
     & Smith Incorporated
North Tower
World Financial Center
New York, New York 10281

Ladies and Gentlemen:

         XL Capital Ltd, a Cayman Islands limited liability company (the
"Company"), proposes to issue and sell to the Purchaser (as defined herein) upon
the terms and conditions set forth in the Purchase Agreement (as defined herein)
its Liquid Yield Option(TM) Notes due September 7, 2021 (the "Securities"),
convertible into Ordinary Shares (as defined herein). In satisfaction of a
condition to the obligations of the Purchaser thereunder, the Company agrees
with the Purchaser for the benefit of Holders (as defined herein) from time to
time of the Registrable Securities (as defined herein) as follows:

         1.  DEFINITIONS.

         (a) Capitalized terms used herein without definition shall have the
meanings ascribed to them in the Purchase Agreement. As used in this Agreement,
the following defined terms shall have the following meanings:

         "ACT" OR "SECURITIES ACT" means the United States Securities Act of
1933, as amended.

         "AFFILIATE" of any specified person means any other person which,
directly or indirectly, is in control of, is controlled by, or is under common
control with such specified person. For purposes of this definition, control of
a person means the power, direct or indirect, to direct or cause the direction
of the management and policies of such person whether by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

         "APPLICABLE AMOUNT" means, with respect to each $1,000 principal amount
at maturity of Securities, the Accreted Value (as defined in the Indenture) plus
any accrud and unpaid Contingent Cash Interest through the date of
determination, or, with respect to Securities that have been converted to
Ordinary Shares pursuant to the Indenture, such sum calculated as if such
Securities had not been so converted.

         "CLOSING DATE" means the First Time of Delivery as defined in the
Purchase Agreement.

<PAGE>

         "COMMISSION" means the United States Securities and Exchange
Commission, or any other federal agency at the time administering the Exchange
Act or the Securities Act, whichever is the relevant statute for the particular
purpose.

         "DTC" means The Depository Trust Company.

         "EFFECTIVENESS PERIOD" has the meaning assigned thereto in Section
2(b)(i) hereof.

         "EFFECTIVE TIME" means the date on which the Commission declares the
Shelf Registration Statement effective or on which the Shelf Registration
Statement otherwise becomes effective.

         "ELECTING HOLDER" has the meaning assigned thereto in Section 3(a)(iv)
hereof.

         "EXCHANGE ACT" means the United States Securities Exchange Act of 1934,
as amended.

         "HOLDER" means, any person that is the record owner of Registrable
Securities (and includes any person that has a beneficial interest in any
Registrable Security in book-entry form).

         "INDENTURE" means the Indenture, dated as of September 7, 2001, between
the Company and State Street Bank and Trust Company, as amended and supplemented
from time to time in accordance with its terms.

         "LIQUIDATED DAMAGES" has the meaning assigned thereto in Section 7(a)
hereof.

         "MANAGING UNDERWRITERS" means the investment banker or investment
bankers and manager or managers that shall administer an underwritten offering,
if any, conducted pursuant to Section 7 hereof.

                  "NASD RULES" means the Rules of the National Association of
Securities Dealers, Inc., as amended from time to time.

         "NOTICE AND QUESTIONNAIRE" means a Notice of Registration Statement and
Selling Securityholder Questionnaire substantially in the form of Exhibit A
hereto.

         "ORDINARY SHARES" means the Company's Class A ordinary shares, par
value $0.01 per share.

         The term "PERSON" means an individual, partnership, corporation, trust
or unincorporated organization, or a government or agency or political
subdivision thereof.

         "PROSPECTUS" means the prospectus (including, without limitation, any
preliminary prospectus, any final prospectus and any prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A under the Act) included in the
Shelf Registration Statement, as amended or supplemented by any prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by the Shelf Registration Statement and by all
other amendments and supplements to such prospectus, including all material
incorporated by reference in such prospectus and all documents filed after the
date of such prospectus by the Company under the Exchange Act and incorporated
by reference therein.

<PAGE>

         "PURCHASE AGREEMENT" means the purchase agreement, dated as of
September 4, 2001, among the Purchaser and the Company relating to the
Securities.

         "PURCHASER" means Merrill Lynch, Pierce, Fenner & Smith Incorporated.

         "REGISTRABLE SECURITIES" means all or any portion of the Securities
issued from time to time under the Indenture in registered form and the Ordinary
Shares issuable upon conversion of such Securities; PROVIDED, HOWEVER, that a
security ceases to be a Registrable Security when it is no longer a Restricted
Security.

         "REGISTRATION DEFAULT" has the meaning assigned thereto in Section 7(a)
hereof.

         "RESTRICTED SECURITY" means any Security or Ordinary Share issuable
upon conversion thereof except any such Security or Ordinary Share which (i) has
been effectively registered under the Securities Act and sold in a manner
contemplated by the Shelf Registration Statement, (ii) has been transferred in
compliance with Rule 144 under the Securities Act (or any successor provision
thereto) or is transferable pursuant to paragraph (k) of such Rule 144 (or any
successor provision thereto), (iii) has been sold in compliance with Regulation
S under the Securities Act (or any successor thereto) and does not constitute
the unsold allotment of a distributor within the meaning of Regulation S under
the Securities Act, (iv) has otherwise been transferred and a new Security or
Ordinary Share not subject to transfer restrictions under the Securities Act has
been delivered by or on behalf of the Company in accordance with Section 2.6(f)
of the Indenture or (v) is otherwise transferable without restriction under the
Securities Act.

         "RULES AND REGULATIONS" means the published rules and regulations of
the Commission promulgated under the Securities Act or the Exchange Act, as in
effect at any relevant time.

         "SHELF REGISTRATION" means a registration effected pursuant to Section
2 hereof.

         "SHELF REGISTRATION STATEMENT" means a "shelf" registration statement
filed under the Securities Act providing for the registration of, and the sale
on a continuous or delayed basis by the Holders of, all of the Registrable
Securities (other than Registrable Securities, the holders of which have failed
to comply with Section 3(a)(iii) hereof) pursuant to Rule 415 under the
Securities Act and/or any similar rule that may be adopted by the Commission,
filed by the Company pursuant to the provisions of Section 2 of this Agreement,
including the Prospectus contained therein, any amendments and supplements to
such registration statement, including post-effective amendments, and all
exhibits and all material incorporated by reference in such registration
statement.

         "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939, or any
successor thereto, and the rules, regulations and forms promulgated thereunder,
as the same shall be amended from time to time.

         The term "UNDERWRITER" means any underwriter of Registrable Securities
in connection with an offering thereof under a Shelf Registration Statement.

         (b) Wherever there is a reference in this Agreement to a percentage of
the "principal amount" of Registrable Securities or to a percentage of
Registrable Securities, Ordinary Shares shall be treated as representing the
Applicable Amount.

         2.       SHELF REGISTRATION.

<PAGE>

         (a) The Company shall, no later than 90 calendar days following the
Closing Date, file with the Commission a Shelf Registration Statement relating
to the offer and sale of the Registrable Securities by the Holders from time to
time and, thereafter, shall use its reasonable best efforts to cause such Shelf
Registration Statement to be declared effective under the Act as promptly as
practicable, but in no event later than 210 calendar days following the Closing
Date; PROVIDED, HOWEVER, that the Company may, upon written notice to all
Holders, postpone having the Shelf Registration Statement declared effective for
a reasonable period not to exceed 90 days if the Company possesses material
non-public information and the Company reasonably determines that the disclosure
of this material non-public information would have a material adverse effect on
the Company and its subsidiaries taken as a whole or would impede the
consummation of any proposed or pending material business transaction; PROVIDED,
FURTHER, however, that no Holder shall be entitled to be named as a selling
securityholder in the Shelf Registration Statement or to use the Prospectus
forming a part thereof for resales of Registrable Securities unless such Holder
is an Electing Holder.

         (b)      The Company shall use its reasonable best efforts:

                  (i) To keep the Shelf Registration Statement continuously
         effective in order to permit the Prospectus forming a part thereof to
         be usable by Holders until the earliest of (1) the date when all
         Registrable Securities of Holders that complete and deliver in a timely
         manner (as described in Section 3(a) hereof) the Notice and
         Questionnaire are registered under the Shelf Registration Statement and
         have been registered and disposed of in accordance with the Shelf
         Registration Statement; (2) the expiration of the period referred to in
         Rule 144(k) of the Act with respect to all Registrable Securities held
         by Persons that are not Affiliates of the Company; (3) the date when
         there are no outstanding Registerable Securities; and (4) two years
         from the date (the "Effective Date") such Shelf Registration Statement
         is declared effective (such period being referred to herein as the
         "Effectiveness Period"); and

                   (ii) If at any time the Securities, pursuant to Article XII
         of the Indenture, are convertible into securities other than Ordinary
         Shares, the Company shall, or shall cause any successor under the
         Indenture to agree to, cause such securities to be included in the
         Shelf Registration Statement no later than the date on which the
         Securities may then be convertible into such securities.

Other than due to any suspension of the use of the Prospectus pursuant to
Section 2(c) hereof, the Company shall be deemed not to have used its reasonable
best efforts to keep the Shelf Registration Statement effective during the
requisite period if the Company voluntarily takes any action that would result
in Holders of Registrable Securities covered thereby not being able to offer and
sell any of such Registrable Securities during that period, unless such action
is required by applicable law and the Company thereafter promptly complies with
the requirements of paragraph 3(j) below.

         (c) The Company may suspend the use of the Prospectus for a period not
to exceed 45 days in any 90-day period or an aggregate of 90 days in any 360-day
period if (i) the Prospectus would, in the Company's judgment, contain a
material misstatement or omission as a result of an event that has occurred and
is continuing or as a result of any proposed or pending material business
transaction; and (ii) the Company reasonably determines that the disclosure of
this material non-public information would have a material adverse effect on the
Company and its subsidiaries taken as a whole or would impede the consummation
of any proposed or pending material business transaction, PROVIDED; HOWEVER,
that prior to

<PAGE>

suspending the use of the Prospectus, the Company provides the Trustee with
written notice of such suspension, which notice need not specify the nature of
the event giving rise to such suspension.

         However, if the disclosure relates to a previously undisclosed proposed
or pending material business transaction, the disclosure of which would impede
the Company's ability to consummate such transaction, the Company may extend the
suspension period from 45 days to 75 days. Each holder, by its acceptance of the
Registrable Securities, agrees to hold any communication by the Company in
response to a notice of a proposed sale in confidence.

         3.       REGISTRATION PROCEDURES. In connection with the Shelf
Registration  Statement,  the following provisions shall apply:

         (a) (i) Not less than 30 calendar days prior to the expected Effective
Time of the Shelf Registration Statement, the Company shall give notice of its
intention to file the Shelf Registration Statement to each holder of Registrable
Securities in the manner provided by Section 13.2 of the Indenture; such notice
shall be substantially in the form of the Notice and Questionnaire set forth as
Exhibit A hereto; no Holder shall be entitled to be named as a selling
securityholder in the Shelf Registration Statement as of the Effective Time, and
no Holder shall be entitled to use the Prospectus forming a part thereof for
resales of Registrable Securities at any time, unless such Holder has returned a
completed and signed Notice and Questionnaire to the Company by the deadline for
response set forth therein; PROVIDED, HOWEVER, that such deadline shall be at
least 20 business days from the date on which the Notice and Questionnaire is
first mailed to Holders.

                  (ii) Holders who have not returned a completed and signed
         Notice and Questionnaire to the Company by the deadline for response
         set forth therein may receive an additional Notice and Questionnaire
         from the Company upon request by the Holder. Following the receipt of a
         completed and signed Notice and Questionnaire, the Company will, prior
         to the Effective Time, include the Securities covered thereby in the
         Shelf Registration Statement, subject to restrictions on the timing and
         number of supplements to the Shelf Registration Statement provided for
         in this Section 3 and Section 6 hereof.

                  (iii) After the Effective Time of the Shelf Registration
         Statement, and subject to the Rules and Regulations and policies of the
         Commission, the Company shall, upon the request of any Holder of
         Registrable Securities that is not then an Electing Holder, promptly
         send a Notice and Questionnaire to such Holder. The Company shall not
         be required to take any action to name such Holder as a selling
         securityholder in the Shelf Registration Statement or to enable such
         Holder to use the Prospectus forming a part thereof for resales of
         Registrable Securities until such Holder has returned a completed and
         signed Notice and Questionnaire to the Company.

                  (iv) The term "Electing Holder" shall mean any Holder of
         Registrable Securities that has returned a completed and signed Notice
         and Questionnaire to the Company in accordance with (a)(i), (a)(ii) or
         (a)(iii) of this Section 3.

         (b) The Company shall furnish to the counsel for the Holders of
Registrable Securities, prior to the filing thereof with the Commission, a copy
of the Shelf Registration Statement and each amendment or supplement, if any, to
the Prospectus included therein, and shall afford such counsel a reasonable
opportunity to comment thereon.

<PAGE>

         (c) The Company shall promptly take such action as may be necessary so
that (i) each of the Shelf Registration Statement and any amendment thereto and
the Prospectus forming a part thereof and any amendment or supplement thereto
(and each report or other document incorporated therein by reference in each
case) complies in all material respects with the Securities Act and the Exchange
Act and the respective rules and regulations thereunder, (ii) each of the Shelf
Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading and (iii) each of the Prospectus forming a part of the
Shelf Registration Statement, and any amendment or supplement to such
Prospectus, does not at any time during the Effectiveness Period include an
untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

         (d)      The Company shall promptly advise each Electing Holder:

                  (i) when a Shelf Registration Statement and any amendment
         thereto has been filed with the Commission and when a Shelf
         Registration Statement or any post-effective amendment thereto has
         become effective, in each case, at the option of the Company, by making
         a public announcement thereof by a press release made through Dow Jones
         & Company, Inc. or Bloomberg Business News or such other public medium
         as the Company may use at such time;

                  (ii) of the issuance by the Commission of any stop order
         suspending the effectiveness of the Shelf Registration Statement or the
         initiation of any proceedings for such purpose;

                  (iii) of the receipt by the Company of any notification with
         respect to the suspension of the qualification of the securities
         included in the Shelf Registration Statement for sale in any
         jurisdiction or the initiation of any proceeding for such purpose; and
         (iv) of the happening of any event or the existence of any state of
         facts that requires the making of any changes in the Shelf Registration
         Statement or the Prospectus included therein so that, as of such date,
         such Shelf Registration Statement and Prospectus do not contain an
         untrue statement of a material fact and do not omit to state a material
         fact required to be stated therein or necessary to make the statements
         therein (in the case of the Prospectus, in light of the circumstances
         under which they were made) not misleading (which advice shall be
         accompanied by an instruction to such Holders to suspend the use of the
         Prospectus until the requisite changes have been made, which notice
         need not specify the nature of the event giving rise to such
         suspension).

         (e) The Company shall use its reasonable best efforts to prevent the
issuance, and if issued to obtain the withdrawal, of any order suspending the
effectiveness of the Shelf Registration Statement at the earliest possible time.

         (f) The Company shall furnish to each Electing Holder, upon request,
without charge, at least one copy of the Shelf Registration Statement and all
post-effective amendments thereto, including

<PAGE>

financial statements and schedules, and, if such Holder so requests in writing,
all other documents and exhibits that are filed with or incorporated by
reference in the Shelf Registration Statement.

         (g) The Company shall, during the Effectiveness Period, deliver to each
Electing Holder, without charge, as many copies of the Prospectus (including
each preliminary Prospectus) included in the Shelf Registration Statement and
any amendment or supplement thereto as such Electing Holder may reasonably
request; and the Company consents (except during the continuance of any event
described in Section 3(d)(iv) above to the use of the Prospectus and any
amendment or supplement thereto by each of the Electing Holders in connection
with the offering and sale of the Registrable Securities covered by the
Prospectus and any amendment or supplement thereto during the Effectiveness
Period.

         (h) Prior to any offering of Registrable Securities pursuant to the
Shelf Registration Statement, the Company shall (i) register or qualify or
cooperate with the Electing Holders and their counsel (which shall be Skadden,
Arps, Slate, Meagher & Flom LLP) in connection with the registration or
qualification of such Registrable Securities for offer and sale under the
securities or "blue sky" laws of such jurisdictions within the United States as
any Electing Holder may reasonably request (other than the State of Florida),
(ii) keep such registrations or qualifications in effect and comply with such
laws so as to permit the continuance of offers and sales in such jurisdictions
for so long as may be necessary to enable any Electing Holder or underwriter, if
any, to complete its distribution of Registrable Securities pursuant to the
Shelf Registration Statement, and (iii) take any and all other actions necessary
or advisable to enable the disposition in such jurisdictions of such Registrable
Securities; PROVIDED, HOWEVER, that in no event shall the Company be obligated
to (A) qualify as a foreign corporation or as a dealer in securities in any
jurisdiction where it would not otherwise be required to so qualify but for this
Section 3(h) or (B) file any general consent to service of process in any
jurisdiction where it is not as of the date hereof so subject.

         (i) Upon the occurrence of any fact or event contemplated by paragraph
3(d)(iv) above, the Company shall, subject to Section 2(c) hereof, promptly
prepare a post-effective amendment to the Shelf Registration Statement or an
amendment or supplement to the related Prospectus or file any other required
document so that, as thereafter delivered to Purchaser of the Registrable
Securities included therein, the Prospectus will not include an untrue statement
of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading. If the Company notifies the Electing Holders of the
occurrence of any event contemplated by paragraph 3(d)(v) above, the Electing
Holder shall suspend the use of the Prospectus until the requisite changes to
the Prospectus have been made.

         (j) Not later than the Effective Time of the Shelf Registration
Statement, the Company shall provide a CUSIP number for the Registrable
Securities that are debt securities.

         (k) The Company shall use its reasonable best efforts to comply with
all applicable Rules and Regulations, and to make generally available to its
securityholders as soon as practicable, but in any event not later than eighteen
months after (i) the effective date (as defined in Rule 158(c) under the
Securities Act) of the Shelf Registration Statement, (ii) the effective date of
each post-effective amendment to the Shelf Registration Statement, and (iii) the
date of each filing by the Company with the Commission of an Annual Report on
Form 10-K that is incorporated by reference in the Shelf Registration Statement,
an earning statement of the Company and its subsidiaries complying with

<PAGE>

Section 11(a) of the Securities Act and the rules and regulations of the
Commission thereunder (including, at the option of the Company, Rule 158).

         (l) Not later than the Effective Time of the Shelf Registration
Statement, the Company shall cause the Indenture to be qualified under the Trust
Indenture Act; in connection with such qualification, the Company shall
cooperate with the Trustee under the Indenture and the Holders (as defined in
the Indenture) to effect such changes to the Indenture as may be required for
such Indenture to be so qualified in accordance with the terms of the Trust
Indenture Act; and the Company shall execute, and shall use all reasonable
efforts to cause the Trustee to execute, all documents that may be required to
effect such changes and all other forms and documents required to be filed with
the Commission to enable such Indenture to be so qualified in a timely manner.
In the event that any such amendment or modification referred to in this Section
3(m) involves the appointment of a new trustee under the Indenture, the Company
shall appoint a new trustee thereunder pursuant to the applicable provisions of
the Indenture.

         (m) In the event of an underwritten offering conducted pursuant to
Section 6 hereof, the Company shall, if requested, promptly include or
incorporate in a Prospectus supplement or post-effective amendment to the Shelf
Registration Statement such information as the Company and the Managing
Underwriters reasonably agree should be included therein and shall make all
required filings of such Prospectus supplement or post-effective amendment as
soon as practicable after it is notified of the matters to be included or
incorporated in such Prospectus supplement or post-effective amendment.

         (n) The Company shall enter into such customary agreements, other than
lock-up agreements unless the Company otherwise consents, (including an
underwriting agreement in customary form in the event of an underwritten
offering conducted pursuant to Section 6 hereof) and use its reasonable best
efforts to take all other necessary action in order to effect the registration
of the Registrable Securities in accordance with this Agreement, and in
connection therewith, if an underwriting agreement is entered into, cause the
same to contain indemnification provisions and procedures substantially
identical to those set forth in Section 5 hereof with respect to all parties to
be indemnified pursuant to Section 5 hereof.

         (o)      The Company shall use its reasonable best efforts to:

         (i)(A) make reasonably available for inspection by Electing Holders,
         any underwriter participating in any disposition pursuant to the Shelf
         Registration Statement, and any attorney, accountant or other agent
         retained by such Holders or any such underwriter all relevant financial
         and other records, pertinent corporate documents and properties of the
         Company and its subsidiaries, provided, that if more than one attorney
         is representing the Electing Holders, such attorneys shall make
         reasonable efforts to coordinate their investigations in a manner so as
         not to cause undue burden to the Company, and (B) cause the Company's
         officers, directors and employees to supply all information reasonably
         requested by such Holders or any such underwriter, attorney, accountant
         or agent in connection with the Shelf Registration Statement, in each
         case, as is customary for similar due diligence examinations; PROVIDED,
         HOWEVER, that all records, information and documents that are
         designated in writing by the Company, in good faith, as confidential
         shall be kept confidential by such Electing Holders and any such
         underwriter, attorney, accountant or agent, unless such disclosure is
         made, after prior written notice to the Company and a reasonable
         opportunity on the part of the Company to prevent and/or limit such

<PAGE>

         disclosure, in connection with a court proceeding or required by law,
         or such records, information or documents become available to the
         public generally; and PROVIDED FURTHER that such inspection and
         information gathering shall be coordinated on behalf of the Electing
         Holders by one counsel designated by and on behalf of Electing Holders
         and other parties, which shall be Skadden, Arps, Slate, Meagher & Flom
         LLP;

         (ii) in connection with any underwritten offering conducted pursuant to
         Section 6 hereof, make such representations and warranties to the
         Holders participating in such underwritten offering and to the Managing
         Underwriters, in form, substance and scope, and subject to such
         exceptions and qualifications, as are customarily made by the Company
         to underwriters in primary underwritten offerings of equity and
         convertible debt securities and covering matters including those set
         forth in the Purchase Agreement;

         (iii) in connection with any underwritten offering conducted pursuant
         to Section 6 hereof, obtain opinions of counsel to the Company (which
         counsel and opinions (in form, scope and substance, and subject to such
         exceptions and qualifications) shall be reasonably satisfactory to the
         Managing Underwriters) addressed to each Holder participating in such
         underwritten offering and the underwriters, covering such matters as
         are customarily covered in opinions requested in primary underwritten
         offerings of equity and convertible debt securities (it being agreed
         that the matters to be covered by such opinions shall include, without
         limitation, as of the date of the opinion and as of the Effective Time
         of the Shelf Registration Statement or most recent post-effective
         amendment thereto, as the case may be, the absence from the Shelf
         Registration Statement and the Prospectus, including the documents
         incorporated by reference therein, of an untrue statement of a material
         fact or the omission of a material fact required to be stated therein
         or necessary to make the statements therein, in light of the
         circumstances under which they are made, not misleading);

         (iv) in connection with any underwritten offering conducted pursuant to
         Section 6 hereof, if requested, obtain "cold comfort" letters and
         updates thereof from the independent public accountants of the Company
         (and, if necessary, from the independent public accountants of any
         subsidiary of the Company or of any business acquired by the Company
         for which financial statements and financial data are, or are required
         to be, included in the Shelf Registration Statement, except Winterthur
         International), addressed to the underwriters, in customary form and
         covering matters of the type customarily covered in "cold comfort"
         letters in connection with primary underwritten offerings of offerings
         of equity and convertible debt securities of the Company;

         (v) in connection with any underwritten offering conducted pursuant to
         Section 6 hereof, deliver such documents and certificates concerning
         such matters as are customarily covered by or in such documents and
         certificates as may be reasonably requested by the Managing
         Underwriters, if any, or Skadden, Arps, Slate, Meagher & Flom LLP, on
         behalf of all Electing Holders, including, without limitation,
         certificates to evidence compliance with Section 3(j)

<PAGE>

         hereof and with any conditions contained in the underwriting agreement
         or other agreements entered into by the Company.

         (p) The Company will use its reasonable best efforts to cause the
Ordinary Shares issuable upon conversion of the Securities to be listed on the
New York Stock Exchange or other stock exchange or trading system on which the
Ordinary Shares primarily trade on or prior to the Effective Time of the Shelf
Registration Statement hereunder.

         (q) In the event that any broker-dealer registered under the Exchange
Act shall be an "affiliate" (as defined in Rule 2720(b)(1) of the NASD Rules (or
any successor provision thereto)) of the Company or has a "conflict of interest"
(as defined in Rule 2720(b)(7) of the NASD Rules (or any successor provision
thereto)) and such broker-dealer shall underwrite, participate as a member of an
underwriting syndicate or selling group or assist in the distribution of any
Registrable Securities covered by the Shelf Registration Statement, whether as a
Holder of such Registrable Securities or as an underwriter, a placement or sales
agent or a broker or dealer in respect thereof, or otherwise, the Company shall
assist such broker-dealer (at such broker-dealer's expense) in complying with
the requirements of the NASD Rules, including, without limitation, by (A)
engaging a "qualified independent underwriter" (as defined in Rule 2720(b)(15)
of the NASD Rules (or any successor provision thereto)) to participate in the
preparation of the registration statement relating to such Registrable
Securities, to exercise usual standards of due diligence in respect thereto and
to recommend the public offering price of such Registrable Securities, (B)
indemnifying such qualified independent underwriter to the extent of the
indemnification of underwriters provided in Section 5 hereof, and (C) providing
such information to such broker-dealer as may be required in order for such
broker-dealer to comply with the requirements of the NASD Rules.

         4. REGISTRATION EXPENSES. Except as otherwise provided in Section 3,
the Company shall bear all fees and expenses incurred in connection with the
performance of its obligations under Sections 2 and 3 hereof and shall reimburse
the Electing Holders for the reasonable fees and disbursements of a single
counsel, which shall be Skadden, Arps, Slate, Meagher & Flom LLP, to act as
counsel therefore in connection therewith. Each Electing Holder shall pay all
underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of such Electing Holder's Registrable Securities
pursuant to the Shelf Registration Statement.

         5.       INDEMNIFICATION AND CONTRIBUTION.

         (a) INDEMNIFICATION BY THE COMPANY. Upon the registration of the
Registrable Securities pursuant to Section 2 hereof, the Company shall indemnify
and hold harmless each Electing Holder and each underwriter, selling agent or
other securities professional, if any, which facilitates the disposition of
Registrable Securities, and each of their respective officers and directors and
each person who controls such Electing Holder, underwriter, selling agent or
other securities professional within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act (each such person being sometimes referred
to herein as an "Indemnified Person") against any losses, claims, damages or
liabilities, joint or several, to which such Indemnified Person may become
subject under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon an untrue statement or alleged untrue statement of a material fact
contained in any Shelf Registration Statement under which such Registrable
Securities are to be registered under the Securities Act, or any Prospectus
contained therein or furnished by the Company to any Indemnified Person, or any

<PAGE>

amendment or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and the
Company hereby agrees to reimburse such Indemnified Person for any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such action or claim as such expenses are incurred; PROVIDED,
HOWEVER, that the Company shall not be liable to any such Indemnified Person in
any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in such Shelf Registration Statement or
Prospectus, or amendment or supplement, in reliance upon and in conformity with
written information furnished to the Company by such Indemnified Person
expressly for use therein; PROVIDED FURTHER that as to any preliminary
Prospectus, this indemnity agreement shall not inure to the benefit of any
Indemnified Person on account of any loss, claim, damage, liability or action
arising from the sale of the Registrable Securities sold pursuant to the Shelf
Registration Statement to any person by such Indemnified Person if (i) that
Indemnified Person failed to send or give a copy of the Prospectus, as the same
may be amended or supplemented, to that person within the time required by the
Securities Act and (ii) the untrue statement or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact in such
preliminary Prospectus was corrected in the Prospectus or a supplement or
amendment thereto, as the case may be, unless in each case, such failure
resulted from noncompliance by the Company with Section 3.

         (b) INDEMNIFICATION BY THE HOLDERS AND ANY AGENTS AND UNDERWRITERS.
Each Electing Holder agrees, as a consequence of the inclusion of any of such
Holder's Registrable Securities in such Shelf Registration Statement, and each
underwriter, selling agent or other securities professional, if any, which
facilitates the disposition of Registrable Securities shall agree, as a
consequence of facilitating such disposition of Registrable Securities,
severally and not jointly, to (i) indemnify and hold harmless the Company, its
directors, its officers who sign any Shelf Registration Statement and each
person, if any, who controls the Company within the meaning of either Section 15
of the Securities Act or Section 20 of the Exchange Act, against any losses,
claims, damages or liabilities to which the Company or such other persons may
become subject, under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon an untrue statement or alleged untrue statement of a material
fact contained in such Shelf Registration Statement or Prospectus, or any
amendment or supplement, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company by such Holder,
underwriter, selling agent or other securities professional expressly for use
therein, and to (ii) reimburse the Company for any legal or other expenses
reasonably incurred by the Company in connection with investigating or defending
any such action or claim as such expenses are incurred.

         (c) NOTICES OF CLAIMS, ETC. Promptly after receipt by an indemnified
party under subsection (a) or (b) above of notice of the commencement of any
action, such indemnified party shall, if a claim in respect thereof is to be
made against an indemnifying party under this Section 5, notify such
indemnifying party in writing of the commencement thereof; but the omission so
to notify the indemnifying party shall not relieve it from any liability which
it may have to any indemnified party otherwise than under this Section 5. In
case any such action shall be brought against any indemnified party and it shall
notify an indemnifying party of the commencement thereof, such indemnifying
party

<PAGE>

shall be entitled to participate therein and, to the extent that it shall wish,
jointly with any other indemnifying party similarly notified, to assume the
defense thereof, with counsel satisfactory to such indemnified party (who shall
not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, such
indemnifying party shall not be liable to such indemnified party under this
Section 5 for any legal expenses of other counsel or any other expenses, in each
case subsequently incurred by such indemnified party, in connection with the
defense thereof other than reasonable costs of investigation. No indemnifying
party shall, (i) without the written consent of the indemnified party, effect
the settlement or compromise of, or consent to the entry of any judgment with
respect to, any pending or threatened action or claim in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified party is an actual or potential party to such action or claim)
unless such settlement, compromise or judgment (x) includes an unconditional
release of the indemnified party from all liability arising out of such action
or claim and (y) does not include a statement as to, or an admission of, fault,
culpability or a failure to act, by or on behalf of any indemnified party or
(ii) be liable for any settlement of any such action effected without its
written consent (which consent shall not be unreasonably withheld), but if
settled with its written consent or if there be a final judgment for the
plaintiff in any such action, the indemnifying party agrees to indemnify and
hold harmless any indemnified party from and against any loss of liability by
reason of such settlement or judgment in accordance with this Section 5.

         (d) CONTRIBUTION. If the indemnification provided for in this Section 5
is unavailable to or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the indemnifying party and the indemnified party in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of such indemnifying party and
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
such indemnifying party or by such indemnified party, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 5(d) were determined by
pro rata allocation (even if the Electing Holders or any underwriters, selling
agents or other securities professionals or all of them were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to in this Section 5(d).
The amount paid or payable by an indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above
shall be deemed to include any legal or other fees or expenses reasonably
incurred by such indemnified party in connection with investigating or defending
any such action or claim. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The obligations of the Electing Holders and any underwriters,
selling agents or other securities professionals in this Section 5(d) to
contribute shall be several in proportion to the percentage of principal amount
of Registrable Securities registered or underwritten, as the case may be, by
them and not joint.

<PAGE>

         (e) Notwithstanding any other provision of this Section 5, in no event
will any (i) Electing Holder be required to undertake liability to any person
under this Section 5 for any amounts in excess of the dollar amount of the
proceeds to be received by such Holder from the sale of such Holder's
Registrable Securities (after deducting any fees, discounts and commissions
applicable thereto) pursuant to any Shelf Registration Statement under which
such Registrable Securities are to be registered under the Securities Act and
(ii) underwriter, selling agent or other securities professional be required to
undertake liability to any person hereunder for any amounts in excess of the
discount, commission or other compensation payable to such underwriter, selling
agent or other securities professional with respect to the Registrable
Securities underwritten by it and distributed to the public.

         (f) The obligations of the Company under this Section 5 shall be in
addition to any liability which the Company may otherwise have to any
Indemnified Person and the obligations of any Indemnified Person under this
Section 5 shall be in addition to any liability which such Indemnified Person
may otherwise have to the Company. The remedies provided in this Section 5 are
not exclusive and shall not limit any rights or remedies which may otherwise be
available to an indemnified party at law or in equity.

         6. UNDERWRITTEN OFFERING. If Electing Holders of at least 33-1/3% in
aggregate principal amount of the Registrable Securities then covered by the
Shelf Registration Statement shall so request in writing to the Company, any
Holder of Registrable Securities who desires to do so may sell Registrable
Securities (in whole or in part) in an underwritten offering; PROVIDED, HOWEVER,
that at least $150,000,000 aggregate principal amount at maturity of such
Registrable Securities shall be included in such offering; and the Company shall
not be obligated to cooperate with more than one underwritten offering during
the Effectiveness Period. Upon receipt of such a request, the Company shall
provide all Holders of Registrable Securities written notice of the request,
which notice shall inform such Holders that they have the opportunity to
participate in the offering. In any such underwritten offering, the investment
banker or bankers and manager or managers that will administer the offering will
be selected by, and the underwriting arrangements with respect thereto
(including the size of the offering) will be approved by, the Company; PROVIDED,
HOWEVER, that such investment bankers and managers and underwriting arrangements
must be reasonably satisfactory to the Company. No Holder may participate in any
underwritten offering contemplated hereby unless (a) such Holder agrees to sell
such Holder's Registrable Securities to be included in the underwritten offering
in accordance with any approved underwriting arrangements, (b) such Holder
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements, lock-up letters and other documents required under the
terms of such approved underwriting arrangements, and (c) if such Holder is not
then an Electing Holder, such Holder returns a completed and signed Notice and
Questionnaire to the Company in accordance with Section 3(a)(ii) hereof within a
reasonable amount of time before such underwritten offering. The Holders
participating in any underwritten offering shall be responsible for any
underwriting discounts and commissions and fees and, subject to Section 4
hereof, expenses of their own counsel. The Company shall pay all expenses
customarily borne by issuers, including but not limited to Commission filing
fees, the fees and disbursements of its counsel and independent public
accountants and any printing expenses incurred in connection with such
underwritten offering. Notwithstanding the foregoing or the provisions of
Section 3(n) hereof, upon receipt of a request from the Managing Underwriter or
a representative of Holders of a majority of the Registrable Securities to be
included in an underwritten offering to prepare and file an amendment or
supplement to the Shelf Registration Statement and Prospectus in connection with
an underwritten offering, the Company may delay the filing of any such amendment
or supplement

<PAGE>

for up to 90 days if the Board of Directors of the Company shall have determined
in good faith that the Company has a bona fide business reason for such delay.

          7. LIQUIDATED DAMAGES.

         (a) Subject to any postponement on the effectiveness of the
registration statement pursuant to Section 2(a) hereof or the use of the
Prospectus pursuant to Section 2(c) hereof, if (i) on or prior to the 120th day
following the Closing Date, a Shelf Registration Statement has not been filed
with the Commission, (ii) on or prior to the 210th day following the Closing
Date, such Shelf Registration Statement is not declared effective by the
Commission, or (iii) (x) the Shelf Registration Statement ceases to be effective
or fails to be usable subsequent to the 210th day following the Closing Date and
(y) the Company does not cure the Shelf Registration Statement within ten
business days by a post-effective amendment or a report filed pursuant to the
Exchange Act or (z) if applicable, the Company does not terminate the suspension
period pursuant of Section 2(c) hereof, by the 45th or 75th day, as the case may
be (each, a "Registration Default"), the Company shall be required to pay in
cash liquidated damages ("Liquidated Damages") in respect of the Registrable
Securities, from and including the day following such Registration Default, but
excluding the day on which such Shelf Registration Statement is either so filed
or so filed and subsequently declared effective, as applicable, at a rate per
annum equal to an additional one-quarter of one percent (0.25%) of the
Applicable Amount, to and including the 90th day following such Registration
Default and an additional one-quarter of one percent (0.25%) of the Applicable
Amount from and after the 91st day following such Registration Default.

         (b) In no event will Liquidated Damages accrue at a rate per year
exceeding 0.50%. If a Holder has converted some or all of its Securities into
Ordinary Shares, the Holder will be entitled to receive equivalent amounts based
on the principal amount at maturity of the Securities converted. A Holder will
not be entitled to Liquidated Damages unless it has provided all information
requested by the Notice and Questionnaire prior to the deadline.

         (c) In the event the Company fails to file a post-effective amendment
to the Shelf Registration Statement required to be filed, or the post-effective
amendment is not declared effective, within the periods required by Section 3,
the Company shall pay Liquidated Damages at a rate per annum equal to an
additional one-quarter of one percent (0.25%) from and including the date of
such Registration Default until such time as such Registration Default is cured
subject to the limitations on Liquidated Damages pursuant to paragraph (b) of
this Section 7.

         (d) Any amounts to be paid as Liquidated Damages pursuant to paragraphs
(a) or (c) of this Section 7 shall be paid in cash semi-annually in arrears,
with the first semi-annual payment due on the first September 7 or March 7, as
applicable, following the date on which such Liquidated Damages begin to accrue.

         (e) The Liquidated Damages as set forth in this Section 7 shall be the
exclusive monetary remedy available to the Holders of Registrable Securities for
such Registration Default or Effective Failure. In no event shall the Company be
required to pay Liquidated Damages in excess of the applicable maximum amount of
one-half of one percent (0.5%) per year set forth above, regardless of whether
one or multiple Registration Defaults exist.

         8. MISCELLANEOUS.

<PAGE>

         (a) OTHER REGISTRATION RIGHTS. The Company may grant registration
rights that would permit any Person that is a third party the right to
piggy-back on any Shelf Registration Statement, PROVIDED, HOWEVER, that if the
Managing Underwriter of any underwritten offering conducted pursuant to Section
6 hereof notifies the Company and the Electing Holders that the total amount of
securities which the Electing Holders and the holders of such piggy-back rights
intend to include in any Shelf Registration Statement is so large as to
materially threaten the success of such offering (including the price at which
such securities can be sold), then the amount, number or kind of securities to
be offered in such registration statement, in addition to the Registrable
Securities, will be reduced on a pro rata basis to the extent necessary to
reduce the total amount of securities to be included in such offering to the
amount, number and kind recommended by the Managing Underwriter.

         (b) AMENDMENTS AND WAIVERS. This Agreement, including this Section
8(b), may be amended, and waivers or consents to departures from the provisions
hereof may be given, only by a written instrument duly executed by the Company
and the Holders of a majority in aggregate principal amount of Registrable
Securities then outstanding. Each Holder of Registrable Securities outstanding
at the time of any such amendment, waiver or consent or thereafter shall be
bound by any amendment, waiver or consent effected pursuant to this Section
8(b), whether or not any notice, writing or marking indicating such amendment,
waiver or consent appears on the Registrable Securities or is delivered to such
Holder.

         (c) NOTICES. All notices and other communications provided for or
permitted hereunder shall be given as provided in the Indenture.

         (d) PARTIES IN INTEREST. The parties to this Agreement intend that all
Holders of Registrable Securities shall be entitled to receive the benefits of
this Agreement and that any Electing Holder shall be bound by the terms and
provisions of this Agreement by reason of such election with respect to the
Registrable Securities which are included in a Shelf Registration Statement. All
the terms and provisions of this Agreement shall be binding upon, shall inure to
the benefit of and shall be enforceable by the respective permitted successors
and assigns of the parties hereto and any Holder from time to time of the
Registrable Securities to the aforesaid extent.

         (f) COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         (g)  HEADINGS. The headings in this agreement are for convenience of
reference  only and shall not limit or otherwise affect the meaning hereof.

         (H) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

         (i) SEVERABILITY. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties
hereto shall be enforceable to the fullest extent permitted by law.

<PAGE>

         (j) SURVIVAL. The respective indemnities, agreements, representations,
warranties and other provisions set forth in this Agreement or made pursuant
hereto shall remain in full force and effect, regardless of any investigation
(or any statement as to the results thereof) made by or on behalf of any
Electing Holder, any director, officer or partner of such Holder, any agent or
underwriter, any director, officer or partner of such agent or underwriter, or
any controlling person of any of the foregoing, and shall survive the transfer
and registration of the Registrable Securities of such Holder.

<PAGE>

         Please confirm that the foregoing correctly sets forth the agreement
between the Company and you.

                                          Very truly yours,

                                          XL Capital Ltd

                                          By:
                                              ------------------------
                                              Name:
                                              Title:

Accepted as of the date hereof:
Merrill Lynch, Pierce, Fenner & Smith Incorporated

By:
   -----------------------------------------------
   Name:
   Title:

<PAGE>

                                                                       EXHIBIT A

                                 XL Capital Ltd

                         INSTRUCTION TO DTC PARTICIPANTS

                                (DATE OF MAILING)

                     URGENT - IMMEDIATE ATTENTION REQUESTED

                          DEADLINE FOR RESPONSE: [DATE]

                  The Depository Trust Company ("DTC") has identified you as a
DTC Participant through which beneficial interests in the XL Capital Ltd (the
"Company") Liquid Yield Option(TM) Notes due 2021 (the "Securities") are held.

                  The Company is in the process of registering the Securities
under the Securities Act of 1933, as amended, for resale by the beneficial
owners thereof. In order to have their Securities included in the registration
statement, beneficial owners must complete and return the enclosed Notice of
Registration Statement and Selling Securityholder Questionnaire.

                  IT IS IMPORTANT THAT BENEFICIAL OWNERS OF THE SECURITIES
RECEIVE A COPY OF THE ENCLOSED MATERIALS AS SOON AS POSSIBLE as their rights to
have the Securities included in the registration statement depend upon their
returning the Notice and Questionnaire by [DEADLINE FOR RESPONSE]. Please
forward a copy of the enclosed documents to each beneficial owner that holds
interests in the Securities through you. If you require more copies of the
enclosed materials or have any questions pertaining to this matter, please
contact Galvin R. Arton, XL Capital Ltd, XL House, One Bermudiana Road,
Hamilton, Bermuda HM11.

<PAGE>

                                 XL Capital Ltd

                        Notice of Registration Statement

                                       and

                      SELLING SECURITYHOLDER QUESTIONNAIRE

                                     (Date)

                  Reference is hereby made to the Registration Rights Agreement,
dated September 7, 2001 (the "Registration Rights Agreement") between XL Capital
Ltd (the "Company") and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Pursuant to the Registration Rights Agreement, the Company plans to file with
the United States Securities and Exchange Commission (the "Commission") a
registration statement on Form [__] (the "Shelf Registration Statement") for the
registration and resale under Rule 415 of the Securities Act of 1933, as amended
(the "Securities Act"), of the Company's Liquid Yield Option(TM) Notes due
September ?, 2021 (the "Securities") and the Class A Ordinary Shares, par value
$.01 per share (the "Ordinary Shares"), issuable upon conversion thereof. A copy
of the Registration Rights Agreement is attached hereto. All capitalized terms
not otherwise defined herein shall have the meanings ascribed thereto in the
Registration Rights Agreement.

                  Each beneficial owner of Registrable Securities (as defined
below) is entitled to have the Registrable Securities beneficially owned by it
included in the Shelf Registration Statement. In order to have Registrable
Securities included in the Shelf Registration Statement, this Notice of
Registration Statement and Selling Securityholder Questionnaire ("Notice and
Questionnaire") must be completed, executed and delivered to the Company's
counsel at the address set forth herein for receipt ON OR BEFORE [DEADLINE FOR
RESPONSE]. Beneficial owners of Registrable Securities who do not complete,
execute and return this Notice and Questionnaire by such date (i) will not be
named as selling securityholders in the Shelf Registration Statement and (ii)
may not use the Prospectus forming a part thereof for resales of Registrable
Securities.

                  Certain legal consequences arise from being named as a selling
securityholder in the Shelf Registration Statement and related Prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised
to consult their own securities law counsel regarding the consequences of being
named or not being named as a selling securityholder in the Shelf Registration
Statement and related Prospectus.

<PAGE>

                  The term "REGISTRABLE SECURITIES" is defined in the
Registration Rights Agreement to mean all or any portion of the Securities
issued from time to time under the Indenture in registered form and the Ordinary
Shares issuable upon conversion of such Securities; PROVIDED, HOWEVER, that a
security ceases to be a Registrable Security when it is no longer a Restricted
Security.

                  The term "RESTRICTED SECURITY" is defined in the Registration
Rights Agreement to mean any Security or Ordinary Share issuable upon conversion
thereof except any such Security or Ordinary Share which (i) has been
effectively registered under the Securities Act and sold in a manner
contemplated by the Shelf Registration Statement, (ii) has been transferred in
compliance with Rule 144 under the Securities Act (or any successor provision
thereto) or is transferable pursuant to paragraph (k) of such Rule 144 (or any
successor provision thereto), (iii) has been sold in compliance with Regulation
S under the Securities Act (or any successor thereto) and does not constitute
the unsold allotment of a distributor within the meaning of Regulation S under
the Securities Act, (iv) has otherwise been transferred and a new Security or
Ordinary Share not subject to transfer restrictions under the Securities Act has
been delivered by or on behalf of the Company in accordance with Section 2.6(f)
of the Indenture, or (v) is otherwise transferable without restriction under the
Securities Act.

                                    ELECTION

                  The undersigned holder (the "Selling Securityholder") of
Registrable Securities hereby elects to include in the Shelf Registration
Statement the Registrable Securities beneficially owned by it and listed below
in Item (3). The undersigned, by signing and returning this Notice and
Questionnaire, agrees to be bound with respect to such Registrable Securities by
the terms and conditions of this Notice and Questionnaire and the Registration
Rights Agreement, including, without limitation, Section 5 of the Registration
Rights Agreement, as if the undersigned Selling Securityholder were an original
party thereto.

                  Upon any sale of Registrable Securities pursuant to the Shelf
Registration Statement, the Selling Securityholder will be required to deliver
to the Company and Trustee the Notice of Transfer set forth as Exhibit B to the
Registration Rights Agreement.

                  The Selling Securityholder hereby provides the following
information to the Company and represents and warrants that such information is
accurate and complete:

<PAGE>

                                  QUESTIONNAIRE

(1)  (a)   Full Legal Name of Selling Securityholder:

           ---------------------------------------------------------------------
     (b)   Full  Legal  Name of  Registered  Holder  (if not the  same as in (a)
           above) of Registrable Securities Listed in Item (3) below:

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

     (c)   Full Legal Name of DTC Participant (if applicable and if not the same
           as (b) above) Through Which Registrable Securities Listed in Item (3)
           below are Held:

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

(2)        Address for Notices to Selling Securityholder:

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

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

                             ---------------------------------------
           Telephone:
                             ---------------------------------------
           Fax:
                             ---------------------------------------
           Contact Person:
                             ---------------------------------------

(3)        Beneficial Ownership of Securities:

           EXCEPT AS SET FORTH BELOW IN THIS ITEM (3), THE UNDERSIGNED  DOES NOT
           BENEFICIALLY  OWN ANY  SECURITIES  OR  ORDINARY  SHARES  ISSUED  UPON
           CONVERSION OF ANY SECURITIES.

     (a)   Principal amount at maturity (subject to upward interest in the event
           of an upward  interest  adjustment)  of  Registrable  Securities  (as
           defined in the Registration Rights Agreement) beneficially owned:

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

           CUSIP No(s). of such Registrable Securities:
                                                       -------------------------

           Number of Ordinary  Shares (if any) issued  upon  conversion  of such
           Registrable Securities:
                                  ----------------------------------------------

     (b)   Principal amount at maturity (subject to upward interest in the event
           of  an  upward   interest   adjustment)  of  Securities   other  than
           Registrable Securities beneficially owned:

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

           CUSIP No(s). of such other Securities:
                                                 -------------------------------

           Number of Ordinary  Shares (if any) issued  upon  conversion  of such
           other Securities:
                            ----------------------------------------------------

     (c)   Principal  amount at maturity  (subject to adjustment  for Contingent
           Additional Principal) of Registrable Securities which the undersigned
           wishes to be included in the Shelf Registration Statement:

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

           CUSIP No(s).  of such  Registrable  Securities  to be included in the
           Shelf Registration Statement:
                                        ----------------------------------------

                                       21
<PAGE>

           Number  of  Ordinary  Shares  (if  any)  issued  upon  conversion  of
           Registrable  Securities  which  are  to  be  included  in  the  Shelf
           Registration Statement:
                                  ----------------------------------------------

(4)        Beneficial Ownership of Other Securities of the Company:

           EXCEPT AS SET FORTH BELOW IN THIS ITEM (4), THE  UNDERSIGNED  SELLING
           SECURITYHOLDER  IS NOT THE  BENEFICIAL  OR  REGISTERED  OWNER  OF ANY
           ORDINARY  SHARES OR ANY OTHER  SECURITIES OF THE COMPANY,  OTHER THAN
           THE SECURITIES AND ORDINARY SHARES LISTED ABOVE IN ITEM (3).

           State any exceptions here:

(5)        Relationships with the Company:

           EXCEPT AS SET FORTH BELOW, NEITHER THE SELLING SECURITYHOLDER NOR ANY
           OF ITS AFFILIATES,  OFFICERS,  DIRECTORS OR PRINCIPAL  EQUITY HOLDERS
           (5% OR MORE)  HAS HELD ANY  POSITION  OR  OFFICE OR HAS HAD ANY OTHER
           MATERIAL  RELATIONSHIP  WITH  THE  COMPANY  (OR ITS  PREDECESSORS  OR
           AFFILIATES) DURING THE PAST THREE YEARS.

           State any exceptions here:

(6)        Plan of Distribution:

           EXCEPT AS SET FORTH BELOW,  THE  UNDERSIGNED  SELLING  SECURITYHOLDER
           INTENDS TO DISTRIBUTE THE REGISTRABLE SECURITIES LISTED ABOVE IN ITEM
           (3) ONLY AS FOLLOWS (IF AT ALL): SUCH  REGISTRABLE  SECURITIES MAY BE
           SOLD  FROM  TIME  TO  TIME  DIRECTLY  BY  THE   UNDERSIGNED   SELLING
           SECURITYHOLDER    OR,     ALTERNATIVELY,     THROUGH    UNDERWRITERS,
           BROKER-DEALERS OR AGENTS. SUCH REGISTRABLE  SECURITIES MAY BE SOLD IN
           ONE OR MORE TRANSACTIONS AT FIXED PRICES, AT PREVAILING MARKET PRICES
           AT THE TIME OF SALE,  AT  VARYING  PRICES  DETERMINED  AT THE TIME OF
           SALE,  OR AT  NEGOTIATED  PRICES.  SUCH  SALES  MAY  BE  EFFECTED  IN
           TRANSACTIONS (WHICH MAY INVOLVE CROSSES OR BLOCK TRANSACTIONS) (I) ON
           ANY NATIONAL  SECURITIES  EXCHANGE OR QUOTATION  SERVICE ON WHICH THE
           REGISTERED  SECURITIES  MAY BE  LISTED OR QUOTED AT THE TIME OF SALE,
           (II) IN THE OVER-THE-COUNTER  MARKET, (III) IN TRANSACTIONS OTHERWISE
           THAN ON SUCH EXCHANGES OR SERVICES OR IN THE OVER-THE-COUNTER MARKET,
           OR (IV) THROUGH THE WRITING OF OPTIONS.  IN CONNECTION  WITH SALES OF
           THE REGISTRABLE  SECURITIES OR OTHERWISE,  THE SELLING SECURITYHOLDER
           MAY ENTER INTO HEDGING TRANSACTIONS WITH BROKER-DEALERS, WHICH MAY IN
           TURN  ENGAGE  IN SHORT  SALES OF THE  REGISTRABLE  SECURITIES  IN THE
           COURSE  OF  HEDGING   THE   POSITIONS   THEY   ASSUME.   THE  SELLING
           SECURITYHOLDER MAY ALSO SELL REGISTRABLE SECURITIES SHORT AND DELIVER
           REGISTRABLE SECURITIES TO CLOSE OUT SUCH SHORT POSITIONS,  OR LOAN OR
           PLEDGE REGISTRABLE SECURITIES TO BROKER-DEALERS THAT IN TURN MAY SELL
           SUCH SECURITIES.

           State any exceptions here:

                  Note: In no event may such method(s) of distribution take the
form of an underwritten offering of the Registrable Securities without the prior
agreement of the Company.

                  By signing below, the Selling Securityholder acknowledges that
it understands its obligation to comply, and agrees that it will comply, with
the provisions of the Exchange Act and the rules and regulations thereunder,
particularly Regulation M.

                                       22
<PAGE>

                  In the event that the Selling Securityholder transfers all or
any portion of the Registrable Securities listed in Item (3) above after the
date on which such information is provided to the Company, the Selling
Securityholder agrees to notify in writing the Company and any transferee(s) at
the time of the transfer of its rights and obligations under this Notice and
Questionnaire and the Registration Rights Agreement.

                  By signing below, the Selling Securityholder consents to the
disclosure of the information contained herein in its answers to Items (1)
through (6) above and the inclusion of such information in the Shelf
Registration Statement and related Prospectus. The Selling Securityholder
understands that such information will be relied upon by the Company in
connection with the preparation of the Shelf Registration Statement and related
Prospectus.

                  In accordance with the Selling Securityholder's obligation
under Section 3(a) of the Registration Rights Agreement to provide such
information as may be required by law for inclusion in the Shelf Registration
Statement, the Selling Securityholder agrees to promptly notify the Company in
writing of any inaccuracies or changes in the information provided herein which
may occur subsequent to the date hereof at any time while the Shelf Registration
Statement remains in effect. All notices hereunder and pursuant to the
Registration Rights Agreement shall be made in writing, by hand-delivery,
first-class mail, or air courier guaranteeing overnight delivery as follows:

           (i)  To the Company:

                                    XL Capital Ltd
                                    One Bermudiana Road
                                    Hamilton, Bermuda HM11
                                    (441) 292-8515
                                    Facsimile (441) 292-5280
                                    Attention:  Paul S. Giordano

           (ii) With a copy to:

                                    Cahill Gordon & Reindel
                                    80 Pine Street
                                    New York, NY  10005
                                    (212) 701-3000
                                    Facsimile (212) 269-5420
                                    Attention:  Micael J. Ohler

                  Once this Notice and Questionnaire is executed by the Selling
Securityholder and received by the Company's counsel, the terms of this Notice
and Questionnaire, and the representations and warranties contained herein,
shall be binding on, shall inure to the benefit of and shall be enforceable by
the respective successors, heirs, personal representatives, and assigns of the
Company and the Selling Securityholder (with respect to the Registrable
Securities beneficially owned by such Selling Securityholder and listed in Item
(3) above). This Agreement shall be governed in all respects by the laws of the
State of New York.

                                       23
<PAGE>

                  IN WITNESS WHEREOF, the undersigned, by authority duly given,
has caused this Notice and Questionnaire to be executed and delivered either in
person or by its duly authorized agent.

Dated:
        ----------------------------

                  --------------------------------------------------------------
                  Selling Securityholder
                  (Print/type full legal name of beneficial owner of Registrable
                  Securities)

                  By:
                       ---------------------------------------------------------
                  Name:
                  Title:

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON
OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY'S COUNSEL AT:

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

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

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

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

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

                                       24
<PAGE>

                                                                       EXHIBIT B

              NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

State Street Bank and Trust Company
225 Asylum Street
23rd Floor
Hartford, Connecticut 06103
Attention:  [Corporate Trust Services]

                  Re:  XL Capital Ltd (the "Company")
                       Liquid Yield Option(TM) Notes
                       due 2021 (the "Securities")

Dear Sirs:

                  Please be advised that _____________________ has transferred
$___________ aggregate principal amount at maturity (subject to adjustment for
Contingent Additional Principal) of the above-referenced Securities pursuant to
an effective Registration Statement on Form [___] (File No. 333-____) filed by
the Company.

                  We hereby certify that the prospectus delivery requirements,
if any, of the Securities Act of 1933, as amended, have been satisfied and that
the above-named beneficial owner of the Notes is named as a "Selling Holder" in
the Prospectus dated _______, or in supplements thereto, and that the aggregate
principal amount at maturity (subject to upward adjustment in the event of an
upward interest adjustment) of the Securities transferred are the Securities
listed in such Prospectus opposite such owner's name.

Dated:

                                               Very truly yours,

                                               ------------------------
                                               (Name)

                                         By:
                                               ------------------------
                                               (Authorized Signature)

                                       25

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