XL CAPITAL LTD
<DOCUMENT>
<TYPE>EX-10.63
<SEQUENCE>4
<FILENAME>c28973_ex10-63.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 FINAL//EN">


<HTML>
<HEAD>
   <TITLE>ex-10-63</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">




<P align="right">
<I><FONT size=2 face="serif">Translation for information purposes only</FONT></I>
</P>
<P>
<B><FONT size=5 face="serif">LE MANS RE</FONT></B>
</P>
<P>
<FONT size=2 face="serif">JL/cg </FONT>
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD width="72%">&nbsp;</TD>
   <TD width="28%"><font size=2 face="serif">BNP PARIBAS</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD><font size=2 face="serif">41, Bd du Mar&eacute;chal Foch</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD><font size=2 face="serif">49100 ANGERS</font></TD>
</TR>
<TR>
   <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD><font size=2 face="serif"><u>For the attention of M Fr&eacute;d&eacute;ric
    Tollu</u></font></TD>
</TR>
<TR>
   <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD><font size=2 face="serif">Le Mans, 27 November 2000</font></TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="serif">Dear Sirs </FONT>
</P>
<P>
<FONT size=2 face="serif">Following our recent interview and our telephone conversation today, we confirm our agreement relating the renewal of the reinsurance stand-by letters of credit on the following terms: </FONT>
</P>
<UL>
<LI><FONT size=2 face="serif">0.30% (instead of 0.25%) per year on the unitary amount of each letter of credit with a minimum of US$350 per year, the other terms remaining unchanged.</FONT><BR></LI>
<LI><FONT size=2 face="serif">In the case of the creation of security collateral made up of OECD securities it remains 0.25% but with a minimum of US$350 per year.</FONT><BR></LI>
</UL>
<P>
<FONT size=2 face="serif">We are therefore at your disposal to deal with this agreement according to the normal methods as well as to deposit the collateral according to whatever methods you would like to specify to us, the cover ratio being 105%
and applying to the sovereign securities issued by the states of the OECD. </FONT>
</P>
<P>
<FONT size=2 face="serif">Yours faithfully </FONT>
</P>
<P align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Jacques Lemaire<br>
Administrative and Finance Director </FONT>
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD width="15%"><FONT size=2 face="serif"><u>Copies for information</u></FONT><FONT size=2 face="serif">:</FONT></TD>
   <TD width="85%"><FONT size=2 face="serif">M de la Guierce (MMA)</FONT></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD width="85%"><FONT size=2 face="serif">M Loison (MMA)</FONT></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD width="85%"><FONT size=2 face="serif">M Le Bozec (MMA)</FONT></TD>
</TR>
</TABLE>
<P align="right">
<I><FONT size=2 face="serif">Translation for information purposes only </FONT></I>
</P>

<HR noshade align="center" width="100%" size=2>

<PAGE>
<A name="page_2"></A>

<P align="center">
<B><U><FONT face="serif">GENERAL CONDITIONS FOR THE ISSUE OF LETTERS OF CREDIT</FONT></U></B><B><I><FONT face="serif"> </FONT></i></B>
</P>
<P>
<B><U><FONT size=2 face="serif">Between the undersigned</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B>
</P>
<P>
<FONT size=2 face="serif">PARIBAS, a limited company with a board of directors
and a board of trustees with a share capital of FRF 16,407,476,000, the registered
office of which is at 3 rue d&#146;Antin, 75002 Paris and which is registered
at the  Trade and Companies Registry with the number PARIS B 662 047 885, represented
by M</FONT><FONT size=2 face="serif">. Patrick RAKOTOARISOA and M. Antoine
MARTINEZ. Hereafter called &#147;PARIBAS&#148;. </FONT>
</P>
<P>
<FONT size=2 face="serif">LE MANS RE, a limited company with a share capital of FRF 404,884,479, a business governed by the insurance code with a registered office at 19/21 rue Chanzy 72000 LE MANS.</FONT>
</P>
<P>
<FONT size=2 face="serif">Trade and Companies Register number: LE MANS 3 412 041 943, represented by M. Jean-Luc BOURGAULT and M. Cl&eacute;ment JOURDAIN.	Hereafter called &#147;the Instructing Party&#148;. </FONT>
</P>
<P>
<B><U><FONT size=2 face="serif">Firstly, on the basis that:</FONT></U></B>
</P>
<p><FONT size=2 face="serif">- The Instructing Party is to seek, for its reinsurance
  operations, that stand-by letters of credit be issued (hereafter &#147;Letters
  of Credit&#148;) in order to guarantee that its obligations under the above-mentioned
operations are carried out.</FONT></p>
<p><FONT size=2 face="serif">- It has been agreed, as between the undersigned,
    that a simplified procedure for delivering the Letters of Credit is to be
    implemented. These general conditions are to describe how this is to be operate. </FONT>
</P>

<P>
<B><U><FONT size=2 face="serif">It is understood as follows:</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B>
</P>
<P>
<B><FONT size=2 face="serif">Article 1: </FONT></B><B><U><FONT size=2 face="serif">Issue of the Letters of Credit</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B>
</P>
<P>
<FONT size=2 face="serif">Every request for a Letter of Credit to be issued must be sent either by telex, by fax or by registered letter with acknowledgment of receipt, or by remote transmission (if a licensing agreement for the use of the Lynx-LC
package is concluded between PARIBAS and the Instructing Party) by the Instructing Party to PARIBAS ref 467, 3 rue d&#146;Antin, 75002 Paris at least ten days before the date the relevant Letter of Credit is to be issued. This period of ten days
will start to run when PARIBAS</FONT></P>
<div align="center"><FONT size=2 face="serif">- 2 -</FONT>


</div>
<HR noshade align="center" width="100%" size=2><PAGE>
<P><FONT size=2 face="serif"> receives the above-mentioned telex, fax, registered
    letter with acknowledgment of receipt or remote transmission. </FONT>
</P>
<P>
<FONT size=2 face="serif">Every request for a Letter of Credit to be issued must refer to these General Conditions for the Issue of Letters of Credit and include, as a minimum, reference to the following: </FONT></P>
<P><FONT size=2 face="serif">- Name of the Instructing Party	</FONT></P>
<P><FONT size=2 face="serif">- Maximum
    amount of the Letter of Credit</FONT>
</P>
<P>
<FONT size=2 face="serif">-</FONT>&nbsp;<FONT size=2 face="serif">Date the Letter
of Credit comes into force</FONT></P>
<P><FONT size=2 face="serif">- Expiry date of the
  Letter of Credit </FONT></P>
<P><FONT size=2 face="serif"> - Name of the beneficiary of the Letter of Credit</FONT> </P>
<P><FONT size=2 face="serif"> - Wording of the Letter
      of Credit </FONT>
</P>
<P>
<FONT size=2 face="serif">The issue as well as the wording of each Letter of Credit must be expressly accepted by PARIBAS. </FONT>
</P>
<P>
<FONT size=2 face="serif">Each Letter of Credit will be issued for a maximum period of one year and will be renewed by PARIBAS for a period of one year from the date of expiry unless (i) notice that it will not be renewed is given by PARIBAS by
registered letter with acknowledgment of receipt or by telex at least 30 days before the expiry date of the Letter of Credit in question, or (ii) a request for non-renewal is sent by the Instructing Party to PARIBAS by registered letter with
acknowledgment of receipt or by telex at least 60 days before the date of expiry of the Letter of Credit in question. </FONT>
</P>
<P>
<B><FONT size=2 face="serif">Article 2: </FONT></B><B><U><FONT size=2 face="serif">Remuneration</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B>
</P>
<P>
<FONT size=2 face="serif">The Instructing Party will make a payment to PARIBAS calculated on the basis of the maximum amount of the Letters of Credit issued and the period during which the afore-mentioned Letters of Credit are valid, in the
following manner:</FONT></P>
<P><FONT size=2 face="serif"> 0.25% per year of the unit amount of each Letter
    of Credit with a minimum of US$280 per year. </FONT>
</P>
<P>
<FONT size=2 face="serif">This payment will be debited from the Instructing Party&#146;s account n&deg; 7234 V held by PARIBAS, provided that the account is sufficiently in credit at the time each of the relevant Letters of Credit are issued. </FONT>
</P>
<P>
<I><FONT size=2 face="serif">This payment will be debited from the Instructing Party&#146;s account n&deg; 7234 V held by PARIBAS at the end of each quarter, provided that the account is sufficiently in credit. For each Letter of Credit which is
issued after the start of a quarter or where the term ends before the end of a quarter, this payment will be calculated for the whole of the quarter in question. </FONT></I>
</P>
<P>
<B><FONT size=2 face="serif">Article 3: </FONT></B><B><U><FONT size=2 face="serif">New circumstances</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B>
</P>
<P>
<FONT size=2 face="serif">If the costs involved in issuing the Letters of Credits are to be borne by PARIBAS as a result of new legislation or regulations, or a new directive or recommendation from a proper authority, or a modification to any law,
regulation or directive (such as, for example,
in relation to reserves or </FONT></P><P align="center"><FONT size=2 face="serif">- 3 -</FONT>
</P>

<HR noshade align="center" width="100%" size=2><PAGE>
<P><FONT size=2 face="serif">obligatory deposits, capital and permanent resource
  margins, liquid or other assets, or any tax, right, duty or other taxation
    other than a tax on the total income of companies), PARIBAS will inform the
    Instructing
  Party and as a result propose that the payments be increased.</FONT></P>
<P><FONT size=2 face="serif"> In the event
      where, within sixty days of the Instructing Party receiving notice that
    one of the circumstances
    set out in the
    preceding paragraph has occurred, the Instructing Party and PARIBAS do not
      come to an agreement on the new terms to be applied to the payments, the
      Instructing
    Party will undertake to indemnify PARIBAS against the costs resulting from
      the above-mentioned circumstances on production of the relevant proof that
      such amounts
    have been incurred. </FONT></P>
<P>
<B><FONT size=2 face="serif">Article 4: </FONT></B><B><U><FONT size=2 face="serif">Reimbursement</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B>
</P>
<P>
<FONT size=2 face="serif">It is expressly understood that PARIBAS is not obliged to consider the reasons for the use of of a Letter of Credit by its beneficiary, nor to judge the validity of these reasons. </FONT>
</P>
<P>
<FONT size=2 face="serif">The Instructing Party is obliged to reimburse at first request all principal sums, interest and costs that PARIBAS may have to pay in respect of the Letters of Credit issued to its order under this agreement and the
Instructing Party already authorises PARIBAS to debit its account n&deg; 7234 V held by PARIBAS with all amounts for which it is indebted to PARIBAS, as a result of the above, provided that the account is sufficiently in credit. The Instructing
Party waives its right in advance to contest the validity of such payments made as a result of PARIBAS carrying out its obligations in relation to the Letters of Credit. </FONT>
</P>
<P>
<FONT size=2 face="serif">All payments of principal, interest, commission and/or related payments in favour of PARIBAS must be made net of all taxes and duties of any kind, present or future, which are payable on such sums irrespective of the means
of recovery used. The Instructing Party in particular therefore will reimburse PARIBAS for all taxes, rights or duties, present or future, relating to these payments, with the exception of corporate tax. </FONT>
</P>
<P>
<FONT size=2 face="serif">The Instructing Party undertakes to make sufficient provision in its account n&deg; 7234 V which has been opened in dollars with PARIBAS to reimburse the amounts due to PARIBAS in relation to the Letters of Credit. If this
provision is not sufficient at the time the account is debited by PARIBAS in accordance with the provisions set out in this agreement, the Instructing Party will pay on the amounts due interest calculated at a rate equal to the monthly average of
the average day to day US dollar rates applied to transactions carried out by PARIBAS on the inter-bank market, increased by a margin of 200 basis points, until the total amount is reimbursed. </FONT>
</P>
<P>
<FONT size=2 face="serif">Interest due from the Instructing Party will be payable monthly by debiting account n&deg; 7234 V. </FONT>
</P><P align="center"><FONT size=2 face="serif">- 4 -</FONT>
</P>

<HR noshade align="center" width="100%" size=2><PAGE>
<P>
<B><FONT size=2 face="serif">Article 5: </FONT></B><B><U><FONT size=2 face="serif">Warranties</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B>
</P>
<P>
<FONT size=2 face="serif">The Instructing Party warrants and these warranties are deemed to be repeated every time a request for a Letter of Credit to be issued is made:</FONT></P>
<P><FONT size=2 face="serif"> - that the action in question is not contrary to
    any of the provisions in its articles of association;</FONT></P>
<P><FONT size=2 face="serif"> - that it is a French law company with full legal
    capacity to possess and to exercise its rights, and that the signatories
to this agreement are validly authorised to sign it and to bind the company;</FONT></P>
<P><FONT size=2 face="serif"> - that all the finance documents which have been
    produced to PARIBAS are accurate, have been prepared according to generally
    applicable accounting
      principles and present an accurate reflection of the results for each financial
year; </FONT></P>
<P><FONT size=2 face="serif">- that since the closing date of the
      last financial year, nothing has occurred which could prevent the obligations
as set out in this document from being carried out;</FONT></P>
<P><FONT size=2 face="serif"> - that the Instructing
          Party has not granted any real or personal surety to guarantee an accomodation
granted to it or a third party:</FONT></P>
<P><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;which is likely to prevent it from
      meeting its obligations as set out in these documents or which could affect
      the
  make up or the value of its assets,</FONT></P>
<P><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;which, when granted, is likely
      to create an
              accomodation or a priority in relation
    to the rights of PARIBAS,</FONT></P>
<P><FONT size=2 face="serif"> - that its obligations under this credit agreement
            will be ranked equally with those entered into in relation to other
banking establishments;</FONT></P>
<P><FONT size=2 face="serif"> - that it has obtained all authorisations which
      will be ultimately required for both the reinsurance contracts and the
    Letters of
            Credit relating
              to these contracts. </FONT>
</P>
<P>
<B><FONT size=2 face="serif">Article 6: </FONT></B><B><U><FONT size=2 face="serif">Covenants</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B>
</P>
<P>
<FONT size=2 face="serif">For as long as the Letters of Credit remain in force, the Instructing Party covenants: </FONT>

<P>
<FONT size=2 face="serif">- to send to PARIBAS all documents which PARIBAS may deem useful in relation to itself and, if applicable, its subsidiaries, particulary its consolidated accounts certified to be compliant at the end of each financial year
(balance sheet, income statement, etc);</FONT></P>
<P><FONT size=2 face="serif"> - not to implement a significant change in its
    financial standing, its structure or its activities which may significantly
affect its ability to meet its obligations under the current agreement;</FONT></P>
<P><FONT size=2 face="serif"> -
      to keep PARIBAS promptly informed of any significant transformation affecting
      its structure, its nature or its capacity (particularly change of name,
    merger, demerger or conversion into a different type of company, change of
    registered
      office etc). </FONT>
</P><P align="center"><FONT size=2 face="serif">- 5 -</FONT>
</P>

<HR noshade align="center" width="100%" size=2><PAGE>
<P>
<B><FONT size=2 face="serif">Article 7:</FONT></B><B><U><FONT size=2 face="serif"> Applicable law and jurisdiction</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B>
</P>
<P>
<FONT size=2 face="serif">These general conditions are governed by French law. The courts of Paris have jurisdiction to deal with any litigation in relation to their validity, interpretation and/or the implementation of these general conditions. </FONT></P>
<P><FONT size=2 face="serif">The
  Letters of Credit are governed by the Standard Rules and Practices of the International
    Chamber of Commerce (Publication n&deg; 500, 1993) and by French law. Only the courts of Paris have jurisdiction to deal with any litigation in relation to the
  validity, interpretation and/or the implementation of the Letters of Credit. </FONT>
</P>
<P>
<FONT size=2 face="serif">Signed: Paris, 7 October 1999 in two originals </FONT>
</P>
<P>
<FONT size=2 face="serif">The Instructing Party LE MANS RE</FONT></P>
<P><FONT size=2 face="serif"> Represented by </FONT>
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD><FONT size=2 face="serif">Jean-Luc BOURGAULT</FONT></TD>
   <TD width="53%"><FONT size=2 face="serif">Cl&eacute;ment JOURDAIN</FONT></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="serif">PARIBAS</FONT></TD>
   <TD width="53%">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="serif">Represented by</FONT></TD>
   <TD width="53%">&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="serif">Antoine MARTINEZ</FONT></TD>
   <TD width="53%"><FONT size=2 face="serif">Patrick RAKOTOARISOA</FONT></TD>
</TR>
</TABLE>
<P align="center">
<FONT size=2 face="serif">- 6 -</FONT>
</P>

<HR noshade align="center" width="100%" size=2>

</BODY>

</HTML>


</TEXT>
</DOCUMENT>
