Document:

Exhibit 10.48

                                                           EXECUTION COUNTERPART

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT

                  AMENDMENT NO. 1 dated as of September 26, 2001, between XL
CAPITAL LTD, a company incorporated under the laws of the Cayman Islands,
British West Indies ("XL CAPITAL"), X.L. AMERICA, INC., a Delaware corporation
("XL AMERICA"), XL INSURANCE LTD, a Bermuda limited liability corporation ("XL
INSURANCE"), XL EUROPE LTD, a company incorporated under the laws of Ireland
("XL EUROPE") and XL RE LTD, a Bermuda limited liability corporation ("XL RE"
and, together with XL Capital, XL America, XL Insurance and XL Europe, each an
"ACCOUNT PARTY" and each a "GUARANTOR" and collectively, the "ACCOUNT PARTIES"
and the "GUARANTORS"; the Account Parties and the Guarantors being collectively
referred to as the "OBLIGORS"), the LENDERS party hereto, and THE CHASE
MANHATTAN BANK, as Administrative Agent.

                  The Obligors, the Lenders and the Administrative Agent are
parties to a Letter of Credit and Reimbursement Agreement dated as of June 29,
2001 (the "CREDIT AGREEMENT"), providing, subject to the terms and conditions
thereof, for the issuance of letters of credit for the account of the Account
Parties in an aggregate face amount not exceeding $1,000,000,000. The Obligors,
the Lenders and the Administrative Agent wish to amend the Credit Agreement in
certain respects and accordingly the parties hereto hereby agree as follows:

                  Section 1. DEFINITIONS. Except as otherwise defined in this
Amendment No. 1, terms defined in the Credit Agreement are used herein as
defined therein.

                  Section 2. AMENDMENTS. Effective as provided in Section 4
below, the Credit Agreement is hereby amended as follows:

                  2.01. References in the Credit Agreement (including references
to the Credit Agreement as amended hereby) to "this Agreement" (and indirect
references such as "hereunder", "hereby", "herein" and "hereof") shall be deemed
to be references to the Credit Agreement as amended hereby.

                  2.02. Clause (b) of Section 4.04 is hereby amended to read in
its entirety as follows:

                  "(b) NO MATERIAL ADVERSE CHANGE. Since December 31, 2000,
         there has been no material adverse change in the assets, business,
         financial condition or operations of such Account Party and its
         Subsidiaries, taken as a whole, except for losses caused by or relating
         to or arising out of the terrorist events of September 11, 2001;
         PROVIDED, HOWEVER, that XL Capital remains in compliance with Section
         7.06."

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>

                  2.03. Section 7.06 of the Credit Agreement is hereby amended
to read in its entirety as follows:

                  "SECTION 7.06. CONSOLIDATED NET WORTH. XL Capital will not
permit its Consolidated Net Worth to be less than $4,250,000,000."

                  Section 3. REPRESENTATIONS AND WARRANTIES. Each Obligor hereby
represents and warrants to the Administrative Agent and the Lenders that (i) the
representations and warranties set forth in Article IV of the Credit Agreement
are, on the date hereof, true and complete as if made on the date hereof (and
after giving effect to this Amendment No. 1) and as if each reference in said
Article IV to "this Agreement" includes reference to this Amendment No. 1 and
(ii) both immediately prior to and as of the date hereof, no Default has
occurred and is continuing.

                  Section 4. CONDITIONS PRECEDENT. The amendments to the Credit
Agreement set forth in Section 2 above shall become effective, as of the date
hereof, upon the satisfaction of the following conditions precedent:

                  4.01. EXECUTION BY ALL PARTIES. This Amendment No. 1 shall
have been executed and delivered by each of the Obligors and the Required
Lenders.

                  4.02. AMENDMENT FEE. The Administrative Agent shall have
received for the account of each Lender that consents to this Amendment No. 1
(evidenced by receipt by the Administrative Agent of an executed counterpart of
this Amendment No. 1) an amendment fee in an amount equal to 0.03% of the sum of
LC Exposures and unused Commitments of each such Lender.

                  4.03. OTHER DOCUMENTS. Receipt by the Administrative Agent of
such other documents as the Administrative Agent or special New York counsel to
Chase may reasonably request.

                  Section 5. MISCELLANEOUS. Except as herein provided, the
Credit Agreement shall remain unchanged and in full force and effect. Nothing in
this Amendment No. 1 shall constitute a waiver of any rights and/or remedies
that the Lenders and/or the Administrative Agent may have under the Credit
Agreement and nothing contained herein shall obligate the Lenders to grant any
future waiver of any provision of the Credit Agreement. XL Capital shall pay all
reasonable expenses incurred by the Administrative Agent, including the
reasonable fees, charges and disbursements of Milbank, Tweed, Hadley & McCloy
LLP, special New York counsel to Chase, in connection with the preparation,
negotiation, execution and delivery of this Amendment No. 1. This Amendment No.
1 may be executed in any number of counterparts, all of which taken together
shall constitute one and the same amendatory instrument and any of the parties
hereto may execute this Amendment No. 1 by signing any such counterpart. This
Amendment No. 1 shall be governed by, and construed in accordance with, the law
of the State of New York.

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment No. 1 to be duly executed and delivered as of the day and year first
above written.

                                 X.L. AMERICA, INC.,
                                 as a Account Party and a Guarantor

                                 By /s/ MARTHA BANNERMAN
                                   ---------------------------------
                                   Name:  Martha Bannerman
                                   Title: Executive Vice President & General
                                          Counsel

                                 XL INSURANCE LTD,
                                 as a Account Party and a Guarantor

                                 By /s/ CHRIS COELHO
                                   ------------------------------------------
                                   Name:  Chris Coehlo
                                   Title: Senior Vice President &
                                          Chief Financial Officer

                                 XL EUROPE LTD,
                                 as a Account Party and a Guarantor

                                 By /s/ FIONA MULDOON
                                   ------------------------------------------
                                    Name:  Fiona Muldoon
                                    Title: Chief Financial Officer
                                           and Company Secretary

                                 XL RE LTD,
                                 as a Account Party and a Guarantor

                                 By /s/ HENRY C. V. KEELING
                                   ------------------------------------------
                                   Name:  Henry C. V. Keeling
                                   Title: President & Chief Executive Officer

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>

                  IN WITNESS WHEREOF, XL Capital has caused this Amendment No. 1
to be duly executed as a Deed by an authorized officer as of the day and year
first above written.

                                 EXECUTED AS A DEED by XL CAPITAL LTD,
                                 as an Account Party and a Guarantor

                                 /s/ PAUL GIORDANO
                                 ------------------------------------------
                                 witness

                                 By /s/ MICHAEL SIESE
                                   ----------------------------------------
                                   Name:  Michael Siese
                                   Title: Senior Vice President & Treasurer

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>

                                   LENDERS

                                   THE CHASE MANHATTAN BANK,
                                       individually and as Administrative Agent

                                   By /s/ HELEN L. NEWCOMB
                                     ------------------------------------------
                                     Name:  Helen L. Newcomb
                                     Title: Vice President

                                   CITIBANK, N.A.

                                   By: /s/ MICHAEL TAYLOR
                                      -----------------------------------------
                                      Name: Michael Taylor
                                      Title: VP

                                   MELLON BANK, N.A.

                                   By: /s/ KARLA K. MALOOF
                                      -----------------------------------------
                                      Name:  Karla K. Maloof
                                      Title: Vice President

                                   BANK OF AMERICA, N.A.

                                   By: /s/ DEBRA BASLER
                                      -----------------------------------------
                                      Name:  Debra Basler
                                      Title: Vice President

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>

                            BANK ONE, NA

                            By: /s/ GRETCHEN ROETZER
                               -----------------------------------------
                               Name:  Gretchen Roetzer
                               Title: Assistant Vice President

                            BARCLAYS BANK PLC

                            By: /s/ RP JOHNSON
                               -----------------------------------------
                               Name:  RP Johnson
                               Title: Relationship Director

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

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

                            CREDIT LYONNAIS NEW YORK BRANCH

                            By: /s/ KEN RICCIARDI
                               -----------------------------------------
                               Name:  Ken Ricciardi
                               Title: VP

                            DEUTSCHE BANK AG

                            By: /s/ RUTH LEUNG
                               -----------------------------------------
                               Name:  Ruth Leung
                               Title: Director

                            By: /s/ CLINTON JOHNSON
                               -----------------------------------------
                               Name:  Clinton Johnson
                               Title: Managing Director

                            DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN BRANCHES

                            By: /s/ JONATHAN WALLIN
                               -----------------------------------------
                               Name:  Jonathan Wallin
                               Title: Vice President

                            By: /s/ ERIKA WALTEB-ENGEMANN
                               -----------------------------------------
                               Name:  Erika Walteb-Engemann
                               Title: Director

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>

                            FLEET NATIONAL BANK

                            By: /s/ LAWRENCE DOWNS
                               -----------------------------------
                              Name:  Lawrence Downs
                              Title: Associate:

                            LLOYDS TSB BANK PLC

                            By: /s/ MICHAEL GILLIGAN
                               -----------------------------------
                               Name:  Michael Gilligan
                               Title: Director

                            By: /s/ PAUL D. BRIAMONTE
                               -----------------------------------
                               Name:  Paul D. Briamonte
                               Title: Director - Project Finanance

                            ABN AMRO BANK N.V., LONDON BRANCH

                            By: /s/ DW MILLS
                               -----------------------------------
                               Name: DW Mills
                               Title:

                            By: /s/ MARTYN TAPLIN
                               -----------------------------------
                               Name:  Martyn Taplin
                               Title:

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>

                                 BANCO SANTANDER CENTRAL HISPANO, S.A.

                                 By: /s/ PHIL PERRY
                                    -----------------------------------------
                                    Name:  Phil Perry
                                    Title: Senior Vice President

                                 By: /s/ SEN LOUIE
                                    -----------------------------------------
                                    Name:  Sen Louie
                                    Title: Assistant Vice President

                                 COMERICA BANK

                                 By: /s/ MARTIN G. ELLIS
                                    -----------------------------------------
                                    Name:  Martin G. Ellis
                                    Title: Vice President

                                 FIRST UNION NATIONAL BANK

                                 By: /s/ DANIEL J. NORTON
                                    -----------------------------------------
                                    Name:  Daniel J. Norton
                                    Title: Director

                                 NATIONAL WESTMINSTER BANK PLC

                                 By: /s/
                                    -----------------------------------------
                                    Name:
                                    Title:

                                 STATE STREET BANK AND TRUST COMPANY

                                 By: /s/ EDWARD M. ANDERSON
                                    -----------------------------------------
                                    Name:  Edward M. Anderson
                                    Title: Vice President

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENTAMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT

              AMENDMENT NO. 1 dated as of September 26, 2001, between XL CAPITAL
LTD, a company incorporated under the laws of the Cayman Islands, British West
Indies (the Account Party"), X.L. AMERICA, INC., a Delaware corporation ("XL
AMERICA"), XL INSURANCE LTD, a Bermuda limited liability company ("XL
INSURANCE"), XL EUROPE LTD, a company incorporated under the laws of Ireland
("XL EUROPE") and XL RE LTD, (formerly known as XL MID OCEAN REINSURANCE LTD), a
Bermuda limited liability company (formerly known as XL MID OCEAN REINSURANCE
LTD) ("XL RE" and, together with the Account Party in its capacity as a
Guarantor, XL America, XL Insurance and XL Europe, each a "GUARANTOR" and
collectively, the "GUARANTORS"; the Guarantors and the Account Party being
collectively referred to as the "OBLIGORS"), the LENDERS party hereto, CITIBANK
INTERNATIONAL PLC, as agent and trustee for the Lenders, the "AGENT" and
"SECURITY TRUSTEE", and SALOMON BROTHERS INTERNATIONAL LIMITED, as "Arranger".

              The Obligors, the Lenders, the Agent and the Arranger are parties
to a Letter of Credit and Reimbursement Agreement dated November 3, 2000 (the
"CREDIT AGREEMENT"), providing, subject to the terms and conditions thereof, for
the issuance of letters of credit for the account of the Account Party in an
aggregate face amount not exceeding (pound)225,000,000. The Obligors, the
Lenders, and the Agent wish to amend the Credit Agreement in certain respects
and accordingly the parties hereto hereby agree as follows:

              Section 1. DEFINITIONS. Except as otherwise defined in this
Amendment No. 1, terms defined in the Credit Agreement are used herein as
defined therein.

              Section 2. AMENDMENTS. Effective as provided in Section 4 below,
the Credit Agreement is hereby amended as follows:

              2.01.  References in the Credit Agreement (including references to
the Credit Agreement as amended hereby) to "this Agreement" (and indirect
references such as "hereunder", "hereby", "herein" and "hereof") shall be deemed
to be references to the Credit Agreement as amended hereby.

              2.02.  Clause (b) of Section 17.5 is hereby amended to read in its
entirety as follows:

              "(b) NO MATERIAL ADVERSE CHANGE. Since December 31, 1999, there
       has been no material adverse change in the assets, business, financial
       condition or operations of such Obligor and its Subsidiaries, taken as a
       whole, except for losses caused by or relating to or arising out of the
       terrorist events of September 11, 2001; PROVIDED, HOWEVER, that the
       Account Party remains in compliance with Clause 19.6 hereof."

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>
                                      -2-

              2.03.  Section 19.6 of the Credit Agreement is hereby amended to
read in its entirety as follows:

              "19.6. CONSOLIDATED NET WORTH The Account Party will not permit
       its Consolidated Net Worth to be less than the sum of (a) $4,250,000,000
       plus (b) 25% of net income (if positive) for each fiscal quarter of the
       Account Party commencing with the fiscal quarter ending September 30,
       2002."

              Section 3. REPRESENTATIONS AND WARRANTIES. Each Obligor hereby
represents and warrants to the Agent and the Lenders that (i) the
representations and warranties set forth in Clause 17 of the Credit Agreement
are, on the date hereof, true and complete as if made on the date hereof (and
after giving effect to this Amendment No. 1) and as if each reference in said
Clause 17 to "this Agreement" includes reference to this Amendment No. 1 and
(ii) both immediately prior to and as of the date hereof, no Default has
occurred and is continuing.

              Section 4. CONDITIONS PRECEDENT. The amendments to the Credit
Agreement set forth in Section 2 above shall become effective, as of the date
hereof, upon the satisfaction of the following conditions precedent:

              4.01.  EXECUTION BY ALL PARTIES. This Amendment No. 1 shall have
been executed and delivered by each of the Obligors and the Majority Lenders.

              4.02.  AMENDMENT FEE. The Agent shall have received for the
account of each Lender that consents to this Amendment No. 1 (evidenced by
receipt by the Agent of an executed counterpart of this Amendment No. 1) an
amendment fee in an amount equal to 0.03% of the sum of LC Exposures and unused
Commitments of each such Lender.

              Section 5. MISCELLANEOUS. Except as herein provided, the Credit
Agreement shall remain unchanged and in full force and effect. Nothing in this
Amendment No. 1 shall constitute a waiver of any rights and/or remedies that the
Lenders and/or the Agent may have under the Credit Agreement and nothing
contained herein shall obligate the Lenders to grant any future waiver of any
provision of the Credit Agreement. The Account Party shall pay all reasonable
expenses incurred by the Agent, including the reasonable fees, charges and
disbursements of Freshfields, Bruckhaus Deringer, special United Kingdom counsel
to the Agent, in connection with the preparation, negotiation, execution and
delivery of this Amendment No. 1. This Amendment No. 1 may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same amendatory instrument and any of the parties hereto may execute this
Amendment No. 1 by signing any such counterpart. This Amendment No. 1 shall be
governed by, and construed in accordance with, the laws of England and Wales.

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>
                                      -3-

              DULY DELIVERED AS A DEED by the Chargor on the date inserted
above.

EXECUTED as a DEED               )     /s/ Paul S. Giordano
for and on behalf of             )
XL CAPITAL LTD                   )     /s/ Michael A. Siese

SIGNED                           )
for and on behalf of             )
CITIBANK INTERNATIONAL PLC       )

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>
                                      -4-

IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be
duly executed and delivered as of the day and year first above written.

ACCOUNT PARTY

EXECUTED as a DEED
by XL CAPITAL LTD

By /s/ Paul S. Giordano
   --------------------
Name:  Paul S. Giordano
Title: EVP, General Counsel & Secretary

Witness Name: Michael A. Siese
              -----------------

Occupation:   SVP & Controller
              -----------------

Signature:    /s/ Michael Siese
              -----------------

GUARANTORS

EXECUTED as a DEED
by XL CAPITAL LTD

By /s/ Paul S. Giordano
   --------------------
Name:  Paul S. Giordano
Title: EVP, General Counsel & Secretary

Witness Name: Michael A. Siese
              -----------------

Occupation:   SVP & Controller
              -----------------

Signature:    /s/ Michael Siese
              -----------------

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>
                                      -5-

X.L. AMERICA, INC.

By: /s/ Martha G. Bannerman
Name:   Martha G. Bannerman
Title:  Executive Vice President & General Counsel

XL INSURANCE LTD

By: /s/ Christopher Coelho
Name:   Christopher Coelho
Title:  SVP & Chief Financial Officer

XL EUROPE LTD

By: /s/ Fiona Muldoon
Name:   Fiona Muldoon
Title:  Chief Financial Officer & Company Secretary

XL RE LTD (formerly known as XL MID
OCEAN REINSURANCE LTD)

By: /s/ Henry C. V. Keeling
Name:   Henry C. V. Keeling
Title:  President & Chief Executive Officer

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>
                                      -6-

AGENT

CITIBANK INTERNATIONAL PLC

By: /s/ Sonia Gosparini
Name:   Sonia Gosparini
Title:

SECURITY TRUSTEE

CITIBANK INTERNATIONAL PLC

By:
Name:
Title:

LENDERS

CITIBANK, N.A.

By: /s/ Michael A. Taylor
Name:   Michael A. Taylor
Title:  Vice President

BARCLAYS BANK PLC

By: /s/ Paul Johnson
Name:   Paul Johnson
Title:  Relationship Director

ING BANK, N.V, LONDON BRANCH

By:
Name:
Title:

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT
<PAGE>
                                      -7-

CREDIT LYONNAIS NEW YORK BRANCH

By: /s/ Ken Ricciardi
Name:   Ken Ricciardi
Title:  Vice President

NATIONAL WESTMINSTER BANK PLC

By: /s/ John Mallett
Name:   John Mallett
Title:  Senior Corporate Manager, City Market Group

         AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT

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