Document:

<PAGE>

                                                                   Exhibit 10.25

                       CONSENT AND AMENDMENT TO DEBENTURES

          THIS CONSENT AND AMENDMENT TO DEBENTURES (this "Consent and
Amendment") is entered into as of March 7, 2002, among MUTUAL RISK MANAGEMENT
LTD., a company incorporated under the laws of Bermuda ("Mutual Risk" or the
"Issuer"), MUTUAL GROUP, LTD., a Delaware corporation ("Mutual Group"), MGL
INVESTMENTS LLC (successor to MGL Investments Ltd.), a Delaware limited
liability company ("MGL Investments"), LEGION FINANCIAL CORPORATION, a Missouri
corporation ("Legion"), MUTUAL RISK MANAGEMENT (HOLDINGS) LTD., a company
incorporated under the laws of Bermuda ("MRM Holdings"), MRM SECURITIES LTD., a
company incorporated under the laws of Bermuda ("MRM Securities"), MUTUAL
FINANCE LTD., a company incorporated under the laws of Bermuda ("MRM Finance"),
MRM SERVICES LTD., a company incorporated under the laws of Bermuda ("MRM
Services"), MSL (US) LTD., a Delaware corporation ("MSL"), and MRM SERVICES
(BARBADOS) LTD., a company incorporated under the laws of Barbados ("MSBL" and,
together with MGL Investments, Legion, MRM Holdings, MRM Securities, MRM
Finance, MRM Services, MSL, MSBL, Mutual Risk, and Mutual Group, the
"Guarantors") and XL INSURANCE (BERMUDA) LTD ("XL Insurance").

                                    RECITALS

          A. XL Insurance is a holder of over $50.0 million in principal amount
of the Issuer's 9 3/8% Convertible Exchangeable Debentures due 2006 (as
hereafter modified, amended or supplemented, the "Debentures". Unless otherwise
defined herein, defined terms used herein shall have the meanings given such
terms in the Debentures.

          B. Mutual Risk has advised XL Insurance that certain Events of Default
have occurred and are continuing under Sections 7(r) and 7(s) of the Debentures
(the "Existing Events of Default"). Mutual Risk has advised XL Insurance that
one or more of its Wholly Owned Subsidiaries desires to sell all or
substantially all of the capital stock or limited liability company interests
(the "Sale") of Hemisphere Management Limited, a Bermuda company, Hemisphere
Financial Services LLC, a Delaware limited liability company, Hemisphere
Financial Group LLC, a Delaware limited liability company, and Hemisphere
Management (Ireland) Limited, an Ireland company (collectively, "Hemisphere"),
and, as required by Section 7(n) of the Debentures, the Issuer and the
Guarantors have requested that XL Insurance consent to the Sale of Hemisphere.

          C. Notwithstanding the existence of, and without waiving, such
Existing Events of Default, XL Insurance has agreed to consent to the Sale of
Hemisphere upon and subject to the terms and conditions set forth herein. The
Issuer and the Guarantors have also agreed to amend the Debentures in certain
respects.

          NOW THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Issuer and XL Insurance agree as follows:

          1. Consent. XL Insurance hereby irrevocably consents to the Sale of
             -------
Hemisphere upon the following terms and conditions:

          (a) The Sale of Hemisphere shall be consummated on or before June 30,
2002;

          (b) The Sale of Hemisphere shall be consummated pursuant to a Stock
Purchase Agreement (the "Stock Purchase Agreement"), in the form attached hereto
as Exhibit A, without waiver or amendment of any of the terms and conditions
thereof that would reduce the minimum amount paid to the

<PAGE>

                                       -2-

Electing Holders (as defined below) and the Lenders pursuant to clause (c)
following or that would otherwise be materially adverse to XL Insurance or the
other holders of the Debentures, unless such waiver or amendment has been
consented to by XL Insurance in advance in writing;

          (c) The net cash proceeds (the "Hemisphere Net Proceeds") paid by the
Purchaser (as defined in the Stock Purchase Agreement) for the account of the
MRM Sellers (as defined in the Stock Purchase Agreement) at the initial Closing
(as defined in the Stock Purchase Agreement) of the Sale of Hemisphere and paid
to the Lenders (the "Lenders") under that certain Credit Agreement dated as of
September 21, 2000 (as heretofore modified, amended or supplemented, the "Credit
Agreement") and the holders of the Debentures who elect to receive such proceeds
(after receipt of reasonable written notice to the holders of such right from
the Issuer) (the "Electing Holders") pursuant to clause (d) shall not be less
than $88,300,000;

          (d) The Hemisphere Net Proceeds shall be paid directly by the
Purchaser to the Lenders and the Electing Holders to such account(s) as (i) the
Administrative Agent for the Lenders under the Credit Agreement (the
"Administrative Agent") may direct in writing, in the case of amounts to be paid
to the Lenders and (ii) the Electing Holders may direct in writing, in the case
of amounts to be paid to the Electing Holders.

          2. Additional Agreements Relating to the Sale of Hemisphere. The
             --------------------------------------------------------
Issuer and the Guarantors agree with XL Insurance as follows:

          (a) The aggregate expenses associated with and payable in connection
with the Sale of Hemisphere pursuant to the Stock Purchase Agreement shall not
exceed $4,800,000;

          (b) The Issuer and the Guarantors shall cause the MRM Sellers to cause
the Purchaser to pay the Hemisphere Net Proceeds in accordance with Subparagraph
1(d). As a result of the existence of the Existing Events of Default under the
Credit Agreement (and the Guarantees thereof) and under the Debentures, the
Issuer and the Guarantors consent and agree that an amount of principal owing
under the Credit Agreement and under the Debentures (and the Guarantees thereof)
equal to such Hemisphere Net Proceeds shall become due and payable concurrently
with the occurrence of the initial Closing (and concurrently with each payment
of Hemisphere Net Proceeds pursuant to clause (c) following) without further
action by the Administrative Agent, any Lender or any holder of the Debentures.
The portion of such Hemisphere Net Proceeds paid for the account of MGL
Investments LLC shall be a payment by MGL Investments LLC on account of its
Guarantee of the Obligations and of the Debt evidenced by the Debentures. The
portion of such Hemisphere Net Proceeds paid for the account of MRM Financial
Services Ltd. shall be declared as a dividend by MRM Financial Services Ltd. to
MRM Services Ltd. in accordance with applicable law and shall be a payment by
MRM Services Ltd. on account of its Guarantee of the Obligations and of the Debt
evidenced by the Debentures;

          (c) The Hemisphere Net Proceeds shall be shared pro rata (based, at
the time in question, upon the aggregate principal Debt or Indebtedness owing to
the Lenders, on the one hand, and to the holders of the Debentures (whether or
not Electing Holders) on the other hand) among the Lenders (for application to
the principal of the Obligations, with an automatic reduction in the aggregate
amount of the Commitments under the Credit Agreement in a like amount), and the
Electing Holders; provided, however, that in the event any holder of Debentures
elects to not receive its share of such Hemisphere Net Proceeds, such holder's
portion of the Hemisphere Net Proceeds shall be payable to the Electing Holders
on a pro rata basis;

          (d) Any moneys (net of any reasonable, substantiated costs and
expenses incurred in the collection or realization of such moneys) paid for the
account of the MRM Sellers after the initial Closing pursuant to the Stock
Purchase Agreement, whether pursuant to the MRM Escrow Agreement (as defined in
the Stock Purchase Agreement), the Management Escrow Agreement (as defined in
the

<PAGE>

                                      -3-

Stock Purchase Agreement) or otherwise, including, without limitation, any
indemnity payment or expense reimbursement, shall also be Hemisphere Net
Proceeds and shall be paid for the account of the MRM Sellers and otherwise
treated or transferred as provided in clause (b) preceding and applied as
provided in clause (c) preceding; and

          (e) Neither this Consent and Amendment, nor the payment of the
Hemisphere Net Proceeds pursuant hereto, shall constitute the waiver by XL
Insurance or the other holders of Debentures of the Existing Events of Default
that have occurred and are continuing on the date hereof.

          3. Amendment. The Debentures shall be amended to the following effect.
             ---------

          (a) Section 4 of the Debentures and Section 4 of the Newco Debenture
are hereby amended to provide that the repayment of Debentures with a portion of
the Hemisphere Net Proceeds will not have the effect of reducing the number of
shares of Newco Common Stock that are issuable upon exchange or conversion of
the Debentures or the Newco Debentures, respectively. The number of shares of
Newco Common Stock issuable upon exchange of the Debentures or conversion of the
Newco Debentures shall be calculated without giving effect to any reduction in
the outstanding amount of Debentures resulting from the application of the
Hemisphere Net Proceeds.

          4. Conditions Precedent. This Consent and Amendment shall become
             --------------------
effective when (a) counterparts of this Consent and Amendment are executed by
the Issuer and the Guarantors, (b) a written consent is executed by the
Administrative Agent and the Requisite Lenders (as defined in the Credit
Agreement) and the other parties shown on the signature pages thereof the form
attached hereto as Exhibit B and (c) a written consent is executed by the
Required Lenders (as defined in the Letter of Credit and Reimbursement Agreement
dated as of July 11, 2001, as amended, among Mutual Risk, certain Subsidiaries
of Mutual Risk, such lenders, and Bank of America, N.A., as administrative agent
for such lenders), and the other parties shown on the signature pages thereof in
the form attached hereto as Exhibit C.

          5. Representations and Warranties. The Issuer and the Guarantors
             ------------------------------
hereby jointly and severally represent, warrant and acknowledge to XL Insurance
that (a) immediately after the execution and delivery of this Consent and
Amendment and after giving effect hereto, the Existing Events of Default exist
under the Debentures, the Issuer and the Guarantors have no defense thereto, and
neither XL Insurance nor any of the other holders of Debentures has waived or
agreed to forbear from the exercise of any of their rights and remedies that are
presently existing as a result of such Existing Events of Default or any other
Event of Default that may now exist or hereafter occur under the Debentures, all
of which rights and remedies are hereby reserved by XL Insurance and the other
holders of Debentures, and may be exercised the holders of the Debentures at any
time in their sole discretion (b) all of the provisions of the Transaction
Documents, including the Guarantee of the Guarantors, are in full force and
effect and are hereby ratified and confirmed, (c) this Consent and Amendment and
the transactions contemplated hereby have been duly authorized and approved by
all necessary corporate action and require the consent of no Governmental
Authority or other Person that has not been delivered and is not in full force
and effect, (d) the execution, delivery and performance by the Issuer and the
Guarantors of this Consent and Amendment is of corporate benefit to them,
including as a result of the reduction of the principal amount of Debentures and
the Guarantees thereof contemplated hereby, (e) the copy of the Stock Purchase
Agreement attached hereto is a true, correct and complete copy of the execution
form thereof and includes all exhibits and schedules thereto, (f) the dividends
contemplated by Subparagraphs 2(b) and 2(d) of this Consent and Amendment are
within the corporate power and authority of MRM Financial Services Ltd., have
been duly authorized by all necessary corporate action of MRM Financial Services
Ltd., will be lawful and not violate or breach any contract, agreement or law to
which MRM Financial Services Ltd. is a party or which is binding on MRM
Financial Services Ltd., and will not cause MRM Financial Services Ltd. to be
insolvent or to be unable to pay its debts and

<PAGE>

                                       -4-

obligations when due, (g) it is believed that United States income taxes in an
estimated amount of $3,500,000 will be payable in connection with the Sale of
Hemisphere and (h) attached hereto as Exhibit D is a calculation of the gross
cash proceeds payable by the Purchaser for the account of the MRM Sellers at the
initial Closing of the Sale of Hemisphere and of the deductions from such gross
cash proceeds that will be made in determining the Hemisphere Net Proceeds to be
received by the Lenders and the holders of the Debentures at the initial
Closing. The breach by the Issuer and the Guarantors of any of their
representations and warranties set forth in this Paragraph 5 shall constitute an
Event of Default but shall not negate the consent given in Paragraph 1..

          6. Covenants. The Issuer and the Guarantors jointly and severally
             ---------
covenant and agree with XL Insurance as follows:

          (a) As soon as practicable, but in any event on or before March 13,
2002, Mutual Risk shall execute and deliver, or cause to be executed and
delivered, a share charge and related documentation and opinions, in form and
substance satisfactory to XL Insurance on the shares of MRM Services Ltd. owned
by Mutual Risk.

          (b) As soon as practicable, but in any event on or before the date of
the initial Closing under the Stock Purchase Agreement, Mutual Risk shall cause
the MRM Sellers to grant a security interest in all of their respective rights
to receive moneys under the MRM Escrow Agreement, the Management Escrow
Agreement or otherwise pursuant to the Stock Purchase Agreement, and shall cause
to be delivered such agreements, documents, instruments, consents and legal
opinions as may be requested by XL Insurance in order to create, evidence,
perfect or otherwise give effect to and protect such security interest. Such
security interest shall be granted in consideration of the consents and
agreements of XL Insurance given herein and for other good and valuable
consideration, and such security interest shall be granted to Bank of America,
N.A., as collateral agent for the Lenders and the holders of the Debentures, and
shall secure the repayment of the Obligations and the Debt or Indebtedness
evidenced by the Debentures and the other obligations owing to the holders of
the Debentures under the Transaction Documents on a pari passu, pro rata basis
based on the principal amount of Debt or Indebtedness owing to each of the
Lenders and the holders of the Debentures.

          (c) Mutual Risk shall cause the MRM Sellers to deliver to XL Insurance
a copy of any proposed amendment or waiver to the Stock Purchase Agreement
promptly after such amendment or waiver is proposed and to deliver to XL
Insurance true and correct copies of any supplements to or amendments of any of
the Schedules to the Stock Purchase Agreement that are delivered pursuant to
Section 11.15 of the Stock Purchase Agreement.

          (d) The Issuer and the Guarantors shall pay all expenses, including
legal fees and expenses of counsel to XL Insurance and each other Electing
Holder, incurred by XL Insurance or any other such Electing Holder in connection
with this Consent and Amendment.

          (e) On the date of the initial Closing of the Sale of Hemisphere,
Mutual Risk shall deliver or cause to be delivered to XL Insurance (i) a
certified copy of a resolution of the board of directors of MRM Financial
Services Ltd. authorizing the payment of the dividends contemplated by
Subparagraphs 2(b) and 2(d), and (ii) a certificate of solvency executed by two
directors of MRM Financial Services Ltd. in form and substance satisfactory to
XL Insurance.

          (f) On the date of the initial Closing of the Sale of Hemisphere,
Mutual Risk shall cause $3,500,000 of the cash proceeds received by the MRM
Sellers to be deposited in a restricted account at a bank acceptable to the
Administrative Agent and XL Insurance and such amount, together with the
investment earn-

<PAGE>

                                       -5-

ings thereon, shall be withdrawn from such account and used only to pay United
States income taxes due and owing in connection with the Sale of Hemisphere.

          (g) The Issuer and the Guarantors shall execute and deliver such other
agreements, documents instruments and items as XL Insurance may reasonably
request in order to give effect to the terms and conditions of this Consent and
Amendment.

The breach by the Issuer and the Guarantors of any of its covenants set forth in
Paragraph 2 or this Paragraph 6 shall constitute an Event of Default but shall
not negate the consent given in Paragraph 1.

          7. Effect of Consent and Amendment. This Consent and Amendment is a
             -------------------------------
Transaction Document. The consent of XL Insurance hereunder is expressly limited
to the Sale of Hemisphere and shall not constitute the consent or waiver by XL
Insurance or any other holder of Debentures to, of or with respect to any other
matter now or hereafter requiring its consent or waiver under the Transaction
Documents. Except as amended hereby, the Debentures and the other Transaction
Documents are unchanged and are hereby ratified and confirmed.

          8. Engagement of Advisor. Mutual Risk has advised XL Insurance that
             ---------------------
Mutual Risk has engaged Greenhill Partners (the "Advisor") to advise Mutual Risk
and its Subsidiaries with respect to their financial condition, business
operations, and properties, and with respect to the restructuring thereof. On or
before the date hereof, Mutual Risk has delivered to XL Insurance a copy of the
engagement letter evidencing such engagement. The Issuer and the Guarantors
shall cause the Advisor to be available at such times and places as XL Insurance
may reasonably request to discuss with XL Insurance the financial condition,
business operations, and prospects, and the restructuring thereof, of Mutual
Risk and its Subsidiaries and shall otherwise cause the Advisor to cooperate
with XL Insurance in its review, analysis, and administration of the Debentures
and the other Transaction Documents and the transactions contemplated thereby.
Mutual Risk shall not terminate the engagement of the Advisor unless Mutual Risk
concurrently engages another financial and business advisor reasonably
acceptable to XL Insurance.

          9. Release of Claims. In consideration of the execution by XL
             -----------------
Insurance of this Consent and Amendment, the Issuer and the Guarantors hereby
RELEASE, ACQUIT AND FOREVER DISCHARGE XL Insurance and each of the other holders
of Debentures, together with their respective officers, directors, employees,
agents, attorneys, representatives, and affiliates (collectively, the "Debenture
Parties"), from any and all losses, costs, expenses, claims, damages, actions,
causes of action, liability, or suits in law or equity, of whatever kind or
nature (including those that may arise out of the negligence, gross negligence,
or willful misconduct of holder of Debentures) that the Issuer or any Guarantor
have ever had or may now have against any holder of Debentures and that have
accrued or arisen on or prior to the date of this Consent and Amendment and that
arise from or are related in any manner to or concern the Loan Documents, the
transactions contemplated thereby, or the acts or omissions of any Debenture
Party in connection therewith.

          10. Counterparts. This Consent and Amendment may be executed in any
              ------------
number of counterparts and by the parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed to be an original and
all of which taken together shall constitute one and the same instrument.

          11. Governing Law. This Consent and Amendment shall be governed by and
              -------------
construed in accordance with the laws of the State of New York.

          12. Companies Not Guarantors. XL Insurance acknowledges that none of
             -------------------------
the Companies (as such term is defined in the Stock Purchase Agreement) is a
Guarantor of the Debentures.

<PAGE>

                                       -6-

          13. No Third Party Beneficiary. The Purchaser shall have no rights or
              --------------------------
obligations under this Consent and Amendment, except that the Purchaser may rely
on the consent given in Paragraph 1 and on the acknowledgment contained in
paragraph 12.

          14. ENTIRETY. THIS CONSENT AND AMENDMENT, THE DEBENTURES AND THE OTHER
              --------
TRANSACTION DOCUMENTS EMBODY THE ENTIRE AGREEMENT BETWEEN THE PARTIES AND
SUPERCEDE ALL PRIOR AGREEMENTS AND UNDERSTANDINGS, IF ANY, RELATING TO THE
SUBJECT MATTER HEREOF. THESE TRANSACTION DOCUMENTS REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

                  [Remainder of Page Intentionally Left Blank]

<PAGE>

MUTUAL RISK MANAGEMENT LTD., as Issuer

By:        /s/ Robert A. Mulderig
      --------------------------------------------
      Name:    Robert A. Mulderig
               -----------------------------------
      Title:
               -----------------------------------

MUTUAL GROUP, LTD., as a Guarantor

By:       /s/  Richard E. O'Brien
        --------------------------------------------
      Name:    Richard E. O'Brien
               -----------------------------------
      Title:
               -----------------------------------

MGL INVESTMENTS LLC (successor to MGL Investments Ltd.),
as a Guarantor

By:       /s/  Richard E. O'Brien
      --------------------------------------------
      Name:    Richard E. O'Brien
               -----------------------------------
      Title:
               -----------------------------------

LEGION FINANCIAL CORPORATION, as a Guarantor

By:        /s/ Richard E. O'Brien
      --------------------------------------------
      Name:    Richard E. O'Brien
               -----------------------------------
      Title:
               -----------------------------------

MUTUAL RISK MANAGEMENT (HOLDINGS)
LTD., as a Guarantor

By:        /s/ Robert A. Mulderig
      --------------------------------------------
      Name:    Robert A. Mulderig
               -----------------------------------
      Title:
               -----------------------------------

   MRM SECURITIES LTD., as a Guarantor

   By:     /s/ Robert A. Mulderig
        ---------------------------------------------
         Name: Robert A. Mulderig
               --------------------------------------
         Title:
               --------------------------------------

   MUTUAL FINANCE LTD., as a Guarantor

   By:     /s/ Robert A. Mulderig
        ---------------------------------------------
         Name: Robert A. Mulderig
               --------------------------------------
         Title:
               --------------------------------------

   MRM SERVICES LTD., as a Guarantor

   By:     /s/ Robert A. Mulderig
        ---------------------------------------------
         Name: Robert A. Mulderig
               --------------------------------------
         Title:
               --------------------------------------

   MSL (US) LTD., as a Guarantor

   By:     /s/ Richard E. O'Brien
         --------------------------------------------
         Name: Richard E. O'Brien
               --------------------------------------
         Title:
               --------------------------------------

   MRM SERVICES (BARBADOS) LTD., as a Guarantor

   By:     /s/ Robert A. Mulderig
         --------------------------------------------
         Name: Robert A. Mulderig
               --------------------------------------
         Title:
               --------------------------------------

<PAGE>

XL INSURANCE (BERMUDA) LTD

By:      /s/    Paul S. Giordano
      --------------------------------------------
      Name:     Paul S. Giordano
               -----------------------------------
      Title:    Director
               -----------------------------------<PAGE>

                                                                   Exhibit 10.26

                         CONSENT UNDER LETTER OF CREDIT
                         ------------------------------
                           AND REIMBURSEMENT AGREEMENT
                           ---------------------------

     THIS CONSENT UNDER LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT (this
"Consent") is entered into as of March 7, 2002, among MUTUAL FINANCE LTD., a
company existing under the laws of Bermuda (the "Applicant"); MUTUAL INDEMNITY
LTD., a company existing under the laws of Bermuda, MUTUAL INDEMNITY (U.S.)
LTD., a company existing under the laws of Bermuda, MUTUAL INDEMNITY (BERMUDA)
LTD., a company existing under the laws of Bermuda, MUTUAL INDEMNITY (DUBLIN)
LIMITED, a company existing under the laws of the Republic of Ireland, and
MUTUAL INDEMNITY (BARBADOS) LTD., a company existing under the laws of Barbados,
(collectively, the "Co-Obligors" and individually, a "Co-Obligor"); MUTUAL RISK
MANAGEMENT LTD., a company existing under the laws of Bermuda, MRM SERVICES
LTD., a company existing under the laws of Bermuda, MSL (US) LTD., a Delaware
corporation, and MRM SERVICES (BARBADOS) LTD., a company existing under the laws
of Barbados (the "Guarantors" and, collectively with the Applicant and the
Co-Obligors, the "Loan Parties"); the Lenders under the Letter of Credit and
Reimbursement Agreement (hereinafter defined); and BANK OF AMERICA, N.A., a
national banking association, in its capacity as the Administrative Agent for
the Lenders under the Letter of Credit and Reimbursement Agreement (the
"Administrative Agent").

     Reference is made to the Letter of Credit and Reimbursement Agreement dated
as of July 11, 2001 (as amended, modified, supplemented, or restated from time
to time, the "Letter of Credit and Reimbursement Agreement"), among the Loan
Parties, the Administrative Agent, and the Lenders party thereto.

     Unless otherwise defined in this Consent, capitalized terms used herein
shall have the meaning set forth in the Letter of Credit and Reimbursement
Agreement. Unless otherwise indicated, all Section references herein are to
Sections of the Letter of Credit and Reimbursement Agreement and all Paragraph
references herein are to Paragraphs in this Consent.

                                 R E C I T A L S
                                 ---------------

     A. The Parent has advised the Administrative Agent and the Lenders that an
Event of Default has occurred under Section 7.1(r) of the Letter of Credit and
Reimbursement Agreement due to the failure of the Parent to observe and comply
at December 31, 2001 and thereafter with Sections 6.1 and 6.2 of the Parent
Credit Agreement.

     B. The Parent has advised the Lenders that one or more of its Wholly Owned
Subsidiaries desires to sell all or substantially all of the capital stock or
limited liability company interests (the "Sale") of Hemisphere Management
Limited, a Bermuda company, Hemisphere Financial Services LLC, a Delaware
limited liability company, Hemisphere Financial Group LLC, a Delaware limited
liability company, and Hemisphere Management (Ireland) Limited, an Ireland
company (collectively, "Hemisphere"), and the Loan Parties have requested that
the Lenders consent that the Sale of Hemisphere shall not constitute an Event of
Default under Section 7.1(o) of the Letter of Credit and Reimbursement
Agreement. Notwithstanding the existence of, and without waiving, the Event of
Default under Section 7.1(r) of the Letter of Credit and Reimbursement
Agreement, the Lenders are willing to provide such consent subject to the terms,
conditions, and representations set forth herein.

     NOW, THEREFORE, in consideration of these premises and other valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto agree as follows:

                                        1

<PAGE>

Paragraph 1. Consent. The Lenders hereby irrevocably consent to the Sale of
             -------
Hemisphere upon the 0ollowing terms and conditions:

     (a) The Sale of Hemisphere shall be consummated on or before June 30, 2002;

     (b) The Sale of Hemisphere will be consummated pursuant to a Stock Purchase
Agreement (the "Stock Purchase Agreement"), in the form attached hereto as
Exhibit A, without waiver or amendment of any of its terms and conditions that
would be materially adverse to the Lenders, unless such waiver or amendment has
been consented to by the Required Lenders in advance in writing; and

     (c) As a result of the Sale of Hemisphere, the Administrator shall not be
released or discharged from any, and immediately after the Sale of Hemisphere
shall ratify and confirm in writing all, of its obligations under the Loan
Documents.

Paragraph 2. Conditions. This Consent shall be effective when (a) counterparts
             ----------
of this Consent are executed by the Applicant, each Co-Obligor, each Guarantor,
and the Required Lenders and (b) a consent, in the form of Exhibit B attached
hereto, is executed by XL Insurance Bermuda Ltd. and the other parties shown on
the signature pages thereof, and a consent, in the form of Exhibit C attached
hereto, is executed by the Required Lenders (as defined in the Parent Credit
Agreement) and the other parties shown on the signature pages thereof.

Paragraph 3. Acknowledgment and Ratification. As a material inducement to the
             -------------------------------
Administrative Agent and the Lenders to execute and deliver this Consent, the
Loan Parties, jointly and severally, (a) consent to this Consent and (b) agree
and acknowledge that the execution, delivery, and performance of this Consent
shall in no way release, diminish, impair, reduce, or otherwise affect the
respective obligations of the Loan Parties under the Loan Documents, which Loan
Documents shall remain in full force and effect, and all Liens, guaranties, and
rights thereunder are hereby ratified and confirmed. This Consent shall not
constitute the waiver by Lenders of the Event of Default under Section 7.1(r) of
the Letter of Credit and Reimbursement Agreement that has occurred and is
continuing on the date hereof.

Paragraph 4. Representations. As a material inducement to the Administrative
             ---------------
Agent and the Lenders to execute and deliver this Consent, the Loan Parties,
jointly and severally, represent, warrant and acknowledge to such parties (with
the knowledge and intent that the Lenders and the Administrative Agent are
relying upon the same in entering into this Consent) that, as of the date hereof
and after giving effect to this Consent, (a) all representations and warranties
made by each of the Loan Parties in the Loan Documents are true and correct in
all material respects, except to the extent that (i) any of them speak to a
different specific date or (ii) the facts on which any of them were based have
been changed by transactions permitted by the Loan Documents; (b) an Event of
Default exists after giving effect hereto, and neither the Administrative Agent
nor any of the Lenders has waived or agreed to forbear from the exercise of any
of their rights and remedies that are presently existing as a result of such
Event of Default or any other Event of Default that may now exist or hereafter
occur under the Letter of Credit and Reimbursement Agreement, all of which
rights and remedies are hereby reserved by the Administrative Agent and the
Lenders and may be exercised by the Administrative Agent and the Lenders at any
time in their sole discretion, (c) this Consent has been duly authorized and
approved by all necessary corporate action and requires the consent of no other
Person; and (d) the copy of the Stock Purchase Agreement attached hereto is a
true, correct and complete copy of the execution form thereof and includes all
exhibits and schedules thereto. The breach by the Loan Parties of any of their
representations and warranties set forth in this Paragraph 4 shall constitute an
Event of Default but shall not negate the consent given in Paragraph 1.

                                        2

<PAGE>

Paragraph 5. Expenses. The Loan Parties, jointly and severally, agree to pay all
             --------
costs, fees, and expenses paid or incurred by the Administrative Agent and the
Lenders incident to this Consent, including, without limitation, the reasonable
fees and expenses of the Administrative Agent's and each Lender's counsel in
connection with the negotiation, preparation, delivery, and execution of this
Consent and any related documents.

Paragraph 6. Miscellaneous.
             -------------

     6.1 This Consent is a "Loan Document" referred to in the Letter of Credit
and Reimbursement Agreement, and the provisions of Section 10 of the Letter of
Credit and Reimbursement Agreement are incorporated herein by reference. Unless
stated otherwise (a) the singular number includes the plural and vice versa and
words of any gender include each other gender, in each case, as appropriate; (b)
headings and captions shall not be construed in interpreting provisions; (c)
this Consent shall be construed, and its performance enforced, under New York
law; and (d) this Consent may be executed in any number of counterparts with the
same effect as if all signatories had signed the same document, and all of those
counterparts shall be construed together to constitute the same document.

     6.2 The Loan Documents shall remain unchanged and in full force and effect,
except as provided in this Consent, and are hereby ratified and confirmed. The
execution, delivery, and effectiveness of this Consent shall not, except as
expressly provided herein, operate as a waiver of any Default or Event of
Default or of any rights of the Lenders under any Loan Document.

     6.3 The Parent will deliver to the Administrative Agent a copy of any
proposed amendment or waiver to the Stock Purchase Agreement promptly after such
amendment or waiver is proposed and will deliver true and correct copies of any
supplements to or amendments of any of the Schedules to the Stock Purchase
Agreement that are delivered pursuant to Section 11.15 of the Stock Purchase
Agreement.

     6.4 The breach by any Loan Party of any of its covenants set forth herein
shall constitute an Event of Default but shall not negate the consent given in
Paragraph 1.

     6.5 The Lenders acknowledge that none of the Companies (as defined in the
Stock Purchase Agreement) is an Applicant, Co-Obligor, or Guarantor of the
Obligations under the Letter of Credit and Reimbursement Agreement.

Paragraph 7. ENTIRETIES. THIS CONSENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE
             ----------
PARTIES REGARDING THE SUBJECT MATTER OF THIS CONSENT AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

Paragraph 8. Parties. This Consent binds and inures to the benefit of each of
             -------
the Loan Parties, the Administrative Agent, the Lenders, and their respective
successors and permitted assigns. The Purchaser (as defined in the Stock
Purchase Agreement) shall have no rights or obligations hereunder, except that
the Purchaser may rely on the consent given in Paragraph 1 and the
acknowledgment given in Paragraph 6.5.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK.
                            SIGNATURE PAGES FOLLOW.]

                                       3

<PAGE>

Signature Page to that certain Consent and Amendment to Letter of Credit and
Reimbursement Agreement dated as of the date first stated above, among Mutual
Finance Ltd., as Applicant; Mutual Indemnity Ltd., Mutual Indemnity (U.S.) Ltd.,
Mutual Indemnity (Bermuda) Ltd., Mutual Indemnity (Dublin) Limited, and Mutual
Indemnity (Barbados) Ltd., as Co-Obligors; Mutual Risk Management Ltd., MRM
Services Ltd., MSL (US) Ltd., and MRM Services (Barbados) Ltd., as Guarantors;
Bank of America, N.A., as the Administrative Agent; and the Lenders.

MUTUAL FINANCE LTD., as Applicant

By:     /s/ Robert A. Mulderig
       ----------------------------------------------
       Name:    Robert A. Mulderig
                -------------------------------------
       Title:
                -------------------------------------

MUTUAL INDEMNITY LTD., as a Co-Obligor

By:     /s/ Robert A. Mulderig
       ----------------------------------------------
       Name:    Robert A. Mulderig
                -------------------------------------
       Title:
                -------------------------------------

MUTUAL INDEMNITY (U.S.) LTD., as a Co-Obligor

By:    /s/ Robert A. Mulderig
       ----------------------------------------------
       Name:    Robert A. Mulderig
                -------------------------------------
       Title:
                -------------------------------------

MUTUAL INDEMNITY (BERMUDA) LTD., as a Co-Obligor

By:     /s/ Robert A. Mulderig
       ----------------------------------------------
       Name:    Robert A. Mulderig
                -------------------------------------
       Title:
                -------------------------------------

SIGNED, SEALED AND DELIVERED BY MUTUAL INDEMNITY (DUBLIN)
LIMITED ACTING BY ITS LAWFUL ATTORNEY, as a Co-Obligor

By:     /s/ Robert A. Mulderig
       ----------------------------------------------
       Name:    Robert A. Mulderig
                -------------------------------------
       Title:
                -------------------------------------

MUTUAL INDEMNITY (BARBADOS) LTD., as a Co-Obligor

By:     /s/ Robert A. Mulderig
       ----------------------------------------------
       Name:    Robert A. Mulderig
                -------------------------------------
       Title:
                -------------------------------------

MUTUAL RISK MANAGEMENT LTD., as a Guarantor

By:    /s/ Robert A. Mulderig
       ----------------------------------------------
       Name:    Robert A. Mulderig
                -------------------------------------
       Title:
                -------------------------------------

MRM SERVICES LTD., as a Guarantor

By:     /s/ Robert A. Mulderig
       ----------------------------------------------
       Name:    Robert A. Mulderig
                -------------------------------------
       Title:
                -------------------------------------

MSL (US) LTD., as a Guarantor

By:     /s/ Richard E. O'Brien
       ----------------------------------------------
       Name:    Richard E. O'Brien
                -------------------------------------
       Title:
                -------------------------------------

MRM SERVICES (BARBADOS) LTD., as a Guarantor

By:    /s/ Robert A. Mulderig
       ----------------------------------------------
       Name:    Robert A. Mulderig
                -------------------------------------
       Title:
                -------------------------------------

  Signature Page to Consent Under Letter of Credit and Reimbursement Agreement

<PAGE>

Signature Page to that certain Consent and Amendment to Letter of Credit and
Reimbursement Agreement dated as of the date first stated above, among Mutual
Finance Ltd., as Applicant; Mutual Indemnity Ltd., Mutual Indemnity (U.S.) Ltd.,
Mutual Indemnity (Bermuda) Ltd., Mutual Indemnity (Dublin) Limited, and Mutual
Indemnity (Barbados) Ltd., as Co-Obligors; Mutual Risk Management Ltd., MRM
Services Ltd., MSL (US) Ltd., and MRM Services (Barbados) Ltd., as Guarantors;
Bank of America, N.A., as the Administrative Agent; and the Lenders.

BANK OF AMERICA, N.A., as the Administrative Agent and a Lender

By:         /s/ Bridget Garavalia
       ----------------------------------------------
       Name:    Bridget Garavalia
                -------------------------------------
       Title:   Managing Director
                -------------------------------------

FLEET NATIONAL BANK, as a Lender

By:         /s/ Donald R. Nicholson
       ----------------------------------------------
       Name:    Donald R. Nicholson
                -------------------------------------
       Title:   Senior Vice President
                -------------------------------------

THE BANK OF N.T. BUTTERFIELD & SON LIMITED, as a Lender

By:         /s/ Johnathan  Raynor
       ----------------------------------------------
       Name:    Johnathan Raynor
                -------------------------------------
       Title:   Vice President
                -------------------------------------

COMERICA BANK, as a Lender

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

NATIONAL WESTMINSTER BANK PLC NEW YORK AND/OR NASSAU
BRANCH, as a Lender

By:         /s/ Peter Ballard
       ----------------------------------------------
       Name:    Peter Ballard
                -------------------------------------
       Title:   Head of MidCorporate Team Specialized Lending Services
                ------------------------------------------------------

FIRSTAR BANK, NATIONAL ASSOCIATION, as a Lender

By:         /s/ Caroline V. Krider
       ----------------------------------------------
       Name:    Caroline V. Krider
                -------------------------------------
       Title:   Vice President
                -------------------------------------

  Signature Page to Consent Under Letter of Credit and Reimbursement Agreement

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