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                                                                   EXHIBIT 10.24

                          STANDBY CREDIT FACILITY NOTE

$40,000,000.00                                               As of June 30, 2003

                  This non-interest bearing standby revolving credit facility
note (this "Note") is executed pursuant to an interest-free loan made as of the
date hereof by Fairfax Financial Holdings Limited, a financial services holding
corporation having an office at 95 Wellington Street West, Suite 800, Toronto,
Ontario, Canada M5J 2N7 (the "Lender"), to Crum & Forster Holdings Corp., a
Delaware corporation having an office at 305 Madison Avenue, Morristown, New
Jersey 07962 (the "Borrower"), in the amount of FORTY MILLION AND No/100 DOLLARS
($40,000,000.00).

                  1. LENDER'S COMMITMENT. Subject to the terms and conditions
hereof, the Lender hereby establishes in favor of the Borrower a revolving
credit having a value in the maximum principal amount of FORTY MILLION AND
No/100 DOLLARS ($40,000,000.00) from time to time to be used by the Borrower
only, and so long as necessary, to meet corporate obligations.

                  2. REPAYMENT. FOR VALUE RECEIVED, Borrower promises to pay to
Lender the principal amount of FORTY MILLION AND No/100 DOLLARS
($40,000,000.00), without interest, in lawful money of the United States of
America, or so much of such amount as may be advanced by the Lender from time to
time.

                  (a)    Subject to Section 3, the full repayment of any
then outstanding principal amount shall be repaid on June 30, 2018 (the
"Maturity Date").

                  (b)    Borrower may, from time to time upon prior written
notice (the "Prepayment Notice") to the Lender, prepay this Note in whole or in
part. The Borrower shall indemnify and hold the Lender harmless against any
loss, cost or expense incurred by the Lender as a result of the Borrower's
failure to make a prepayment on the date set forth in the Borrower's Prepayment
Notice. All payments on this Note shall be made in lawful money of the United
States. All advances and payments of principal of this Note may be endorsed by
the Lender on the attached schedule.

                  3. SUBORDINATION. The Borrower's obligations under this Note,
including at the Maturity Date, shall be subordinated to the prior payment in
full of all principal, interest and other obligations in respect of any existing
or future senior indebtedness of the Borrower (the "Senior Debt"), including but
not limited to the $300,000,000 aggregate principal amount senior notes due 2013
initially issued by Crum & Forster Funding Corp. (the "Funding Notes"). No
repayment pursuant to Section 2 is due under any circumstances unless such
payment is

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permitted by, and will not cause a default or Event of Default (as defined in
the applicable document) under, the indentures or other documents governing the
Senior Debt. Notwithstanding Section 5, this Note may not be modified, amended,
extended, changed, discharged or terminated without the consent of the holders
of a majority in principal amount of the Senior Debt, including but not limited
to the Funding Notes.

                  4. GOVERNING LAW. This Note shall be governed by, and
construed and enforced in accordance with, the laws of New York.

                  5. MODIFICATION AND IRREVOCABILITY. (a) Subject to Section 3,
this Note may not be modified, amended, waived, extended, changed, discharged or
terminated orally or by any act or failure to act on the part of the Borrower or
the Lender, but only by an agreement in writing signed by the party against whom
enforcement of any modification, amendment, waiver, extension, change, discharge
or termination is sought.

                  (b)      This Note may not be revoked by the Lender for a
period of 10 years from the date hereof.

                  6. JOINT AND SEVERAL OBLIGATIONS. If the Borrower consists of
more than one person or party, the obligations and liabilities of each such
person or party shall be joint and several.

                  7. NO RELEASE. The Borrower and all others who are or who may
become liable for the payment of all or any part of the sums due under this note
(the "Debt") do hereby severally waive presentment and demand for payment,
notice of dishonor, protest, notice of protest, and non-payment, and notice of
intent to accelerate the maturity hereof (and of such acceleration). No release
of any security for the Debt or extension of time for payment of this Note or
any installment hereof, and no alteration, amendment or waiver of any provision
of this Note made by agreement between the Lender and any other person or party
shall release, modify, amend, waive, extend, change, discharge, terminate or
affect the liability of the Borrower, and any other person or party that may
become liable for the payment of all or any part of the Debt under this Note.

                  8. BINDING OBLIGATION. The Borrower (and the undersigned
representative of the Borrower, if any) represents that the Borrower has full
power, authority and legal right to execute, deliver and perform its obligations
pursuant to this Note and any other related security documents, if any, and that
this Note constitutes a legal, valid and binding obligation of the Borrower.

                  9. CUMULATIVE RIGHTS AND REMEDIES. (a) The rights and remedies
of the Lender as provided in this Note shall be cumulative and concurrent; may
be pursued separately, successively, or together at the sole discretion of the
Lender, may be exercised as often as occasion for their exercise shall arise;
and in no event shall the failure to exercise any such right or remedy be
construed as a waiver or release of it.

                  (b)      If any provision of this Note is held to be invalid
or unenforceable by a Court of competent jurisdiction, the other provisions of
this Note shall remain in full force and effect.

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                  (c)      Any failure by the Lender to insist upon strict
performance by the Borrower of any of the provisions of this Note shall not be
deemed to be a waiver of any of the terms or provisions of this Note and the
Lender shall have the right thereafter to insist upon strict performance by the
Borrower of any and all of them.

                  (d)      All times, wherever stated herein, shall be of the
essence of this Note.

                                      * * *

                                       3

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                  IN WITNESS WHEREOF, the Lender and the Borrower have duly
executed this Note as of the date first above written.

                                        "LENDER":

                                        Fairfax Financial Holdings Limited

                                            By: /s/ V. PREM WATSA
                                                -----------------
                                                Name:  V. PREM WATSA
                                                Title: Chief Executive Officer

                                        "BORROWER":

                                        Crum & Forster Holdings Corp.

                                            By: /s/ V. PREM WATSA
                                                -----------------
                                                Name:  V. PREM WATSA
                                                Title: Chief Executive Officer

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                       ADVANCES AND PAYMENTS OF PRINCIPAL

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                                                Amount of Principal  Unpaid Principal   Notation
       Date             Amount of Advance        Paid or Prepaid          Balance       Made By
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<S>                     <C>                     <C>                  <C>                <C>
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                                                                   EXHIBIT 10.25

                               EXCHANGE AGREEMENT

                  AGREEMENT (this "Agreement") made as of this 5th day of June,
2003 by and between Crum & Forster Holdings Corp. ("Holdings Corp."), a Delaware
corporation, with its principal executive office at 305 Madison Avenue,
Morristown, NJ 07962 and Fairfax Inc., a Wyoming corporation, with its principal
executive office at 305 Madison Avenue, Morristown, NJ 07962.

                  WHEREAS, Fairfax Inc. is the owner of all of the outstanding
shares of common stock of Holdings Corp.;

                  WHEREAS, Fairfax Inc. is the owner of all of the outstanding
shares (the "Holding Inc. Securities") of common stock of Crum & Forster Holding
Inc. ("Holding Inc.");

                  WHEREAS, Holdings Corp. wishes to receive and Fairfax Inc.
desires to transfer the Holding Inc. Securities;

                  WHEREAS, because Fairfax Inc. already is the owner of all of
the outstanding shares of common stock of Holdings Corp., no additional shares
of common stock of Holdings Corp. will be issued in the exchange and the
transfer of the Holding Inc. Securities will be considered made for income tax
purposes in exchange for shares of common stock of Holdings Corp. (the "Deemed
Exchange"); and

                  WHEREAS, the Deemed Exchange is intended to be tax-free under
Section 351 of the Internal Revenue Code of 1986, as amended.

                  NOW, THEREFORE, in consideration of the mutual promises
hereinafter contained, the parties hereto hereby agree as follows:

1.       EXCHANGE OF THE HOLDING INC. SECURITIES

                  1.1      Subject to the terms and conditions hereof, as soon
as practicable following the execution of the Agreement, Holdings Corp. shall
receive from Fairfax Inc., and Fairfax Inc. shall transfer to Holdings Corp.,
all of the Holding Inc. Securities.

                  1.2      The aggregate exchange consideration for the Holding
Inc. Securities shall be $1.00 payable to Fairfax Inc.(the "Exchange
Consideration").

                  1.3      As soon as practicable following the execution of
this Agreement, Fairfax Inc. shall deliver or cause to be delivered to Holdings
Corp.:

                  (a)      stock certificates evidencing the Holding Inc.
                           Securities endorsed in blank, or accompanied by a
                           stock power duly executed in blank, in form
                           satisfactory to Holdings Corp. (see the form of stock
                           power attached); and

                  (b)      a receipt for the Exchange Consideration.

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                  1.4      As soon as practicable following the execution of
this Agreement, Holdings Corp. shall deliver to Fairfax Inc. the Exchange
Consideration.

2.       REPRESENTATIONS AND WARRANTIES OF FAIRFAX INC.

                  Fairfax Inc. hereby represents and warrants to Holdings Corp.
as follows:

                  2.1      Fairfax Inc. is the sole and exclusive beneficial
owner and owner of record of all rights, title and interest in and to the
Holding Inc. Securities it is delivering pursuant to this Agreement, free and
clear of all claims and encumbrances of any nature whatsoever.

                  2.4      The Holding Inc. Securities constitute all of the
issued and outstanding capital stock of Holding Inc.

3.       GENERAL

                  3.1      Each of the parties hereto shall use all efforts to
take, or cause to be taken, all appropriate action and do or cause to be done,
all things necessary, proper or advisable under applicable law, and execute and
deliver such documents and other papers, as may be required to carry out the
provisions of this agreement and consummate and make effective the transactions
contemplated by this Agreement.

                  3.2      This Agreement constitutes the entire agreement
between the undersigned parties with respect to the subject matter hereof. It
shall be governed by and construed in accordance with the laws of the State of
New York. It shall be binding upon the parties hereto and their respective
successors and assigns. This Agreement may be executed in counterparts, each of
which shall be deemed an original and both of which shall constitute one and the
same instrument.

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                              CRUM & FORSTER HOLDINGS CORP.

                              By: /s/ MARY JANE ROBERTSON
                                  --------------------------------------------
                                  Name:  Mary Jane Robertson
                                  Title: Senior Executive Vice President,
                                         Chief Financial Officer and Treasurer

                              FAIRFAX INC.

                              By: /s/ ERIC P. SALSBERG
                                  -----------------------
                                  Name:  Eric P. Salsberg
                                  Title: Vice President

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                                    EXHIBIT A

                               FORM OF STOCK POWER

                  FOR EXCHANGE CONSIDERATION RECEIVED, Fairfax Inc. hereby
transfers unto Crum & Forster Holdings Corp. 1,000 shares of common stock of
Crum & Forster Holding Inc. standing in the name of Fairfax Inc. on the books of
Crum & Forster Holding Inc. represented by Certificate No. (________) herewith
__________, and does hereby irrevocably constitute and appoint_________________,
attorney to transfer the said stock on the books of Crum & Forster Holding Inc.
with full power of substitution in the premises.

Dated:

                                            FAIRFAX INC.

                                            By: ________________________________
                                                Name:  Eric P. Salsberg
                                                Title: Vice President

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