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                                                                    Exhibit 10.1


                  FIRST AMENDMENT TO LETTER OF CREDIT AGREEMENT

         THIS FIRST AMENDMENT TO LETTER OF CREDIT AGREEMENT, dated as of July 1,
1999 (the "Amendment"), amends the Letter of Credit Agreement, dated as of
January 27, 1998 (the "Credit Agreement"), among Oracle Reinsurance Company,
Ltd., a Bermuda insurance company (the "Company"), the various financial
institutions parties thereto (collectively, the "Banks") and Bank of America
National Trust and Savings Association, as letter of credit administrator and as
agent (the "Agent"), The Bank of New York, as co-agent, Deutsche Bank AG, as
co-agent, Dresdner Bank A.G., New York Branch as co-agent and Fleet National
Bank, as co-agent. Terms defined in the Credit Agreement are, unless otherwise
defined herein or the context otherwise requires, used herein as defined
therein.

         WHEREAS, the parties hereto have entered into the Credit Agreement,
which provides for the Bank to extend certain credit facilities to the Company
from time to time; and

         WHEREAS, the parties hereto desire to amend the Credit Agreement in
certain respects as hereinafter set forth;

         NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration (the receipt and sufficiency of which are hereby
acknowledged), the parties hereto agree as follows:

         SECTION 1 AMENDMENTS. Effective as of July 1, 1999, the Credit
Agreement shall be amended in accordance with Sections 1.1 through 1.14 below.

         1.1 Adjusted Asset Value. The definition of "Adjusted Asset Value" in
Section 1.1 of the Credit Agreement is amended to state in its entirety as
follows:

                  "Adjusted Asset Value means, without duplication, on any date,
                  an amount equal to the result of the sum of (i) 1.00 times the
                  Fair Market Value of all Fund Investments Pledged by the
                  Company or the Parent, plus (ii) 0.90 times the Fair Market
                  Value of all Fund Investments Pledged by the Subsidiary
                  Pledgor, plus (iii) 1.00 times the Fair Market Value of all
                  Structured Notes and all Investment Subsidiaries, the stock of
                  which is Pledged by the Company plus (iv) 1.50 (or the
                  Borrowing Base Factor then applicable, if less) times the Fair
                  Market Value of all Cash and Cash Equivalents Pledged by
                  either the Company or the Parent, plus (v) 1.45 (or .967 times
                  the Borrowing Base Factor then applicable, if such product is
                  less) times the Fair Market Value of all securities issued or
                  directly and fully guaranteed or insured by the United States
                  of America or any agency or instrumentality thereof (provided
                  that the full faith and credit of the United States of America
                  is pledged in support thereof) which are
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                  Pledged by either the Company or the Parent, plus (vi) 1.40
                  (or .933 times the Borrowing Base Factor then applicable, if
                  such product is less) times the Fair Market Value of all bonds
                  rated at least "AA" by S&P or "Aa2" by Moody's Pledged by the
                  Company or the Parent, plus (vii) 1.00 times the Fair Market
                  Value of all bonds rated at least "BBB-" (but not higher than
                  "AA-") by S&P or "Baa3" (but not higher than "Aa3") by Moody's
                  Pledged by either the Company or the Parent, plus (viii) 1.00
                  times the Fair Market Value of the Managed Accounts Pledged by
                  the Company or the Parent plus (ix) 1.35 (or .90 times the
                  Borrowing Base Factor then applicable, if such product is
                  less) times the Fair Market Value of all Cash and Cash
                  Equivalents Pledged by the Subsidiary Pledgor, plus (x) 1.305
                  (or .8703 times the Borrowing Base Factor then applicable, if
                  such product is less) times the Fair Market Value of all
                  securities issued or directly and fully guaranteed or insured
                  by the United States of America or any agency or
                  instrumentality thereof (provided that the full faith and
                  credit of the United States of America is pledged in support
                  thereof) which are Pledged by the Subsidiary Pledgor, plus
                  (xi) 1.26 (or .8397 times the Borrowing Base Factor then
                  applicable, if such product is less) times the Fair Market
                  Value of all bonds rated at least "AA" by S&P or "Aa2" by
                  Moody's Pledged by the Subsidiary Pledgor, plus (xii) .90
                  times the Fair Market Value of all bonds rated at least "BBB-"
                  (but not higher than "AA-") by S&P or "Baa3" (but not higher
                  than "Aa3") by Moody's Pledged by the Subsidiary Pledgor, plus
                  (xiii) .90 times the Fair Market Value of the Managed Accounts
                  Pledged by the Subsidiary Pledgor."

         1.2 Change of Control. The definition of "Change of Control" in Section
1.1 of the Credit Agreement is amended to state in its entirety as follows:

                  "(a) with respect to the Company, the failure by the Parent to
         own, beneficially and of record, 100% of each class of common stock of
         the Company;

                  (b) with respect to the Subsidiary Pledgor, the failure by the
         Company and a Related Party to own, beneficially and of record, 100% of
         each class of membership interests of the Subsidiary Pledgor;

                  (c) Robert Rosenkranz or any other Standby Purchaser shall
         sell, transfer or otherwise dispose of any shares of common stock of
         the Parent, if upon such disposition the value of the stock held by
         Robert Rosenkranz and the other Standby Purchasers in the aggregate
         shall be less than $5,000,000; or

                  (d) any Person shall own greater voting power in the Parent
         than Robert Rosenkranz and members of management of the Parent."

         1.3 Collateral Documents. The definition of "Collateral Documents" in
Section 1.1 of the Credit Agreement is amended to state in its entirety as
follows:


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                  "Collateral Document means the Security Agreement, the Parent
                  Security Agreement, the Parent Guaranty, the Subsidiary
                  Pledgor Security Agreement and any other document pursuant to
                  which collateral securing the liabilities of the Company and
                  the Parent under any Loan Document is granted to the Agent for
                  the benefit of the Agent and the Banks."

         1.4 Investment Subsidiary. The definition of "Investment Subsidiary" in
Section 1.1 of the Credit Agreement is amended to state in its entirety as
follows:

                  "Investment Subsidiary means a Subsidiary of the Company,
                  which holds Managed Accounts and shall do no other business
                  and make no other Investments other than in Cash and Cash
                  Equivalents. For the purpose of Sections 5.1, 5.5, 5.6, 5.10,
                  5.12, 5.14-5.16, 5.18, 5.21, 6.5-6.8, 6.10-6.11, 6.15,
                  7.1-7.5, 7.10, 7.14, 7.15, 7.16, 7.24, 8.1(e)-(g), and
                  8.1(i)-(j) of this Agreement, the term "Investment Subsidiary"
                  shall also include the Subsidiary Pledgor."

         1.5 Pledged. The definition of "Pledged" in Section 1.1 of the Credit
Agreement is hereby amended to state in its entirety as follows:

                  "Pledged means pledged by the Company, the Parent or the
                  Subsidiary Pledgor to the Agent for the benefit of the Banks
                  pursuant to the Security Agreement, Parent Security Agreement
                  or the Subsidiary Pledgor Agreement, respectively."

         1.6 Material Adverse Effect. The definition of "Material Adverse
Effect" in Section 1.1 of the Credit Agreement is amended to state in its
entirety as follows:

                  "Material Adverse Effect means (a) a material adverse change
                  in, or a material adverse effect upon, the operations,
                  business, properties or condition (financial or otherwise) of
                  the Company or the Parent; (b) a material impairment of the
                  ability of the Company, the Subsidiary Pledgor or the Parent
                  to perform under any Loan Document; or (c) a material adverse
                  effect upon the legality, validity, binding effect or
                  enforceability against the Company, the Subsidiary Pledgor or
                  the Parent of any Loan Document."

         1.7 Additional Definitions. The following definitions are added to
Section 1.1 of the Credit Agreement in proper alphabetical order:

                  "Subsidiary Pledgor means Inman Partners LLC, a limited
                  liability company organized under the laws of the Isle of Man.

                  Subsidiary Pledgor Security Agreement means a deed of pledge
                  of the Subsidiary Pledgor in the form attached as Exhibit L."


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         1.8 Representations. Sections 5.1 through 5.6, 5.10, 5.12, 5.14, 5.16,
5.18 and 5.20 of the Credit Agreement are hereby amended to state in their
entirety as follows:

                  "5.1. Corporate Existence and Power. Each of the Company, the
         Parent, and each Investment Subsidiary:

                  (a)      is duly organized, validly existing and in good
                           standing under the laws of the jurisdiction of its
                           organization;

                  (b)      has the power and authority and all governmental
                           licenses, authorizations, consents and approvals (i)
                           to own its assets and to carry on its business, and
                           (ii) to execute, deliver and perform its obligations
                           under the Transaction Documents to which it is a
                           party;

                  (c)      is duly qualified and is licensed and in good
                           standing under the laws of each jurisdiction where
                           its ownership, lease or operation of property or the
                           conduct of its business requires such qualification
                           or license; and

                  (d)      is in compliance with all Requirements of Law;

                  except, in each case referred to in clause (b)(i), (c) or (d),
                  to the extent that the failure to do so could not reasonably
                  be expected to have a Material Adverse Effect.

                  5.2 Corporate Authorization; No Contravention. The execution
         and delivery by the Company of this Agreement and each other
         Transaction Document to which it is a party, the Letter of Credit
         Issuances and the L/C Advances hereunder, the execution and delivery by
         the Parent of each Transaction Document to which it is a party, the
         execution by the Subsidiary Pledgor of each Transaction Document to
         which it is a party, and the performance by each of the Company, the
         Parent and the Subsidiary Pledgor of its obligations under each
         Transaction Document to which it is a party (i) are within the powers
         of the Company, the Parent, and the Subsidiary Pledgor, as applicable,
         (ii) have been duly authorized by all necessary action on the part of
         the Company, the Parent and the Subsidiary Pledgor (including any
         necessary shareholder or member action), and (iii) do not and will not:

                           (a) contravene the terms of any of the Organization
                  Documents of the Company, Parent or the Subsidiary Pledgor;

                           (b) conflict with or result in a breach or
                  contravention of, or the creation of any Lien under, any
                  document evidencing any Contractual Obligation to which the
                  Company, the Parent or the Subsidiary Pledgor is a party, or
                  any order, injunction, writ or decree of any Governmental
                  Authority to which the Company, the Parent, the Subsidiary
                  Pledgor or any of their respective properties are subject; or


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                           (c) violate any Requirement of Law.

                  5.3 Governmental Authorization. No approval, consent,
         exemption, authorization, or other action by, or notice to, or filing
         with, any Governmental Authority which has not been obtained, taken or
         made, is necessary or required in connection with the execution,
         delivery or performance by, or enforcement against (i) the Company of
         this Agreement or any other Transaction Document to which it is a party
         or (ii) the Parent or the Subsidiary Pledgor of any Transaction
         Document to which it is a party.

                  5.4 Binding Effect. This Agreement and each other Transaction
         Document to which the Company is a party constitute the legal, valid
         and binding obligations of the Company, enforceable against the Company
         in accordance with their respective terms, except as enforceability may
         be limited by applicable bankruptcy, insolvency, or similar laws
         affecting the enforcement of creditors' rights generally or by
         equitable principles relating to enforceability. Each Transaction
         Document to which the Parent or the Subsidiary Pledgor is a party
         constitutes the legal, valid and binding obligations of the Parent or
         the Subsidiary Pledgor, as applicable, enforceable against the Parent
         or Subsidiary Pledgor, as applicable, in accordance with their
         respective terms, except as enforceability may be limited by applicable
         bankruptcy, insolvency, or similar laws affecting the enforcement of
         creditors' rights generally or by equitable principles relating to
         enforceability.

                  5.5 Litigation. Except as specifically disclosed in Schedule
         5.5, there are no actions, suits, proceedings, claims or disputes
         pending, or to the best knowledge of the Company, threatened or
         contemplated, at law, in equity, in arbitration or before any
         Governmental Authority, against the Company, the Parent, any Investment
         Subsidiary or any of their respective properties which: (a) purport to
         affect or pertain to this Agreement or any other Loan Document, or any
         of the transactions contemplated hereby or thereby; or (b) would
         reasonably be expected to have a Material Adverse Effect. No
         injunction, writ, temporary restraining order or other order of any
         nature has been issued by any court or other Governmental Authority
         purporting to enjoin or restrain the execution, delivery or performance
         of this Agreement or any other Transaction Document, or directing that
         the transactions provided for herein or therein not be consummated as
         herein or therein provided.

                  5.6 No Default. No Event of Default or Unmatured Event of
         Default exists or would result from the incurring of any Obligations by
         the Company. Neither the Company, the Parent nor any Investment
         Subsidiary is in default under or with respect to any Contractual
         Obligation in any respect which, individually or together with all such
         defaults, could reasonably be expected to have a Material Adverse
         Effect or create an Event of Default under subsection 8.1(e).

                  5.10 Taxes. The Company, the Parent and each Investment
         Subsidiary have filed all Federal, State, foreign and other material
         tax returns and reports required to be filed, and have


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         paid all Federal, State, foreign and other material taxes, assessments,
         fees and other governmental charges levied or imposed upon them or
         their properties, income or assets otherwise due and payable, except
         those which are being contested in good faith by appropriate
         proceedings and for which adequate reserves have been provided in
         accordance with GAAP and SAP. There is no proposed tax assessment
         against the Company, the Parent or any Investment Subsidiary that
         would, if made, have a Material Adverse Effect.

                  5.12 Environmental Matters. Except as specifically disclosed
         in Schedule 5.12, neither any non-compliance with any Environmental
         Laws nor any liability under any Environmental Laws, nor all
         Environmental Claims, in each case as in effect on or prior to the
         Closing Date, on or with respect to the business, operations and
         properties of the Company, the Parent or any Investment Subsidiary
         could, individually or in the aggregate, reasonably be expected to have
         a Material Adverse Effect.

                  5.14 No Burdensome Restrictions. Neither the Company, the
         Parent nor any Investment Subsidiary is a party to or bound by any
         Contractual Obligation, or subject to any restriction in any
         Organization Document, or any Requirement of Law, which could
         reasonably be expected to have a Material Adverse Effect.

                  5.16 Insurance. The properties of the Company, the Parent and
         each Investment Subsidiary are insured with financially sound and
         reputable insurance companies not Related Parties of the Company, in
         such amounts, with such deductibles and covering such risks as are
         customarily carried by companies engaged in similar businesses and
         owning similar properties in localities where the Company, the Parent
         or any Investment Subsidiary operates.

                  5.18 Full Disclosure. None of the representations or
         warranties made by the Company, the Parent or any Investment Subsidiary
         in the Loan Documents as of the date such representations and
         warranties are made or deemed made, and none of the written statements
         contained in any exhibit, report, statement or certificate furnished by
         or on behalf of the Company, the Parent or any Investment Subsidiary in
         connection with the Transaction Documents (including, without
         limitation, the Form S-1 and the other offering and disclosure
         materials delivered by or on behalf of the Company to the Banks prior
         to the Closing Date), contains any untrue statement of a material fact
         or omits any material fact required to be stated therein or necessary
         to make such representation, warranty or written statement, in light of
         the circumstances under which it is made, not misleading as of the time
         when made or delivered.

                  5.20 First Priority Security Interest. The Agent, for the
         benefit of the Banks, has a first priority perfected security interest
         (i) in the Collateral pledged by the Company pursuant to the Security
         Agreement, (ii) in the Collateral pledged by the Parent pursuant to the
         Parent Security Agreement, and (iii) in the Collateral pledged by the
         Subsidiary Pledgor pursuant to the Subsidiary Pledgor Security
         Agreement."


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         1.9 Year 2000. Article V of the Credit Agreement is hereby amended by
the addition of the following at the end:

                  "5.21 Year 2000. (a) The Parent uses the services of a third
         party administrative services provider which has conducted a Year 2000
         assessment on behalf of Parent and various subsidiaries of Parent,
         including the Company. Such administrator conducts similar services for
         other Bermuda based insurance companies. The administrator has provided
         the Company and the Parent with an assurance that all of their computer
         related systems are Year 2000 compliant.

                  (b) The Parent has also requested assurances of Year 2000
         compliance from its key vendors and customers (and those of the
         Company). In most cases, alternative vendors could be used should Year
         2000 problems be encountered. Additionally, the Parent is currently
         developing appropriate contingency plans in the event any of the
         computer systems of its administrative services provider, business
         partners or vendors are not Year 2000 compliant.

                  (c) The Company and the Parent believe they are taking
         commercially reasonable steps to address Year 2000 compliance."

         1.10 Reports. Sections 6.1(b)(ii), 6.1(c) and 6.1(d) of the Credit
Agreement are amended to state in their entirety as follows:

                  "(b)(ii) within 52 days after the end of each of the fiscal
         quarters of the Company, commencing with the fiscal quarter ending
         December 31, 1998, a calculation of the standard deviation of the
         monthly rate of return on the Company's, the Parent's and the
         Subsidiary Pledgor's Fund Investments and a comparison of such standard
         deviation to that of the S&P 500 and the Salomon Bond Index (or their
         equivalents).

                  (c) Other Reports. Within 52 days after the end of each of the
         fiscal quarters of the Company, commencing with the fiscal quarter
         ending March 31, 1998, a calculation of the value and the quarterly
         rate of return of each of the Company's, the Parent's and the
         Subsidiary Pledgor's Fund Investments by Strategy.

                  (d) Monthly Report and Borrowing Base Certificate. As soon as
         available, but in any event within 30 days after the end of each
         calendar month of each fiscal year, (i) a report (A) valuing each of
         the Company's, the Parent's and the Subsidiary Pledgor's Fund
         Investments and each of the Company's, the Parent's and the Subsidiary
         Pledgor's Publicly Traded Securities, Structured Notes and Investment
         Subsidiaries, and (B) listing each of the Company's, the Parent's and
         the Subsidiary Pledgor's Cash and Cash Equivalents and (ii) a Borrowing
         Base Certificate executed by a Responsible Officer of each of the
         Company and the Parent. For purposes of such report and of completing
         the Borrowing Base Certificate, each Fund Investment, Publicly Traded
         Security, Structured Note and Investment Subsidiary shall be


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         valued based on its Fair Market Value as at the last Business Day of
         the calendar month for which such report or Borrowing Base Certificate
         is being delivered."

         1.11 Further Assurances. Section 6.13 of the Credit Agreement is hereby
amended to state in its entirety as follows:

         "6.13 Further Assurances. Promptly upon the request of the Agent, or
         the Required Banks, the Company shall execute, acknowledge, deliver,
         record, re-record, file, re-file, register and re-register, any and all
         such further acts, deeds, conveyances, security agreements, pledge
         agreements, guaranties, mortgages, assignments, estoppel certificates,
         financing statements and continuations thereof, termination statements,
         notices of assignment, transfers, certificates, assurances and other
         instruments the Agent or the Required Banks as the case may be, may
         reasonably request from time to time in order (a) to ensure that the
         obligations of the Company hereunder and under the other Loan Documents
         are secured by a first priority perfected security interest in the
         assets of the Company, the Parent and the Subsidiary Pledgor stated to
         be Pledged pursuant to the Collateral Documents, (b) to perfect and
         maintain the validity, effectiveness and priority of any of the
         Collateral Documents and the Liens intended to be created thereby; and
         (c) to better assure, convey, grant, assign, transfer, preserve,
         protect and confirm to the Agent and the Banks the rights granted or
         now or hereafter intended to be granted to the Agent and the Banks
         under any Loan Documents or under any other document executed in
         connection therewith. Contemporaneously with the execution and delivery
         of any document referred to above, the Company shall deliver all
         resolutions, opinions and corporate documents as the Agent or the
         Required Banks may reasonably request to confirm the enforceability of
         such document and the perfection of the security interest created
         thereby, if applicable."

         1.12 Investments Available for Withdrawal. Section 7.13 of the Credit
Agreement is amended to state in its entirety as follows:

                  "7.13 Investments Available for Withdrawal. The Company shall
         not permit the aggregate Fair Market Value of all Investments Pledged
         by the Company, the Parent and the Subsidiary Pledgor and Investments
         made by a Pledged Investment Subsidiary on any day which are available
         for withdrawal, sale or use by the Parent, the Company, the Subsidiary
         Pledgor or the Pledged Investment Subsidiary, as the case may be, (i)
         on at least a quarterly basis to be less than 60% of the aggregate Fair
         Market Value of all Investments Pledged by the Company, the Parent and
         the Subsidiary Pledgor or owned by a Pledged Investment Subsidiary on
         such day, and (ii) on an immediate basis to be less than 4% of the
         aggregate Fair Market Value of all Investments Pledged by the Company,
         the Parent and the Subsidiary Pledgor and Investments owned by a
         Pledged Investment Subsidiary on such day; provided, however, that if
         said Investments are less than said 60% limit solely because of
         appreciation, the Company shall not be in violation of this Section
         7.13 if (i) all Investments thereafter Pledged by the Company, the
         Parent or the Subsidiary Pledgor to the Agent or made by a


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         Pledged Investment Subsidiary are subject to withdrawal on at least a
         quarterly basis until the Company, the Parent, the Subsidiary Pledgor
         and the Pledged Investment Subsidiary shall be in compliance with such
         limit, (ii) no Investments so Pledged subject to such quarterly or more
         frequent withdrawal are withdrawn or have been withdrawn during the
         quarter in which the limit was exceeded until the Company, Parent, the
         Subsidiary Pledgor and Investment Subsidiary are in compliance and
         (iii) the Company, the Parent and the Subsidiary Pledgor shall be in
         compliance with such limit at the end of each fiscal year. For the
         purpose of this covenant, all Investments held by issuers of Structured
         Notes shall be treated as if held by the Company."

         1.13 Defaults. Sections 8.1(b), (d) and (l) of the Credit Agreement are
hereby amended to state in their entirety as follows:

                  "(b) Representation or Warranty. Any representation or
         warranty by the Company or the Parent or the Subsidiary Pledgor made or
         deemed made herein or in any other Loan Document, or which is contained
         in any certificate, document or financial or other statement by the
         Company, the Parent or the Subsidiary Pledgor or any Responsible
         Officer of the Company, the Parent or the Subsidiary Pledgor furnished
         at any time under this Agreement or any other Loan Document, is
         incorrect in any material respect on or as of the date made or deemed
         made.

                  (d) Other Defaults. The Company, the Parent or the Subsidiary
         Pledgor fails to perform or observe any other term or covenant
         contained in this Agreement or any other Loan Document, and such
         default shall continue unremedied for a period of 30 days after the
         earlier of (i) the date upon which a Responsible Officer of the Company
         knew of such failure or (ii) the date upon which written notice thereof
         is given to the Company by the Agent or any Bank

                  (l) Collateral Documents, etc. Any Collateral Document shall
         cease to be in full force and effect with respect to the Company, the
         Parent or the Subsidiary Pledgor (other than as expressly permitted
         hereunder); the Company, the Parent or the Subsidiary Pledgor shall
         fail (subject to any applicable grace period) to comply with or to
         perform any applicable provision of any Collateral Document; the
         Company, the Parent or the Subsidiary Pledgor (or any Person by,
         through or on behalf of the Company, the Parent or the Subsidiary
         Pledgor) shall contest in any manner the validity, binding nature or
         enforceability of any Collateral Document; or the Company or the
         Subsidiary Pledgor shall grant a Lien on any of its assets other than
         pursuant to the Security Agreement or the Subsidiary Pledgor Security
         Agreement and Permitted Liens on assets other than Collateral."

         1.14 Subsidiary Pledgor. Section 8.1 of the Credit Agreement is hereby
amended by the addition of the following at the end:


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                  "(m) Subsidiary Pledgor. Sections 1.09, 2.04 or 9.01(b) of the
         limited liability company operating agreement of the Subsidiary Pledgor
         is breached or is amended or modified without the prior written consent
         of the Required Banks."

         SECTION 2 CONDITIONS PRECEDENT. This Amendment shall become effective
when each of the conditions precedent set forth in this Section 2 shall have
been satisfied, and notice thereof shall have been given by the Agent to the
Company and the Bank.

         2.1 Receipt of Documents. The Agent shall have received all of the
following documents duly executed, dated the date hereof or such other date as
shall be acceptable to the Agent, and in form and substance satisfactory to the
Agent:

                  (a) Amendment. This Amendment, duly executed by the Company,
         the Agent and the Required Banks.

                  (b) Secretary's Certificate. A certificate of the Secretary or
         an Assistant Secretary of the Company, as to (i) resolutions of the
         executive committee of the Company then in full force and effect
         authorizing the execution, delivery and performance of this Amendment
         and each other document described herein, and (ii) the incumbency and
         signatures of those officers of the Company authorized to act with
         respect to this Amendment and each other document described herein.

                  (c) Subsidiary Pledgor Security Agreement. The Subsidiary
         Pledgor Security Agreement, duly executed by the Subsidiary Pledgor and
         duly filed with and all other documents, including, for all assets
         which are to be included in the Borrowing Base: (i) Fund
         acknowledgments or (ii) a control agreement with any depository bank,
         required by the Agent with respect thereto.

                  (d) Secretary's Certificate - Subsidiary Pledgor. A
         Certificate of the Secretary or Assistant Secretary of the managing
         member of the Subsidiary Pledgor, as to (i) resolutions of the members
         of the Subsidiary Pledgor then in full force and effect authorizing the
         execution, delivery and performance of the Subsidiary Pledgor Security
         Agreement, and (ii) the incumbency and signature of those members of
         the Subsidiary Pledgor authorized to act with respect to the Subsidiary
         Pledgor Security Agreement and each other document described therein.

                  (e) Opinion of Counsel. An opinion, addressed to the Agent and
         the Banks, from Lord, Bissell & Brook and/or Conyers Dill & Pearman,
         counsel to the Company in form satisfactory to the Agent.

                  (f) Opinion of Counsel to Subsidiary Pledgor. An opinion,
         addressed to the Agent and all Banks, from Cains, counsel to the
         Subsidiary Pledgor in form satisfactory to the Agent.


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                  (g) Consent. A consent of the Parent in the form attached
         hereto.

                  (h) Agreement with Minority Member. An agreement with the
         minority member of the Subsidiary Pledgor in form satisfactory to the
         Agent.

                  (i) Borrowing Base Certificate. A pro forma Borrowing Base
         Certificate as of the July 1, 1999 (but based on May 31, 1999 values)
         giving effect to the purchases and sales of Investments intended by the
         Company, the Parent and the Subsidiary Pledgor.

         2.2 Compliance with Warranties, No Default, etc. Both before and after
giving effect to the effectiveness of this Amendment, the following statements
by the Company shall be true and correct (and the Company, by its execution of
this Amendment, hereby represents and warrants to the Agent and each Bank that
such statements are true and correct as at such times):

                  (a) the representations and warranties set forth in Article V
         of the Credit Agreement, as hereby amended, shall be true and correct
         with the same effect as if then made (unless stated to relate solely to
         an earlier date, in which case such representations and warranties
         shall be true and correct as of such earlier date); and

                  (b) no Event of Default or Unmatured Event of Default shall
         have then occurred and be continuing.

         2.3 Satisfactory Legal Form. All documents executed or submitted
pursuant hereto by or on behalf of the Company or the Subsidiary Pledgor shall
be satisfactory in form and substance to the Agent and its counsel; and the
Agent and its counsel shall have received all information, approvals, opinions,
documents or instruments as the Agent or its counsel may reasonably request.

         SECTION 3 REPRESENTATIONS AND WARRANTIES. To induce the Banks and the
Agent to enter into this Amendment, the Company hereby represents and warrants
to the Agent and each Bank as follows:

         3.1 Due Authorization, Non-Contravention, etc. The execution, delivery
and performance by the Borrower of this Amendment and each other Loan Document
executed or to be executed by it or the Subsidiary Pledgor in connection with
this Amendment are within the Company's or the Subsidiary Pledgor's powers, as
applicable, have been duly authorized by all necessary action, and do not

                  (a) contravene the Company's or the Subsidiary Pledgor's
         Organization Documents;

                  (b) contravene any contractual restriction, law or
         governmental regulation or court decree or order binding on or
         affecting the Company or the Subsidiary Pledgor; or


                                       11
<PAGE>   12
                  (c) result in, or require the creation or imposition of, any
         Lien on any of the Company's or the Subsidiary Pledgor's properties
         except for the benefit of the Agent and the Banks.

         3.2 Government Approval, Regulation, etc. No authorization or approval
or other action by, and no notice to or filing with, any governmental authority
or regulatory body or other Person is required for the due execution, delivery
or performance by the Company of this Amendment or by the Company or the
Subsidiary Pledgor of any other Loan Document to be executed by the Company or
the Subsidiary Pledgor in connection with this Amendment.

         3.3 Validity, etc. This Amendment constitutes, and each other Loan
Document executed by the Borrower or the Subsidiary Pledgor in connection with
this Amendment will, on the due execution and delivery thereof, constitute, the
legal, valid and binding obligations of the Company or the Subsidiary Pledgor,
as applicable, enforceable in accordance with their respective terms.

         SECTION 4 MISCELLANEOUS.

         4.1 Continuing Effectiveness, etc. This Amendment shall be deemed to be
an amendment to the Credit Agreement, and the Credit Agreement, as amended
hereby, shall remain in full force and effect and is hereby ratified, approved
and confirmed in each and every respect. After the effectiveness of this
Amendment in accordance with its terms, all references to the Credit Agreement
in the Loan Documents or in any other document, instrument, agreement or writing
shall be deemed to refer to the Credit Agreement as amended hereby.

         4.2 Payment of Costs and Expenses. The Company agrees to pay on demand
all reasonable expenses of the Agent (including the reasonable fees and
out-of-pocket expenses of counsel to the Agent) in connection with the
negotiation, preparation, execution and delivery of this Amendment.

         4.3 Severability. Any provision of this Amendment which is prohibited
or unenforceable in any jurisdiction shall, as to such provision and such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Amendment
or affecting the validity or enforceability of such provision in any other
jurisdiction.

         4.4 Headings. The various headings of this Amendment are inserted for
convenience only and shall not affect the meaning or interpretation of this
Amendment or any provisions hereof.

         4.5 Execution in Counterparts. This Amendment may be executed by the
parties hereto in several counterparts, each of which shall be deemed to be an
original and all of which shall constitute together but one and the same
agreement.

         4.6 Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS.


                                       12
<PAGE>   13
         4.7 Successors and Assigns. This Amendment shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors
and assigns.


                                       13
<PAGE>   14
         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized as of the day
and year first above written.

                                        ORACLE REINSURANCE COMPANY, LTD.

                                        By:____________________________________
                                        Title:_________________________________
<PAGE>   15
                                        BANK OF AMERICA NATIONAL TRUST
                                         AND SAVINGS ASSOCIATION,
                                         as Agent

                                        By:____________________________________
                                        Title:_________________________________
<PAGE>   16
                                        BANK OF AMERICA NATIONAL TRUST
                                         AND SAVINGS ASSOCIATION,
                                         as L/C Administrator and Fronting Bank

                                        By:____________________________________
                                        Title:_________________________________
<PAGE>   17
                                        BANK OF AMERICA NATIONAL TRUST
                                         AND SAVINGS ASSOCIATION, as a Bank

                                        By:____________________________________
                                        Title:_________________________________
<PAGE>   18
                                        THE BANK OF NEW YORK,
                                         as Co-Agent and as a Bank

                                        By:____________________________________
                                        Title:_________________________________
<PAGE>   19
                                        DEUTSCHE BANK AG, New York and/or
                                         Cayman Islands Branches, as Co-Agent
                                         and as a Bank


                                        By:____________________________________
                                        Title:_________________________________

                                        By:____________________________________
                                        Title:_________________________________
<PAGE>   20
                                        DRESDNER BANK A.G.,
                                         New York Branch and Grand Cayman
                                         Branch, as Co-Agent and as a Bank

                                        By:____________________________________
                                        Title:_________________________________

                                        By:____________________________________
                                        Title:_________________________________
<PAGE>   21
                                        FLEET NATIONAL BANK,
                                         as Co-Agent and as a Bank

                                        By:____________________________________
                                        Title:_________________________________
<PAGE>   22
                                        NATIONSBANK OF TEXAS,  N.A.,
                                         as a Bank

                                        By:____________________________________
                                        Title:_________________________________
<PAGE>   23
                                        THE BANK OF BERMUDA LTD.,
                                         as a Bank

                                        By:____________________________________
                                        Title:_________________________________
<PAGE>   24
                              AGREEMENT AND CONSENT

         The undersigned hereby agrees and consents to the terms and provisions
of the foregoing First Amendment to Credit Agreement, and agrees that the Loan
Documents executed by the undersigned shall remain in full force and effect
notwithstanding the provisions of the foregoing First Amendment to Credit
Agreement.

Dated: _______________, 1999

                                        DELPHI INTERNATIONAL LTD.

                                        By_____________________________________
                                          Title:_______________________________
<PAGE>   25
                                    Exhibit L
                      Subsidiary Pledgor Security Agreement