EXHIBIT 10.20


                                                              December 10, 1997


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                           DEFERRED COMPENSATION PLAN

                           FOR UNITED STATES EMPLOYEES
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    For Certain United States Employees of Everest Reinsurance Holdings, Inc.

                       and its participating subsidiaries
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PURPOSE              The Deferred Compensation Plan ("Plan") permits deferral of
                     all  or  part  of  the  cash  bonuses  awarded   under  the
                     Annual Incentive Plan and  Chief  Executive  Officer  Bonus
                     Plan  to  a specified date or occurrence.
                     

ELIGIBLE             U.S. Employees of Everest Reinsurance  Holdings,  Inc.  and
PARTICIPANTS         its participating  subsidiaries  at  Vice President through
                     Chief Executive Officer rank  who  have  a  minimum  annual
                     salary  of  $150,000  in  1997  and  each  year  thereafter
                     increasing  the  minimum  salary  by  3%  of  the  previous
                     year's threshold amount.
                     

ELIGIBLE             The  following  elements of compensation may be deferred in
COMPENSATION         whole or in part:

                       * Bonuses awarded under the Annual Incentive Compensation
                         Plan
                       * Bonuses  awarded  under the  Chief  Executive Officer's
                         Bonus Plan

PERIOD OF            Compensation  as  described  above may be deferred  until a
DEFERRAL             specified date, retirement, January 1 of the year following
                     retirement, or such dates as  may apply if death, permanent
                     disability, extreme hardship or  termination  of employment
                     occurs.  ALL  PAYMENTS   MUST  BEGIN   NO  LATER  THAN  THE
                     PARTICIPANT'S ATTAINMENT OF AGE 70 1/2.


AMOUNT OF            The entire incentive  payment, or any 10% multiple thereof,
DEFERRAL             may be deferred.


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ELECTION             1. The  election  shall  be  made by  completing a Deferred
                        Compensation  Election  Form. For bonuses  which may  be
                        awarded  in  1998,  this  form  must  be  completed  and
                        returned by December 31, 1997.  For bonuses which may be
                        awarded in 1999 and subsequent  years, this form must be
                        completed  and  returned  by  December 31st  of the year
                        preceding  the  year  in  which  the  services  will  be
                        performed.  If an Election  Form is not  returned by the
                        deadline for any  given  year, it  will be  assumed that
                        there  is  no  desire  to  participate  in  the Deferred
                        Compensation  Plan  for  that  particular  year  and  no
                        follow-up will be made.


                     2. When  such  elections  are  made, the  participant  must
                        elect:

                        a.   A payment date.  Participants may elect a different
                             payment date for each year that they participate in
                             the Plan. The payment date options are:

                               *  Retirement,
                               *  January 1 of the year following retirement, or
                               *  any future specified date.

                        b.   A distribution option  for  payments  made  at  the
                             elected date:

                               *  a single sum,
                               *  12 quarterly installments,
                               *  or 20 quarterly installments.

                        c.   A  distribution  option  in  case of termination of
                             employment:

                               *  a single sum payable at termination, or
                               *  12 quarterly  installments beginning January 1
                                  of the year following termination.


                     3. The  election    to   defer    compensation   shall   be
                        irrevocable,  subject  to  the  hardship   provisions as
                        outlined in Payment  Section 2 below.


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DEFERRED             1. A  record  shall  be   established   for  each  eligible
COMPENSATION            individual who elects to defer compensation.
ACCOUNTS
                     2. The  amount elected for deferral will be credited on the
                        date the funds would otherwise have been paid.

                     3. The amounts deferred  will  accrue  interest,  beginning
                        with the date of deferral until  such time as payment is
                        made.

                     4. Interest on amounts deferred will be credited  at a rate
                        each year equal to the  rates  established for the Fixed
                        Rate  Fund   under  the  Everest   Reinsurance  Employee
                        Savings  Plan  (ERESP)  rounded  up to the  next  higher
                        quarter percent.


PAYMENT              1. Payment  will  begin  on   the  specified  date  or  the
                        occurrence the  participant  selected  for  each  year's
                        deferred  funds but  not  later  than  attainment of age
                        70 1/2. The form of payment(s) will be made according to
                        the option(s) selected for each year's  deferred  funds.
                        Regardless  of  the  option  elected,  payment  will  be
                        made in a single sum if death occurs.


                        a.  Payments are subject to such  deductions  as  may be
                            required  in  accordance  with   federal  and  state
                            tax regulations.

                        b.  Should  permanent  disability  occur,  payment(s) in
                            the elected form will begin immediately.  If monthly
                            installments have  already  started,  payments  will
                            continue   for   the   remainder   of  the   elected
                            installment period.


                              NOTE: THE  PARTICIPANT   SHALL  BE  DEEMED  TO  BE
                              PERMANENTLY  DISABLED  IF HE OR SHE WOULD  QUALIFY
                              FOR  BENEFITS  UNDER  THE   COMPANY'S   APPLICABLE
                              LONG-TERM DISABILITY BENEFITS PLAN.


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PAYMENT                 c.  Should  death occur when monthly  installments  have
CONT.                       already started, the balance  of  the  participant's
                            deferred  compensation  account  shall   immediately
                            become due and payable in one single sum.


                        d.  Should termination occur  when  monthly installments
                            have already started, payments  will  continue   for
                            the remainder of the elected installment period.


                     2. Only in case of extreme hardship  may  contributions  to
                        the Plan be discontinued and/or  payment of the  amounts
                        already deferred be advanced.


                        a.  If contributions are to be discontinued  or  payment
                            advanced, the  amount  involved  cannot  exceed  the
                            funds required to satisfy the financial consequences
                            of the hardship.


                        b.  FOR PURPOSES OF THIS  PLAN, EXTREME  HARDSHIP  SHALL
                            MEAN    ANY    UNFORESEEABLE    AND    EXTRAORDINARY
                            OCCURRENCE  OR EVENT,  SUCH AS  ILLNESS, ACCIDENT OR
                            FAMILY   PROBLEMS   RESULTING  IN   A  PARTICIPANT'S
                            FINANCIAL NEED THAT CANNOT  BE MET FROM OTHER ASSETS
                            OR NORMAL SOURCES OF INCOME.



ASSIGNMENT           No rights under the Plan shall be transferable.



EMPLOYEE             The  following  items   apply  to  deferred   amounts  that
BENEFITS             normally  generate benefits:

                     Retirement benefits attributable  to compensation that  has
                     been deferred shall be provided on a non-qualified basis.

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BENEFICIARY          A participant may designate an individual, a trustee or his
DESIGNATIONS         or her estate as beneficiary.  A participant may change his
                     or  her  beneficiary  at  any  time. The request must be in
                     writing and in a form approved by the Company. It will take
                     effect  only  when  it  is  received  in  the  compensation
                     administration   area  of  the  corporate  Human  Resources
                     Department. Any previous beneficiary's interest will end as
                     of the date the request is received even if the participant
                     is  not  living   when  the   request  is  received.  If  a
                     participant fails to designate  a  beneficiary  or  if  the
                     designated  beneficiary  does  not survive the participant,
                     payment will be made to the participant's estate.



ADMINISTRATION       The  Plan  shall be  administered by the members of Everest
                     Reinsurance  Company's Employee  Benefits Committee.   This
                     committee  will have  responsibility for its interpretation
                     and, subject to its provisions, authority   to   make   all
                     determinations necessary or desirable for its operation.



TERMINATION          The Board of Directors  may  terminate the Plan at any time
AND AMENDMENT        so  that  no further amounts shall  be credited to Deferred
                     Compensation Accounts or may, from time to time, amend  the
                     Plan, provided, however, no  such  amendment or termination
                     shall impair any rights which have accrued under the Plan.

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