Document:

EXHIBIT 10.15

SETTLEMENT AGREEMENT AND MUTUAL AND GENERAL RELEASE

This Settlement Agreement and Mutual and General Release (the "Settle-
ment greement") is made and entered into as of the 25th day of January
, 2001, by and between Worldwide Wireless Networks, Inc., a corporation
organized and existing under the laws of the State of Nevada (the
"Company") and Sinclair Davis Trading Corporation., a corporation
organized and existing under the laws of the State of New York ("SD
Corporation"), directly and for and on behalf of their respective
predecessors, agents, servants, employees, owners, shareholders,
officers, directors, partners, associates, attorneys, representaives,
successors, assigns, heirs, spouses, former spouses, domestic or other
partners, agencies, firms, brokers, appraisers, associations, partner-
ships, sole proprietorships and corporations, and each and all of them
, as appropriate in context, and is based upon the following Recitals.
The Company and SD Corporation are sometimes referred to collectively
herein as the "Parties".

R E C I T A L S

A.      The Parties previously have entered into that certain S.D.
Trading Corp. Agreement by and between SD Corporation and the Company
(the "Agreement") dated November 29, 2000.

B.      The Parties have now rescinded that Agreement due to various
mistakes of fact and other issues which have arisen with respect to
the Agreement.

C.      The Parties now desire to settle and resolve these matters
between one another on the terms and conditions set forth in this
Settlement Agreement, to release each other from any liability
therefor and to establish the framework for moving forward with a
new, mutually acceptable agreement between the Parties.

      NOW, THEREFORE, in consideration of the terms, conditions and
covenants contained herein, the receipt and sufficiency of which are
hereby acknowledged, the Parties, intending to be legally bound,
agree as follows:

A G R E E M E N T

1.      Nature of Settlement Agreement.  This Settlement Agreement
constitutes a fully-executed settlement instrument, accord and
satisfaction, and a general, specific and mutual release of all
claims by each of the Parties against the others arising from any
disputes, claims, controversies, and allegations of whatever nature,
whether or not expressly referred to in the Recitals, arising out of
or resulting from the Agreement and its subsequent rescissions.

2.      Terms of Settlement Agreement and Release.

2.1      Ratification of Rescission.  Upon execution of this Settlement
Agreement, the Parties hereby ratify and confirm their prior rescission
of the Agreement, and that all provisions, rights, and obligations
stated therein have been unwound, revoked and are of no further force
or effect.

      2.2      Consideration.  As consideration for the release of all
matters in dispute or potentially in dispute between the Parties, and
in exchange for the release of all claims or potential claims between
them, whether or not capable of being asserted in any legal proceeding,
upon the execution of this Settlement Agreement by the Parties, the
Company shall:

(a)      issue to SD Corporation a stock certificate evidencing SD
Corporation's ownership of two hundred twelve thousand five hundred
(212,500) shares of the restricted common stock of the Company (the
"Settlement Shares");

(b)      file a registration statement to register the Settlement
Shares within thirty (30) days of the date of this Agreement (the
"Effective Date");

(c)      in the event that the Company does not file the registration
statement to register the Settlement Shares within thirty (30) days
after the Effective Date, the Company shall issue, as a premium and
without further consideration paid by SD Corporation, an additional
twenty thousand (20,000) shares of restricted Common Stock on the
31st day after the Effective Date to SD Corporation (upon the request
of SD Corporation, the premium shares can be deposited into a third-
party escrow, on terms which are mutually-acceptable to both parties,
to ensure their delivery to SD Corporation should the conditions
therefor be met);

(d)      in the event that the Company does not file the registration
statement to register the Settlement Shares within forty (40) days
after the Effective Date, the Company shall issue, as a premium and
without further consideration paid by SD Corporation,  an additional
thirty thousand (30,000) shares of restricted Common Stock on the
41st day after the Effective Date to SD Corporation, bringing the
total amount of premium shares issued to SD Corporation pursuant to
Clauses (c) and (d) of this Section 2.1 to Fifty Thousand (50,000)
Premium Shares.

2.3      Representations and Warranties.

(a)      Each Party hereby represents and warrants to each other that
such Party has not assigned, conveyed or transferred, or purported
to assign, convey or transfer to any person, firm or corporation,
either voluntarily or involuntarily, any claim, cause of action, or
right based on, or arising out of, or in connection with any matter,
fact or issue related to the Agreement.  To the extent any Party has
assigned or transferred any claim, cause of action, or right based
on or arising out of these matters, whether voluntarily or involun-
tarily, or otherwise breached this warranty, said Party agrees to
defend, indemnify and hold harmless each and all other Parties and
their predecessors, successors, assigns, representatives, trustees,
directors, officers, spouses, former spouses, domestic and other
partners, agencies, shareholders, beneficiaries, agents, employees,
receivers, attorneys, and each of them, from and against any claim,
demand, debt, liability, account, obligation, cost, damage expense,
lien, action or cause of action (including payment of legal fees
and costs) based on or arising out of, or in connection with, any
such transfer, conveyance or assignment, or the purported or claimed
transfer, conveyance or assignment; and

(b)      each Party hereby further represents and warrants to the
other Parties, as applicable, the following:

(i)      each Party is an entity organized and existing in good
standing under the laws of the jurisdiction set forth in the
Preamble to this Settlement Agreement;

(ii)      each person signing this Settlement Agreement on behalf of
a Party has the full power and authority to execute and deliver such
Settlement Agreement on behalf of such Party, which Settlement
Agreement, once so executed and delivered, shall be the legal and
binding obligation of such Party, enforceable against such Party by
any court of competent jurisdiction in accordance with their
respective terms; and

(iii)      no Party is a party to any contract, arrangement, undertaking,
understanding, order, judgment, decree, law or statute which would
restrict or limit such Party's ability to perform under the Settlement
Agreement in accordance with its terms.

(c)      The Parties each hereby agree that they shall be responsible
for, and shall hold harmless and indemnify the other Party from and
against, any obligation, liability, loss, cost, charge, damage or
expense (including, but not limited to, reasonable attorneys' fees
in defense thereof) of whatever type or nature to the extent any
such obligation, liability, loss, cost, charge, damage or expense
is the direct result from, or arises out of, such Party's breach of
any material representation, warranty, covenant or agreement contained
in this Settlement Agreement.

2.4      Release of All Claims.  In consideration for this Settlement
Agreement and the terms recited herein, the Parties hereby release and
discharge each other and their respective predecessors, agents,
servants, employees, owners, shareholders, officers, directors,
partners, associates, attorneys, representatives, successors, assigns,
heirs, spouses, former spouses, domestic or other partners, agencies,
firms, brokers, appraisers, associations, partnerships, sole proprietor-
ships and corporations, and each and all of them, of and from any and
all obligations, liability, guarantees, actions, causes of action,
damages, judgments, executions, debts, costs, expenses, attorney fees,
taxes, liens, notes, securities, stocks, bonds, investments, claims,
and demands whatsoever under the laws of the State of California, and
of any other state of the United States and/or the United States of
America and the laws of any other nation, country, territory or juris-
diction, for, from, upon, under, on account of, growing or arising out
of, or related to any and all acts, claims, factual circumstances,
transactions, and occurrences referenced in the Recitals including,
but not limited to, any and all obligations, contracts, liabilities,
compensation (regular, overtime or benefits) due, guarantees, actions,
causes of action and claims for relief arising by statute, common law
or otherwise, judgments, indemnification agreements, hold harmless
agreements, executions, debts, costs, expenses, attorney fees, damages,
taxes, liens, notes, securities, stocks, bonds, investments, claims,
charges and losses, of any kind, nature and character, now existing,
known or unknown, or later becoming known, accrued or later accruing,
resulting directly or indirectly, proximately or remotely, from any
and all of the matters and things arising prior to, and subsequent to,
the date this Settlement Agreement is executed (except as to all
obligations arising under this Settlement Agreement).  This release
specifically applies to any and all claims and/or issues relating in
any way to the Parties' dialogues, interests in or to any other aspect
of the Company (except as to all performance obligations arising under
this Settlement Agreement).  The Parties acknowledge a full compromise
and settlement, accord and complete satisfaction thereof.  The Parties
acknowledge that they may later discover facts different from or in
addition to those they now know or believe to be true with respect to
the claims, demands, causes of action, obligations, damages, and
liabilities of any nature that are the subject of this Settlement
Agreement and release.  The Parties expressly agree that this Settlement
Agreement and release shall be and remain effective in all respects
regardless of such additional or different facts.

2.5      Section 1542 Waiver.  It is further understood and agreed that
the Parties specifically and expressly waive any and all rights under
Section 1542 of the California Civil Code, or any analogous federal,
state or municipal law, rule, regulation or ordinance. Section 1542
provides as follows:

[Certain Claims Not Affected By General Release.]

"A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing the
Release, which if known by him, must have materially effected his
settlement with the debtor."

2.6      Attorney's Fees and Costs.  The Parties agree that each will
bear their own costs and attorneys' fees incurred in connection with
all matters resolved by this Settlement Agreement, except as otherwise
may be expressly provided in this Settlement Agreement.

3.      Good Faith Motion.  The Parties agree to support any motion
for a determination of good faith settlement initiated by any Party
hereto with respect to any pending or future litigation and, further,
to provide counsel for the moving party any declarations under penalty
of perjury or affidavits necessary or reasonably requested in support
thereof.

4.      Remedies in the Event of a Breach.  In the event of a breach
of this Settlement Agreement, all legal and equitable remedies may be
employed to enforce the terms herein, including, but not limited to,
temporary restraining orders and preliminary injunctions, the support
for which will be based on this Settlement Agreement and declarations
or other prima facie proof of a violation of the terms.  In the event
of a violation of this Settlement Agreement, or any terms herein, the
prevailing Party will be entitled to recover from the losing party the
prevailing Party's reasonable attorney's fees and costs.

5.      Successors.  This Settlement Agreement is binding upon and
shall inure to the benefit of the Parties and each party's respective
successors, predecessors, assigns, heirs, spouses, principals, agents
and personal representatives.

6.      Interpretation.  The Parties acknowledge and agree that they
have been given the opportunity to independently review this Settlement
Agreement with legal counsel prior to acceptance and agreement to the
particular language and provisions.  In the event of an ambiguity in,
or dispute regarding the interpretation of same, the interpretation of
this Settlement Agreement shall not be resolved by any rule of inter-
pretation providing for interpretation against the party who causes the
uncertainty to exist or against the drafts.

7.      Entire Agreement.  This Settlement Agreement contains the sole
and entire agreement and understanding of the Parties with respect to
the entire subject matter, and any and all prior discussions, negotia-
tions, commitments and understandings related hereto are merged herein.
No representations, oral or otherwise, express or implied other than
those contained in this Settlement Agreement have been made by any
Party. No other agreements not specifically referred to herein, oral
or otherwise, shall be deemed to exist or to bind any of the Parties
hereto.

8.      Terms Mutually Independent.  Each provision of this Settlement
Agreement is independent of each other provision, except that this
Settlement Agreement shall only be effective upon full performance as
to the recited consideration and the extension of the full, complete,
mutual, general and specific releases.  Except for the mutual releases,
in the event any provision is deemed invalid under applicable law,
such term shall be severed from this Settlement Agreement and not
otherwise affect the remaining terms.

9.      Waiver, Modification and Amendment. No provisions of this
Settlement Agreement may be waived unless in writing and signed by
all Parties.  Waiver of any one provision shall not be deemed to be
a waiver of any other provision. This Settlement Agreement may be
modified or amended only by a later writing signed by all of the
Parties.

10.      Governing Law; Venue. This Settlement Agreement shall be
governed by and construed in accordance with the internal laws of the
State of California applicable to the performance and enforcement of
contracts made within such state, without giving effect to the law of
conflicts of laws applied thereby.  In the event that any dispute shall
occur between the parties arising out of or resulting from the
construction, interpretation, enforcement or any other aspect of this
Settlement Agreement, the parties hereby agree to accept the exclusive
jurisdiction of the Courts of the State of California sitting in and
for the County of Orange.  In the event either party shall be forced
to bring any legal action to protect or defend its rights hereunder,
then the prevailing party in such proceeding shall be entitled to
reimbursement from the non-prevailing party of all fees, costs and
other expenses (including, without limitation, the reasonable expenses
of its attorneys) in bringing or defending against such action.

11.      Specific Performance; Remedies Cumulative.  The Parties hereby
agree with each other that, in the event of any breach of this Settle-
ment Agreement by any party where such breach may cause irreparable
harm to any other Party, or where monetary damages may not be
sufficient or may not be adequately quantified, then the affected Party
or parties shall be entitled to specific performance, injunctive relief
or such other equitable remedies as may be available to it, which
remedies shall be cumulative and non-exclusive, and in addition to such
other remedies as such party may otherwise have at law or in equity.

12.      Titles and Captions.  Paragraph titles and captions contained
in this Settlement Agreement are inserted only as a matter of
convenience and for reference and in no way define, limit, extend or
describe the scope of this Settlement Agreement or the intent of any
provision.

13.      Counterpart Signature Pages.  This Settlement Agreement may be
executed by the Parties (and signed off on as having been reviewed and
approved as to form by counsel of record) through counterpart signature
pages (and not as part of one document bearing all signatures
consecutively), all of which, when taken together, shall constitute
satisfaction of the signature requirements.

14.      Notices.  All notices required under this Settlement Agreement
shall be deemed effective if served by telecopier or, in the option of
the sender, by Federal Express or other overnight delivery system (in
which case service will be deemed effective on in-hand receipt), and
shall be forwarded to the Parties as follows:

      (a)      If to the Company, to Mr. Jerry Collazo, 770 The City
Drive South, Suite 3700, Orange, California, 92868; T: (714) 937-5500;
F: (714) 937-6310.

            (b)      If to Sinclair Davis Trading Corporation, to
Brooke Bray, 108 Harbor Rd, Head of the Harbor, New York, 11780

Should addresses, facsimile numbers or other identified information
change, notice shall be given in accordance with this provision.

15.      Authority.  The undersigned individuals and/or entities execute
this Settlement Agreement on behalf of their respective parties, and
represent and warrant that said individual and/or entities are authorized
to enter into and execute this Settlement Agreement on behalf of such
Parties, that the appropriate corporate resolutions or other consents
have been passed and/or obtained (if necessary), and that this Settlement
Agreement shall be binding on the party on whose benefit they are
executing this Settlement Agreement.

[SIGNATURES ON FOLLOWING PAGE]

IN WITNESS WHEREOF, the parties hereto have executed this Settlement
Agreement as of the date and year first above written.

WORLDWIDE WIRELESS
NETWORKS, INC.                              ATTEST:

By: /s/ Jerry Collazo               By: /s/
        -------------                       ----------
        Jerry Collazo
        President                           Secretary

SINCLAIR DAVIS TRADING CORPORATION, INC.    ATTEST:

By: /s/ Brooke Bray                 By: /s/
        -----------                         ----------
        Brooke Bray
        President                           Secretary

Dated:  January 26, 2001

ITEM 28:  UNDERTAKINGS

The undersigned registrant will:

(1)      File, during any period in which it offers or sells
securities, a post-effective amendment to this registration
statement to:

(i)      Include any prospectus required by section (10)(a)(3)
of the Securities Act;

(ii)      Reflect in the prospectus any facts or events which,
individually or together, represent a fundamental change in the
information in the registration statement. Notwithstanding the
foregoing, any increase or decrease in volume of securities
offered (if the total dollar value of securities offered would
not exceed that which was registered) and any deviation from the
low or high end of the estimated maximum offering range may be
reflected in the form of prospectus filed with the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in the
volume and price represent no more than a 20% change in the
maximum aggregate offering price set forth in the "Calculation
of Registration Fee" table in the effective registration
statement.

(iii)      Include any additional or changed material information
on the plan of distribution.

(1)      For determining liability under the Securities Act,
treat each post-effective amendment as a new registration statement
of the securities offered, and the offering of the securities at
that time to be the initial bona fide offering.

(2)      File a post-effective amendment to remove from registration
any of the securities that remain unsold at the end of the offering.

(3)      Insofar as indemnification for liabilities arising under
the Securities Act may be permitted to directors, officers and
controlling persons of Worldwide Wireless pursuant to the above
mentioned provisions, or otherwise, we have been advised that in
the opinion of the Securities and Exchange Commission this
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable.

(4)      In the event that a claim for indemnification against
these liabilities (other than the payment by us of expenses incurred
or paid by a director, officer or controlling person of Worldwide
Wireless in the successful defense of any action, suit or proceeding)
is asserted by a director, officer or controlling person in connection
with the securities being registered, we will, unless in the opinion
of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
this indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of this issue.

SIGNATURES

In accordance with the requirements of the Securities Act of 1933,
the registrant certifies that it has reasonable grounds to believe
that it meets all of the requirements for filing on Form SB-2 and
authorized this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of
Orange, State of California, on March 16, 2001.

Worldwide Wireless Networks, Inc.
  (Registrant)

By:   /s/  Jerry Collazo
           -------------
           Jerry Collazo
           Chief Executive Officer

In accordance with the requirements of the Securities Act of 1933,
this registration statement has been signed by the following persons
in the capacities and on the dates stated.

Signature            Title                          Date

/s/ Jerry Collazo
    -------------    Chief Executive Officer        March 16, 2001
    Jerry Collazo

/s/ Jerry Collazo
    -------------    Chief Financial Officer and    March 16, 2001
    Jerry Collazo    Principal Accounting OfficerExhibit 10.19

================================================================================

                                 FIRST AMENDMENT

                                     to the

                                CREDIT AGREEMENT,
                         dated as of December 21, 1999,

                                      among

                       EVEREST REINSURANCE HOLDINGS, INC.,

                            THE LENDERS NAMED HEREIN,

                                       and

                           FIRST UNION NATIONAL BANK,
                            as Administrative Agent,

                                 Lead Arranger:
                          FIRST UNION SECURITIES, INC.

                          Dated as of December 18, 2000

================================================================================

<PAGE>

EXHIBITS
--------

Exhibit A                  Form of Guarantor Consent
Exhibit B-1                Form of Opinion for Mayer, Brown & Platt
Exhibit B-2                Form of In-House Counsel Opinion
Exhibit B-3                Form of Opinion for Conyers, Dill & Pearman

SCHEDULES
---------

Schedule 1.1               Commitments

                                      (i)
<PAGE>
                                 FIRST AMENDMENT

         THIS FIRST AMENDMENT, dated as of December 18, 2000 (this "Amendment"),
is made in respect of the Credit  Agreement,  dated as of December 21, 1999 (the
"Credit Agreement"),  among EVEREST REINSURANCE HOLDINGS, INC., as Borrower, the
financial  institutions  listed on the  signature  pages  thereof or that become
parties  thereto after the date thereof,  as Lenders,  and FIRST UNION  NATIONAL
BANK, as  Administrative  Agent for the Lenders.  Capitalized terms used but not
defined  herein  shall  have  the  meanings  given to such  terms in the  Credit
Agreement,  as amended by this Amendment.  Unless otherwise  specified,  section
references  herein  refer to  sections  set forth in the  Credit  Agreement,  as
amended by this Amendment.

         The Lenders have agreed to temporarily increase the aggregate amount of
the Commitments, all upon the terms and conditions set forth herein.

                             STATEMENT OF AGREEMENT

         NOW, THEREFORE,  for good and valuable  consideration,  the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, for themselves
and their successors and assigns, agree as follows:

                                   ARTICLE I

                          AMENDMENT TO CREDIT AGREEMENT

    1.1  Section  1.1  is  hereby  amended  by  adding the following definitions
thereto in appropriate alphabetical order:

                  "AMENDMENT  FEE LETTER" shall mean the letter from First Union
         to the  Borrower,  dated  December 18,  2000,  relating to certain fees
         payable by the Borrower in respect of the First Amendment

                  "FIRST AMENDMENT" shall mean the First Amendment to the Credit
         Agreement,  dated as of December  18,  2000,  among the  Borrower,  the
         Lenders, and the Administrative Agent.

                  "FIRST AMENDMENT  EFFECTIVE DATE" shall have the meaning given
         to such term in the First Amendment.

                  "GUARANTOR  CONSENT" shall mean the Guarantor Consent,  in the
         form of Exhibit A to the First  Amendment,  executed  and  delivered by
         Everest Re Group,  Ltd.  on or prior to the First  Amendment  Effective
         Date.

    1.2  Section  1.1  is  hereby further amended  by  replacing  the  following
definitions,  as currently set forth therein,  with the definitions as set forth
below:

                  "AGREEMENT"  shall mean this Credit  Agreement,  as amended by
         the First Amendment,  and as further amended,  modified or supplemented
         from time to time.
<PAGE>
                  "PARENT GUARANTY" shall mean the Guaranty Agreement,  dated as
         of  February  24,  2000,   made  by  the  Guarantor  in  favor  of  the
         Administrative  Agent and the  Lenders,  as  amended  by the  Guarantor
         Consent, and as further amended,  modified or supplemented from time to
         time.

    1.3  The definition of "Commitment" in Section 1.1 is hereby amended to read
in full as follows:

                  "COMMITMENT"  shall  mean,  with  respect to any Lender at any
         time,  the amount set forth opposite such Lender's name on Schedule 1.1
         or,  if  such  Lender  has  entered  into  one or more  Assignment  and
         Acceptances,  the amount set forth for such  Lender at such time in the
         Register  maintained by the  Administrative  Agent  pursuant to Section
         10.7(b) as such Lender's  Commitment,  as such amount may be reduced at
         or prior to such time pursuant to the terms hereof.

    1.4  Section 2.4(b) is hereby amended by replacing the references therein to
the term "Closing Date" with the term "First Amendment Effective Date".

    1.5  Section 2.5 is hereby amended by changing  clause (c) thereof to clause
(d) and inserting as new clause (c) to read as follows:

         (c) On April 16, 2001, the aggregate Commitments shall be automatically
         and permanently reduced to $150,000,000.

    1.6  Section  2.6(b)  is  hereby  amended  by  inserting  the  parenthetical
phrase "(including,  without  limitation,  in the event of a mandatory reduction
of the Commitments  pursuant to Section  2.5(c))," after the words "at any time"
on the first line therein.

    1.7  The  Credit  Agreement  is  hereby  amended  by adding (i) Schedule 1.1
thereto  with  the  new Commitment amounts as set forth on SCHEDULE 1.1 attached
hereto and  (ii)  deleting  the amounts and  "Commitment"  caption  set forth on
the Lenders' signature pages thereto.

                                   ARTICLE II

                                  EFFECTIVENESS

         This Amendment shall become effective on the date (the "FIRST AMENDMENT
EFFECTIVE  DATE")  when the last of the  following  conditions  shall  have been
satisfied:

         (a) The  Administrative  Agent shall have received counterparts of this
Amendment, duly executed by the Borrower and the Lenders  listed on SCHEDULE 1.1
attached hereto and in sufficient copies for each Lender.

         (b) The Administrative  Agent  shall  have received the following, each
dated as of the First Amendment Effective Date (unless otherwise specified) and,
except for the Notes, in sufficient copies for each Lender:

                                       2
<PAGE>
                (i)  Notes for each Lender listed on SCHEDULE 1.1, in the amount
         of such Lender's Commitment, in each case, duly completed in accordance
         with the relevant provisions of Section 2.4 of the Credit Agreement  as
         amended by this Amendment;

                (ii) the  Guarantor  Consent,  duly  completed  and  executed by
         Everest Re Group, Ltd., in substantially the form of EXHIBIT A; and

                (iii) the favorable opinions of (A) Mayer Brown & Platt, special
         counsel to the Guarantor,  in  substantially  the form of EXHIBIT  B-1,
         (B) Janet Burak, General Counsel of the Borrower,  in substantially the
         form of EXHIBIT B-2, and (C) Conyers,  Dill & Pearman, Bermuda  counsel
         to the Guarantor, in substantially the form of EXHIBIT B-3.

         (c) The Administrative Agent shall have received a certificate,  signed
by  the  president,  the  chief  financial  officer,  treasurer  or  comptroller
of  the Borrower,  in form  and  substance  satisfactory  to the  Administrative
Agent,  certifying  that  (i) all representations and warranties of the Borrower
contained  in the Credit  Agreement and the other Credit  Documents are true and
correct in  all  material  respects on and as of the First  Amendment  Effective
Date, both immediately before and after giving effect to this  Amendment (except
to  the  extent  any such representation or warranty is expressly stated to have
been made as of a specific  date, in which case such  representation or warranty
shall be  true  and correct in all material  respects as of such date),  (ii) no
Default or  Event of Default has occurred and is  continuing,  both  immediately
before and  after giving effect to this Amendment,  (iii) there are no insurance
regulatory  proceedings pending or, to such individual's  knowledge,  threatened
against any  Insurance  Subsidiary  in  any  jurisdiction  that,  if  reasonably
possible  (as  defined  under  FASB 5)  to  be  adversely  determined,  would be
reasonably likely to have a  Material Adverse Effect, and (iv) both  immediately
before and after  giving  effect to this Amendment,  no Material  Adverse Change
has occurred since  December 31, 1999,  and there exists no event,  condition or
state of facts that could reasonably be expected to result in a Material Adverse
Change.

         (d) Since  December 31, 1999, both immediately  before and after giving
effect to  the  consummation of the transactions contemplated by this Amendment,
there shall  not  have  occurred  any  Material  Adverse  Change  or  any event,
condition or state  of facts that  could  reasonably  be  expected  to result in
a Material  Adverse Change.

         (e) The Borrower  shall have paid (i) to First Union,  on behalf of the
Lenders, the amendment fee  described in the Amendment Fee Letter, on the terms,
in the  amount  and at the times set forth therein;  and (ii) all other fees and
expenses  of the  Administrative  Agent and the Lenders  required  hereunder  or
under any  other Credit  Document to be paid on or prior to the First  Amendment
Effective Date.

         (f) The  Administrative  Agent  shall   have   received  a   Compliance
Worksheet, duly completed  and certified by the chief  financial  officer of the
Borrower and in form and  substance  satisfactory  to the Administrative  Agent,
demonstrating  compliance with the financial covenants set forth in Sections 6.1
through 6.3 of  the  Credit  Agreement,  determined  on a  pro forma basis as of
December 18, 2001,  after  giving  effect to the Amendment and the  consummation
of the  transactions contemplated hereby.

                                       3
<PAGE>
         (g) The Administrative Agent and each Lender shall have  received  such
other documents, certificates, and instruments in connection with this Amendment
and the other transactions contemplated  hereby  as  it  shall  have  reasonably
requested.

On  the  First  Amendment   Effective   Date,  the  Credit   Agreement  will  be
automatically  amended  as set forth  herein.  On and after the First  Amendment
Effective  Date,  the rights and  obligations  of the  parties  hereto  shall be
governed by the Credit  Agreement as amended by this Amendment;  PROVIDED,  that
the rights and  obligations  of the parties  hereto  with  respect to the period
prior to the First Amendment Effective Date shall continue to be governed by the
terms of the Credit Agreement.

                                  ARTICLE III

                                     GENERAL

    3.1 FULL FORCE AND EFFECT. Except as expressly  amended  hereby,  the Credit
Agreement  shall  continue  in full  force  and  effect in  accordance  with the
provisions  thereof  on the  date  hereof.  As  used  in the  Credit  Agreement,
"hereinafter," "hereto," "hereof," and words of similar import shall, unless the
context  otherwise  requires,  mean the Credit Agreement after amendment by this
Amendment.  Any  reference  to the Credit  Agreement  or any of the other Credit
Documents  herein or in any such documents  shall refer to the Credit  Agreement
and Credit Documents as amended hereby.

    3.2 NOTES PREVIOUSLY DELIVERED ON THE CLOSING  DATE.  The Notes  issued  and
delivered by the Borrower to the Lenders on the First  Amendment  Effective Date
will renew, amend, rearrange and restate, and will not be in novation, discharge
or satisfaction of, the corresponding  Notes issued and delivered on the Closing
Date.

    3.3  APPLICABLE LAW.  THIS AMENDMENT  SHALL BE GOVERNED BY AND  CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,  WITHOUT REGARD TO PRINCIPLES
OF CONFLICT OF LAWS (EXCLUDING NEW YORK GENERAL OBLIGATIONS LAW ss.5-1401).  THE
PARTIES  HERETO HEREBY  DECLARE THAT IT IS THEIR  INTENTION  THAT THIS AMENDMENT
SHALL BE  REGARDED  AS MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND THAT THE
LAWS OF SAID STATE SHALL BE APPLIED IN INTERPRETING  ITS PROVISIONS IN ALL CASES
WHERE LEGAL INTERPRETATION SHALL BE REQUIRED.  EACH OF THE PARTIES HERETO AGREES
(A) THAT THIS AMENDMENT INVOLVES AT LEAST $250,000;  AND (B) THAT THIS AMENDMENT
HAS BEEN ENTERED INTO BY THE PARTIES  HERETO IN EXPRESS  RELIANCE  UPON NEW YORK
GENERAL OBLIGATIONS LAW ss. 5-1401.

    3.4  COUNTERPARTS.   This  Amendment  may   be  executed   in  two  or  more
counterparts,  each of which shall constitute an original, but all of which when
taken together shall constitute but one instrument.

    3.5  HEADINGS.  The  headings  of  this  Amendment  are  for the purposes of
reference only and shall not affect the construction of this Amendment.

                   [signatures appear on the following pages]

                                       4
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers as of the date first above written.

                                    EVEREST REINSURANCE HOLDINGS, INC.

                                    By:   /S/ STEPHEN L. LIMAURO
                                          --------------------------------------
                                          Name:  Stephen L. Limauro
                                          Title: Executive Vice President, Chief
                                          Financial Officer and Comptroller

                             (signatures continued)

                               SIGNATURE PAGE TO
                                FIRST AMENDMENT

<PAGE>

                                    FIRST UNION NATIONAL BANK, as
                                    Administrative Agent and as a Lender

                                    By: /S/ THOMAS L. STITCHBERRY
                                          --------------------------------------
                                          Name:  Thomas L. Stitchberry
                                          Title: Senior Vice President

                             (signatures continued)

                                SIGNATURE PAGE TO
                                FIRST AMENDMENT
<PAGE>

                                    BANK ONE, NA, as a Lender

                                    By: /S/ TIMOTHY J. STAMBAUGH
                                          --------------------------------------
                                          Name:  Timothy J. Stambaugh
                                          Title: Senior Vice President

                             (signatures continued)

                               SIGNATURE PAGE TO
                                FIRST AMENDMENT

<PAGE>

                                    DEUTSCHE BANK AG, NEW YORK AND/OR
                                    CAYMAN ISLAND BRANCHES, as a Lender

                                    By: /S/ CLINTON M. JOHNSON
                                          --------------------------------------
                                          Name:  Clinton M. Johnson
                                          Title: Managing Director

                                    By: /S/ JOHN S. MERTELL
                                          --------------------------------------
                                          Name:  John S. Mertell
                                          Title: Director

                             (signatures continued)

                               SIGNATURE PAGE TO
                                FIRST AMENDMENT
<PAGE>

                                    ROYAL BANK OF CANADA, as a Lender

                                    By: /S/ ALEXANDER BIRR
                                          --------------------------------------
                                          Name:  Alexander Birr
                                          Title: Senior Manager

                             (signatures continued)

                               SIGNATURE PAGE TO
                                FIRST AMENDMENT
<PAGE>

                                    THE CHASE MANHATTAN BANK, as a Lender

                                    By: /S/ MARYBETH MULLEN
                                          --------------------------------------
                                          Name:  Marybeth Mullen
                                          Title: Vice President

                               SIGNATURE PAGE TO
                                FIRST AMENDMENT

<PAGE>
                                                                       Exhibit A

                                GUARANTOR CONSENT

                                December 18, 2000

First Union National Bank, as Administrative Agent
1339 Chestnut Street, 3rd Floor
Philadelphia, Pennsylvania  19107
Attention: Joseph DiFrancesco

Re:      First Amendment, dated as of December 18, 2000 (the "FIRST AMENDMENT"),
         among Everest  Reinsurance  Holdings,  Inc.,  as Borrower,  First Union
         National Bank, as Administrative  Agent, and the Lenders party thereto,
         which amends the Credit  Agreement,  dated as of December 21, 1999 (the
         "CREDIT AGREEMENT"), among the Borrower, and the Lenders party thereto.

Ladies and Gentlemen:

         The undersigned, as a Guarantor, has executed the Parent Guaranty as of
February 24, 2000, for the benefit of the Administrative  Agent and the Lenders,
and for the benefit of the Borrower, guaranteeing the Guaranteed Obligations (as
defined in the Guaranty) and  undertaking  the Total  Obligations (as defined in
the  Guaranty).  Capitalized  terms not defined  herein  shall have the meanings
given to such terms in the Credit Agreement.

         The  Guarantor  hereby  acknowledges  that it has  requested  that  the
Administrative  Agent and the Lenders agree to amend the Credit  Agreement so as
to temporarily  increase the Commitments in the aggregate principal amount up to
$235,000,000,  and make other changes to the Credit Agreement,  all as set forth
in the First Amendment.  The agreement of the Guarantor made herein is to induce
the Administrative Agent and the Lenders to enter into the First Amendment,  and
the  Guarantor  acknowledges  that the  Lender  would not  enter  into the First
Amendment in the absence of the agreement of the Guarantor contained herein.

<PAGE>
The Guarantor hereby agrees as follows:

(i)    the Guarantor approves of and consents to the terms and conditions of the
       First Amendment, as an amendment to the Credit Agreement;

(ii)   the Guarantor  agrees that its obligations  under the  Guaranty  and  the
       other Credit Documents,  as the case may  be, shall (A)  remain  in  full
       force and effect,  (B) not be  diminished  as a result  of the  execution
       of the First Amendment, and (C) include any and all additional Guaranteed
       Obligations (as defined in the Guaranty) incurred  under,  or as a result
       of, this First Amendment;

(iii)  the Guarantor waives any defense to its guaranty liability occasioned  by
       the First Amendment (including without  limitation  the  increase  of the
       Commitments as contemplated thereby); and

(iv)   the Guarantor confirms that its obligations under the  Guaranty,  and the
       other Credit Documents, as the case may be,  include, without limitation,
       a guarantee of the payment of the Guaranteed Obligations  (as  defined in
       the Guaranty and as increased  as a  result of the First  Amendment)  and
       responsibility  for the Total  Obligations  (as defined in  the  Guaranty
       and as increased as a result of the First Amendment).

         This  Agreement  shall be governed by and construed in accordance  with
the  internal  laws  and  judicial  decisions  of the  State  of New  York.  The
agreements  contained  herein shall be effective as of the effective date of the
First Amendment.

                                            Very truly yours,

                                            EVEREST RE GROUP, LTD.

                                            By: /S/ STEPHEN L. LIMAURO
                                                    ----------------------------
                                            Name:   Stephen L. Limauro
                                            Title:  Executive Vice President and
                                                    Chief Financial Officer

<PAGE>
                                                                     Exhibit B-1

                                                               December 18, 2000

First Union National Bank,
as Administrative Agent
and the Lenders party to the
Credit Agreement referred to below

         Re:  EVEREST REINSURANCE HOLDINGS, INC.

Ladies and Gentlemen:

         We have  acted as  special  New York  counsel  to  Everest  Reinsurance
Holdings, Inc., a Delaware corporation (the "BORROWER"),  in connection with the
First  Amendment  dated as of December 18, 2000 (the  "AMENDMENT") to the Credit
Agreement dated as of December 21, 1999 (the "CREDIT  AGREEMENT" and, as amended
by the  Amendment,  the "AMENDED  CREDIT  AGREEMENT")  among the  Borrower,  the
financial  institutions  party thereto (the  "LENDERS") and First Union National
Bank, as Administrative Agent (the  "ADMINISTRATIVE  AGENT"). We have also acted
as special New York  counsel to Everest Re Group,  Ltd.,  a Bermuda  corporation
(the  "GUARANTOR" and,  together with the Borrower,  the "CREDIT  PARTIES"),  in
connection  with the  Guarantor  Consent  dated as of  December  18,  2000  (the
"CONSENT")  made by the  Guarantor  in favor of the  Administrative  Agent  with
respect  to the  Parent  Guaranty  dated as of  February  24,  2000  made by the
Guarantor  for the  benefit of the  Administrative  Agent and the  Lenders  (the
"GUARANTY").  This opinion is furnished to you pursuant to Section II(b)(iii)(A)
of the Amendment.

         In  connection  with  delivering  this opinion to you, we have examined
originals or copies,  certified or otherwise  identified to our  satisfaction as
being true copies,  of (i) the Credit  Agreement,  (ii) the Guaranty,  (iii) the
Amendment,  (iv) the  Consent and (v) the notes of the  Borrower  referred to in
Section II (b)(i) of the Amendment  (the "NEW NOTES").  The items referred to in
clauses (i) through (v) above are called the  "DOCUMENTS" and the items referred
to in clauses  (iii)  through  (v) above are called the  "AMENDMENT  DOCUMENTS".
Capitalized terms used but not otherwise expressly defined herein shall have the
same meanings as set forth in the Amended Credit Agreement.

<PAGE>
         For  purposes  of this  opinion,  "APPLICABLE  LAW"  means the  General
Corporation Law of the State of Delaware,  and those laws and regulations of the
United  States of  America  and the State of New York that,  in our  experience,
would  normally be applicable  to general  business  corporations  which are not
engaged  in  regulated  business  activities  and to  transactions  of the  type
contemplated  by the Amended  Credit  Agreement (but without our having made any
special  investigation  as to any other law),  but excluding (A) all laws of the
type  described in paragraph  (D)(6)  below and (B) any law,  rule,  regulation,
ordinance,  code or similar  provision  of law of any  county,  municipality  or
similar political subdivision or any agency or instrumentality thereof; provided
that we express no opinion as to any law the  violation of which would not  have
a  material  adverse  effect  on  the  ability  of  the  Borrower to perform its
obligations  under the Amended Credit Agreement and the New Notes or the ability
of the Guarantor to perform its obligations under the Guaranty.

         We also have  examined  originals,  or copies  certified  or  otherwise
identified  to our  satisfaction  as  being  true  copies,  of such  agreements,
corporate  records,  certificates of public  officials and other documents as we
have deemed necessary as a basis for the opinions hereinafter  expressed.  As to
questions of fact material to such opinions,  we have,  when such facts were not
independently  established by us, relied upon certificates of the Credit Parties
or their officers or of public officials.

         In our examination of the documents  referred to above, we have assumed
the  authenticity  of all  such  documents  submitted  to us as  originals,  the
conformity to the originals of all such documents submitted to us as copies, the
genuineness  of all  signatures,  and the legal  capacity  and power of, and due
authorization,  execution and delivery of the Amended  Credit  Agreement and the
Guaranty by, all parties other than the Credit Parties. Further, we have assumed
that the Amended Credit Agreement and the Guaranty  constitute the legal,  valid
and binding obligations of all parties thereto other than the Credit Parties. We
have  also  assumed  the  truth of all  representations  and  warranties  of the
Borrower in the Amended Credit Agreement.

         In  expressing  the opinions set forth below,  we have assumed that (a)
each  Credit  Party is a  corporation  validly  existing  under  the laws of its
jurisdiction  of  incorporation,  (b) the Borrower has the  corporate  power and
authority to execute and deliver the Amendment and the New Notes and perform its
obligations  under the  Amended  Credit  Agreement  and the New  Notes,  (c) the
Guarantor has the corporate power and authority to execute,  deliver and perform
its  obligations  under the Documents to which it is a party,  (d) the execution
and  delivery  by the  Borrower  of the  Amendment  and the New  Notes,  and the
performance  by the  Borrower  of  its  obligations  under  the  Amended  Credit
Agreement  and the  New  Notes,  have  been  duly  authorized  by all  necessary
corporate action on the part of the Borrower,  (e) the execution and delivery by
the Guarantor of the Documents to which it is a party,  and the  performance  by

<PAGE>
the Guarantor of its  obligations  thereunder,  have been duly authorized by all
necessary  corporate action on the part of the Guarantor,  (f) each Credit Party
has duly executed and delivered the Documents to which it is a party and (g) the
execution,  delivery and  performance  by the Credit Parties of the Documents do
not violate any law, rule or regulation  applicable to the Credit Parties (other
than Applicable Law).

         On the basis of, and in reliance upon,  the  foregoing,  and subject to
the qualifications contained herein, we are of the opinion that:

         1.  The execution  and  delivery by each Credit Party of the  Amendment
         Documents to which it is a party do not violate any Applicable Law. The
         performance by the Borrower of its obligations under the Amended Credit
         Agreement and the New Notes do not violate any Applicable Law.

         2.  The  Amended  Credit Agreement and  the  New  Notes constitute  the
         legal,  valid  and  binding  obligations  of the Borrower,  enforceable
         against the Borrower in accordance with their terms.

         3.  No consent,  approval,  authorization  or other  action by,  notice
         to,  or  registration  or  filing   with,  any  New  York  or  Delaware
         Governmental  Authority under Applicable Law is required as a condition
         to or otherwise in  connection  with the  execution and delivery by any
         Credit Party of the  Amendment  Documents to which it is a party or the
         borrowings by the Borrower under the Amended Credit Agreement.

         The   opinions   set  forth   above  are   subject  to  the   following
qualifications and limitations:

                  (A) Our opinions  are subject to the effect of any  applicable
         bankruptcy, insolvency, fraudulent conveyance, equitable subordination,
         reorganization,  readjustment  of  debt,  moratorium  or  similar  laws
         affecting creditors' rights generally.

                  (B)  Our  opinions  are  subject  to  the  effect  of  general
         principles  of  equity,  including,  without  limitation,  concepts  of
         materiality, reasonableness, good faith and fair dealing (regardless of
         whether  considered  in a  proceeding  in  equity  or at  law)  and  by
         limitations on the  availability  of specific  performance,  injunctive
         relief or other equitable remedies.

                  (C) We  express no  opinion  as to the  enforceability,  under
         certain circumstances, of provisions imposing penalties or forfeitures,
         late payment  charges or an increase in interest rate upon  delinquency
         in payment or the occurrence of a default.

<PAGE>
                  (D) We express no opinion as to:

                       (1)  the existence of any Person's ownership rights in or
                  title to any property;

                       (2)  the validity, perfection, enforceability or priority
                  of any Lien on any property;

                       (3)  any agreement by any Credit Party to submit  to  the
                  jurisdiction  of  a  particular  court,  waive  jury  trial or
                  appoint an agent for acceptance of service of process;

                       (4)  any  provision of the Documents  purporting to waive
                  any objection to the laying  of  venue  or  any  claim that an
                  action  or  proceeding  has  been  brought  in an inconvenient
                  forum;

                       (5)  any  provision  of  the Documents  which  authorizes
                  or permits any purchaser of a participation  interest from any
                  party to set off or  apply  any  deposit  or  property  or any
                  indebtedness with respect to any participation interest;

                       (6)  compliance with, or any governmental  or  regulatory
                  filing, approval,  authorization,  license, consent or  notice
                  registration or filing  required by or under, any  (i) Federal
                  or state  environmental law, (ii) Federal  or  state antitrust
                  law, (iii) Federal or  state taxation  law,  (iv)  Federal  or
                  state worker health or safety, zoning  or  permitting or  land
                  use   matter,  (v)  Federal  or  state  patent,  trademark  or
                  copyright statute, rule or regulation, (vi) statutory or other
                  requirement  relating to the disposition of hazardous waste or
                  environmental protection,  (vii) Federal or state receivership
                  or  conservatorship  law,  (viii)  securities  registration or
                  antifraud  provisions  under any  Federal or state  securities
                  law,  (ix)  Federal  or state  labor or  employment  law,  (x)
                  Federal or state  employee  benefits  or  pension  law or (xi)
                  insurance law;

                       (7)  the  effect  of  the law of any jurisdiction  (other
                  than New York)  wherein  the  Lender may be located or wherein
                  the  enforcement of any Document may be sought that limits the
                  rates of interest legally chargeable or collectible; and

                       (8)  any  provision  of  the  Documents  (i)  restricting
                  access to legal or  equitable  remedies,  (ii)  purporting  to
                  establish evidentiary  standards,  (iii) purporting to appoint
                  any Person as the  attorney-in-fact  of any other Person, (iv)
                  which  provides  that  the  Documents  may  only  be  amended,
                  modified or waived in writing or (v)  stating  that all rights
                  or remedies of any party are cumulative and may be enforced in
                  addition to any other right or remedy and that the election of
                  a particular  remedy does not preclude recourse to one or more
                  remedies.

<PAGE>
                  (E) We note that the  enforceability  of the  Documents may be
         limited or  rendered  ineffective  if the  Administrative  Agent or the
         Lenders  fail to act in good  faith  and in a  commercially  reasonable
         manner in seeking to exercise  their  rights and  remedies  thereunder.
         Without limiting the generality of the foregoing,  we note that a court
         might  hold   that  a  technical  and  nonmaterial  default  under  the
         Documents does not give rise to a right of the Administrative  Agent or
         the Lenders to exercise certain remedies including, without limitation,
         acceleration.

                  (F) We  express no  opinion  as to the  enforceability  of the
         indemnification  provisions of the Documents insofar as said provisions
         contravene public policy or might require  indemnification  or payments
         to any Person with respect to any  litigation  determined  adversely to
         such  Person,  or any loss,  cost or expense  arising  out of the gross
         negligence  or willful  misconduct  of such Person or any  violation by
         such Person of statutory duties, general principles of equity or public
         policy.

                  (G) No opinion is rendered  herein as to the effect of any law
         relating to the legal or regulatory status of the Administrative  Agent
         or any Lender.

                  (H) We  express no  opinion  as to the  enforceability  of any
         choice of law provision to the extent such  provision is to be enforced
         by a court other than a New York State court or a federal court located
         in the State of New York sitting with  jurisdiction  based on diversity
         of citizenship.

         Members  of our firm are  members  of the State  Bar of New York.  This
opinion is limited to the law of the State of New York,  the federal laws of the
United States,  and the General  Corporation  Law of the State of Delaware.  The
opinions expressed herein are limited in all respects to the law existing on the
date hereof. In rendering this opinion, we do not undertake to advise you of any
change in law or fact that may occur after the date hereof.

         This  opinion is  furnished  by us to you solely for your  benefit  and
solely with  respect to the  Documents  upon the  understanding  that we are not
hereby  assuming  any  professional  responsibility  to any other  Person.  This
opinion  may not be  relied  upon by you for any  other  purpose  and may not be
relied upon by any other Person for any purpose,  in each case without our prior
written  consent;   notwithstanding  the  foregoing,  assignees  of  the  Lender
permitted under the Credit  Agreement may rely on this opinion as if it had been
addressed  to them.  The  opinions  expressed  in this letter are limited to the
matters set forth  herein,  and no other opinion  should be inferred  beyond the
matters expressly stated herein.

                                                      Very truly yours,

                                                      MAYER, BROWN & PLATT
<PAGE>
                                                                     Exhibit B-2

December 18, 2000

First Union National Bank,
as Administrative Agent and the
Lenders to the Credit Agreement
referred to below

         Re:   EVEREST REINSURANCE HOLDINGS, INC.

Ladies and Gentlemen:

         I am General Counsel for Everest Reinsurance Holdings, Inc., a Delaware
corporation  (the  "Borrower"),  and have represented the Borrower in connection
with the First Amendment dated as of December 18, 2000 (the  "Amendment") to the
Credit  Agreement dated as of December 21, 1999 (the "Credit  Agreement" and, as
amended by the Amendment,  the "Amended Credit  Agreement")  among the Borrower,
the  financial  institutions  party  thereto  (the  "Lenders")  and First  Union
National Bank, as Administrative Agent (the "Administrative Agent"). I have also
represented  Everest Re Group, Ltd., a Bermuda corporation (the "Guarantor" and,
together  with the  Borrower,  the "Credit  Parties"),  in  connection  with the
Guarantor  Consent dated as of December 18, 2000 (the "Consent") with respect to
the Parent Guaranty dated as of February 24, 2000 (the  "Guaranty")  made by the
Guarantor  in favor of the  Administrative  Agent and the  Lenders.  Capitalized
terms used  herein and not  defined  have the  meanings  assigned in the Amended
Credit  Agreement.  This  opinion  is  furnished  to  you  pursuant  to  Section
II(b)(iii)(B) of the Amendment.

         In that connection I have examined (i) the Credit  Agreement,  (ii) the
Guaranty,  (iii)  the  Amendment,  (iv)  the  Consent  and (v) the  notes of the
Borrower referred to in Section II(b)(i) of the Amendment (the "New Notes"). The
items  referred  to in clauses  (i)  through  (v) above are  called the  "Credit
Documents"  and the items  referred  to in clauses  (iii)  through (v) above are
called the "Amendment Documents." I have also examined such other documents as I
have deemed  necessary  for purposes of rendering  the  opinions  herein.  In my
examination  of such  documents,  I have  assumed the  authenticity  of all such
documents submitted to me as originals, the genuineness of all signatures (other
than those of the Credit Parties on the Credit Documents), and the conformity to
the originals of such documents submitted to me as copies.

         Based upon the foregoing, it is my opinion that:

         1. The  Borrower  (i) is a  corporation  validly  existing  and in good
standing under the laws of the  jurisdiction  of its  incorporation  and (ii) is
duly qualified to do business as a foreign  corporation  and is in good standing
in each  jurisdiction  where the nature of its business or the  ownership of its
properties  requires it to be so  qualified,  except for such  jurisdictions  in
which the failure to be so qualified  would not be  reasonably  likely to have a
Material Adverse Effect.

<PAGE>
         2. The Borrower has full  corporate  power and authority to execute and
deliver  the  Amendment  Documents  to  which  it is a  party,  to  perform  its
obligations  under the Amended  Credit  Agreement and the New Notes,  to own and
hold its property and to engage in its business as currently conducted.

         3. The Borrower has taken all necessary corporate action to execute and
deliver  each of the  Amendment  Documents to which it is a party and to perform
its  obligations  under the  Amended  Credit  Agreement  and the New Notes.  The
Borrower has validly executed and delivered each Amendment  Document to which it
is a party.

         4.  The  execution  and  delivery  by the  Borrower  of  the  Amendment
Documents  to which it is a party  and  compliance  by it with the  terms of the
Amended  Credit  Agreement and the New Notes do not violate any provision of its
certificate of  incorporation or by-laws or any Requirement of Law applicable to
it.

         5. The  execution  and delivery by each Credit  Party of the  Amendment
Documents  to which it is a  party,  the  performance  by the  Guarantor  of the
Consent and the performance by the Borrower of its obligations under the Amended
Credit  Agreement  and the New  Notes do not (i) to my  knowledge,  result  in a
breach of or constitute (with notice, lapse of time or both) a default under any
material  indenture,  agreement or other  instrument to which it is a party,  by
which it or any of its  properties  is bound  or to  which it is  subject,  (ii)
result in or require  the  creation  or  imposition  of any Lien upon any of its
properties or assets or (iii) violate any applicable  law, rule or regulation of
the State of New Jersey.

         6. No consent,  approval,  authorization or other action by, notice to,
or registration or filing with, any  Governmental  Authority of the State of New
Jersey or Delaware or other Person is required as a condition to or otherwise in
connection  with (i) the  execution  and delivery by either  Credit Party of the
Amendment  Documents  to  which  it is a  party,  (ii)  the  performance  by the
Guarantor of its  obligations  under the Consent or (iii) the performance by the
Borrower of its  obligations  under the  Amended  Credit  Agreement  and the New
Notes.

         7.  Except  as  disclosed  in the  Guarantor's  1999  Form  10-K and as
supplemented in written disclosure to the Lender delivered prior to execution of
the Amendment by the Borrower,  there are no actions,  investigations,  suits or
proceedings  pending  or, to my  knowledge  threatened,  at law, in equity or in
arbitration, before any court, other Governmental Authority or other Person, (i)
against or affecting the Credit Parties, any of their respective Subsidiaries or
any of their  respective  properties  that, if reasonably  possible  (within the
meaning of FASB 5) to be  adversely  determined,  would have a Material  Adverse
Effect, or (ii) that questions the validity of the Credit Documents.

         8. If,  notwithstanding  the express  selection  of New York law as the
governing law of the Amended Credit  Agreement,  a New Jersey court or a federal
court  sitting in New Jersey were to apply New Jersey law to the Amended  Credit

<PAGE>
Agreement, the Amended Credit Agreement constitutes the legal, valid and binding
obligation of the Borrower, enforceable against it in accordance with its terms.

         The   opinions   set  forth   above  are   subject  to  the   following
qualifications and limitations:

                  (A) My opinions  are  subject to the effect of any  applicable
         bankruptcy, insolvency, fraudulent conveyance, equitable subordination,
         reorganization,  readjustment  of  debt,  moratorium  or  similar  laws
         affecting creditors' rights generally.

                  (B)  My  opinions   are  subject  to  the  effect  of  general
         principles  of  equity,  including,  without  limitation,  concepts  of
         materiality, reasonableness, good faith and fair dealing (regardless of
         whether  considered  in a  proceeding  in  equity  or at  law)  and  by
         limitations on the  availability  of specific  performance,  injunctive
         relief or other equitable remedies.

                  (C) I  express  no  opinion  as to the  enforceability,  under
         certain circumstances, of provisions imposing penalties or forfeitures,
         late payment  charges or an increase in interest rate upon  delinquency
         in payment or the occurrence of a default.

                  (D) I express no opinion as to:

                      (1)  the  existence of any Person's ownership rights in or
                  title to any property;

                      (2)  the  validity, perfection, enforceability or priority
                  of any Lien on any property;

                      (3)  any  agreement  by  any Credit Party to submit to the
                  jurisdiction of  a  particular  court,  waive  jury  trial  or
                  appoint an agent for acceptance of service of process;

                      (4)  any  provision  of  the  Credit Documents  purporting
                  to waive  any  objection  to the  laying of venue or any claim
                  that  an  action  or   proceeding   has  been  brought  in  an
                  inconvenient forum;

                      (5) any provision of the Credit Documents which authorizes
                  or permits any purchaser of a participation interest from  any
                  party to set off  or apply any  deposit  or  property  or  any
                  indebtedness with respect to any participation interest;

                      (6)  the  effect  of  the  law of any jurisdiction  (other
                  than New Jersey)  wherein the Lender may be located or wherein
                  the  enforcement  of any Credit  Document  may be sought  that
                  limits   the  rates  of   interest   legally   chargeable   or
                  collectible; and

<PAGE>
                      (7)  any provision of the Credit Documents (i) restricting
                  access to legal or  equitable remedies,  (ii)  purporting   to
                  establish evidentiary standards, (iii)  purporting  to appoint
                  any Person as the  attorney-in-fact of any  other Person, (iv)
                  which provides that the Credit Documents  may only be amended,
                  modified or waived in writing or (v)  stating  that all rights
                  or remedies of any party are cumulative and may be enforced in
                  addition to any other right or remedy and that the election of
                  a particular remedy does  not preclude recourse to one or more
                  remedies.

                  (E) I note that the enforceability of the Credit Documents may
         be limited or rendered  ineffective if the Administrative  Agent or the
         Lenders  fail to act in good  faith  and in a  commercially  reasonable
         manner in seeking to exercise  their  rights and  remedies  thereunder.
         Without  limiting the generality of the foregoing,  I note that a court
         might hold that a technical  and  nonmaterial  default under the Credit
         Documents does not give rise to a right of the Administrative  Agent or
         the Lenders to exercise certain remedies including, without limitation,
         acceleration.

                  (F) I  express  no  opinion  as to the  enforceability  of the
         indemnification  provisions  of the  Credit  Documents  insofar as said
         provisions contravene public policy or might require indemnification or
         payments  to any  Person  with  respect  to any  litigation  determined
         adversely to such Person,  or any loss,  cost or expense arising out of
         the  gross  negligence  or  willful  misconduct  of such  Person or any
         violation by such Person of statutory  duties,  general  principles  of
         equity or public policy.

                  (G) No opinion is rendered  herein as to the effect of any law
         relating to the legal or regulatory status of the Administrative  Agent
         or any Lender.

         This  opinion is limited  to the laws of the State of New  Jersey,  the
federal laws of the United States and the General  Corporation Law and insurance
laws of the State of Delaware.

         This  opinion  may not be  used  or  relied  upon  by or  published  or
communicated  to any Person  other  than the  addressees  hereof  and  permitted
Assignees for any purpose  whatsoever,  without my prior written consent in each
instance.

                                                      Very truly yours,

                                                      Janet J. Burak

<PAGE>
                                                                     Exhibit B-3

                                                                18 December 2000
First Union National Bank
1339 Chestnut Street, 3rd Floor
Philadelphia,
Pennsylvania 19107
USA
(As Administrative Agent
and as a Lender)

and

to those banks and financial
institutions whose names and
addresses appear in the
Schedule attached hereto

Dear Sirs

EVEREST RE GROUP, LTD. (THE "COMPANY")

We have acted as special  legal  counsel in Bermuda to the Company in connection
with the guaranty  issued by the Company in favour of First Union National Bank,
as  administrative  agent for the Lenders (as  defined  below) (the  "Agent") of
certain obligations of Everest Reinsurance Holdings, Inc. (the "Borrower") under
the Credit Agreement (defined below).

For the  purposes  of  giving  this  opinion,  we have  examined  the  following
documents:

(i)      the executed Credit Agreement (the "Credit  Agreement")  dated as of 21
         December,  1999 made among the Borrower,  the Agent,  and the banks and
         financial  institutions  listed on the  Schedule  attached  hereto (the
         "Lenders");

(ii)     the executed Parent Guaranty (the "February 2000 Guaranty") dated as of
         24 February,  2000,  made by the Company in favour of the Agent and the
         Lenders;

<PAGE>
(iii)    the First  Amendment to the Credit  Agreement  dated as of 18 December,
         2000,  (the "First  Amendment")  among the Borrower,  the Agent and the
         Lenders; and

(iv)     the Guarantor  Consent to the First Amendment (the "Consent")  dated as
         of  18  December,   2000,   made  by  the  Company  in  favour  of  the
         Administrative  Agent and the  Lenders  (together,  the Consent and the
         February Guaranty the "Guaranty").

The Credit Agreement,  the First Amendment and the Guaranty are herein sometimes
collectively referred to as the "Documents".

We have  also  reviewed  and  have  relied  upon  copies  of the  memorandum  of
association  and the bye-laws of the  Company,  copies of minutes of meetings of
the Company's  board of directors on 12 December 2000 (the  "Minutes")  and such
other  documents  and made such  enquiries  as to questions of Bermuda law as we
have deemed necessary in order to render the opinions set forth below.

We have assumed (a) the genuineness  and  authenticity of all signatures and the
conformity to the originals of all copies (whether or not certified) examined by
us and the authenticity and completeness of the originals from which such copies
were taken,  (b) that where a document has been examined by us in draft form, it
will be or has been  executed in the form of that  draft,  and where a number of
drafts of a document  have been  examined  by us all changes  thereto  have been
marked  or  otherwise  drawn  to our  attention,  (c) the  capacity,  power  and
authority of each of the parties to the  Documents,  other than the Company,  to
enter into and perform its respective  obligations under the Documents,  (d) the
due execution and delivery of the Documents by each of the parties thereto,  (e)
the accuracy and  completeness  of the recitals and all factual  representations
made  in the  Documents  and  other  documents  reviewed  by us,  (f)  that  the
resolutions  contained  in the Minutes  remain in full force and effect and have
not been  rescinded  or  amended,  (g) that the  Company  is  entering  into the
Guaranty pursuant to its business of a group holding company,  (h) that there is
no provision of the law of any  jurisdiction,  other than  Bermuda,  which would
have any  implication  in relation to the  opinions  expressed  herein,  (i) the
validity and binding  effect and  enforceability  under the laws of the State of
New York in the United States of America (the  "Foreign  Laws") of the Documents
which are expressed to be governed by such Foreign Laws in accordance with their
respective terms, (j) the validity and binding effect and  enforceability  under
the Foreign Laws of the choice of the Foreign Laws as the governing  laws of the
Documents and of the  submission by the Company  pursuant to the Guaranty to the
jurisdiction of the courts sitting in the State of New York in the United States
of  America  (the  "Foreign  Courts");  and (k) that none of the  parties to the
Documents,  other than the Company,  will perform their  respective  obligations
(other than  enforcement  obligations)  under the  Documents,  in or from within
Bermuda.

The  obligations  of the Company  under the  Guaranty (a) will be subject to the
laws  from  time  to  time  in  effect   relating  to  bankruptcy,   insolvency,
liquidation, possessory liens, rights of set off, reorganisation,  amalgamation,
moratorium or any other laws or legal procedures, whether of a similar nature or

<PAGE>
otherwise,  generally affecting the rights of creditors,  (b) will be subject to
statutory  limitation of the time within which  proceedings may be brought,  (c)
will be  subject  to  general  principles  of  equity  and,  as  such,  specific
performance  and  injunctive  relief,  being  equitable  remedies,  may  not  be
available,  (d) may not be given effect to by a Bermuda court, whether or not it
was applying the Foreign Laws, if and to the extent they  constitute the payment
of an  amount  which is in the  nature  of a  penalty  and not in the  nature of
liquidated   damages.   Notwithstanding   any  contractual   submission  to  the
jurisdiction of specific courts, a Bermuda court has inherent discretion to stay
or allow proceedings in the Bermuda courts.

We express no opinion as to the  enforceability of any provision of the Guaranty
which  provides for the payment of a specified rate of interest on the amount of
a judgment  after the date of judgment or which purports to fetter the statutory
powers of the Company.

We have made no  investigation of and express no opinion in relation to the laws
of any  jurisdiction  other than Bermuda.  This opinion is to be governed by and
construed in accordance  with the laws of Bermuda and is limited to and is given
on the basis of the current law and practice in Bermuda.  This opinion is issued
solely for your benefit and is not to be relied upon by any other  person,  firm
or entity or in respect of any other matter.

On the basis of and subject to the foregoing, we are of the opinion that:

1.       The Company is duly  incorporated,  is existing and is in good standing
         (meaning  that it has not  failed to make any filing  with any  Bermuda
         governmental  authority  or to pay any  Bermuda  government  fee or tax
         which might make it liable to be struck off the Register of  Companies)
         under the laws of Bermuda.

2.       The Company has the  necessary  corporate  power and authority to enter
         into and perform its obligations under the Guaranty.  The execution and
         delivery of the  Guaranty by the  Company  and the  performance  by the
         Company of its  obligations  thereunder will not violate the memorandum
         of  association  or bye-laws of the  Company  nor any  applicable  law,
         regulation, order or decree in Bermuda.

3        The Company has taken all  corporate  action  required to authorise its
         execution,  delivery and performance of the Guaranty.  The Guaranty has
         been duly executed on behalf of the Company.  The Guaranty  constitutes
         the  valid  and  binding  obligation  of  the  Company  enforceable  in
         accordance with the terms thereof.

4.       No order, consent, approval, licence, authorisation or validation of or
         exemption by any  government  or public body or authority of Bermuda or

<PAGE>
         any  sub-division  thereof is required to  authorise  or is required in
         connection with the execution, delivery, performance and enforcement of
         the Guaranty.

5.       It is  not  necessary  or  desirable to  ensure the  enforceability  in
         Bermuda of the  Guaranty  that it be  registered  in any register  kept
         by, or filed with, any  governmental  authority or  regulatory  body in
         Bermuda.  However, to  the  extent  that the Guaranty  creates a charge
         over assets of the Company, it may be desirable to ensure the  priority
         in  Bermuda  of  the  charge that it be  registered  in the Register of
         Charges in  accordance  with Section 55 of the Companies  Act 1981.  On
         registration, to the extent that Bermuda law  governs the priority of a
         charge, such charge will have priority in Bermuda over any unregistered
         charges,  and over any subsequently  registered  charges, in respect of
         the assets which are  the subject of the charge.  A registration fee o
         BD$446 will be payable in respect of the registration.

         While there is no exhaustive  definition of a charge under Bermuda law,
         a charge normally has the following characteristics:

         (i)      it is a proprietary  interest granted by way of security which
                  entitles  the chargee to resort to the charged  property  only
                  for the  purposes  of  satisfying  some  liability  due to the
                  chargee (whether from the chargor or a third party); and

         (ii)     the  chargor  retains  an equity of  redemption  to  have  the
                  property   restored  to  him   when  the  liability  has  been
                  discharged.

         However,  as the  Guaranty is  expressed  to be governed by the Foreign
         Laws,  the  question  of  whether  it would  possess  these  particular
         characteristics would be determined under the Foreign Laws.

6.       Based solely on a search of the Register of Charges  maintained  by the
         Registrar of Companies pursuant to Section 55 of the Companies Act 1981
         conducted  at 3:00 p.m. on 18  December,  2000 (which  would not reveal
         details of  matters  which have been  lodged for  registration  but not
         actually registered at the time of our search),  there are [no] charges
         registered on the assets of the Company.

7.       Based  solely upon a search of the Cause Book of the  Supreme  Court of
         Bermuda  conducted at 3:00 p.m. on 18  December,  2000 (which would not
         reveal  details of  proceedings  which have been filed but not actually
         entered  in the  Cause  Book at the time of our  search),  there are no
         judgments   against  the  Company,   nor  any  legal  or   governmental
         proceedings pending in Bermuda to which the Company is a party.

<PAGE>
8.       Based  solely  on  a  search  of  the public  records in respect of the
         Company maintained at the offices of the Registrar of Companies at 3:00
         p.m. on  18 December,  2000 (which would not reveal  details of matters
         which have not been lodged  for  registration  or have been  lodged for
         registration but not actually  registered  at  the time of our  search)
         and  a  search  of  the  Cause  Book  of the  Supreme  Court of Bermuda
         conducted at 3:00 p.m. on 18  December,  2000 (which  would  not reveal
         details of proceedings which have  been filed but not actually  entered
         in  the  Cause Book at the time of our search),  no steps have been, or
         are  being,  taken  in  Bermuda  for  the  appointment of a receiver or
         liquidator to, or for the winding-up,  dissolution,  reconstruction  or
         reorganisation  of,  the  Company,  though  it should be noted that the
         public files maintained by the Registrar  of  Companies  do not  reveal
         whether a  winding-up  petition or  application  to  the Court  for the
         appointment  of a receiver has been  presented and entries in the Cause
         Book may not specify the nature of the relevant proceedings.

9.       The  Guaranty  will not be subject  to ad  valorem  stamp duty or other
         documentary tax in Bermuda in connection with its execution.  There may
         be  filing  and other  fees  payable  in  connection  with  enforcement
         proceedings before a Bermuda court based on the Guaranty.

10.      The choice of the Foreign Laws as the  governing law of the Guaranty is
         a valid  choice of law and would be  recognised  and given effect to in
         any action brought before a court of competent jurisdiction in Bermuda,
         except for those laws:

         (i)     which such court considers to be procedural in nature;

         (ii)    which are revenue or penal laws; or

         (iii)   the  application  of which  would be  inconsistent  with public
                 policy,  as such term is interpreted under the laws of Bermuda.
                 The  submission  in the  Guaranty  to the  jurisdiction  of the
                 Foreign Courts is valid and binding upon the Company.

11.      The courts of Bermuda would recognise as a valid judgment,  a final and
         conclusive  judgment in personam obtained in the Foreign Courts against
         the  Company  based  upon the  Guaranty  under  which a sum of money is
         payable  (other  than a sum of money  payable in  respect  of  multiple
         damages,  taxes or other  charges  of a like  nature or in respect of a
         fine or other penalty) and would give a judgment based thereon provided
         that:

         (i)     such courts had proper jurisdiction over the parties subject to
                 such judgment;

<PAGE>
         (ii)    such  courts did not contravene the rules of natural justice of
                 Bermuda;

         (iii)   such judgment was not obtained by fraud;

         (iv)    the  enforcement  of  the judgment would not be contrary to the
                 public policy of Bermuda;

         (v)     no new admissible evidence  relevant to the action is submitted
                 prior  to  the  rendering  of  the  judgment  by  the courts of
                 Bermuda; and

         (vi)    there is  due  compliance with the correct procedures under the
                 laws of Bermuda.

12.      There is  no income or other tax of Bermuda  imposed by  withholding or
         otherwise on any payment to be made  by  the  Company  pursuant  to the
         Guaranty.

13.      Neither  the Agent  nor the  Lenders  will be  deemed  to be  resident,
         domiciled  or  carrying  on  business  in Bermuda by reason only of the
         execution,  performance and/or enforcement of the Guaranty by the Agent
         or by the Lenders.

14.      Each of the Agent and the  Lenders  has  standing to bring an action or
         proceedings   before  the   appropriate   courts  in  Bermuda  for  the
         enforcement of the Guaranty.  It is not necessary or advisable in order
         for the Agent or the Lenders to enforce its respective rights under the
         Guaranty,  including  the exercise of remedies  thereunder,  that it be
         licensed,  qualified  or  otherwise  entitled  to carry on  business in
         Bermuda.

15.      The Company is not entitled to any immunity  under the laws of Bermuda,
         whether  characterised  as sovereign  immunity or  otherwise,  from any
         legal  proceedings  to enforce the Guaranty in respect of itself or its
         property.

16.      The  obligations  of the Company  under the Guaranty will rank at least
         pari  passu  in   priority   of  payment   with  all  other   unsecured
         unsubordinated  indebtedness  of the Company,  other than  indebtedness
         which is preferred by virtue of any provision of the laws of Bermuda of
         general application.

17.      The  Company has been  designated  as  non-resident  of Bermuda for the
         purposes of the  Exchange  Control Act,  1972 and, as such,  is free to
         acquire,   hold  and  sell  foreign  currency  and  securities  without
         restriction.

<PAGE>

                                                Yours faithfully,

                                                Conyers Dill & Pearman

<PAGE>
                                    SCHEDULE
                                    --------

Bank One, NA
153 West 51st Street
New York, NY 10019
USA

Deutsche Bank AG
31 West 52nd Street
New York, NY 10019
USA

Royal Bank of Canada
One Liberty Plaza
4th Floor
New York, NY 10006-1404
USA

The Chase Manhattan Bank
Financial Institutions Group
270 Park Avenue
20th Floor
New York, NY 10017
USA

<PAGE>
                               Borrower's Taxpayer Identification No. 22-3263609

                                      NOTE

$47,000,000                                                    December 18, 2000
                                                       Charlotte, North Carolina

         FOR  VALUE  RECEIVED,  EVEREST  REINSURANCE  HOLDINGS, INC., a Delaware
corporation (the "Borrower"), hereby promises to pay to the order of

         BANK ONE, NA (the  "Lender"),  at the  offices of First Union  National
Bank (the  "Administrative  Agent") located at One First Union Center, 301 South
College Street,  Charlotte,  North Carolina (or at such other place or places as
the Administrative Agent may designate), at the times and in the manner provided
in the Credit Agreement,  dated as of December 21, 1999, as amended by the First
Amendment  thereto (as further  amended,  modified or supplemented  from time to
time, the "Credit Agreement"), among the Borrower, the Lenders from time to time
parties  thereto,  and First Union National Bank, as  Administrative  Agent, the
principal sum of

         FORTY-SEVEN  MILLION DOLLARS AND NO/100  ($47,000,000),  or such lesser
amount as may  constitute the unpaid  principal  amount of the Loans made by the
Lender, under the terms and conditions of this promissory note (this "Note") and
the Credit Agreement.  The defined terms in the Credit Agreement are used herein
with the  same  meaning.  The  Borrower  also  unconditionally  promises  to pay
interest  on the  aggregate  unpaid  principal  amount of this Note at the rates
applicable  thereto from time to time and on the dates as provided in the Credit
Agreement.

         This Note is one of the Notes  referred to in the Credit  Agreement and
is issued to  evidence  the Loans  made by the  Lender  pursuant  to the  Credit
Agreement.  All of the terms,  conditions and covenants of the Credit  Agreement
are expressly  made a part of this Note by reference in the same manner and with
the same effect as if set forth herein at length, and any holder of this Note is
entitled to the benefits of and remedies  provided in the Credit  Agreement  and
the other  Credit  Documents.  Reference  is made to the  Credit  Agreement  for
provisions  relating to the interest  rate,  maturity,  payment,  prepayment and
acceleration of this Note. This Note is hereby substituted for and replaces,  as
to the Lender,  the Note dated  December 21, 1999 from Borrower to the Lender in
the original  principal amount of $30,000,000 (the "Replaced  Note");  PROVIDED,
HOWEVER,  that  Borrower  acknowledges  and  agrees  that,  except as  expressly
provided by the terms of this Note  (including  the  original  principal  amount
hereof),  the substitution for and replacement of the Replaced Note by this Note
shall not  extinguish or otherwise  affect any of Borrower's  obligations to the
Lender  under the Credit  Agreement,  whether or not  evidenced  by the Replaced
Note,  including,  without  limitation,  Borrower's  obligation  to pay interest
accrued prior to the date hereof under the Replaced Note.

<PAGE>
         In the event of an acceleration of the maturity of this Note, this Note
shall become immediately due and payable, without presentation,  demand, protest
or notice of any kind, all of which are hereby waived by the Borrower.

         In the  event  this  Note  is not  paid  when  due  at  any  stated  or
accelerated  maturity,  the Borrower agrees to pay, in addition to the principal
and interest, all costs of collection, including reasonable attorneys' fees.

         This Note shall be governed by and  construed  in  accordance  with the
laws of the State of New York,  without regard to principles of conflict of laws
(excluding NEW YORK GENERAL  OBLIGATIONS  LAW  ss.5-1401).  The Borrower  hereby
submits to the  nonexclusive  jurisdiction  and venue of the  federal  and state
court located in  Mecklenburg  County,  North  Carolina or New York County,  New
York,  although  the Lender  shall not be limited to  bringing an action in such
courts.

         IN WITNESS  WHEREOF,  the  Borrower has caused this Note to be executed
under seal by its duly authorized corporate officer as of the day and year first
above written.

                                    EVEREST REINSURANCE HOLDINGS, INC.

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

                                       2
<PAGE>
                               Borrower's Taxpayer Identification No. 22-3263609

                                      NOTE

$47,000,000                                                    December 18, 2000
                                                       Charlotte, North Carolina

         FOR  VALUE  RECEIVED,  EVEREST  REINSURANCE  HOLDINGS, INC., a Delaware
corporation (the "Borrower"), hereby promises to pay to the order of

         DEUTSCHE BANK AG (the "Lender"), at the offices of First Union National
Bank (the  "Administrative  Agent") located at One First Union Center, 301 South
College Street,  Charlotte,  North Carolina (or at such other place or places as
the Administrative Agent may designate), at the times and in the manner provided
in the Credit Agreement,  dated as of December 21, 1999, as amended by the First
Amendment  thereto (as further  amended,  modified or supplemented  from time to
time, the "Credit Agreement"), among the Borrower, the Lenders from time to time
parties  thereto,  and First Union National Bank, as  Administrative  Agent, the
principal sum of

         FORTY SEVEN MILLION  DOLLARS AND NO/100  ($47,000,000),  or such lesser
amount as may  constitute the unpaid  principal  amount of the Loans made by the
Lender, under the terms and conditions of this promissory note (this "Note") and
the Credit Agreement.  The defined terms in the Credit Agreement are used herein
with the  same  meaning.  The  Borrower  also  unconditionally  promises  to pay
interest  on the  aggregate  unpaid  principal  amount of this Note at the rates
applicable  thereto from time to time and on the dates as provided in the Credit
Agreement.

         This Note is one of the Notes  referred to in the Credit  Agreement and
is issued to  evidence  the Loans  made by the  Lender  pursuant  to the  Credit
Agreement.  All of the terms,  conditions and covenants of the Credit  Agreement
are expressly  made a part of this Note by reference in the same manner and with
the same effect as if set forth herein at length, and any holder of this Note is
entitled to the benefits of and remedies  provided in the Credit  Agreement  and
the other  Credit  Documents.  Reference  is made to the  Credit  Agreement  for
provisions  relating to the interest  rate,  maturity,  payment,  prepayment and
acceleration of this Note. This Note is hereby substituted for and replaces,  as
to the Lender,  the Note dated  December 21, 1999 from Borrower to the Lender in
the original  principal amount of $30,000,000 (the "Replaced  Note");  PROVIDED,
HOWEVER,  that  Borrower  acknowledges  and  agrees  that,  except as  expressly
provided by the terms of this Note  (including  the  original  principal  amount
hereof),  the substitution for and replacement of the Replaced Note by this Note
shall not  extinguish or otherwise  affect any of Borrower's  obligations to the
Lender  under the Credit  Agreement,  whether or not  evidenced  by the Replaced
Note,  including,  without  limitation,  Borrower's  obligation  to pay interest
accrued prior to the date hereof under the Replaced Note.

<PAGE>
         In the event of an acceleration of the maturity of this Note, this Note
shall become immediately due and payable, without presentation,  demand, protest
or notice of any kind, all of which are hereby waived by the Borrower.

         In the  event  this  Note  is not  paid  when  due  at  any  stated  or
accelerated  maturity,  the Borrower agrees to pay, in addition to the principal
and interest, all costs of collection, including reasonable attorneys' fees.

         This Note shall be governed by and  construed  in  accordance  with the
laws of the State of New York,  without regard to principles of conflict of laws
(excluding NEW YORK GENERAL  OBLIGATIONS  LAW  ss.5-1401).  The Borrower  hereby
submits to the  nonexclusive  jurisdiction  and venue of the  federal  and state
court located in  Mecklenburg  County,  North  Carolina or New York County,  New
York,  although  the Lender  shall not be limited to  bringing an action in such
courts.

         IN WITNESS  WHEREOF,  the  Borrower has caused this Note to be executed
under seal by its duly authorized corporate officer as of the day and year first
above written.

                                    EVEREST REINSURANCE HOLDINGS, INC.

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

                                       2

<PAGE>
                               Borrower's Taxpayer Identification No. 22-3263609

                                      NOTE

$47,000,000                                                    December 18, 2000
                                                       Charlotte, North Carolina

         FOR  VALUE  RECEIVED,  EVEREST  REINSURANCE  HOLDINGS, INC., a Delaware
corporation (the "Borrower"), hereby promises to pay to the order of

         ROYAL BANK OF CANADA  (the  "Lender"),  at the  offices of First  Union
National Bank (the  "Administrative  Agent")  located at One First Union Center,
301 South College Street,  Charlotte,  North Carolina (or at such other place or
places  as the  Administrative  Agent  may  designate),  at the times and in the
manner  provided in the Credit  Agreement,  dated as of December  21,  1999,  as
amended  by the  First  Amendment  thereto  (as  further  amended,  modified  or
supplemented from time to time, the "Credit Agreement"), among the Borrower, the
Lenders from time to time parties  thereto,  and First Union  National  Bank, as
Administrative Agent, the principal sum of

         FORTY SEVEN MILLION  DOLLARS AND NO/100  ($47,000,000),  or such lesser
amount as may  constitute the unpaid  principal  amount of the Loans made by the
Lender, under the terms and conditions of this promissory note (this "Note") and
the Credit Agreement.  The defined terms in the Credit Agreement are used herein
with the  same  meaning.  The  Borrower  also  unconditionally  promises  to pay
interest  on the  aggregate  unpaid  principal  amount of this Note at the rates
applicable  thereto from time to time and on the dates as provided in the Credit
Agreement.

         This Note is one of the Notes  referred to in the Credit  Agreement and
is issued to  evidence  the Loans  made by the  Lender  pursuant  to the  Credit
Agreement.  All of the terms,  conditions and covenants of the Credit  Agreement
are expressly  made a part of this Note by reference in the same manner and with
the same effect as if set forth herein at length, and any holder of this Note is
entitled to the benefits of and remedies  provided in the Credit  Agreement  and
the other  Credit  Documents.  Reference  is made to the  Credit  Agreement  for
provisions  relating to the interest  rate,  maturity,  payment,  prepayment and
acceleration of this Note. This Note is hereby substituted for and replaces,  as
to the Lender,  the Note dated  December 21, 1999 from Borrower to the Lender in
the original  principal amount of $30,000,000 (the "Replaced  Note");  PROVIDED,
HOWEVER,  that  Borrower  acknowledges  and  agrees  that,  except as  expressly
provided by the terms of this Note  (including  the  original  principal  amount
hereof),  the substitution for and replacement of the Replaced Note by this Note
shall not  extinguish or otherwise  affect any of Borrower's  obligations to the
Lender  under the Credit  Agreement,  whether or not  evidenced  by the Replaced
Note,  including,  without  limitation,  Borrower's  obligation  to pay interest
accrued prior to the date hereof under the Replaced Note.

<PAGE>
         In the event of an acceleration of the maturity of this Note, this Note
shall become immediately due and payable, without presentation,  demand, protest
or notice of any kind, all of which are hereby waived by the Borrower.

         In the  event  this  Note  is not  paid  when  due  at  any  stated  or
accelerated  maturity,  the Borrower agrees to pay, in addition to the principal
and interest, all costs of collection, including reasonable attorneys' fees.

         This Note shall be governed by and  construed  in  accordance  with the
laws of the State of New York,  without regard to principles of conflict of laws
(excluding NEW YORK GENERAL  OBLIGATIONS  LAW  ss.5-1401).  The Borrower  hereby
submits to the  nonexclusive  jurisdiction  and venue of the  federal  and state
court located in  Mecklenburg  County,  North  Carolina or New York County,  New
York,  although  the Lender  shall not be limited to  bringing an action in such
courts.

         IN WITNESS  WHEREOF,  the  Borrower has caused this Note to be executed
under seal by its duly authorized corporate officer as of the day and year first
above written.

                                    EVEREST REINSURANCE HOLDINGS, INC.

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

                                       2

<PAGE>
                               Borrower's Taxpayer Identification No. 22-3263609

                                      NOTE

$31,300,000                                                    December 18, 2000
                                                       Charlotte, North Carolina

         FOR  VALUE  RECEIVED,  EVEREST  REINSURANCE  HOLDINGS, INC., a Delaware
corporation (the "Borrower"), hereby promises to pay to the order of

         THE CHASE MANHATTAN BANK (the "Lender"),  at the offices of First Union
National Bank (the  "Administrative  Agent")  located at One First Union Center,
301 South College Street,  Charlotte,  North Carolina (or at such other place or
places  as the  Administrative  Agent  may  designate),  at the times and in the
manner  provided in the Credit  Agreement,  dated as of December  21,  1999,  as
amended  by the  First  Amendment  thereto  (as  further  amended,  modified  or
supplemented from time to time, the "Credit Agreement"), among the Borrower, the
Lenders from time to time parties  thereto,  and First Union  National  Bank, as
Administrative Agent, the principal sum of

         THIRTY-ONE MILLION THREE HUNDRED DOLLARS AND NO/100  ($31,300,000),  or
such lesser amount as may  constitute the unpaid  principal  amount of the Loans
made by the Lender, under the terms and conditions of this promissory note (this
"Note") and the Credit Agreement.  The defined terms in the Credit Agreement are
used herein with the same meaning. The Borrower also unconditionally promises to
pay interest on the aggregate  unpaid principal amount of this Note at the rates
applicable  thereto from time to time and on the dates as provided in the Credit
Agreement.

         This Note is one of the Notes  referred to in the Credit  Agreement and
is issued to  evidence  the Loans  made by the  Lender  pursuant  to the  Credit
Agreement.  All of the terms,  conditions and covenants of the Credit  Agreement
are expressly  made a part of this Note by reference in the same manner and with
the same effect as if set forth herein at length, and any holder of this Note is
entitled to the benefits of and remedies  provided in the Credit  Agreement  and
the other  Credit  Documents.  Reference  is made to the  Credit  Agreement  for
provisions  relating to the interest  rate,  maturity,  payment,  prepayment and
acceleration of this Note. This Note is hereby substituted for and replaces,  as
to the Lender,  the Note dated  December 21, 1999 from Borrower to the Lender in
the original  principal amount of $20,000,000 (the "Replaced  Note");  PROVIDED,
HOWEVER,  that  Borrower  acknowledges  and  agrees  that,  except as  expressly
provided by the terms of this Note  (including  the  original  principal  amount
hereof),  the substitution for and replacement of the Replaced Note by this Note
shall not  extinguish or otherwise  affect any of Borrower's  obligations to the
Lender  under the Credit  Agreement,  whether or not  evidenced  by the Replaced
Note,  including,  without  limitation,  Borrower's  obligation  to pay interest
accrued prior to the date hereof under the Replaced Note.

<PAGE>
         In the event of an acceleration of the maturity of this Note, this Note
shall become immediately due and payable, without presentation,  demand, protest
or notice of any kind, all of which are hereby waived by the Borrower.

         In the  event  this  Note  is not  paid  when  due  at  any  stated  or
accelerated  maturity,  the Borrower agrees to pay, in addition to the principal
and interest, all costs of collection, including reasonable attorneys' fees.

         This Note shall be governed by and  construed  in  accordance  with the
laws of the State of New York,  without regard to principles of conflict of laws
(excluding NEW YORK GENERAL  OBLIGATIONS  LAW  ss.5-1401).  The Borrower  hereby
submits to the  nonexclusive  jurisdiction  and venue of the  federal  and state
court located in  Mecklenburg  County,  North  Carolina or New York County,  New
York,  although  the Lender  shall not be limited to  bringing an action in such
courts.

         IN WITNESS  WHEREOF,  the  Borrower has caused this Note to be executed
under seal by its duly authorized corporate officer as of the day and year first
above written.

                                    EVEREST REINSURANCE HOLDINGS, INC.

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

                                       2

<PAGE>
                               Borrower's Taxpayer Identification No. 22-3263609

                                      NOTE

$62,700,000                                                    December 18, 2000
                                                       Charlotte, North Carolina

         FOR  VALUE  RECEIVED,  EVEREST  REINSURANCE  HOLDINGS, INC., a Delaware
corporation (the "Borrower"), hereby promises to pay to the order of

         FIRST UNION NATIONAL BANK (the "Lender"), at the offices of First Union
National Bank (the  "Administrative  Agent")  located at One First Union Center,
301 South College Street,  Charlotte,  North Carolina (or at such other place or
places  as the  Administrative  Agent  may  designate),  at the times and in the
manner  provided in the Credit  Agreement,  dated as of December  21,  1999,  as
amended  by the  First  Amendment  thereto  (as  further  amended,  modified  or
supplemented from time to time, the "Credit Agreement"), among the Borrower, the
Lenders from time to time parties  thereto,  and First Union  National  Bank, as
Administrative Agent, the principal sum of

         SIXTY TWO MILLION SEVEN HUNDRED  DOLLARS AND NO/100  ($62,700,000),  or
such lesser amount as may  constitute the unpaid  principal  amount of the Loans
made by the Lender, under the terms and conditions of this promissory note (this
"Note") and the Credit Agreement.  The defined terms in the Credit Agreement are
used herein with the same meaning. The Borrower also unconditionally promises to
pay interest on the aggregate  unpaid principal amount of this Note at the rates
applicable  thereto from time to time and on the dates as provided in the Credit
Agreement.

         This Note is one of the Notes  referred to in the Credit  Agreement and
is issued to  evidence  the Loans  made by the  Lender  pursuant  to the  Credit
Agreement.  All of the terms,  conditions and covenants of the Credit  Agreement
are expressly  made a part of this Note by reference in the same manner and with
the same effect as if set forth herein at length, and any holder of this Note is
entitled to the benefits of and remedies  provided in the Credit  Agreement  and
the other  Credit  Documents.  Reference  is made to the  Credit  Agreement  for
provisions  relating to the interest  rate,  maturity,  payment,  prepayment and
acceleration of this Note. This Note is hereby substituted for and replaces,  as
to the Lender,  the Note dated  December 21, 1999 from Borrower to the Lender in
the original  principal amount of $40,000,000 (the "Replaced  Note");  PROVIDED,
HOWEVER,  that  Borrower  acknowledges  and  agrees  that,  except as  expressly
provided by the terms of this Note  (including  the  original  principal  amount
hereof),  the substitution for and replacement of the Replaced Note by this Note
shall not  extinguish or otherwise  affect any of Borrower's  obligations to the
Lender  under the Credit  Agreement,  whether or not  evidenced  by the Replaced
Note,  including,  without  limitation,  Borrower's  obligation  to pay interest
accrued prior to the date hereof under the Replaced Note.

<PAGE>
         In the event of an acceleration of the maturity of this Note, this Note
shall become immediately due and payable, without presentation,  demand, protest
or notice of any kind, all of which are hereby waived by the Borrower.

         In the  event  this  Note  is not  paid  when  due  at  any  stated  or
accelerated  maturity,  the Borrower agrees to pay, in addition to the principal
and interest, all costs of collection, including reasonable attorneys' fees.

         This Note shall be governed by and  construed  in  accordance  with the
laws of the State of New York,  without regard to principles of conflict of laws
(excluding NEW YORK GENERAL  OBLIGATIONS  LAW  ss.5-1401).  The Borrower  hereby
submits to the  nonexclusive  jurisdiction  and venue of the  federal  and state
court located in  Mecklenburg  County,  North  Carolina or New York County,  New
York,  although  the Lender  shall not be limited to  bringing an action in such
courts.

         IN WITNESS  WHEREOF,  the  Borrower has caused this Note to be executed
under seal by its duly authorized corporate officer as of the day and year first
above written.

                                    EVEREST REINSURANCE HOLDINGS, INC.

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

                                       2
<PAGE>
                                  SCHEDULE 1.1
                                  ------------

                                   COMMITMENTS

LENDER                                                  COMMITMENT
------                                                 ------------

First Union National Bank                              $ 62,700,000
Deutsche Bank                                          $ 47,000,000
Royal Bank of Canada                                   $ 47,000,000
Bank One                                               $ 47,000,000
The Chase Manhattan Bank                               $ 31,300,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]