Document:

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                                                                     Exhibit 4.3

THIS WARRANT AND THE STOCK ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND CAN BE
TRANSFERRED ONLY IN COMPLIANCE WITH THE ACT AND APPLICABLE STATE SECURITIES
LAWS. THIS WARRANT AND SUCH SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT, UNLESS, IN THE OPINION OF
COUNSEL FOR THE COMPANY OR COUNSEL FOR THE REGISTERED HOLDER (WHICH SHALL BE IN
FORM AND FROM SUCH COUNSEL AS SHALL BE REASONABLY SATISFACTORY TO THE COMPANY),
SUCH REGISTRATION IS NOT THEN REQUIRED.

                                TWIN LAKES, INC.

   No. WB -- ______________ Redeemable Class B Common Stock Purchase Warrants

                           VOID AFTER __________, 2005

                   REDEEMABLE CLASS B WARRANT CERTIFICATE FOR
                            PURCHASE OF COMMON STOCK

         This certifies that FOR VALUE RECEIVED, _____________________________,
or registered assigns (the "Registered Holder"), is the owner of the number of
redeemable Class B common stock purchase warrants (each, "Class B Warrant" and
collectively, the "Class B Warrants") specified above. Each Class B Warrant
initially entitles the Registered Holder to purchase, subject to the terms and
conditions set forth in this Warrant Certificate, one fully paid and
nonassessable share of common stock, par value $0.001 per share (the "Common
Stock") of Twin Lakes, Inc., a Nevada corporation (the "Company") , at any time
between __________, 2000, and the Expiration Date (as hereinafter defined), upon
the presentation and surrender of this Warrant Certificate with the subscription
form hereon duly executed, at the principal office of the Company, accompanied
by payment of $5.00, subject to adjustment as hereinafter provided (the
"Exercise Price"), in lawful money of the United States of America in cash or by
official bank check or certified check made payable to the Company.

         Each Class B Warrant represented hereby is exercisable at the option of
the Registered Holder, but no fractional shares of Common Stock will be issued.
In the case of the exercise of less than all of the Class B Warrants represented
hereby, the Company shall cancel this Warrant Certificate upon the surrender
hereof and shall execute and deliver a new Warrant Certificate or Warrant
Certificates of like tenor for the balance of such Class B Warrants. Each Class
B Warrant shall be deemed to have been exercised immediately prior to the close
of business on the Exercise Date and the person entitled to receive the
securities deliverable upon such exercise shall be treated for all purposes as
the holder of those securities upon the exercise of the Class B Warrant as of
the close of business on the Exercise Date. Promptly following, and in any event
within five Business Days after the Exercise Date, the Company shall cause to be
issued and delivered by the Transfer Agent, to the person or persons entitled to
receive the same, a certificate or certificates for the securities deliverable
upon such exercise (plus a certificate for any remaining unexercised Class B
Warrants of the Registered Holder), unless prior to the date of issuance of such
certificates, the Company refrains from issuing certificates pending clearance
of checks received in payment of the Exercise Price of such Class B Warrants.

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Definitions. The following terms will have the following definitions when used
in this Warrant Certificate, unless the context otherwise expressly requires:

         "Common Stock" means capital stock of the Company of any class, whether
now or hereafter authorized, which has the right to participate in the
distribution of earnings and assets of the Company without limit as to amount or
percentage.

         "Board" means the board of directors of the Company or its successor as
the same may be constituted from time to time.

         "Business Day" means a day which, in the State of Nevada, is not a
public holiday or a day on which banks are permitted or required to be closed.

         "Exercise Date" means, as to the Class B Warrants represented by this
Warrant Certificate, the date on which the Company shall have received both (1)
this Warrant Certificate, with the subscription form hereon duly executed by the
Registered Holder hereof or his attorney duly authorized in writing, and (2)
payment in cash, by electronic funds transfer to a deposit account designated by
the Company or by official bank check or certified check made payable to the
Company, of an amount in lawful money of the United States of America equal to
the applicable Exercise Price.

         "Exercise Price" means the price to be paid upon exercise of each Class
B Warrant in accordance with the terms hereof, subject to (i) adjustment from
time to time pursuant to the adjustment provisions of this Warrant Certificate
and (ii) the Company's right to reduce the Exercise Price as provided herein.

         "Expiration Date" means 5:00 p.m. (Las Vegas, Nevada time) on _______,
2005, or such earlier date as the Class B Warrants shall be redeemed. If such
date shall not be a Business Day, then the Expiration Date shall mean 5:00 p.m.
(Las Vegas, Nevada time) on the next succeeding day which is a Business Day. The
Company shall have the right to extend the Expiration Date, provided prior
notice is given to all Registered Holders.

         "Issue Date" means, with respect to the Warrants represented by this
certificate, __________, 2000.

                                       -2-
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         "Redemption Price" means the price at which the Company may, at its
option, redeem the Class B Warrants represented by this certificate, in
accordance herewith, which price shall be $0.001 per Warrant.

         "Registered Holder" means as to any Class B Warrant and as of any
particular date, the person in whose name a Warrant Certificate shall be
registered on that date on the books maintained by the Company for such purpose.

         "Transfer Agent" mean the Company, in its capacity as transfer agent
for the Common Stock, until such time as the Company shall authorize a successor
as such transfer agent.

Reservation of Shares; Payment of Taxes

         (a) The Company will at all times reserve and keep available out of its
authorized Common Stock, solely for the purpose of issue upon exercise of the
Class B Warrants, such number of whole shares of Common Stock as shall then be
issuable upon the exercise of all outstanding Class B Warrants. Shares of Common
Stock issuable upon exercise of Class B Warrants shall, at the time of delivery,
be duly and validly issued, fully paid, nonassessable and free from all taxes
(including, but not limited to, transfer taxes), liens and charges with respect
to the issue thereof (other than those taxes, liens or charges which the Company
shall promptly pay or discharge) , and upon issuance, such shares shall be
listed on each national securities exchange or eligible for inclusion in each
automated quotation system, if any, on or in which the other shares of
outstanding Common Stock of the Company are then listed or eligible for
inclusion.

         (b) If any securities to be reserved for the purpose of exercise of
Class B Warrants hereunder require registration with, or approval of, any
governmental authority under any federal securities law before such securities
may be validly issued or delivered upon such exercise, then the Company will, in
good faith and as expeditiously as reasonably possible, endeavor to secure such
registration or approval. The Company will use commercially reasonable efforts
to obtain appropriate approvals or registrations under applicable state
securities laws. With respect to any such securities, however, Warrants may not
be exercised by, or shares of Common Stock issued to, any Registered Holder in
any state in which such exercise would be unlawful.

         (c) The Company will pay all documentary, stamp or similar taxes and
other governmental charges that may be imposed with respect to the issuance of
Class B Warrants, or the issuance, or delivery of any shares of Common Stock
upon exercise of the Class B Warrants; provided, however, that if the shares of
Common Stock are to be delivered in a name other than the name of the Registered
Holder, then no such delivery shall be made unless the person requesting the
same has paid to the Company the amount of transfer taxes or charges incident
thereto, if any.

                                      -3-
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Exchange and Registration of Transfer.

         (a) This Warrant Certificate may be exchanged for other Warrant
Certificates representing an equal aggregate number of Class B Warrants of the
same class or may be transferred in whole or in part. Warrant Certificates to be
exchanged shall be surrendered to the Company at its principal office, and upon
satisfaction of the terms and provisions hereof, the Company shall execute,
issue and deliver in exchange therefor, the Warrant Certificate or Certificates
which the Registered Holder making the exchange shall be entitled to receive.

         (b) The Company shall keep at its principal office books in which it
shall register Warrant Certificates and the transfer thereof. Upon due
presentment for registration of transfer of any Warrant Certificate at such
office, the Company shall execute, issue and deliver to the transferee or
transferees, a new Warrant Certificate or Certificates representing an equal
aggregate number of Class B Warrants.

         (c) If this Warrant Certificate is presented for registration of
transfer, or for exchange or exercise, the subscription or assignment form, as
applicable, hereon shall be duly endorsed, or be accompanied by a written
instrument or instruments of transfer or subscription, as applicable in form
satisfactory to the Company, duly executed by the Registered Holder or his
attorney-in-fact duly authorized in writing.

         (d) A service charge may be imposed by the Company for any exchange or
registration of transfer of Warrant Certificates.

Loss or Mutilation. Upon receipt by the Company of evidence satisfactory to it
of the ownership of, and loss, theft, destruction or mutilation of, this Warrant
Certificate and, in case of loss, theft or destruction, of indemnity
satisfactory to it, and, in the case of mutilation, upon surrender and
cancellation thereof, the Company shall, in the absence of notice that this
Warrant Certificate has been acquired by a bona fide purchaser, execute, sign
and deliver to the Registered Holder, in lieu thereof, a new Warrant Certificate
of like tenor representing an equal aggregate number of Warrants. Applicants for
a substitute Warrant Certificate shall comply with such other reasonable
regulations and pay such other reasonable charges as the Company may prescribe.

Redemption.

         (a) Upon not less than 30 days notice given at any time after the
applicable date of issuance thereof, the outstanding Class B Warrants
represented by this Warrant Certificate may be redeemed, at the option of the
Company, at a Redemption Price of $0.001 per Class B Warrant. All Class B
Warrants must be redeemed if any are redeemed.

         (b) If the conditions set forth in clause (a) above are satisfied, and
the Company desires to exercise its rights to redeem Class B Warrants, it shall
request the Warrant Agent to send a notice of redemption to each of the
Registered Holders of the Class B Warrants to be redeemed, first class mail,
postage prepaid, not later than the 30th day before the Redemption Date, at
their last address as shall appear on the Class B Warrant register maintained by
the Company. Any notice mailed in the manner provided herein shall be
conclusively presumed to have been duly given whether or not the Registered
Holder receives such notice.

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         (c) The notice of redemption shall specify: (i) the Redemption Price;
(ii) the date fixed for redemption (the "Redemption Date"); (iii) the place
where Warrant Certificates shall be delivered and the redemption price paid; and
(iv) that the right to exercise the Class B Warrants shall terminate at 5:00
p.m. (Las Vegas, Nevada time) on the Business Day immediately preceding the
Redemption Date. No failure to mail such notice nor any defect therein or in the
mailing thereof shall affect the validity of the proceedings for such
redemption, except as to a Registered Holder (a) to whom notice was not mailed
or (b) whose notice was defective. An affidavit of the Secretary or an Assistant
Secretary of the Company that notice of redemption has been mailed shall, in the
absence of fraud, be conclusive evidence of the facts stated therein.

         (d) Any right to exercise a Class B Warrant shall terminate at 5:00
p.m. (Las Vegas, Nevada time) on the Business Day immediately preceding the
Redemption Date. Except as provided in clause (e) below, on and after the
Redemption Date, Registered Holders of the Class B Warrants shall have no
further rights, except to receive, upon surrender of the Warrant Certificates
representing such Class B Warrants, the Redemption Price.

         (e) From and after the Redemption Date, the Company shall, at the place
specified in the notice of redemption, upon presentation and surrender to the
Company by or on behalf of the Registered Holder thereof of this Warrant
Certificates, deliver or cause to be delivered to or upon the written order of
such holder a sum of cash equal to the Redemption Price of each Class B Warrant,
provided that if the aggregate amount payable to any Registered Holder in
redemption of Class B Warrants held by such Registered Holder is $1.00 or less,
the Company shall have no liability to make payment of the Redemption Price to
such Registered Holder; such Registered Holder will have no claim against the
Company for the payment of such Redemption Price; and the Class B Warrants held
by such Registered Holders shall, nevertheless, be deemed to have been duly
redeemed on the applicable Redemption Date, whether or not the same are
surrendered. From and after the Redemption Date and upon the deposit or setting
aside by the Company of a sum sufficient to redeem all the Class B Warrants
called for redemption, such Class B Warrants shall expire and become void and
all rights under this Warrant Certificate shall cease, except the right, if any,
to receive payment of the Redemption Price.

         (f) The Company reserves the right to have standby purchasers of all
unexercised Class B Warrants on the Redemption Date exercise such Class B
Warrants during the two week period following the Redemption Date, with the
Company receiving the Exercise Price and paying the redemption price to the
registered holders of unexercised Class B Warrants.

Adjustment of Exercise Price and Number of Shares of Common Stock. After each
adjustment of the Exercise Price pursuant to these adjustment provisions, the
number of shares of Common Stock purchasable upon the exercise of each Class B
Warrant shall, in each case, equal the number of shares of Common Stock
receivable upon exercise thereof prior to such adjustment multiplied by a
fraction, the numerator of which shall be the original Exercise Price and the
denominator of which shall be such adjusted Exercise Price.

                                      -5-
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         The Exercise Price shall be subject to adjustment as set forth below:

         (a) (i) In case the Company shall hereafter: (A) pay a dividend or make
a distribution on shares of its Common Stock in shares of its capital stock
(whether shares of Common Stock or of capital stock of any other class), (B)
subdivide its outstanding shares of Common Stock, (C) combine its outstanding
shares of Common Stock into a smaller number of shares, or (D) issue by
reclassification of its shares of Common Stock, any shares of capital stock of
the Company, the Exercise Price in effect immediately prior to such action shall
be adjusted so that the Registered Holder of any Class B Warrant thereafter
exercised shall be entitled to receive the number of securities of the Company
which it would have owned immediately following such action had such Class B
Warrant been exercised immediately prior thereto. An adjustment made pursuant to
this subsection shall become effective immediately after the record date in the
case of a dividend or distribution of shares of Common Stock and shall become
effective immediately after the effective date in the case of a subdivision,
combination or reclassification. If, as a result of an adjustment made pursuant
to this clause (a)(i), the Registered Holder of any Class B Warrant thereafter
exercised shall become entitled to receive two or more securities of the
Company, the Board (whose determination shall be conclusive and shall be
described in a statement filed with the Warrant Agent) shall determine the
allocation of the adjusted Exercise Price between or among such securities.

                  (ii) In any case in which this clause (a) shall require that
an adjustment to the Exercise Price be made immediately following a record date,
the Company may elect to defer, but only until five Business Days following the
filing with the Secretary of the Company of the certificate of its chief
financial officer described in clause (d)(i) below, issuing to the holder of any
Class B Warrants exercised after such record date the shares of Common Stock and
securities of the Company issuable upon such exercise over and above the shares
of Common Stock and other securities of the Company issuable upon such exercise
on the basis of the Exercise Price prior to adjustment.

                  (iii) No adjustment in the Exercise Price shall be required to
be made unless such adjustment would require an increase or decrease of at least
$0.10; provided, however, that any adjustments which by reason of this
subsection are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. All calculations under these adjustment
provisions shall be made to the nearest cent or to the nearest one-one hundredth
of a share, as the case may be, but in no event shall the Company be obligated
to issue fractional shares upon the exercise of any Class B Warrant.

                  (iv) No adjustment of the Exercise Price shall be made, except
on the conditions set forth in this clause (a). Without limitation to the
foregoing, there shall be no adjustment pursuant to this clause (a) should the
Company issue any capital stock for cash or other consideration on terms
approved by the Board.

                                       -6-
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         (b) In case of any reclassification or change of outstanding shares of
Common Stock issuable upon exercise of the Class B Warrants (other than a change
in par value, or from par value to no par value, or from no par value to par
value, or as a result of a subdivision or combination), or in case of any
consolidation or merger of the Company with or into another corporation (other
than a merger with a subsidiary of the Company, in which merger, the Company is
the continuing corporation and which does not result in any reclassification or
change of the then outstanding shares of Common Stock or other securities
issuable upon exercise of the Class B Warrants, other than a change in par
value, or from par value to no par value, or from no par value to par value), or
in the case of any sale or conveyance to another corporation of the property of
the Company as an entirety or substantially as an entirety, then, as a condition
of such reclassification, change, consolidation, merger, sale or conveyance, the
Company, or such successor or purchasing corporation, as the case may be, shall
make lawful and adequate provision whereby the Registered Holder of each Class B
Warrant then outstanding shall have the right thereafter to receive on exercise
of such Class B Warrant the kind and amount of shares of stock and other
securities and property receivable upon such reclassification, change,
consolidation, merger sale or conveyance by a holder of the number of shares of
Common Stock issuable upon exercise of such Class B Warrant immediately prior to
such reclassification, change, consolidation, merger, sale or conveyance and the
Company or its successors shall forthwith file with its Secretary a statement
setting forth such provisions signed by (1) its President or a Vice President
and (2) by its Secretary or an Assistant Secretary, evidencing such provisions.
Such provisions shall include a provision for adjustments which shall be as
nearly equivalent as may be practicable to the adjustments provided for in
clause (a) above. The provisions of this clause (b) shall similarly apply to
successive reclassifications and changes of shares of Common Stock and to
successive consolidations, mergers, sales or conveyances.

         (c) Before taking any action which would cause an adjustment reducing
the Exercise Price below the then par value of the shares of Common Stock
issuable upon exercise of the Class B Warrants, the Company will take any
corporate action which may, in the opinion of its counsel, be necessary in order
that the Company may validly and legally issue fully paid and nonassessable
shares of Common Stock at such adjusted Exercise Price.

         (d) (i) Upon any adjustment of the Exercise Price required to be made
pursuant to these adjustment provisions, the Company within 30 days thereafter
shall (A) cause to be filed with the Secretary of the Company a certificate of
its Chief Financial Officer setting forth the Exercise Price after such
adjustment and setting forth in reasonable detail the method of calculation and
the facts upon which such calculation was based, which certificate shall be
conclusive evidence of the correctness of such adjustment, and (B) cause to be
mailed to the Registered Holder of this Warrant Certificate written notice of
such adjustment. Where appropriate, such notice may be given in advance and
included as a part of the notice required to be mailed under the notice
provisions set forth below.

                                       -7-
<PAGE>

              (ii) In case at any time:

                  (A) the Company shall declare any dividend upon its Common
Stock payable otherwise than in cash or in shares of Common Stock of the
Company; or

                  (B) the Company shall offer for subscription to the holders of
its Common Stock (other than pursuant to the terms of the Warrants) any
additional shares of stock of any class or any other securities convertible or
exercisable into, or exchangeable for shares of Common Stock or any rights to
subscribe thereto; or

                  (C) there shall be any capital reorganization or
reclassification of the capital stock of the Company, or a sale of all or
substantially all of the assets of the Company, or a consolidation or merger of
the Company with another corporation (other than a merger with a subsidiary of
the Company in which merger the Company is the continuing corporation and which
does not result in any reclassification or change of the then outstanding shares
of Common Stock or other capital stock issuable upon exercise of the Class B
Warrants other than a change in par value, or from par value to no par value, or
from no par value to par value); or

                  (D) there shall be a voluntary or involuntary dissolution,
liquidation or winding up of the Company; then, in any one or more of such
cases;

the Company shall cause to be mailed to the Registered Holder of this Warrant
Certificate, at the earliest practicable time (and, in any event, not less than
20 days before any record date or other date set for definitive action), written
notice of the date on which the books of the Company shall close or a record
shall be taken for such reorganization, reclassification, sale, consolidation,
merger, dissolution, liquidation or winding up shall take place, as the case may
be. Such notice shall also set forth such facts as shall indicate the effect of
such action (to the extent such effect may be known at the date of such notice)
on the Exercise Price and the kind and amount of the shares of stock and other
securities and property deliverable upon exercise of the Class B Warrants. Such
notice shall also specify the date as of which the holders of the Common Stock
of record shall participate in dividend, distribution or subscription rights or
shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reorganization, reclassification, sale,
consolidation, merger., dissolution, liquidation or winding up as the case may
be (on which date, in the event of voluntary or involuntary dissolution,
liquidation or winding up of the Company, the right to exercise the Class B
Warrants shall terminate).

              (iii) Without limiting the obligation of the Company to provide
notice to the Registered Holders of the Warrant Certificates of corporate
actions hereunder, the failure of the Company to give notice shall not
invalidate such corporate action of the Company.

                                       -8-
<PAGE>

Fractional Securities.

         (a) If the number of shares of Common Stock and other securities
purchasable upon the exercise of each Class B Warrant is adjusted as above
provided, the Company, nevertheless, shall not be required to issue fractions of
shares pertaining to fractional shares upon exercise of the Class B Warrants or
otherwise, or to distribute certificates that evidence fractional shares or the
right to purchase fractional shares. With respect to any fraction of a share
that would relate to a fraction of a share called for upon any exercise hereof,
the Company shall pay to the Registered Holder an amount in cash equal to such
fraction multiplied by the current market value of such fractional share
relating to fractional shares, determined as follows:

               (i) If the Common Stock is listed on a national securities
exchange or admitted to unlisted trading privileges on such exchange or listed
for quotation on the Nasdaq Stock Market Inc. ("Nasdaq"), the current value
shall be the last reported sale price of the Common Stock on such exchange or
Nasdaq on the last business day prior to the date of exercise of this Warrant or
if no such sale is made on such day, the average of the closing bid and asked
prices for such day on such exchange or Nasdaq; or

               (ii) If the Common Stock is not listed or admitted to unlisted
trading privileges, the current value shall be the mean of the last reported bid
and asked prices reported by the National Quotation Bureau, Inc. on the last
business day prior to the date of the exercise of this Class B Warrant; or

               (iii) If the Common Stock is not listed or admitted to unlisted
trading privileges and bid and asked prices are not so reported, the current
value shall be an amount determined in such reasonable manner as may be
prescribed by the Board.

Agreement of Warrant Holders. The Registered Holder of this Warrant Certificate,
by his acceptance thereof, consents and agrees with the Company and every other
Registered Holder of a Warrant that:

         (a) The Class B Warrants are transferable only on the Class B Warrant
registry books of the Company by the Registered Holder hereof in person or by
his attorney duly authorized in writing and only if this Warrant Certificate is
surrendered at the office of the Company, with the transfer form hereon attached
hereto duly endorsed, or accompanied by a proper instrument of transfer
satisfactory to the Company in its sole discretion, together with payment of any
applicable transfer taxes; and

         (b) The Company may deem and treat the person in whose name this
Warrant Certificate is registered as the Registered Holder thereof and as the
absolute, true and lawful owner of the Warrants represented hereby for all
purposes, and the Company shall not be affected by any notice or knowledge to
the contrary, except as otherwise expressly provided herein.

                                       -9-
<PAGE>

Cancellation of Warrant Certificates. If the Company shall purchase or acquire
the Class B Warrants represented hereby, this Warrant Certificate shall be
surrendered to the Company and shall be canceled by the Company and retired.

Right to Extend Expiration Date or Reduce Exercise Price. The exercise price of
the Class A Warrants and/or the Class B Warrants may, at the Company's option,
upon 30 days prior written notice, be reduced from time to time for a period or
periods, none of which shall be for less than 15 nor more than 90 days. The
Company shall also have the right to extend the exercise period of the Class A
or Class B Warrants at the Company's sole option.

Notices. All notices, requests, consents and other communications hereunder
shall be in writing and shall be deemed to have been made when delivered or
mailed first class registered or certified mail, postage prepaid as follows:

         (a) if to the Registered Holder of this Warrant Certificate, at the
address of such holder as shown on the registry books maintained by the Company;

         (b) if to the Company, at 1700 W. Horizon Ridge Parkway, Henderson,
Nevada 89012, or at such other address as may have been furnished to the
Registered Holders in writing by the Company;

Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Nevada without reference to choice of law rules
thereof.

         IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be duly executed, manually or in facsimile by an officer thereof duly
authorized.

                                             TWIN LAKES, INC.

Dated: __________, 2000                      By
                                                -----------------------------
                                                Johnny R. Thomas, President

                                      -10-
<PAGE>

                                SUBSCRIPTION FORM

                     To Be Executed by the Registered Holder
                      in order to Exercise Class B Warrants

         The undersigned Registered Holder hereby irrevocably elects to exercise
the Class B Warrants represented by this Warrant Certificates, and to purchase
the securities issuable upon the exercise of such Class B Warrants, and requests
that certificates for such securities shall be issued in the name of

         PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

                    -----------------------------------------

                    -----------------------------------------

                    -----------------------------------------
                     [please print or type name and address]

and be delivered to

                    -----------------------------------------

                    -----------------------------------------

                    -----------------------------------------
                     [please print or type name and address]

                                       -1-
<PAGE>

and if such number of Class B Warrants shall not be all of the Class B Warrants
evidenced by this Warrant Certificate, that a new Warrant Certificate for the
balance of such Class B Warrants be registered in the name of, and delivered to,
the Registered Holder at the address stated below.

Dated: ____________________________           x
                                              ----------------------------------

                                              ----------------------------------
                                                           Address

                                              ----------------------------------

                                              ----------------------------------
                                                Taxpayer Identification Number

                                              ----------------------------------
                                                     Signature Guaranteed

                                       -2-
<PAGE>

                                   ASSIGNMENT

                     To Be Executed by the Registered Holder
                       in Order to Assign Class B Warrants

FOR VALUE RECEIVED, ______________________________________________________
hereby sells, assigns and transfers unto

                  PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

                     --------------------------------------

                     --------------------------------------

                     --------------------------------------
                     [please print or type name and address]

_____________________of the Class B Warrants represented by this Warrant
Certificate, and hereby irrevocably constitutes and appoints
_________________________________________ Attorney to transfer this Warrant
Certificate on the books of the Company, with full power of substitution in the
premises.

Dated:________________________                   x
                                                  ------------------------------

                                                       Signature Guaranteed

THE SIGNATURE TO THE ASSIGNMENT OR THE SUBSCRIPTION FORM MUST CORRESPOND TO THE
NAME AS WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR,
WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE
GUARANTEED BY A COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM OF THE
AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE OR
MIDWEST STOCK EXCHANGE.<PAGE>
                                                                    EXHIBIT 10.1

         This EMPLOYMENT AGREEMENT (this "Agreement"), dated as of August 6,
2002 (the "Effective Date"), is hereby made by and between PXRE GROUP LTD., a
Bermuda company (the "Company"), and GUY D. HENGESBAUGH, an individual (the
"Executive").

         WHEREAS, the Company desires to employ the Executive and to enter into
this Agreement to set forth the terms of such employment; and

         WHEREAS, the Executive desires to enter into such employment and enter
into this Agreement.

         NOW, THEREFORE, in consideration of the covenants and agreements
hereinafter set forth, the parties hereto agree as follows:

1. EMPLOYMENT AND DUTIES

         1.1. General. The Company hereby employs the Executive, and the
Executive hereby agrees to serve the Company, as Executive Vice President of the
Company, upon the terms and subject to the conditions herein contained.

         The Executive shall perform such other duties and services for the
Company and its affiliates, commensurate with the Executive's position, as may
be designated from time to time by the President, the Chief Executive Officer
(the "CEO") or Board of Directors of the Company (the "Board"). The Executive
agrees to serve the Company faithfully and to the best of his ability under the
direction of the President, the CEO and the Board.

         1.2. Extent of Services. Except as may otherwise be approved in advance
by the Board, and except during vacation periods and reasonable periods of
absence due to sickness, personal injury or other disability, the Executive
shall devote his full working time throughout his period of employment with the
Company to the services required of him under this Agreement. The Executive
shall use his best efforts, judgment and energy to improve and advance the
business, reputation and interests of the Company in a manner consistent with
the duties of his position.

         1.3. Term of Employment. The Executive's employment under this
Agreement shall commence as of the Effective Date and shall terminate on of the
earlier of July 31, 2003 and the date of termination of the Executive's
employment pursuant to Section 4 or 5. The period commencing on the Effective
Date and ending on July 31, 2003 is hereinafter referred to as the "Employment
Term".

<PAGE>
2. COMPENSATION

         2.1. Base Salary. From the Effective Date through the end of the
Executive's employment hereunder, the Executive shall be entitled to receive a
base salary ("Base Salary") at a rate of US$350,000 per annum, payable in
arrears in equal installments in accordance with the Company's payroll
practices, with such increases as may be granted to the Executive in accordance
with Company policy. Once increased, such higher amount shall constitute the
Executive's annual Base Salary.

         2.2. Annual Review. The Executive's Base Salary shall be reviewed by
the President, based upon the Executive's performance, not less often than
annually, and may be increased but not decreased during the Employment Term.

         2.3. Annual Incentive Bonus Plan. Subject to the provisions of Section
4.2, the Executive shall be entitled to participate annually during the
Employment Term in the Company's Restated Employee Annual Incentive Bonus Plan
(the "Bonus Plan"), or such substitute plan as shall be established from time to
time by Company, which provides for the payment of annual bonuses to key
employees of the Company, subject to the terms and conditions of the Bonus Plan
or such substitute plan, as the case may be.

         2.4. Equity Grants. Subject to the provisions of Section 4.2, the
Executive shall be entitled to participate annually during the Employment Term
in the Company's 2002 Officer Incentive Plan (the "Incentive Plan"), or such
substitute plan as shall be established from time to time by Company, which
provides for the grant of stock options and restricted shares of Company stock
to key employees of the Company, subject to the terms and conditions of the
Incentive Plan or such substitute plan, as the case may be.

         2.5. Severance Plan. During the Employment Term, the Executive will not
be eligible to participate in the Company's Amended and Restated Severance Plan
for Certain Executives.

         2.6. Housing Allowance. The Company shall provide the Executive with a
housing allowance at an annual rate of US$120,000 for the Employment Term with
such allowance payable to the Executive in monthly installments.

3. EMPLOYEE BENEFITS

         3.1. In General. The Executive and his dependents shall, during his
employment under this Agreement, be included to the extent eligible thereunder
in all pension, 401(k), health, medical, life, disability or other similar plans
or benefits which shall be established by the Company from time to time for, or
made available to, its executives.

                                      -2-
<PAGE>
4. TERMINATION OF EMPLOYMENT

         4.1. Termination Without Cause; Resignation for Good Reason.

                  4.1.1. General. Subject to the provisions of Sections 4.1.2
         and 4.1.3, ifthe Executive's employment is terminated by the Company
         without Cause (as defined in Section 4.3), or if the Executive
         terminates his employment hereunder for Good Reason (as defined in
         Section 4.4), the Company shall pay the Executive severance pay in an
         amount equal to the sum of (i) the Base Salary (at a rate in effect on
         the date of such termination or, if a reduction in Base Salary is the
         basis for termination for Good Reason, then the Base Salary in effect
         immediately prior to such reduction), plus (ii) the amount of the
         annual housing allowance payable pursuant to Section 2.6. Such
         severance pay shall be payable at such intervals as the same would have
         been paid had the Executive remained in the active service of the
         Company. In addition, the Executive and his dependents shall continue
         to participate in the benefit plans described in Section 3.1 for a
         period of one year from the date of termination or resignation pursuant
         to this Section 4.1.1; provided, however, that the Company may, at its
         option, pay to the Executive the present value of the aggregate dollar
         value of such benefits, without the necessity to provide the respective
         benefits to the Executive set forth in Section 3.1 hereof. The
         Executive shall have no further right to receive any other compensation
         or benefits after such termination or resignation of employment except
         as determined in accordance with the terms of the employee benefit
         plans or programs of the Company except that he shall receive payment
         for earned but unused vacation. Salary continuation payments made and
         benefits provided to the Executive pursuant to this Section 4.1.1 shall
         be reduced by compensation earned and benefits received by the
         Executive from a subsequent employer during 12-month period following
         termination of employment (the "Severance Period").

                  4.1.2. Conditions Applicable to the Severance Period. If,
         during the Severance Period, the Executive breaches his obligations
         under Section 7 of this Agreement, the Company may terminate the
         Severance Period and cease to make any further payments or provide any
         benefits described in Section 4.1.1.

                  4.1.3. Death During Severance Period. In the event of the
         Executive's death during the Severance Period, all remaining severance
         pay due to the Executive unde Section 4.1.1 shall be payable
         immediately to the Executive's designated beneficiary.

                  4.1.4. Date of Termination. The date of termination of
         employment without Cause shall be the date specified in a written
         notice of termination to the Executive. The date of resignation for
         Good Reason shall be the date specified in the written notice of
         resignation from the Executive to the Company; provided, however, that
         no such written notice shall be effective unless the cure period
         specified in Section 4.4 has expired without the Company having
         corrected the event or events subject to cure. If no date of
         resignation is specified in the written notice from the Executive to
         the Company, the date of termination shall be the first day following
         the expiration of such cure period.

                                      -3-
<PAGE>
         4.2. Termination for Cause; Resignation Without Good Reason.

                  4.2.1. General. If, prior to the expiration of the Employment
         Term, the Executive's employment is terminated by the Company for
         Cause, or the Executive resigns from his employment hereunder other
         than for Good Reason, the Executive shall be entitled only to payment
         of his Base Salary as then in effect through and including the date of
         termination or resignation together with payment for earned but unused
         vacation. The Executive shall have no further right to receive any
         other severance, compensation or benefits after such termination or
         resignation of employment, except as determined in accordance with the
         terms of the employee benefit plans or programs of the Company.

                  4.2.2. Date of Termination. Subject to the proviso to Section
         4.3, the date of termination for Cause shall be the date specified in a
         written notice of termination to the Executive. The date of resignation
         without Good Reason shall be the date specified in the written notice
         of resignation from the Executive to the Company, or if no date is
         specified therein, 10 business days after receipt by the Company of
         written notice of resignation from the Executive.

         4.3. Cause. Termination for "Cause" shall mean termination of the
Executive's employment because of:

         (a)      any wilful act or omission that constitutes a material breach
                  by the Executive of any of his obligations under this
                  Agreement;

         (b)      the wilful and continued failure or refusal of the Executive
                  to substantially perform the material duties required of him
                  as an employee of the Company;

         (c)      any wilful material violation by the Executive of any law or
                  regulation applicable to the business of the Company or any of
                  its subsidiaries or affiliates, or the Executive's conviction
                  of or plea of nolo contendere to a felony or a crime involving
                  moral turpitude, or any wilful perpetration by the Executive
                  of a common law fraud; or

         (d)      any other wilful misconduct by the Executive that is injurious
                  to the financial condition or business reputation of, or is
                  otherwise materially injurious to, the Company or any of its
                  subsidiaries or affiliates;

provided, however, that if any such Cause relates to the Executive's obligations
under this Agreement and is susceptible to cure, the Company shall not terminate
the Executive's employment hereunder unless the Company first gives the
Executive notice of its intention to terminate and of the grounds for such
termination, and the Executive has not, within 10 business days following
receipt of the notice, cured such Cause.

                                      -4-
<PAGE>
         For purposes of this Section 4.3, an "affiliate" of a person or other
entity shall mean a person or other entity that directly or indirectly controls,
is controlled by, or is under common control with, the person or entity
specified.

         4.4. Good Reason. For purposes of this Agreement, "Good Reason" shall
mean either of the following (occurring without the Executive's prior consent):

         (a)      a decrease in the Executive's base rate of compensation, or a
                  failure by the Company to pay material compensation due and
                  payable to the Executive in connection with his employment; or

         (b)      the failure by the Company to obtain an agreement from a
                  successor to assume and agree to perform this Agreement in
                  accordance with the second sentence of Section 8.3;

provided, however, that if any such Good Reason is susceptible of cure, the
Executive may not resign for Good Reason unless the Executive first gives the
Company notice of his intention to resign and of the grounds for such
resignation, and the Company has not, within 10 business days following receipt
of the notice, cured such Good Reason, or in the event that such Good Reason is
not susceptible to cure within such 10 business day period, the Company has not
taken all reasonable steps within such 10 business day period to cure such Good
Reason as promptly as practicable thereafter.

5. DEATH OR DISABILITY

         In the event of termination of the Executive's employment by reason of
death or Permanent Disability (as hereinafter defined), the Executive (or his
estate, as applicable) shall be entitled to Base Salary and benefits determined
under Sections 2 and 3 through the date of termination. Other benefits shall be
determined in accordance with the benefit plans maintained by the Company, and
the Company shall have no further obligation hereunder. For purposes of this
Agreement, "Permanent Disability" means a physical or mental disability or
infirmity of the Executive that prevents the normal performance of substantially
all his duties as an employee of the Company, which disability or infirmity
shall exist, or in the option of an independent physician is reasonably likely
to exist, for any continuous period of 180 days.

6. NO MITIGATION OF DAMAGES

         The Executive shall not be required to mitigate the amount of any
payment provided for in Section 4.1 by seeking other employment.

                                      -5-
<PAGE>
7. CONFIDENTIALITY

         7.1. Confidentiality. The Executive agrees that during the Employment
Term and thereafter he will not, except in the performance of his obligations to
the Company hereunder or as may otherwise be approved in advance by the Board,
directly or indirectly, disclose or use (except for the direct benefit of the
Company) any confidential information that he may learn or has leaned by reason
of his association with the Company, any client or any of their respective
subsidiaries and affiliates. The term "confidential information" includes all
data, analyses, reports, interpretations, forecasts, documents and information
concerning or otherwise reflecting information and concerning the Company and
its affairs, including, without limitation, with respect to clients, products,
policies, procedures, methodologies, trade secrets and other intellectual
property, systems, personnel, confidential reports, technical information,
financial information, business transactions, business plans, prospects or
opportunities, but shall exclude any portion of such information that (a) was
acquired by the Executive prior to his employment by, or other association with,
the Company, (b) is or becomes generally available to the public or is generally
known in the industry or industries in which the Company operates, in each case
other than as a result of disclosure by the Executive in violation of this
Section 7.1 or (c) the Executive is required to disclose under any applicable
laws, regulations or directives of any government agency, tribunal or authority
having jurisdiction in the matter or under subpoena or other process of law.

         7.2. Exclusive Property. The Executive confirms that all confidential
information with respect to the Company is and shall remain the exclusive
property of the Company. All business records, papers and documents kept or made
by the Executive relating to the business of the Company shall be and remain the
property of the Company, except for such papers customarily deemed to be the
personal copies of the Executive.

         7.3. Injunctive Relief. Without intending to limit the remedies
available to the Company, the Executive acknowledges that a breach of any of the
covenants contained in this Section 7 may result in material and irreparable
injury to the Company and its affiliates and subsidiaries for which there is no
adequate remedy at law, that it will not be possible to measure damages for such
injuries precisely and that, in the event of such a breach or threat thereof,
the Company shall be entitled to seek a temporary restraining order or a
preliminary or permanent injunction restraining the Executive from engaging in
activities prohibited by this Section 7 or such other relief as may be required
specifically to enforce any of the covenants in this Section 7. If for any
reason it is held that the restrictions under this Section 7 are not reasonable
or that consideration therefor is inadequate, such restrictions shall be
interpreted or modified to include as much of the duration and scope identified
in this Section 7 as will render such restrictions valid and enforceable.

                                      -6-
<PAGE>
8. MISCELLANEOUS

         8.1. Notices. All notices or communications hereunder shall be in
writing, addressed as follows:

                  To the Company:

                  PXRE Group Ltd.
                  99 Front Street
                  Hamilton HM 12
                  Bermuda
                  Fax: 441-296-6162
                  Attn: President

                  To the Executive:

                  Guy D. Hengesbaugh
                  99 Front Street
                  Hamilton HM 12
                  Bermuda
                  Fax: 441-296-6162

All such notices shall be conclusively deemed to be received and shall be
effective, (a) if sent by hand delivery or courier service, upon receipt, (b) if
sent by telecopy or facsimile transmission, upon confirmation of receipt by the
sender of such transmission or (c) if sent by registered or certified mail, on
the fifth day after the day on which such notice is mailed.

         8.2. Severability. Each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement is held to be prohibited by or invalid
under applicable law, such provision will be ineffective only to the extent of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

         8.3. Assignment. The Company's rights and obligations under this
Agreement shall not be assignable by the Company except as incident to a
reorganization, merger or consolidation, or transfer of all or substantially all
the Company's business and properties (or portion thereof in which the Executive
is employed). The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all the business of the Company to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.
Neither this Agreement nor any rights hereunder shall be assignable or otherwise
subject to hypothecation by the Executive.

                                      -7-
<PAGE>
         8.4. Entire Agreement. Except as expressly set forth herein, this
Agreement represents the entire agreement of the parties and shall supersede any
and all previous contracts, arrangements or understandings between the Company
and the Executive. This Agreement may be amended at any time by mutual written
agreement of the parties hereto.

         8.5. Withholding. The payment of any amount pursuant to this Agreement
shall be subject to applicable withholding and payroll taxes, and such other
deductions as may be required under the Company's employee benefit plans, if
any.

         8.6. Governing Law. This Agreement shall be governed by, and construed
in accordance with, the laws of Bermuda with regard to any conflict of law rules
that might apply the laws of any other jurisdiction.

         8.7. Waiver. No waiver by either party of any breach by the other party
of any condition or provision contained in this Agreement to be performed by
such other party shall be deemed a waiver of a similar or dissimilar condition
or provision at the same or any prior or subsequent time. Any waiver must be in
writing and signed by the Executive or an authorized officer of the Company, as
the case may be.

         8.8. Headings. The headings of the sections contained in this Agreement
are for convenience of reference only and shall not be deemed to control or
affect the meaning or construction of any provision of this Agreement.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed and the Executive has hereunto set his hand, as of the day and year
first above written.

                                   PXRE GROUP LTD.

                                   By /s/ Jeffrey L. Radke
                                   ---------------------------------
                                   Name:  Jeffrey L. Radke
                                   Title: President & Chief Operating Officer

                                   GUY D. HENGESBAUGH

                                   /s/ Guy D. Hengesbaugh
                                   ---------------------------------

                                       -8-

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