Document:

<pre>

Exhibit   10.1       Unwind Agreement of Asset Purchase with iDVDBox

AGREEMENT TO UNWIND ASSET PURCHASE AGREEMENT

This AGREEMENT TO UNWIND ASSET PURCHASE AGREEMENT (the "Unwind Agreement"),
(ASSET PURCHASE AGREEMENT hereafter referred to as "Agreement 1") made and
entered into as of May 10, 2002, is by and among MediaBus Networks, Inc., a
Florida corporation ("MediaBus"), iDVDBox, Inc., a Florida corporation
("iDVDBox").

WHEREAS, MediaBus desires to assign, convey, transfer and deliver back to
iDVDBox, along with certain liabilities in exchange for previously issued
MediaBus common stock as set forth in this Unwind Agreement below as
follows;

1.	All assets previously transferred from iDVDBox to MediaBus
described in Agreement 1 shall be returned to iDVDBox as listed in Exhibit
1 attached hereto;

2.	Cancellation of all employments agreements and termination of all
at will employees in the iDVDBox division with MediaBus;

3.	Assumption all liabilities previously assumed by MediaBus in
Agreement 1 shall be reassumed by iDVDBox as listed in Exhibit 2 attached
hereto;

4.	All stock issued to iDVDBox shareholders for the asset purchase,
debt assumption or payment, employment agreements or any other
consideration shall be immediately canceled and returned to MediaBus as
listed in Exhibit 3 attached hereto;

5.	A mutual release (Exhibit 4 attached hereto) from all at will and
salaried/contract employees for any accrued compensation and expenses from
MediaBus.

                              GENERAL PROVISIONS

SECTION 1.1   NOTICES.

All notices, Consents, waivers, and other communications under this Unwind
Agreement must be in writing and are deemed to have been duly given when
(a)delivered by hand (with written confirmation of receipt) or (b) sent by
facsimile or with confirmation of transmission by the transmitting
equipment in each case to the appropriate addresses, facsimile numbers or
email addresses set forth below (or to such other addresses, facsimile
numbers or as a party may designate by notice to the other parties):

     Buyer:         MediaBus Networks, Inc.
                    2900 Delk Road
                    Suite 700
                    PMB 113
                    Marietta, GA 30067
                    Attn:  Ken Lipscomb
			   Chairman & CEO
                    Fax: (208) 979-5660

     		    iDVDBox, Inc.
                    6560 West Rodgers Circle
	            Suite 14
                    Boca Raton, FL 33487
                    Attn:  Steve Cavayero
                           President & Chief Executive Officer
                    Fax: (561) 995-5998

SECTION 1.2   WAIVER.

The rights and remedies of the parties to this Unwind Agreement are
cumulative and not alternative. Neither the failure nor any delay by any
party in exercising any right under this Unwind Agreement or the documents
referred to in this Agreement operates as a waiver of such right, and no
single or partial exercise of any such right precludes any other or further
exercise of such right or the exercise of any other right. To the maximum
extent permitted by applicable law, (a) no claim or right arising out of
this Unwind Agreement or the documents referred to in this Unwind Agreement
can be discharged by one party, in whole or in part, by a waiver or
renunciation of the claim or right unless in writing signed by the other
party; (b) no waiver that may be given by a party will be applicable except
in the specific instance for which it is given; and (c) no notice to or
demand on one party will be deemed to be a waiver of any obligation of such
party or of the right of the party giving such notice or demand to take
further action without notice or demand as provided in this Unwind
Agreement or the documents referred to in this Unwind Agreement.

SECTION 1.3   ENTIRE UNWIND AGREEMENTAND MODIFICATION.

This Unwind Agreement supersedes all prior agreements, whether written or
oral, between the parties with respect to its subject matter and
constitutes (along with the Exhibits and other documents delivered pursuant
to this Unwind Agreement) a complete and exclusive statement of the terms
of the unwind agreement between the parties with respect to its subject
matter. This Unwind Agreement may not be amended except by a written Unwind
Agreement signed on behalf of each of the parties hereto.

SECTION 1.4   ASSIGNMENTS, SUCCESSORS, AND NO THIRD-PARTY RIGHTS.

No party may assign any of its rights or delegate any of its obligations
under this Unwind Agreement without the prior written consent of the other
parties.

SECTION 1.5   SEVERABILITY.

If any provision of this Unwind Agreement is held invalid or unenforceable
by any court of competent jurisdiction, the other provisions of this Unwind
Agreement remain in full force and effect. The parties further agree that
if any provision contained herein is, to any extent, held invalid or
unenforceable in any respect under the laws governing this Agreement, they
shall take any actions necessary to render the remaining provisions of this
Unwind Agreement valid and enforceable to the fullest extent permitted by
law and, to the extent necessary, shall amend or otherwise modify this
Unwind Agreement to replace any provision contained herein that is held
invalid or unenforceable with a valid and enforceable provision giving
effect to the intent of the parties.

SECTION 1.6  TIME OF ESSENCE.

With regard to all dates and time periods set forth or referred to in this
Agreement, time is of the essence.

SECTION 1.7  GOVERNING LAW.

This Unwind Agreement will be governed by and construed under the laws of
the State of Florida without regard to conflicts of laws principles that
would require the application of any other law.

SECTION 1.8  JOINT AND SEVERAL OBLIGATIONS.

All covenants, representations, warranties and other obligations of Seller
under this Unwind Agreement and the other Seller's Closing Documents shall
be joint and several, except for covenants, representations, warranties and
other obligations, which are expressly provided, to be several and not
joint obligations of iDVDBox.

SECTION 1.9  EXECUTION OF AGREEMENT, COUNTERPARTS.

This Unwind Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Unwind Agreement and
all of which, when taken together, will be deemed to constitute one and the
same agreement. The exchange of copies of this Unwind Agreement and of
signature pages by facsimile transmission shall constitute effective
execution and delivery of this Unwind Agreement as to the parties and may
be used in lieu of the original Unwind Agreement for all purposes.
Signatures of the parties transmitted by facsimile shall be deemed to be
their original signatures for any purpose whatsoever.

SECTION 1.10 MUTUAL RELEASES

Any and all disputes and differences that have arisen between the parties
with respect to Agreement 1, this Unwind Agreement entered into by parties,
and all business transactions conducted between the parties to date, both
parties agree to settle any and all disputes and differences by executing
this Unwind Agreement including mutual releases.

Both parties recognize that by the execution of this Unwind Agreement, they
are relinquishing their respective legal rights with reference to any and
all disputes and differences. Both parties agree there is consideration for
this Unwind Agreement. Each party for his heirs and assigns, expressly
releases the other party, and his heirs and assigns, from all liability for
claims and/or demands which may arise from Agreement 1, Employment
Agreements, the Unwind Agreement and any business transactions conducted
between the parties to date.

            [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, the parties have executed this Unwind Agreement as of
the date first written above.

                                 MediaBus Networks, Inc.

                                 By: ---------------------------
                                            Name:  Ken Liscomb
                                            Its:   Chairman & CEO

                                 iDVDBox, Inc.

                                  By: ---------------------------
                                      Name:  Stephen Cavayero
                                      Its:   President & CEO

                                   By: ---------------------------
                                       Name:  Richard Cavayero
                                       Its:   Vice-President

                                    By: ---------------------------
                                        Name:  Jerry Siah
                                        Its:   Vice-President

                             EXHIBITS
                             ---------

Exhibit  1 		List of Assets

Exhibit  2		List of Assumed Liabilities

Exhibit  3		Shares to be Returned and Canceled

Exhibit  4		Mutual Release

EXHIBIT 1 - Page 1
<table>
List of Assets - 2 pages

No.	Item	                                         License/Serial No.           Amount
	<C>                                              <C>                         <C>
	Intellectual Property and Trademarks

1	IP- BoxEngine (Worldwide Patent Pending) technology	                        -
2	Trademark "i2DVD"		-
3	Trademark "BoxEngine"		-

	Servers Hardware and Software		                                      $7,099.74
1	Dell PowerEdge 1400SC, 933Mhz Server              (CCS01)	CGJRN01
2	Dell PowerEdge 1400SC, 933Mhz Server              (ORACLE01)	8GJRN01
3	MultiTech RASFinder Remorte Access Device	  2714339
4	APC Smart-UPS	                                  QS0113313750
5	Windows NT Server 4.0                             (CCS01)
                                                          35600-OEM-0001321-99177
6	Windows NT Server 4.0 (ORACLE01)	          35600-OEM-0001321-98629
7	Veritas Backup Exec Server v8.5	                  04-4626-2010-909864
8	Veritas Backup Exec Remote Agent	          00-4711-2011-871535
9	Veritas Backup Exec Oracle Agent	          07-4471-2013-049636

	PC Software		                                                      $4,333.29
1	Adobe Photoshop 6.0	                          PWW600Y7113409-366
2	Adobe Illustrator 9.0	                          ABW900Y7126259-576
3	Adobe GoLive 5.0	                          GJW500Y7104824-380
4	Adobe LiveMotion	                          LVW100Y7904654-513
5	Macromedia Dreamweaver UltraDev 4	          UDW400-02462-88241-39058
6	Macromedia Flash 5	                          FLW500-01947-19238-79017
7	ColdFusion Studio 4.5.2	                          CF45STU-8662361172
8	ColdFusion Server 4.5	                          CF45PNT-4010162442
9	Borland C++ Builder 5 Standard	                  CPC1350WW10180
10	Adobe Acrobat 4.0	                          KWW400R7462741-952
11	McAfee VirusScan	                          P-01000620
12	McAfee Firewall	                                  P-01000620
13	StarOffice 5.2	                                  724-6523-01
14	Corel Gallery Clipart	                          CG4XR-SF55553854

	Lab Equipment		                                                         $853.66
1	PC Doctor Diagnostics Service Center 2000 v2.2	  7-60627-11270-7
2	CHIPhERASER	10
3	Linksys EtherFast Cable/DSL Router	          027011087-ARS5-KA
4	Weller WES50 Soldering Iron	                  0600
5	WaveTek Electronic Measuring Instrument	          000609501
6	DirectTV Digital Satellite Receiver	          43098624
7	DirectTV Digital Satellite Receiver	          43202366
8	SurfReady Internet DVD Player	                  SG1208000024
9	Cambridge Soundworks Speaker System	          SW02501031000174

	EXHIBIT 1 - Page 2
	Others
1	Computer Monitor - KDS	                          1743SAB31000016                $149.99
2	TV - Panasonic	                                  MB03420376	                 $400.00
3	TV -Zenith	                                  921-64390049                   $800.00
4	TV - Hitachi	                                  N94003313                      $200.00
5	Pioneer Receiver (USX-0409)	                  UCDI023666US                   $300.00
6	Speaker Set (Surround Sound & Woofer)	KLH	                                 $250.00
7	DVD Format & Logo License, DVD-ROM/Video Books	  202203 & 102384	      $20,540.00
8	Inventory  i2DVD Players (170 pieces)		                              $68,000.00
9	Office Furniture		                                               $2,361.88
10	File Cabinets		                                                         $487.55
	Grand Total		                                                     $105,776.11

EXHIBIT 2

List of Assumed Liabilities

$500,000 Promissory Note from iDVDBox, Inc. payable to Integrated
Technologies & Systems, Inc. dated May 31, 2001 due and payable no later
than December 31, 2003.

A. Monthly Liabilities

Gateway - Servers/Computer Lease (Wells Fargo)	                                       $1,041.87
Lab Equipment Lease (Wells Fargo)	                                                 $227.91
Office Lease	                                                                       $2,500.00
Office Insurances - Equipment & Product Liability	                                 $900.00
Auto Leases (4 cars)	                                                               $1,400.00
Auto Insurances (Progressive)	                                                       $1,000.00
Engineers' House Lease (+FPL & PBCWVD)	                                               $2,800.00
MCI-WorldCom Broadband Service	                                                         $772.50
Telephone/Server/Fax (10 Lines)	                                                       $1,000.00
Brinks Security System and Monitoring	                                                  $52.00
Copy Machine Lease (Crown Bank Leasing)	                                                 $157.73

B. Other Liabilities

Inprimis Engineering Fee	                                                     $154,200.00
Buyers Shopping Network - Balance for Infomercial	                              $15,000.00
Legal Fees Related to Patent and Trademarks	                                       $5,000.00
Certified Audit Balance	                                                               $7,000.00
Connect Server and Software	                                                      $88,000.00
Outstanding Renumeration	                                                      $50,000.00

</Table>
EXHIBIT 3

MediaBus Networks, Inc. Common Shares to be canceled and returned to
MediaBus.

Certificate
Number          Shareholder                               Shares Canceled
5019    	STEPHEN B CAVAYERO                             935,060
5020    	RAMON TRIANA 		                        61,982
5021  	        INTEGRATED TECHNOLOGIES & SYSTEMS, LTD 		47,826
5022  	        ENG KIAT SIAH 		                        62,176
5023  	        GARY RUBIN 		                        24,869
5024  	        GREG HALL JR 	 	                         4,304
5025  	        WEI WAN KOH 	 	                         4,304
5026  	        MENG YEW CHING 	       	                         4,304

	Total shares returned and canceled                   1,144,825

Exhibit 4
Exhibit 4

MUTUAL RELEASE

This mutual release, executed on May 15, 2002, between MediaBus Networks,
Inc. ("MediaBus") and each employee as signed below, "Employee"
(collectively the "parties") of is intended to effect the elimination of
any obligations by either party as hereinafter designated.

Whereas, disputes and differences have arisen between the parties with
respect to all employment and expense reimbursement agreements and/or
arrangements entered into by said parties, both parties have agreed to
settle said disputes and differences by executing the Unwind Agreement and
this mutual release.

Whereas, all parties recognize that by the execution of the Unwind
Agreement and this mutual release, they are relinquishing their respective
legal rights with reference to any and all disputes, and differences
between the parties. All parties agree there is consideration for the
execution of the Unwind Agreement and this mutual release. As further
consideration, employees shall retain all previously paid wages and
expenses paid by MediaBus to Employee, receipt of which is hereby
acknowledged by each party. Each Party expressly releases the other party,
and his heirs and assigns, from all liability for claims and/or demands,
which may arise from all employment and expense reimbursement agreements
and/or arrangements, referenced herein.

In witness whereof the parties have executed this mutual release on the day
and year stated above.

_________________________
MediaBus Networks, Inc.
Ken Liscomb, CEO

_________________________
Stephen Cavayero, Employee

__________________________
Richard Cavayero, Employee

_________________________
Jerry Siah, Employee<PAGE>

                              AMENDED AND RESTATED
                               SECOND AMENDMENT TO
                   FIRST AMENDED AND RESTATED CREDIT AGREEMENT
                                   AND CONSENT

            THIS AMENDED AND RESTATED SECOND AMENDMENT TO FIRST AMENDED AND
RESTATED CREDIT AGREEMENT AND CONSENT, dated as of the ___ day of April, 2002
(this "Second Amendment"), amends and restates the Second Amendment to First
Amended and Restated Credit Agreement and Consent, initially dated as of March
12, 2002, and is made in respect of the First Amended and Restated Credit
Agreement dated August 31, 1999, as amended by a First Amendment dated March 29,
2000 (together, the "Existing Credit Agreement"), among PXRE CORPORATION, a
Delaware corporation with its principal offices in Edison, New Jersey (the
"Borrower"), PXRE GROUP LTD., a Bermuda corporation ("PXRE Group"), and PXRE
REINSURANCE (BARBADOS) LTD., a Barbados corporation ("PXRE Barbados"), the banks
and financial institutions listed on the signature pages thereof or that become
parties thereto after the date thereof (collectively the "Lenders"), and
WACHOVIA BANK, NATIONAL ASSOCIATION (formerly known as First Union National
Bank), as agent for the Lenders (in such capacity, the "Agent"). Capitalized
terms used but not defined herein shall have the meanings given to such terms in
the Existing Credit Agreement.

                                    RECITALS

            The parties agree to amend the Existing Credit Agreement, and the
Lenders and Agent agree to grant their consent, in connection with the private
issuance by PXRE Group of certain series of its convertible preferred shares
pursuant to the terms of a Share Purchase Agreement, dated December 10, 2001,
between PXRE Group and certain investors.

                             STATEMENT OF AGREEMENT

            NOW, THEREFORE, the Borrower, the Agent and the Lenders, for
themselves and their successors and assigns, agree as follows:

ARTICLE I

                     AMENDMENTS TO EXISTING CREDIT AGREEMENT

         1.1 Amendments to Section 1.1. Section 1.1 of the Existing Credit
Agreement is hereby amended as follows:

         (a) The following definitions are added to the defined terms in Section
1.1 in the appropriate alphabetical order:

         "Excess Cash Flow" shall mean the difference of (a) the amount
         calculated pursuant to clause (i) of the definition of "Fixed Charge
         Coverage Ratio", minus (b) the amount by which the Available Dividend
         Amount for the Measurement Period has been reduced as a result of all
         permanent reductions of the Commitments in fiscal year 2003 (together
         with any related repayments of principal of the Loans), minus (c) the
         amount calculated pursuant to clause (ii) of the definition of "Fixed
         Charge Coverage Ratio" (without duplication of clause (b)), with the
         "Measurement Period" in each case being the period ending June 30,
         2003.
<PAGE>

         "Permitted Redemption Amount" shall mean, as of any date, an amount
         equal to (a) 20% of the cumulative amount by which Consolidated Net
         Income in any calendar year commencing with the year ending December
         31, 2002 exceeds $50,000,000 minus (b) the sum of all cash and the fair
         market value of all non-cash consideration paid or payable by PXRE
         Group or the Subsidiary of the Borrower that has issued Trust Preferred
         Securities pursuant to any transaction described in Section 7.6(i)(C)
         and effected or commenced after December 10, 2001.

         "Preferred Share Purchase Agreement" shall mean the Share Purchase
         Agreement, dated December 10, 2001, between PXRE Group and Capital Z
         Financial Services Fund II, L.P., Capital Z Financial Services Private
         Fund II, L.P., Reservoir Capital Partners, L.P., Reservoir Capital
         Master Fund, L.P. and Richard E. Rainwater, as purchasers.

         "Preferred Share Purchase Documents" shall mean and collectively refer
         to the Preferred Share Purchase Agreement and the documents and
         instruments required by the terms thereof to be executed and delivered
         by the parties in connection with the closing of the sale and issuance
         of the Preferred Shares.

         "Preferred Share Transactions" shall mean and collectively refer to (i)
         the sale and issuance of the Preferred Shares pursuant to the Preferred
         Share Purchase Agreement, (ii) the division of 20,000,000 of PXRE
         Group's 50,000,000 authorized common shares into three new classes of
         common shares issuable upon conversion of Preferred Shares, (iii) the
         expansion of the PXRE Group board of directors by two members to a
         total of eleven members, (iv) an amendment to the PXRE Group bye-laws
         which will authorize the creation of a new Class IV of the board of
         directors, (v) the contribution as capital to the Insurance
         Subsidiaries of the proceeds from the sale and issuance of the
         Preferred Shares, net of $500,000 retained by PXRE Group, the
         reasonable expenses incurred in connection therewith and the required
         prepayment of Loans in connection with the reduction of the Commitments
         under this Agreement, and (vi) such other transactions as are
         contemplated by the Preferred Share Purchase Agreement or are
         reasonably ancillary thereto.

         "Preferred Shares" shall mean, collectively, the 7,500 shares of Series
         A Convertible Voting Preferred Shares, 5,000 shares of Series B
         Convertible Voting Preferred Shares and 2,500 shares of Series C
         Convertible Voting Preferred Shares, in each case to be issued by PXRE
         Group pursuant to the Preferred Share Purchase Agreement.

         "Second Amendment" shall mean the Amended and Restated Second Amendment
         to First Amended and Restated Credit Agreement and Consent, dated as of
         April __, 2002, by and between the Borrower, the Guarantors, the Agent
         and the Lenders.

                                       2
<PAGE>

         "Second Amendment Effective Date" shall mean the date upon which all of
         the conditions of Article III of the Second Amendment are satisfied or
         waived in writing by the Lenders or, where applicable, the Required
         Lenders.

         (b) The definition of "Agreement" is amended by deleting and replacing
it in its entirety with the following:

         "Agreement" shall mean the First Amended and Restated Credit Agreement
         dated August 31, 1999, among the Borrower, PXRE Group, and PXRE
         Barbados, the Lenders and the Agent, as amended by a First Amendment
         among such parties dated March 29, 2000 and by this Second Amendment,
         and as further amended, modified or supplemented from time to time.

         (c) The definition of "Applicable Margin Percentage" is amended by
deleting and replacing it in its entirety with the following:

                  "Applicable Margin Percentage" shall mean, at any time from
         and after the Second Amendment Effective Date, the applicable
         percentage (a) to be added to the Base Rate pursuant to Section 2.8 for
         purposes of determining the Adjusted Base Rate, (b) to be added to the
         LIBOR Rate pursuant to Section 2.8 for purposes of determining the
         Adjusted LIBOR Rate, and (c) to be used in calculating the commitment
         fee payable pursuant to Section 2.9(b), in each case as determined
         under the following matrix with reference to the Borrower's senior
         unsecured debt rating by Moody's or Standard & Poor's (in each case
         based upon the higher of the two ratings), when available, or, if not
         available, then with reference to an implied senior or unsecured debt
         rating, if available (provided that, for purposes of this Agreement,
         the rating that is two levels higher than the rating of the Borrower's
         Trust Preferred Securities by Standard & Poor's and Moody's shall be
         deemed to be an implied senior or unsecured debt rating by Standard &
         Poor's and Moody's, respectively):

<TABLE>
<CAPTION>

                                     Applicable Margin      Applicable Margin         Applicable Margin
               Moody's /              Percentage for          Percentage for      Percentage for Unutilized
Level  Standard & Poor's Rating      Base Rate Loans          LIBOR Loans              Commitments Fee
-----  ------------------------      ---------------          -----------              ---------------
<S>      <C>                              <C>                     <C>                      <C>
  I        A3 / A- or above               0.500%                  1.750%                   0.350%
  II          Baa1 / BBB+                 0.500%                  1.875%                   0.400%
 III          Baa2 / BBB                  0.500%                  2.000%                   0.500%
  IV          Baa3 / BBB-                 0.500%                  2.125%                   0.600%
  V      Less than Baa3 / BBB-            1.000%                  2.625%                   1.000%
</TABLE>

                                       3
<PAGE>

         provided that on and after March 15, 2003 the Applicable Margin
         Percentage for LIBOR Loans shall be increased by adding 0.250% at each
         Level shown in the above table (e.g. the Applicable Margin Percentage
         for LIBOR Loans at Level III will be 2.250%).

         Notwithstanding anything set forth herein to the contrary, if at any
         time the difference between the senior unsecured debt ratings by
         Moody's and Standard & Poor's is more than one rating grade, then for
         purposes of determining the applicable level set forth above, the
         higher of the two ratings shall be reduced to the rating that is the
         median between the higher rating and the lower rating (or its
         equivalent); or, if the median is not determinable, then the higher of
         such two ratings shall be reduced to one rating grade lower.

         On each Adjustment Date (as hereinafter defined), the Applicable Margin
         Percentage for all Loans and the commitment fee payable pursuant to
         Section 2.9(b) shall be adjusted effective as of such date in
         accordance with the above matrix; provided, however, that,
         notwithstanding the foregoing or anything else herein to the contrary,
         if at any time an Event of Default described in Section 8.1(a) shall
         have occurred and be continuing, then at the election of the Required
         Lenders, at all times from and including the date on which such Event
         of Default occurred to the date on which such Event of Default shall
         have been cured or waived, each Applicable Margin Percentage shall be
         determined in accordance with Level V of the above matrix
         (notwithstanding the actual level). For purposes of this definition,
         after the Second Amendment Effective Date the first "Adjustment Date"
         shall be July 1, 2002 and thereafter shall be the tenth (10th) Business
         Day after the announcement by either Moody's or Standard & Poor's of
         any change in its rating with respect to the Borrower's senior
         unsecured debt. From the Second Amendment Effective Date through June
         30, 2002 each Applicable Margin Percentage shall be determined in
         accordance with Level III of the above matrix.

         (d) The definition of "Available Dividend Amount" is amended by
deleting and replacing it in its entirety with the following:

         "Available Dividend Amount" shall mean, with respect to any Insurance
         Subsidiary for any period, the aggregate maximum amount of dividends
         that is permitted by the Insurance Regulatory Authority of its
         jurisdiction of domicile, under applicable Requirements of Law (without
         the necessity of any consent, approval or other action of such
         Insurance Regulatory Authority involving the granting of permission or
         the exercise of discretion by such Insurance Regulatory Authority), to
         be paid by such Insurance Subsidiary to the Borrower or another
         Subsidiary of the Borrower during such period (whether or not any such
         dividends are actually paid); provided that for the period from the
         Second Amendment Effective Date through December 31, 2002 the Available
         Dividend Amount may be increased by the following maximum amounts to
         reflect cash capital contributions made in connection with the
         Preferred Share Transactions: (i) $10,000,000 for PXRE Reinsurance and
         (ii) $3,000,000 for PXRE Bermuda; provided further that any increase in
         the Available Dividend Amount pursuant to the foregoing proviso shall
         be reduced by any net reduction in the Statutory Capital and Surplus of
         PXRE Reinsurance or PXRE Bermuda, respectively, during such period
         whether resulting from losses or otherwise.

                                       4
<PAGE>

         (e) The definition of "Disqualified Capital Stock" is amended by adding
the following proviso at the end thereof:

         ; provided further that the Preferred Shares, as issued on or about the
         Second Amendment Effective Date, shall not constitute Disqualified
         Capital Stock

         (f) The definition of "Fixed Charge Coverage Ratio" is amended by
deleting clause (i) thereof and replacing it in its entirety with the following:

                  (i) the sum (without duplication) of (s) the Available
         Dividend Amount for the Measurement Period, other than each Insurance
         Subsidiary that is a Subsidiary of another Insurance Subsidiary, plus
         (t) the Net Tax Sharing Payments with respect to the Measurement
         Period, plus (u) the Combined Net Cash Flow (whether positive or
         negative) of the Borrower's non-Insurance Subsidiaries for the
         Measurement Period, plus (v) other Net Cash Flow to the Borrower or
         PXRE Group (whether positive or negative) during the Measurement
         Period, minus (w) Holding Company Expenses accrued during such
         Measurement Period, (x) minus stock repurchases by PXRE Group during
         such Measurement Period, other than stock repurchases effected between
         January 1, 1998 and the day immediately preceding the Closing Date, (y)
         minus cash dividends paid with respect to the Preferred Shares
         (provided that such cash dividends may be paid only as allowed under
         clause (y) of Section 7.6(i)), minus (z) dividends reasonably estimated
         by PXRE Group (based upon the most recent quarterly dividend rate as
         set forth in the relevant Covenant Compliance Worksheet) to be paid by
         PXRE Group during the period of four consecutive fiscal quarters
         immediately following the Measurement Period (the "Pro Forma Period"),
         to

         (g) The definition of "Hybrid Securities Issuance" is amended by adding
the following proviso at the end thereof:

         ; provided further that the Preferred Shares, as issued on or about the
         Second Amendment Effective Date, shall not constitute a Hybrid
         Securities Issuance

         (h) The definition of "Maturity Date" is amended by deleting and
replacing it in its entirety with the following:

         "Maturity Date" shall mean March 31, 2004.

         (i) The definition of "Net Cash Flow" is amended by adding the
following proviso at the end thereof:

         ; provided further that the capital contributions made in connection
         with the Preferred Share Transactions shall be disregarded for purposes
         of determining Net Cash Flow

         1.2 Amendments to Section 2.5.

         (a) Section 2.5(b) of the Existing Credit Agreement is amended by
deleting and replacing it in its entirety with the following:

                                       5
<PAGE>

                  [2.5](b) On each date set forth below, the aggregate
         Commitments shall be automatically and permanently reduced by the
         amounts set forth below opposite such date:

                     Date                                 Amount

                March 31, 2000                          $10,000,000
                March 31, 2001                          $10,000,000
                March 31, 2002                          $10,000,000
                The closing date of the
                Preferred Share Transactions            $10,000,000
                July 1, 2002                            $  5,000,000
                March 31, 2003                          $20,000,000
                March 31, 2004                          $10,000,000

         or, if less, the remaining balance of the aggregate Commitments.

         (b) Section 2.5(e) of the Existing Credit Agreement is amended by
renumbering the existing Section 2.5(e) as Section 2.5(f) and by adding a new
Section 2.5(e) and as follows:

                  [2.5](e) Concurrently with the delivery by PXRE Group,
         pursuant to Section 5.1(a), of its quarterly financial statement for
         the fiscal quarter ending June 30, 2003, and in any event not later
         than sixty (60) days after the last day of such fiscal quarter, the
         Commitments shall be automatically and permanently reduced by 50% of
         Excess Cash Flow. PXRE Group will deliver to the Agent, concurrently
         with such prepayment, a certificate signed by a Financial Officer of
         PXRE Group in form and substance satisfactory to the Agent and setting
         forth the calculation of such Excess Cash Flow.

         1.3 Amendment to Section 2.9(a). Section 2.9(a) of the Existing Credit
Agreement is amended by deleting and replacing it in its entirety with the
following:

                  [2.9](a) To the Agent, for the account of the Lenders, an
         amendment fee in respect of the Second Amendment in an amount equal to
         (i) 0.50% of the Commitments as of January 1, 2002, payable on the
         earlier of (A) the Second Amendment Effective Date and (B) March 31,
         2002, which amount shall be deemed earned by the Lenders as of January
         1, 2002 plus (ii) 0.50% of the Commitments as of March 15, 2003,
         payable on March 15, 2003, provided that the portion of the fee
         described in this clause (ii) shall not become due or payable if the
         Commitments have been permanently reduced to zero prior to such date
         pursuant to Sections 2.5 (b), (c), (d) or (e).

         1.4 Amendment to Section 5.9(a)(ii). Section 5.9(a)(ii) of the Existing
Credit Agreement is amended by deleting and replacing it in its entirety with
the following:

                  [5.9(a)](ii) the Acquisition Amount with respect thereto
         (regardless of the form of consideration) (y) shall not exceed
         $35,000,000, and (z) together with the aggregate of the Acquisition
         Amounts (regardless of the form of consideration) for all other
         Permitted Acquisitions consummated on or after January 1, 2002, shall
         not exceed $50,000,000..

                                       6
<PAGE>

         1.5 Amendment to Section 6.1. Section 6.1 of the Existing Credit
Agreement is amended by deleting and replacing it in its entirety with the
following:

                  6.1 Leverage Ratio. The Leverage Ration shall not exceed 0.25
         to 1.0 at any time.

         1.6 Amendment to Section 6.2. Section 6.2 of the Existing Credit
Agreement is amended by adding the following proviso at the end thereof:

         ; provided that the Fixed Charge Coverage Ratio as of the last day of
         each of the fiscal quarters ending (i) March 31, 2002 and June 30, 2002
         shall not be less than 1.25 to 1.0 and (ii) September 30, 2002 and
         December 31, 2002 shall not be less than 1.30 to 1.0

         1.7 Amendment to Section 7.2(vii). Section 7.2(vii) of the Existing
Credit Agreement is amended by deleting and replacing it in its entirety with
the following:

                  [7.2](vii) Indebtedness in respect of outstanding letters of
         credit, in the aggregate not to exceed twenty-five percent (25%) of the
         Statutory Capital and Surplus of PXRE Reinsurance at any time, issued
         on behalf of any Insurance Subsidiary for the benefit of Lloyd's to
         satisfy capital requirements imposed by Lloyd's to support such
         Insurance Subsidiary's business in the Lloyd's insurance Market, and
         Indebtedness in respect of reimbursement obligations in respect of
         letters of credit issued for the benefit of any Insurance Subsidiary or
         the Borrower in the ordinary course of its business to support the
         payment of obligations arising under insurance and reinsurance
         contracts (whether assumed or ceded finite reinsurance contracts (but
         not other ceded reinsurance contracts)) and swap agreements; and

         1.8 Amendment to Section 7.3(x). Section 7.3(x) of the Existing Credit
Agreement is amended by deleting and replacing it in its entirety with the
following:

                  [7.3](x) Liens on assets, not to exceed thirty percent (30%)
         of the Statutory Capital and Surplus of PXRE Reinsurance at any time,
         (x) pledged to secure letters of credit described in Section 7.2(vii),
         (y) held in trust in the ordinary course of its business to support the
         payment of obligations arising under insurance and reinsurance
         contracts (whether assumed or ceded finite reinsurance contracts (but
         not other ceded reinsurance contracts)) or (z) held in trust for the
         benefit of Lloyd's to satisfy capital requirements imposed by Lloyd's
         to support an Insurance Subsidiary's business in the Lloyd's insurance
         Market; and

         1.9 Amendment to Section 7.4(vi). Section 7.4(vi) of the Existing
Credit Agreement is amended by deleting and replacing it in its entirety with
the following:

                  [7.4](vi) the sale by PXRE Group and its Subsidiaries of (x)
         the capital stock or all or any portion of the assets, business or
         properties of a Subsidiary that is not a Material Subsidiary; (y) any
         asset or group of assets of an Insurance Subsidiary constituting less
         than (A) in any single transaction or series of related transactions,
         ten percent (10%) of Combined Statutory Capital and Surplus as of the
         last day of the fiscal quarter ending on or immediately prior to the
         date of such sale, and (B) during the term of this Agreement, in the
         aggregate with all such other sales pursuant to this clause (vi),
         twenty five percent (25%) of Combined Statutory Capital and Surplus as
         of the end of the immediately preceding fiscal quarter; and (z) any
         asset or group of assets of a non-Insurance Subsidiary constituting
         less than (A) in any single transaction or series of related
         transactions, ten percent (10%) of the total assets of the Borrower and
         its Subsidiaries on a consolidated basis, determined in accordance with
         GAAP as of the last day of the fiscal quarter ending on or immediately
         prior to the date of such sale, and (B) during the term of this
         Agreement, in the aggregate with all such other sales pursuant to this
         clause (vi), twenty five percent (25%) of the total assets of the
         Borrower and its Subsidiaries on a consolidated basis, determined in
         accordance with GAAP as of the end of the immediately preceding fiscal
         quarter; provided in the case of any sale pursuant to this clause (vi)
         that immediately after giving effect thereto, no Default or Event of
         Default would exist; and

                                       7
<PAGE>

         1.10 Amendment to Section 7.5(viii)(b). Section 7.5(viii)(b) of the
Existing Credit Agreement is amended by adding at the end thereof the following:

         provided that investments in hedge funds, limited partnerships or
         similar investments shall not constitute more than one-third (33%) of
         the Combined Statutory Capital and Surplus of the Borrower's Insurance
         Subsidiaries at any time;

         1.11 Amendment to Section 7.6(i). Section 7.6(i) of the Existing Credit
Agreement is amended by deleting and replacing it in its entirety with the
following:

                  [7.6](i) PXRE Group may (A) declare and make dividend payments
         or other distributions to holders of PXRE Group's Capital Stock
         (including, without limitation, its common stock), in cash or in shares
         of such Capital Stock (and the Subsidiary of the Borrower that has
         issued Trust Preferred Securities may declare and make dividend
         payments or other distributions to holders of such Trust Preferred
         Securities), (B) cause the Borrower to make payments to any Subsidiary
         pursuant to Indebtedness related to any Trust Preferred Securities, and
         (C) purchase, redeem, retire or otherwise acquire shares of its Capital
         Stock, in cash or in-kind (and the Subsidiary of the Borrower that has
         issued Trust Preferred Securities may purchase, redeem, retire or
         otherwise acquire such Trust Preferred Securities, in cash or in-kind),
         provided that (x) dividends (whether in cash or other property or
         rights) paid with respect to the Capital Stock of PXRE Group (other
         than paid-in-kind dividends paid with respect to the Preferred Shares)
         in any fiscal year may not be more than ten percent (10%) greater than
         the dividends (whether in cash or other property or rights) paid with
         respect to the Capital Stock of PXRE Group during the prior fiscal
         year, (y) no cash dividends shall be paid with respect to the Preferred
         Shares unless a dividend paid in Capital Stock with respect to the
         Preferred Shares would cause the purchasers under the Preferred Share
         Purchase Agreement or their affiliates to own more than 49.9% of the
         Capital Stock of PXRE Group on a fully-diluted and fully-converted
         basis and (z) the cash and other compensation paid pursuant to clause
         (C) above shall not have a fair market value in excess of the Permitted
         Redemption Amount, and provided further that in each case, immediately
         after giving effect thereto, (yy) no Default or Event of Default would
         exist, and (zz) the Fixed Charge Coverage Ratio would be at least 1.5
         to 1.0, such ratio to be determined for purposes of this clause (i) as
         of the last day of the most recently ended fiscal quarter as if such
         dividend, distribution, payment or acquisition had been effected as of
         such date; and

                                       8
<PAGE>

         1.12 Amendment to Section 7.7(b)(iv). Section 7.7(b)(iv) of the
Existing Credit Agreement is amended by deleting and replacing it in its
entirety with the following:

                  [7.7(b)](iv) loans from Borrower or any of its Subsidiaries to
         either Guarantor (A) up to an aggregate outstanding principal amount of
         $35,000,000 for the sole purpose of providing capital for PXRE Bermuda
         and (B) up to an aggregate outstanding principal amount of $3,000,000
         for general corporate purposes, which loans shall not be required to be
         subordinated in time of payment to the Obligations so long as no Event
         of Default has occurred and is continuing; and

         1.13 Amendment to Section 7.8. Section 7.8 of the Existing Credit
Agreement is amended by deleting and replacing it in its entirety with the
following:

                  7.8 Lines of Business. The Borrower and the Guarantors will
         not, and PXRE Group will not permit or cause any of its Subsidiaries
         to, engage in any business other than (i) the businesses engaged in by
         it on the Second Amendment Effective Date and businesses and activities
         reasonably related thereto (including without limitation insurance
         management, agency and brokerage business undertaken through a
         Subsidiary other than a Material Subsidiary) or (ii) in the case of an
         Insurance Subsidiary, the offering and sale of any property and
         casualty reinsurance products or, in the case of PXRE Bermuda, life
         reinsurance products.

         1.14 Amendment to Section 7.14(i)(x). Section 7.14(i)(x) of the
Existing Credit Agreement is amended by deleting and replacing it in its
entirety with the following:

                           [7.14(i)](x) has placed assets in a trust with a
                  fiduciary and under terms, including investment restrictions
                  consistent with this Agreement, such that the ceding Insurance
                  Subsidiary shall be entitled to receive credit as admitted
                  reinsurance, under the requirements of the applicable
                  Insurance Regulatory Authority, for the reinsurer's share of
                  the obligations transferred pursuant to such Reinsurance
                  Agreement and either (A) the obligations of such reinsurer are
                  guaranteed by a direct or indirect parent thereof having
                  Standard & Poor's and A.M. Best & Company ratings of 'A-' or
                  better or (B) such reinsurer has capital and surplus as of the
                  date of purchase or renewal of such coverage of at least $1
                  billion;

         1.15 Amendment to Section 8.1(l). Section 8.1(l) of the Existing Credit
Agreement is amended by adding the following phrase at the end thereof:

         ; other than, in each case, the sale and issuance of the Preferred
         Shares to the purchasers under the Preferred Share Purchase Agreement
         and their Affiliates, the consummation of the Preferred Share
         Transactions, and the future conversion by such purchasers of the
         Preferred Shares pursuant to the terms thereof, provided that the
         purchasers under the Preferred Share Purchase Agreement and their
         Affiliates at no time own more than 49.9% of the Capital Stock of PXRE
         Group on a fully-diluted and fully-converted basis.

                                       9
<PAGE>

                                   ARTICLE II

                               CONSENT AND WAIVER

         2.1 Consent to Preferred Share Transactions. Subject to satisfaction of
the conditions set forth in Article IV, the Agent and the Lenders do hereby
consent to the Preferred Share Transactions on the terms set forth in the
Preferred Share Purchase Documents, which consent is limited as specified and
shall not constitute or be deemed to constitute an amendment, modification or
waiver of any provision of the Agreement or of any Default or Event of Default
except as expressly set forth herein.

         2.2 Limited Waiver for Certain Investment. The restriction under
Section 7.5(viii)(c) of the Existing Credit Agreement limiting the magnitude of
the Insurance Subsidiaries' Investments in the securities of any single issuer
is hereby waived through April 30, 2002 solely for the purpose of allowing PXRE
Reinsurance to continue to own certain Fixed Rate Secured Notes, due September
10, 2010, issued by FSL Funding Ltd. and guaranteed by Royal & Sun Alliance, and
having a face amount of $23 million. This limited waiver shall expire by its own
terms as of May 1, 2002 and shall not be deemed to constitute an amendment,
modification or waiver of any provision of the Existing Credit Agreement or
other Credit Document or of any Default or Event of Default except as expressly
set forth herein.

                                  ARTICLE III

                           CONDITIONS OF EFFECTIVENESS

         3.1 Conditions of Effectiveness. This Second Amendment and the
amendments and consent provided herein, are subject to the satisfaction of the
following conditions precedent:

         (a) The Agent shall have received the following, each dated as of the
Second Amendment Effective Date and in sufficient executed originals for each
Lender:

                  (1) this Second Amendment, duly completed and executed by the
         Borrower, each Guarantor, the Agent and each Lender;

                  (2) the favorable opinion of Morgan, Lewis & Bockius, LLP,
         counsel to the Borrower and the Guarantors, in form reasonably
         satisfactory to the Agent and substantially covering such opinion
         matters as the Agent or any Lender may reasonably request.

         (b) The Agent shall have received a certificate, signed by the
president or chief financial officer of each Credit Party, in form and substance
satisfactory to the Agent, certifying that (i) all representations and
warranties of such Credit Party contained in this Second Amendment, the Existing
Credit Agreement (subject to the updating of the representations and warranties
therein pursuant to this Second Amendment) and the other Credit Documents are
true and correct as of the Second Amendment Effective Date, both immediately
before and after giving effect to the consummation of the Preferred Share
Transactions and the application of the proceeds thereof, (ii) no Default or
Event of Default has occurred and is continuing, both immediately before and
after giving effect to the consummation of the of the Preferred Share
Transactions and the application of the proceeds thereof, (iii) both immediately
before and after giving effect to the consummation of the of the Preferred Share
Transactions and the application of the proceeds thereof, no Material Adverse
Change has occurred since December 31, 2000, and there exists no event,
condition or state of facts that could reasonably be expected to result in a
Material Adverse Change, and (iv) all conditions to the consummation of the of
the Preferred Share Transactions have been satisfied and have not been waived or
amended without the prior written consent of the Required Lenders.

                                       10
<PAGE>

         (c) The Agent shall have received a certificate, signed by the
president or chief financial officer of each of the Borrower and PXRE Group
certifying that all of the proceeds from the sale and issuance of the Preferred
Shares, net of the reasonable expenses incurred in connection therewith and the
required repayment of Loans in connection with the mandatory reduction of the
Commitments pursuant to Section 2.5(b) (as amended hereby), shall have been
contributed as capital to the Insurance Subsidiaries and describing the nature
and amount of such contributions in reasonable detail.

         (d) The Agent shall have received certificates of the secretary, clerk
or director, as applicable, or an assistant secretary, clerk or director, as
applicable, of each Credit Party, in form and substance satisfactory to the
Agent and dated no earlier than thirty (30) days prior to the Second Amendment
Effective Date, certifying (i) that attached thereto is a true and complete copy
of the articles or certificate of incorporation and all amendments thereto of
such Credit Party, as the case may be, certified, to the extent applicable, as
of a recent date by the Secretary of State (or comparable Governmental
Authority) of its jurisdiction or organization, and that the same has not been
amended since the date of such certification, (ii) that attached thereto is a
true and complete copy of the bylaws, operating agreement or memorandum and
articles of association, as applicable, of such Credit Party, as the case may
be, as then in effect and as in effect at all times from the date on which the
resolutions referred to in clause (iii) below were adopted to and including the
date of such certificate, (iii) that attached thereto is a true and complete
copy of resolutions adopted by the board of directors (or duly authorized
committee thereof) of such Credit Party authorizing the execution, delivery and
performance of this Second Amendment and the Preferred Share Purchase Documents
to which it is a party, and (iv) as to the incumbency and genuineness of the
signature of each officer of such Credit Party executing this Second Amendment.

         (e) The Credit Parties shall have duly complied with and performed all
of their agreements and conditions set forth in the Preferred Share Purchase
Documents required to be complied with or performed by them on or prior to the
Second Amendment Effective Date and the Agent shall have received evidence
satisfactory to it that (i) the Preferred Share Transactions shall have been
consummated in compliance with the Preferred Share Purchase Documents and all
applicable Requirements of Law and (ii) the proceeds from the sale and issuance
of the Preferred Shares, net of the reasonable expenses incurred in connection
therewith and the required repayment of Loans in connection with the mandatory
reduction of the Commitments pursuant to Section 2.5(b) (as amended hereby),
shall have been contributed as capital to the Insurance Subsidiaries.

                                       11
<PAGE>

         (f) The Agent shall have received a Covenant Compliance Worksheet, duly
completed and certified by the chief financial officer or treasurer of PXRE
Group and the Borrower and in form and substance satisfactory to the Agent,
demonstrating PXRE Group's and Borrower's compliance with the financial
covenants set forth in Sections 6.1 through 6.4, determined on a pro forma basis
as of September 30, 2001, after giving effect to the consummation of the
Preferred Share Transactions.

         (g) The Preferred Share Purchase Documents shall not have been amended,
modified and supplemented, nor any condition or provision thereof waived, other
than as approved by the Agent and the Required Lenders and shall be in full
force and effect.

         (h) The Lenders shall have received a certificate as of a recent date
of the good standing or existence of each of the Credit Parties under the law of
their respective state or country of organization.

         (i) All approvals, permits and consents of any Governmental Authorities
or other Person required in connection with the execution and delivery of this
Second Amendment and the consummation of the Preferred Share Transactions shall
have been obtained (without the imposition of conditions that are not reasonably
acceptable to the Agent and the Required Lenders), and all related filings, if
any, shall have been made, and all such approvals, permits, consents and filings
shall be in full force and effect and the Agent shall have received such copies
thereof as it shall have requested; all applicable waiting periods shall have
expired without any adverse action being taken by any Governmental Authority
having jurisdiction; and no action, proceeding, investigation, regulation or
legislation shall have been instituted, threatened or proposed before, and no
order, injunction or decree shall have been entered by, any court or other
Governmental Authority, in each case to enjoin, restrain or prohibit, to obtain
substantial damages in respect of, or that is otherwise related to or arises out
of, this Second Amendment or the consummation of the Preferred Share
Transactions, or that, in the opinion of the Agent and the Required Lenders,
would otherwise be reasonably likely to have a Material Adverse Effect.

         (j) The Borrower shall have paid the fee that is due and payable under
Section 2.9(a), together with all other fees and expenses of the Agent and the
Lenders required hereunder or under any other Credit Document to be paid on or
prior to the Second Amendment Effective Date (including the reasonable fees and
expenses of counsel to the Agent) in connection with this Second Amendment and
the transactions contemplated hereby.

         (k) Each of the representations and warranties contained in the
Existing Credit Agreement, this Second Amendment and the other Credit Documents
shall be true and correct on and as of the Second Amendment Effective Date with
the same effect as if made on and as of such date, both immediately before and
after giving effect to the consummation of the Preferred Share Transactions and
the application of the proceeds thereof, 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 as of such date.

                                       12
<PAGE>

         (l) No Default or Event of Default shall have occurred and be
continuing, both immediately before and after giving effect to the consummation
of the Preferred Share Transactions and the application of the proceeds thereof.

         (m) The Agent and each Lender shall have received such other documents,
certificates, opinions and instruments in connection with the Preferred Share
Transactions and this Second. Amendment as it shall have reasonably requested.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

         To induce the Agent and Lenders to enter into this Second Amendment and
to make the Loans, the Credit Parties each represent and warrant to the Agent
and each Lender, on the date hereof and on the Second Amendment Effective Date,
both before and after giving effect to the Preferred Share Transactions, as
follows (PXRE Group making such representations and warranties as to itself and
its Subsidiaries, the Borrower as to itself and its Subsidiaries and PXRE
Barbados as to itself only):

         4.1 Corporate Power. Each of the Guarantors, the Borrower and the
Material Subsidiaries has the full corporate power and authority to execute,
deliver and perform the Second Amendment and the Preferred Share Purchase
Documents to which it is or will be a party.

         4.2 Authorization; Enforceability. Each of the Borrower and the
Guarantors has taken, or on the date hereof will have taken, all necessary
corporate action to execute, deliver and perform each of the Second Amendment
and the Preferred Share Purchase Documents to which it is or will be a party,
and has validly executed and delivered the Second Amendment. The Second
Amendment constitutes the legal, valid and binding obligation of the Borrower
and the Guarantors enforceable against each of them in accordance with their
respective terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting
creditors' rights generally, by general equitable principles or by principles of
good faith and fair dealing.

         4.3 No Violation. The execution, delivery and performance by each of
the Borrower and the Guarantors of this Second Amendment and the Preferred Share
Purchase Documents, and compliance by it with the terms hereof and thereof, do
not and will not (i) violate any provision of its certificate of incorporation
or bylaws or contravene any other material Requirement of Law applicable to it,
(ii) conflict with, result in a breach of or constitute (with notice, lapse of
time or both) a default under any 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, or (iii) result in or require the creation or imposition of any
Lien upon any of its properties or assets.

         4.4 Governmental Authorization; Permits. No consent, approval,
authorization or other action by, notice to, or registration or filing with, any
Governmental Authority or other Person is or will be required as a condition to
or otherwise in connection with the due execution, delivery and performance by
the Borrower and the Guarantors of this Second Amendment and the Preferred Share
Purchase Documents or the legality, validity or enforceability hereof or
thereof, other than (i) consents, authorizations and filings that have been (or
on or prior to the Second Amendment Effective Date will have been) made or
obtained and that are (or on the Second Amendment Effective Date will be) in
full force and effect, which consents, authorizations and filings are listed on
Schedule 4.4 hereto and (ii) consents and filings the failure to obtain or make
which would not, individually or in the aggregate, have a Material Adverse
Effect.

                                       13
<PAGE>

                                   ARTICLE V

                                     GENERAL

         5.1 Full Force and Effect. Except as expressly amended hereby, the
Agreement shall continue in full force and effect in accordance with the
provisions thereof on the date hereof.

         5.2 Applicable Law. This Second 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).

         5.3 Counterparts. This Second 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.

         5.4 Headings. The headings of this Second Amendment are for the
purposes of reference only and shall not affect the construction of this Second
Amendment.

                                       14
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Second
Amendment to be executed by their duly authorized officers all as of the day and
year first above written.

                             PXRE CORPORATION

                             By:         ____________________________________

                             Name:       ____________________________________

                             Title:      ____________________________________

                             PXRE GROUP LTD.

                             By:         ____________________________________

                             Name:       ____________________________________

                             Title:      ____________________________________

                             PXRE REINSURANCE (BARBADOS) LTD.

                             By:         ____________________________________

                             Name:       ____________________________________

                             Title:      ____________________________________

                             (signatures continued)

<PAGE>

                              FIRST UNION NATIONAL BANK, as Agent
                                and as a Lender

                              By:         ____________________________________

                              Name:       ____________________________________

                              Title:      ____________________________________

                              BANK ONE, NA (f/k/a TZ FIRST NATIONAL
                              BANK OF CHICAGO

                              By:         ____________________________________

                              Name:       ____________________________________

                              Title:      ____________________________________

                              FLEET NATIONAL BANK

                              By:         ____________________________________

                              Name:       ____________________________________

                              Title:      ____________________________________

                              CREDIT LYONNAIS NEW YORK BRANCH

                              By:         ____________________________________

                              Name:       ____________________________________

                              Title:      ____________________________________

<PAGE>

                                  Schedule 4.4

                                    CONSENTS

Bye-Law Nos. 13 and 20(4) of the Bye-Laws of the Company contain various
restrictions on ownership and voting of the capital stock of the Company, which
restrictions will be waived with respect to Capital Z in connection with this
transaction in a manner consistent with the Description of Stock attached to the
Preferred Share Purchase Agreement.

Prior to the consummation of the transactions contemplated by the Preferred
Share Purchase Agreement, the following shareholder, governmental or regulatory
approvals will be required:

                        The Bermuda Approval;
                        The Connecticut Approval;
                        Shareholder Approval; and
                        HSR Approval (as each of the foregoing terms is
                        defined in the Preferred Share Purchase Agreement).

The Reinsurance Subsidiaries are party to certain Reinsurance Agreements and
certain of those Reinsurance Agreements contain provisions that would allow the
other party thereto to elect to terminate the Reinsurance Agreement if the
transactions contemplated under the Preferred Share Purchase Agreement are
deemed to be a "change of control" under the applicable Reinsurance Agreement.
See also Section 3.17 of the Preferred Share Purchase Agreement with respect to
certain reinsurance and retrocession agreement matters.

If the transactions contemplated by the Preferred Share Purchase Agreement were
deemed to be a "change of control," as defined respectively in the following
plans, then certain severance payments and vesting rights may be triggered
unless otherwise waived:

                        Restated Employee Annual Incentive Bonus Plan, as
                        Amended and Restated;
                        1992 Officer Incentive Plan, as Amended and Restated;
                        1988 Stock Option Plan;
                        Director Stock Plan, As Amended and Restated;
                        Director Equity and Deferred Compensation Plan;
                        Non-Employee Director Deferred Stock Plan;
                        Transnational Re Officer Incentive Plan;
                        PXRE Reinsurance Company Supplemental Executive
                          Retirement Plan;
                        Severance Plan for Certain Executives of PXRE; and
                        Severance Plan for Employees of PXRE.

If the transactions contemplated by the Preferred Share Purchase Agreement were
deemed to be a "change of control," PXRE Reinsurance may be required to deposit
a certain premium due pursuant to the following reinsurance agreements into a
trust for the benefits of the reinsurers thereunder:

<PAGE>

                        Accident Year Aggregate Excess of Loss Reinsurance
                        Agreement between PXRE Reinsurance Company and Select
                        Reinsurance Ltd., effective as of July 1, 2001 and June
                        30, 2002.

                        Accident Year Aggregate Excess of Loss Reinsurance
                        Agreement between PXRE Reinsurance Company and West-RM
                        West Risk Markets AG, effective as of July 1, 2001 and
                        June 30, 2002.

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