<PAGE>

                                                                    EXHIBIT 4.16



                              Guarantee Agreement


                                    between


                    John Hancock Financial Services, Inc.,
                                 as Guarantor,


                                      and


                           The Chase Manhattan Bank,
                             as Guarantee Trustee


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


                        [John Hancock Capital Trust __]


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


                      Dated as of _______________, 200__
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                            Page
<S>                                                                                                                         <C>
ARTICLE I   INTERPRETATION AND DEFINITIONS................................................................................     1

     SECTION 1.1.       Interpretation....................................................................................     1

     SECTION 1.2.       Definitions.......................................................................................     2

ARTICLE II  TRUST INDENTURE ACT...........................................................................................     4

     SECTION 2.1.       Trust Indenture Act; Application..................................................................     4

     SECTION 2.2.       List of Holders...................................................................................     4

     SECTION 2.3.       Reports by the Guarantee Trustee..................................................................     5

     SECTION 2.4.       Periodic Reports to the Guarantee Trustee.........................................................     5

     SECTION 2.5.       Evidence of Compliance with Conditions Precedent..................................................     5

     SECTION 2.6.       Events of Default; Waiver.........................................................................     5

     SECTION 2.7.       Event of Default; Notice..........................................................................     6

     SECTION 2.8.       Conflicting Interests.............................................................................     6

ARTICLE III POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE............................................................     6

     SECTION 3.1.       Powers and Duties of the Guarantee Trustee........................................................     6

     SECTION 3.2.       Certain Rights of Guarantee Trustee...............................................................     8

     SECTION 3.3.       Indemnity.........................................................................................     9

ARTICLE IV  GUARANTEE TRUSTEE.............................................................................................    10

     SECTION 4.1.       Guarantee Trustee; Eligibility....................................................................    10

     SECTION 4.2.       Appointment, Removal and Resignation of the Guarantee Trustee.....................................    10

ARTICLE V   GUARANTEE.....................................................................................................    11

     SECTION 5.1.       Guarantee.........................................................................................    11

     SECTION 5.2.       Waiver of Notice and Demand.......................................................................    11

     SECTION 5.3.       Obligations Not Affected..........................................................................    11

     SECTION 5.4.       Rights of Holders.................................................................................    12

     SECTION 5.5.       Guarantee of Payment..............................................................................    12

     SECTION 5.6.       Subrogation.......................................................................................    12

     SECTION 5.7.       Independent Obligations...........................................................................    13
</TABLE>

                                       i
<PAGE>

                               TABLE OF CONTENTS

                                  (continued)

<TABLE>
<CAPTION>
                                                                                                                            Page
<S>                                                                                                                         <C>
ARTICLE VI SUBORDINATION..................................................................................................    13

     SECTION 6.1.       Subordination.....................................................................................    13

     SECTION 6.2.       Pari Passu Guarantees.............................................................................    13

ARTICLE VII   TERMINATION.................................................................................................    13

     SECTION 7.1.       Termination.......................................................................................    13

ARTICLE VIII  MISCELLANEOUS...............................................................................................    14

     SECTION 8.1.       Successors and Assigns............................................................................    14

     SECTION 8.2.       Amendments........................................................................................    14

     SECTION 8.3.       Notices...........................................................................................    14

     SECTION 8.4.       Benefit...........................................................................................    15

     SECTION 8.5.       Governing Law.....................................................................................    15

     SECTION 8.6.       Counterparts......................................................................................    15
</TABLE>

                                      ii
<PAGE>

                        [John Hancock Capital Trust __]


Certain sections of this Guarantee Agreement relate to Section 310 through
Section 318 of the Trust Indenture Act of 1939:


Trust Indenture Act                                         Section of
      Section                                           Guarantee Agreement
      -------                                           -------------------

   310 (a)..................................................  4.1(a)
       (b)..................................................  4.1(c), 2.8
       (c)..................................................  Inapplicable
   311 (a)..................................................  2.2(b)
       (b)..................................................  2.2(b)
       (c)..................................................  Inapplicable
   312 (a)..................................................  2.2(a)
       (b)..................................................  2.2(b)
   313 .....................................................  2.3
   314 (a)..................................................  2.4
       (b)..................................................  Inapplicable
       (c)..................................................  2.5
       (d)..................................................  Inapplicable
       (e)..................................................  1.1, 2.5, 3.2
       (f)..................................................  2.1, 3.2
   315 (a)..................................................  3.1(d)
       (b)..................................................  2.7
       (c)..................................................  3.1
       (d)..................................................  3.1(d)
   316 (a)..................................................  1.1, 2.6, 5.4
       (b)..................................................  5.3
       (c)..................................................  8.2
   317 (a)..................................................  Inapplicable
       (b)..................................................  Inapplicable
   318 (a)..................................................  2.1(b)
       (b)..................................................  2.1
       (c)..................................................  2.1(a)

Note:  This reconciliation and tie sheet shall not, for any purpose, be deemed
to be a part of the Guarantee Agreement.
<PAGE>

                              GUARANTEE AGREEMENT

        GUARANTEE AGREEMENT, dated as of _______________, 200__ (the "Guarantee
                                                                      ---------
Agreement") executed and delivered by JOHN HANCOCK FINANCIAL SERVICES, INC., a
---------
Delaware corporation (the "Guarantor") having its principal office at John
                           ---------
Hancock Place, 200 Clarendon Street, Boston, Massachusetts 02117, and THE CHASE
MANHATTAN BANK, a banking corporation organized under the laws of the State of
New York, as trustee (the "Guarantee Trustee"), for the benefit of the Holders
                           -----------------
(as defined herein) from time to time of the Preferred Securities (as defined
herein) of JOHN HANCOCK CAPITAL TRUST __, a Delaware business trust (the
"Issuer").
 ------

                             W I T N E S S E T H:

        WHEREAS, pursuant to an Amended and Restated Declaration of Trust, dated
as of _______________, 200__ (the "Declaration"), by and among the Guarantor, as
                                   -----------
Depositor, the Property Trustee (as defined below), the Delaware Trustee (as
defined in the Declaration) and the Regular Trustees named therein, and by the
Holders from time to time of undivided beneficial interests in the assets of the
Issuer, the Issuer is issuing $_____________ aggregate Liquidation Amount (as
defined in the Declaration) of its ________% Preferred Securities, Liquidation
Amount $1,000 per preferred security) (the "Preferred Securities") representing
                                            --------------------
preferred undivided beneficial interests in the assets of the Issuer and having
the terms set forth in the Declaration;

        WHEREAS, the Preferred Securities will be issued by the Issuer and the
proceeds thereof, together with the proceeds from the issuance of the Issuer's
Common Securities (as defined below), will be used to purchase the Debentures
(as defined in the Declaration) of the Guarantor which will be deposited with
The Chase Manhattan Bank, as Property Trustee under the Declaration (the
"Property Trustee"), as trust assets; and
 ----------------

        WHEREAS, as an incentive for the Holders to purchase Preferred
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth herein, to pay to the Holders of the Preferred Securities
the Guarantee Payments (as defined herein) and to make certain other payments on
the terms and conditions set forth herein.

        NOW, THEREFORE, in consideration of the purchase by each Holder of
Preferred Securities, which purchase the Guarantor hereby agrees shall benefit
the Guarantor, the Guarantor executes and delivers this Guarantee Agreement to
provide as follows for the benefit of the Holders from time to time of the
Preferred Securities:

                                   ARTICLE I
                        INTERPRETATION AND DEFINITIONS

        SECTION 1.1.  Interpretation.
                      --------------

        In this Guarantee Agreement, unless the context otherwise requires:

        (a)    capitalized terms used in this Guarantee Agreement but not
               defined in the preamble hereto have the respective meanings
               assigned to them in Section 1.2;
<PAGE>

     (b)  a term defined anywhere in this Guarantee Agreement has the same
          meaning throughout;

     (c)  all references to "the Guarantee Agreement" or "this Guarantee
          Agreement" are to this Guarantee Agreement as modified, supplemented
          or amended from time to time;

     (d)  all references in this Guarantee Agreement to Articles and Sections
          are to Articles and Sections of this Guarantee Agreement unless
          otherwise specified;

     (e)  a term defined in the Trust Indenture Act has the same meaning when
          used in this Guarantee Agreement unless otherwise defined in this
          Guarantee Agreement or unless the context otherwise requires;

     (f)  a reference to the singular includes the plural and vice versa; and

     (g)  the masculine, feminine or neuter genders used herein shall include
          the masculine, feminine and neuter genders.

     SECTION 1.2.   Definitions.
                    -----------

     As used in this Guarantee Agreement, the terms set forth below shall,
unless the context otherwise requires, have the following meanings:

     "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person; provided, however, that the Issuer shall not
be deemed to be an Affiliate of the Guarantor. For the purposes of this
definition, "control" when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.

     "Board of Directors" means either the board of directors of the
Guarantor or any executive or other committee duly authorized by the board of
directors of the Guarantor to act hereunder.

     "Common Securities" means the securities representing common undivided
beneficial interests in the assets of the Issuer.

     "Event of Default" means a default by the Guarantor on any of its
payment or other obligations under this Guarantee Agreement; provided, however,
that, except with respect to a default in payment of any Guarantee Payments, the
Guarantor shall have received written notice of default and shall not have cured
such default within 60 days after receipt of such notice.

     "Guarantee Payments" means the following payments or distributions,
without duplication, with respect to the Preferred Securities, to the extent not
paid or made by or on behalf of the Issuer: (i) any accumulated and unpaid
Distributions (as defined in the Declaration) required to be paid on the
Preferred Securities, to the extent the Issuer shall have funds on hand

                                       2
<PAGE>

available therefor at such time, (ii) the redemption price, including all
accumulated and unpaid Distributions to the date of redemption (the "Redemption
                                                                     ----------
Price"), with respect to any Preferred Securities called for redemption by the
-----
Issuer, to the extent the Issuer shall have funds on hand available therefor at
such time, and (iii) upon a voluntary or involuntary termination, winding up or
liquidation of the Issuer, unless Debentures are distributed to the Holders, the
lesser of (a) the aggregate of the Liquidation Amount of $1,000 per Preferred
Security plus accumulated and unpaid Distributions on the Preferred Securities
to the date of payment to the extent that the Issuer shall have funds available
therefor at such time and (b) the amount of assets of the Issuer remaining
available for distribution to Holders in liquidation of the Issuer (in either
case, the "Liquidation Distribution").
           ------------------------

     "Guarantee Trustee" means The Chase Manhattan Bank, until a Successor
Guarantee Trustee has been appointed and has accepted such appointment pursuant
to the terms of this Guarantee Agreement, and thereafter means each such
Successor Guarantee Trustee.

     "Holder" means any holder, as registered on the books and records of the
Issuer, of any Preferred Securities; provided, however, that in determining
whether the holders of the requisite percentage of Preferred Securities have
given any request, notice, consent or waiver hereunder, "Holder" shall not
include the Guarantor, the Guarantee Trustee, or any Affiliate of the Guarantor
or the Guarantee Trustee.

     "Indenture" means the Subordinated Indenture dated as of _____________,
200_, as supplemented and amended between the Guarantor and The Chase Manhattan
Bank, as trustee.

     "List of Holders" has the meaning specified in Section 2.2(a).

     "Majority in Liquidation Amount of the Preferred Securities" means,
except as provided by the Trust Indenture Act, a vote by the Holder(s), voting
separately as a class, of more than 50% of the Liquidation Amount of all then
outstanding Preferred Securities issued by the Issuer.

     "Officers' Certificate" means, with respect to any Person, a certificate
signed by the Chairman, the Chief Executive Officer, the President, the Chief
Financial Officer, or an Executive Vice President of such Person, and by the
Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary of
such Person, and delivered to the Guarantee Trustee. Any Officers' Certificate
delivered with respect to compliance with a condition or covenant provided for
in this Guarantee Agreement shall include:

     (a)  a statement that each officer signing the Officers' Certificate has
          read the covenant or condition and the definitions relating thereto;

     (b)  brief statement of the nature and scope of the examination or
          investigation undertaken by each officer in rendering the Officers'
          Certificate;

     (c)  a statement that each officer has made such examination or
          investigation as, in such officer's opinion, is necessary to enable
          such officer to express an informed opinion as to whether or not such
          covenant or condition has been complied with; and

                                       3
<PAGE>

     (d)  a statement as to whether, in the opinion of each officer, such
          condition or covenant has been complied with.

     "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

     "Responsible Officer" means, with respect to the Guarantee Trustee, any
Vice President, any Assistant Vice President, the Secretary, any Assistant
Secretary, any Assistant Treasurer, any Trust Officer or Assistant Trust Officer
or any other officer of the Corporate Trust Department of the Guarantee Trustee
and also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of that officer's knowledge of
and familiarity with the particular subject.

     "Senior Debt" has the meaning set forth in the Indenture.

     "Successor Guarantee Trustee" means a successor Guarantee Trustee
possessing the qualifications to act as Guarantee Trustee under Section 4.1.

     "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended.

     Capitalized or otherwise defined terms used but not otherwise defined
herein shall have the meanings assigned to such terms in the Declaration as in
effect on the date hereof.

                                  ARTICLE II
                              TRUST INDENTURE ACT

     SECTION 2.1.   Trust Indenture Act; Application.
                    --------------------------------

     (a)  This Guarantee Agreement is subject to the provisions of the Trust
          Indenture Act that are or would be required to be part of this
          Guarantee Agreement and shall, to the extent applicable, be governed
          by such provisions.

     (b)  If and to the extent that any provision of this Guarantee Agreement
          limits, qualifies or conflicts with the duties imposed by Section 310
          to Section 317, inclusive, of the Trust Indenture Act, such imposed
          duties shall control.

     SECTION 2.2.   List of Holders.
                    ---------------

     (a)  The Guarantor shall furnish or cause to be furnished to the Guarantee
          Trustee (a) semi-annually, on or before June 1 and December 1 of each
          year, a list, in such form as the Guarantee Trustee may reasonably
          require, of the names and addresses of the Holders (the "List of
                                                                   -------
          Holders") as of a date not more than 15 days prior to the delivery
          -------
          thereof, and (b) at such other times as the Guarantee Trustee may
          request in writing, within 30 days after the receipt by the Guarantor
          of any such request, a List of Holders as of a date not more than 15
          days prior to the time such list is furnished, in each case to the
          extent such information is in the

                                       4
<PAGE>

          possession or control of the Guarantor and is not identical to a
          previously supplied List of Holders or has not otherwise been received
          by the Guarantee Trustee in its capacity as such. The Guarantee
          Trustee may destroy any List of Holders previously given to it on
          receipt of a new List of Holders.

     (b)  The Guarantee Trustee shall comply with its obligations under Section
          311(a), Section 311(b) and Section 312(b) of the Trust Indenture Act.

     SECTION 2.3.   Reports by the Guarantee Trustee.
                    --------------------------------

     Not later than ____________ of each year, commencing _________________,
200__, the Guarantee Trustee shall provide to the Holders such reports as are
required by Section 313 of the Trust Indenture Act, if any, in the form and in
the manner provided by Section 313 of the Trust Indenture Act. The Guarantee
Trustee shall also comply with the requirements of Section 313(d) of the Trust
Indenture Act.

     SECTION 2.4.   Periodic Reports to the Guarantee Trustee.
                    -----------------------------------------

     The Guarantor shall provide to the Guarantee Trustee, the Securities and
Exchange Commission and the Holders such documents, reports and information, if
any, as required by Section 314 of the Trust Indenture Act and the compliance
certificate required by Section 314 of the Trust Indenture Act, in the form, in
the manner and at the times required by Section 314 of the Trust Indenture Act.

     SECTION 2.5.   Evidence of Compliance with Conditions Precedent.
                    ------------------------------------------------

     The Guarantor shall provide to the Guarantee Trustee such evidence of
compliance with such conditions precedent, if any, provided for in this
Guarantee Agreement that relate to any of the matters set forth in Section
314(c) of the Trust Indenture Act. Any certificate or opinion required to be
given by an officer pursuant to Section 314(c)(1) may be given in the form of an
Officers' Certificate.

     SECTION 2.6.   Events of Default; Waiver.
                    -------------------------

     The Holders of a Majority in Liquidation Amount of the Preferred Securities
may, by vote, on behalf of the Holders of all Preferred Securities, waive any
past default or Event of Default and its consequences. Upon such waiver, any
such default or Event of Default shall cease to exist, and any default or Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Guarantee Agreement, but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
therefrom.

                                       5
<PAGE>

     SECTION 2.7.   Event of Default; Notice.
                    ------------------------

     The Guarantee Trustee shall, within 90 days after the occurrence of an
Event of Default, transmit by mail, first class postage prepaid, to the Holders
of all Preferred Securities, notices of all Events of Default actually known to
a Responsible Officer of the Guarantee Trustee, unless such Events of Default
have been cured before the giving of such notice, provided, that, except in the
case of a default in the payment of a Guarantee Payment, the Guarantee Trustee
shall be protected in withholding such notice if and so long as the Board of
Directors and/or Responsible Officers of the Guarantee Trustee in good faith
determines that the withholding of such notice is in the interests of the
Holders.

     The Guarantee Trustee shall not be deemed to have knowledge of any Event of
Default unless the Guarantee Trustee shall have received written notice, or a
Responsible Officer charged with the administration of this Guarantee Agreement
shall have obtained written notice, of such Event of Default.

     SECTION 2.8.   Conflicting Interests.
                    ---------------------

     The Declaration shall be deemed to be specifically described in this
Guarantee Agreement for the purposes of clause (i) of the first proviso
contained in Section 310(b) of the Trust Indenture Act.

                                  ARTICLE III
              POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

     SECTION 3.1.   Powers and Duties of the Guarantee Trustee.
                    ------------------------------------------

     (a)  This Guarantee Agreement shall be held by the Guarantee Trustee for
          the benefit of the Holders, and the Guarantee Trustee shall not
          transfer this Guarantee Agreement to any Person except a Holder
          exercising his or her rights pursuant to Section 5.4(iv) or to a
          Successor Guarantee Trustee on acceptance by such Successor Guarantee
          Trustee of its appointment to act as Successor Guarantee Trustee. The
          right, title and interest of the Guarantee Trustee shall automatically
          vest in any Successor Guarantee Trustee, upon acceptance by such
          Successor Guarantee Trustee of its appointment hereunder, and such
          vesting and cessation of title shall be effective whether or not
          conveyancing documents have been executed and delivered pursuant to
          the appointment of such Successor Guarantee Trustee.

     (b)  If an Event of Default has occurred and is continuing, the Guarantee
          Trustee shall enforce this Guarantee Agreement for the benefit of the
          Holders.

     (c)  The Guarantee Trustee, before the occurrence of any Event of Default
          and after the curing of all Events of Default that may have occurred,
          shall undertake to perform only such duties as are specifically set
          forth in this Guarantee Agreement, and no implied covenants shall be
          read into this Guarantee Agreement against the Guarantee Trustee. In
          case an Event of Default has occurred (that has not been cured or
          waived pursuant to Section 2.6), the Guarantee Trustee shall exercise

                                       6
<PAGE>

          such of the rights and powers vested in it by this Guarantee
          Agreement, and use the same degree of care and skill in its exercise
          thereof, as a prudent person would exercise or use under the
          circumstances in the conduct of his or her own affairs.

     (d)  No provision of this Guarantee Agreement shall be construed to relieve
          the Guarantee Trustee from liability for its own negligent action, its
          own negligent failure to act or its own willful misconduct, except
          that:

          (i)    prior to the occurrence of any Event of Default and after the
                 curing or waiving of all such Events of Default that may have
                 occurred:

                 A)   the duties and obligations of the Guarantee Trustee shall
                      be determined solely by the express provisions of this
                      Guarantee Agreement, and the Guarantee Trustee shall not
                      be liable except for the performance of such duties and
                      obligations as are specifically set forth in this
                      Guarantee Agreement; and

                 B)   in the absence of bad faith on the part of the Guarantee
                      Trustee, the Guarantee Trustee may conclusively rely, as
                      to the truth of the statements and the correctness of the
                      opinions expressed therein, upon any certificates or
                      opinions furnished to the Guarantee Trustee and conforming
                      to the requirements of this Guarantee Agreement; but in
                      the case of any such certificates or opinions that by any
                      provision hereof or of the Trust Indenture Act are
                      specifically required to be furnished to the Guarantee
                      Trustee, the Guarantee Trustee shall be under a duty to
                      examine the same to determine whether or not they conform
                      to the requirements of this Guarantee Agreement;

          (ii)   the Guarantee Trustee shall not be liable for any error of
                 judgment made in good faith by a Responsible Officer of the
                 Guarantee Trustee, unless it shall be proved that the Guarantee
                 Trustee was negligent in ascertaining the pertinent facts upon
                 which such judgment was made;

          (iii)  the Guarantee Trustee shall not be liable with respect to any
                 action taken or omitted to be taken by it in good faith in
                 accordance with the direction of the Holders of not less than a
                 Majority in Liquidation Amount of the Preferred Securities
                 relating to the time, method and place of conducting any
                 proceeding for any remedy available to the Guarantee Trustee,
                 or exercising any trust or power conferred upon the Guarantee
                 Trustee under this Guarantee Agreement; and

subject to Section 3.1(b), no provision of this Guarantee Agreement shall
require the Guarantee Trustee to expend or risk its own funds or otherwise incur
personal financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers, if the Guarantee Trustee shall have
reasonable grounds for believing that the repayment of such funds or liability

                                       7
<PAGE>

is not reasonably assured to it under the terms of this Guarantee Agreement or
adequate indemnity against such risk or liability is not reasonably assured to
it.

     SECTION 3.2.   Certain Rights of Guarantee Trustee.
                    -----------------------------------

     (a)  Subject to the provisions of Section 3.1:

          (i)    The Guarantee Trustee may conclusively rely and shall be fully
                 protected in acting or refraining from acting upon any
                 resolution, certificate, statement, instrument, opinion,
                 report, notice, request, direction, consent, order, bond,
                 debenture, note, other evidence of indebtedness or other paper
                 or document reasonably believed by it to be genuine and to have
                 been signed, sent or presented by the proper party or parties.

          (ii)   Any direction or act of the Guarantor contemplated by this
                 Guarantee Agreement shall be sufficiently evidenced by an
                 Officers' Certificate unless otherwise prescribed herein.

          (iii)  Whenever, in the administration of this Guarantee Agreement,
                 the Guarantee Trustee shall deem it desirable that a matter be
                 proved or established before taking, suffering or omitting to
                 take any action hereunder, the Guarantee Trustee (unless other
                 evidence is herein specifically prescribed) may, in the absence
                 of bad faith on its part, request and rely upon an Officers'
                 Certificate which, upon receipt of such request from the
                 Guarantee Trustee, shall be promptly delivered by the
                 Guarantor.

          (iv)   The Guarantee Trustee may consult with legal counsel, and the
                 advice or opinion of such legal counsel with respect to legal
                 matters shall be full and complete authorization and protection
                 in respect of any action taken, suffered or omitted to be taken
                 by it hereunder in good faith and in accordance with such
                 advice or opinion. Such legal counsel may be legal counsel to
                 the Guarantor or any of its Affiliates and may be one of its
                 employees. The Guarantee Trustee shall have the right at any
                 time to seek instructions concerning the administration of this
                 Guarantee Agreement from any court of competent jurisdiction.

          (v)    The Guarantee Trustee shall be under no obligation to exercise
                 any of the rights or powers vested in it by this Guarantee
                 Agreement at the request or direction of any Holder, unless
                 such Holder shall have provided to the Guarantee Trustee such
                 adequate security and indemnity satisfactory to it, against the
                 costs, expenses (including attorneys' fees and expenses) and
                 liabilities that might be incurred by it in complying with such
                 request or direction, including such reasonable advances as may
                 be requested by the Guarantee Trustee; provided that nothing
                 contained in this Section 3.2(a)(v) shall be taken to relieve
                 the Guarantee Trustee, upon the occurrence of an Event of
                 Default, of its obligation to exercise the rights and powers
                 vested in it by this Guarantee Agreement.

                                       8
<PAGE>

          (vi)   The Guarantee Trustee shall not be bound to make any
                 investigation into the facts or matters stated in any
                 resolution, certificate, statement, instrument, opinion,
                 report, notice, request, direction, consent, order, bond,
                 debenture, note, other evidence of indebtedness or other paper
                 document, but the Guarantee Trustee, in its discretion, may
                 make such further inquiry or investigation into such facts or
                 matters as it may see fit.

          (vii)  The Guarantee Trustee may execute any of the trusts or powers
                 hereunder or perform any duties hereunder either directly or by
                 or through its agents, attorneys, custodians or nominees, and
                 the Guarantee Trustee shall not be responsible for any
                 misconduct or negligence on the part of any such agent,
                 attorney, custodian or nominee appointed with due care by it
                 hereunder.

     Whenever in the administration of this Guarantee Agreement the Guarantee
     Trustee shall deem it desirable to receive instructions with respect to
     enforcing any remedy or right or taking any other action hereunder, the
     Guarantee Trustee (A) may request instructions from the Holders, (B) may
     refrain from enforcing such remedy or right or taking such other action
     until such instructions are received, and (C) shall be fully protected in
     acting in accordance with such instructions.

     (b)  No provision of this Guarantee Agreement shall be deemed to impose any
          duty or obligation on the Guarantee Trustee to perform any act or acts
          or exercise any right, power, duty or obligation conferred or imposed
          on it in any jurisdiction in which it shall be illegal, or in which
          the Guarantee Trustee shall be unqualified or incompetent in
          accordance with applicable law, to perform any such act or acts or to
          exercise any such right, power, duty or obligation. No permissive
          power or authority available to the Guarantee Trustee shall be
          construed to be a duty to act in accordance with such power and
          authority.

     SECTION 3.3.   Indemnity.
                    ----------

     The Guarantor agrees to indemnify the Guarantee Trustee for, and to hold it
harmless against, any loss, liability or expense incurred without negligence,
willful misconduct or bad faith on the part of the Guarantee Trustee, arising
out of or in connection with the acceptance or administration of this Guarantee
Agreement, including the costs and expenses of defending itself against any
claim or liability in connection with the exercise or performance of any of its
powers or duties hereunder. The provisions of this Section shall survive the
termination of this Guarantee Agreement or the resignation or removal of the
Guarantee Trustee. The Guarantee Trustee will not claim or exact any lien or
charge on any Guarantee Payments as a result of any amount due to it under this
Guarantee Agreement.

                                       9
<PAGE>

                                  ARTICLE IV
                               GUARANTEE TRUSTEE

     SECTION 4.1.   Guarantee Trustee; Eligibility.
                    ------------------------------

     (a)  There shall at all times be a Guarantee Trustee which shall not be an
          Affiliate of the Guarantor, and be a Person that is eligible pursuant
          to the Trust Indenture Act to act as such and has a combined capital
          and surplus of at least $50,000,000, and shall be a corporation
          meeting the requirements of Section 310(a) of the Trust Indenture Act.
          If such corporation publishes reports of condition at least annually,
          pursuant to law or to the requirements of the supervising or examining
          authority, then, for the purposes of this Section 4.1 and to the
          extent permitted by the Trust Indenture Act, the combined capital and
          surplus of such corporation shall be deemed to be its combined capital
          and surplus as set forth in its most recent report of condition so
          published.

     (b)  If at any time the Guarantee Trustee shall cease to be eligible to so
          act under Section 4.1(a), the Guarantee Trustee shall immediately
          resign in the manner and with the effect set out in Section 4.2(c).

     (c)  If the Guarantee Trustee has or shall acquire any "conflicting
          interest" within the meaning of Section 310(b) of the Trust Indenture
          Act, the Guarantee Trustee and Guarantor shall in all respects comply
          with the provisions of Section 310(b) of the Trust Indenture Act.

     SECTION 4.2.   Appointment, Removal and Resignation of the Guarantee
                    -----------------------------------------------------
                    Trustee.
                    -------

     (a)  Subject to Section 4.2(b), the Guarantee Trustee may be appointed or
          removed without cause at any time by the Guarantor.

     (b)  The Guarantee Trustee shall not be removed until a Successor Guarantee
          Trustee has been appointed and has accepted such appointment by
          written instrument executed by such Successor Guarantee Trustee and
          delivered to the Guarantor.

     (c)  The Guarantee Trustee appointed hereunder shall hold office until a
          Successor Guarantee Trustee shall have been appointed or until its
          removal or resignation. The Guarantee Trustee may resign from office
          (without need for prior or subsequent accounting) by an instrument in
          writing executed by the Guarantee Trustee and delivered to the
          Guarantor, which resignation shall not take effect until a Successor
          Guarantee Trustee has been appointed and has accepted such appointment
          by instrument in writing executed by such Successor Guarantee Trustee
          and delivered to the Guarantor and the resigning Guarantee Trustee.

     (d)  If no Successor Guarantee Trustee shall have been appointed and
          accepted appointment as provided in this Section 4.2 within 60 days
          after delivery to the Guarantor of an instrument of resignation, the
          resigning Guarantee Trustee may petition, at the expense of the
          Guarantor, any court of competent jurisdiction for appointment of a
          Successor Guarantee Trustee. Such court may thereupon, after

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<PAGE>

          prescribing such notice, if any, as it may deem proper, appoint a
          Successor Guarantee Trustee.

                                   ARTICLE V
                                   GUARANTEE

     SECTION 5.1.   Guarantee.
                    ----------

     The Guarantor irrevocably and unconditionally agrees to pay in full to the
Holders the Guarantee Payments (without duplication of amounts theretofore paid
by or on behalf of the Issuer), as and when due, regardless of any defense,
right of set-off or counterclaim which the Issuer may have or assert, except the
defense of payment. The Guarantor's obligation to make a Guarantee Payment may
be satisfied by direct payment of the required amounts by the Guarantor to the
Holders or by causing the Issuer to pay such amounts to the Holders.

     SECTION 5.2.   Waiver of Notice and Demand.
                    ---------------------------

     The Guarantor hereby waives notice of acceptance of the Guarantee Agreement
and of any liability to which it applies or may apply, presentment, demand for
payment, any right to require a proceeding first against the Guarantee Trustee,
Issuer or any other Person before proceeding against the Guarantor, protest,
notice of nonpayment, notice of dishonor, notice of redemption and all other
notices and demands.

     SECTION 5.3.   Obligations Not Affected.
                    ------------------------

     The obligations, covenants, agreements and duties of the Guarantor under
this Guarantee Agreement shall in no way be affected or impaired by reason of
the happening from time to time of any of the following:

     (a)  the release or waiver, by operation of law or otherwise, of the
          performance or observance by the Issuer of any express or implied
          agreement, covenant, term or condition relating to the Preferred
          Securities to be performed or observed by the Issuer;

     (b)  the extension of time for the payment by the Issuer of all or any
          portion of the Distributions (other than an extension of time for
          payment of Distributions that results from the extension of any
          interest payment period on the Debentures as provided in the
          Indenture), Redemption Price, Liquidation Distribution or any other
          sums payable under the terms of the Preferred Securities or the
          extension of time for the performance of any other obligation under,
          arising out of, or in connection with, the Preferred Securities;

     (c)  any failure, omission, delay or lack of diligence on the part of the
          Holders to enforce, assert or exercise any right, privilege, power or
          remedy conferred on the Holders pursuant to the terms of the Preferred
          Securities, or any action on the part of the Issuer granting
          indulgence or extension of any kind;

                                      11
<PAGE>

     (d)  the voluntary or involuntary liquidation, dissolution, sale of any
          collateral, receivership, insolvency, bankruptcy, assignment for the
          benefit of creditors, reorganization, arrangement, composition or
          readjustment of debt of, or other similar proceedings affecting, the
          Issuer or any of the assets of the Issuer;

     (e)  any invalidity of, or defect or deficiency in, the Preferred
          Securities;

     (f)  the settlement or compromise of any obligation guaranteed hereby or
          hereby incurred; or

     (g)  any other circumstance whatsoever that might otherwise constitute a
          legal or equitable discharge or defense of a guarantor, it being the
          intent of this Section 5.3 that the obligations of the Guarantor
          hereunder shall be absolute and unconditional under any and all
          circumstances.

     There shall be no obligation of the Holders to give notice to, or obtain
the consent of, the Guarantor with respect to the happening of any of the
foregoing.

     SECTION 5.4.   Rights of Holders.
                    -----------------

     The Guarantor expressly acknowledges that: (i) this Guarantee Agreement
will be deposited with the Guarantee Trustee to be held for the benefit of the
Holders; (ii) the Guarantee Trustee has the right to enforce this Guarantee
Agreement on behalf of the Holders; (iii) the Holders of a Majority in
Liquidation Amount of the Preferred Securities have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Guarantee Trustee in respect of this Guarantee Agreement or exercising any
trust or power conferred upon the Guarantee Trustee under this Guarantee
Agreement; and (iv) any Holder may institute a legal proceeding directly against
the Guarantor to enforce its rights under this Guarantee Agreement, without
first instituting a legal proceeding against the Guarantee Trustee, the Issuer
or any other Person.

     SECTION 5.5.   Guarantee of Payment.
                    --------------------

     This Guarantee Agreement creates a guarantee of payment and not of
collection. This Guarantee Agreement will not be discharged except by payment of
the Guarantee Payments in full (without duplication of amounts theretofore paid
by the Issuer) or upon distribution of Debentures to Holders as provided in the
Declaration.

     SECTION 5.6.   Subrogation.
                    -----------

     The Guarantor shall be subrogated to all (if any) rights of the Holders
against the Issuer in respect of any amounts paid to the Holders by the
Guarantor under this Guarantee Agreement and shall have the right to waive
payment by the Issuer pursuant to Section 5.1; provided, however, that the
Guarantor shall not (except to the extent required by mandatory provisions of
law) be entitled to enforce or exercise any rights which it may acquire by way
of subrogation or any indemnity, reimbursement or other agreement, in all cases
as a result of payment under this Guarantee Agreement, if, at the time of any
such payment, any amounts are due and unpaid under this Guarantee Agreement. If
any amount shall be paid to the Guarantor in violation of the

                                      12
<PAGE>

preceding sentence, the Guarantor agrees to hold such amount in trust for the
Holders and to pay over such amount to the Holders.

     SECTION 5.7.   Independent Obligations.
                    -----------------------

     The Guarantor acknowledges that its obligations hereunder are independent
of the obligations of the Issuer with respect to the Preferred Securities and
that the Guarantor shall be liable as principal and as debtor hereunder to make
Guarantee Payments pursuant to the terms of this Guarantee Agreement
notwithstanding the occurrence of any event referred to in subsections (a)
through (g), inclusive, of Section 5.3 hereof.

                                  ARTICLE VI
                                 SUBORDINATION

     SECTION 6.1.   Subordination.
                    -------------

     The obligations of the Guarantor under this Guarantee Agreement will
constitute unsecured obligations of the Guarantor and will rank subordinate and
junior in right of payment to all Senior Debt of the Guarantor to the extent and
manner set forth in the Indenture. The obligations of the Guarantor under this
Guarantee Agreement do not constitute Senior Debt.

     SECTION 6.2.   Pari Passu Guarantees.
                    ----------------------

     The obligations of the Guarantor under this Guarantee Agreement shall rank
pari passu with its obligations under (i) any similar guarantee agreements
issued by the Guarantor on behalf of the holders of preferred or common
securities issued by any Hancock Trust (as defined in the Indenture); (ii) the
Indenture and the Securities (as defined therein) issued thereunder; (iii) the
Expense Agreement (as defined in the Declaration) and any similar expense
agreements entered into by the Guarantor in connection with the offering of
Preferred Securities (as defined in the Indenture) by any Hancock Trust (as
defined in the Indenture), and (iv) any other security, guarantee or other
agreement or obligation that is expressly stated to rank pari passu with the
obligations of the Guarantor under this Guarantee Agreement or with any
obligation that ranks pari passu with the obligations of the Guarantor under
this Guarantee Agreement.

                                  ARTICLE VII
                                  TERMINATION

     SECTION 7.1.   Termination.
                    -----------

     This Guarantee Agreement shall terminate and be of no further force and
effect upon (i) full payment of the Redemption Price of all Preferred
Securities, (ii) the distribution of Debentures to the Holders in exchange for
all of the Preferred Securities or (iii) full payment of the amounts payable in
accordance with the Declaration upon liquidation of the Issuer. Notwithstanding
the foregoing, this Guarantee Agreement will continue to be effective or will be
reinstated, as the case may be, if at any time any Holder must restore payment
of any sums paid with respect to Preferred Securities or this Guarantee
Agreement.

                                      13
<PAGE>

                                 ARTICLE VIII
                                 MISCELLANEOUS

     SECTION 8.1.   Successors and Assigns.
                    ----------------------

     All guarantees and agreements contained in this Guarantee Agreement shall
bind the successors, assigns, receivers, trustees and representatives of the
Guarantor and shall inure to the benefit of the Holders of the Preferred
Securities then outstanding. Except in connection with a consolidation, merger
or sale involving the Guarantor that is permitted under Article Eight of the
Indenture and pursuant to which the successor or assignee agrees in writing to
perform the Guarantor's obligations hereunder, the Guarantor shall not assign
its obligations hereunder.

     SECTION 8.2.   Amendments.
                    ----------

     Except with respect to any changes which do not adversely affect the rights
of the Holders in any material respect (in which case no consent of the Holders
will be required), this Guarantee Agreement may only be amended with the prior
approval of the Holders of not less than a Majority in Liquidation Amount of the
Preferred Securities. The provisions of Article VI of the Declaration concerning
meetings of the Holders shall apply to the giving of such approval.

     SECTION 8.3.   Notices.
                    -------

     Any notice, request or other communication required or permitted to be
given hereunder shall be in writing, duly signed by the party giving such
notice, and delivered, telecopied or mailed by first class mail as follows:

     (a)  if given to the Guarantor, to the address set forth below or such
          other address, facsimile number or to the attention of such other
          Person as the Guarantor may give notice to the Holders:

          John Hancock Financial Services, Inc.
          John Hancock Place
          200 Clarendon Street
          Boston, Massachusetts 02117
          Facsimile No.: 617-572-5170
          Attention: Chief Financial Officer
          Copy to: General Counsel

     (b)  if given to the Issuer at the Issuer's address set forth below with a
          copy to the Guarantee Trustee as set forth below:

          John Hancock Capital Trust __
          c/o John Hancock Financial Services, Inc.
          John Hancock Place
          200 Clarendon Street
          Boston, Massachusetts 02117
          Facsimile No.: 617-572-5170
          Attention: Chief Financial Officer
          Copy to:  General Counsel

                                      14
<PAGE>

     (c)  if given to the Guarantee Trustee:

          The Chase Manhattan Bank
          450 West 33rd Street
          15th Floor
          New York, New York 10001
          Facsimile No.: 212-946-8159
          Attention: Institutional Trust Services

     (d)  if given to any Holder, at the address set forth on the books and
          records of the Issuer.

     All notices hereunder shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid, except that if a notice or other document is refused delivery
or cannot be delivered because of a changed address of which no notice was
given, such notice or other document shall be deemed to have been delivered on
the date of such refusal or inability to deliver.

     SECTION 8.4.   Benefit.
                    -------

     This Guarantee Agreement is solely for the benefit of the Holders and is
not separately transferable from the Preferred Securities.

     SECTION 8.5.   Governing Law.
                    -------------

     This Guarantee Agreement shall be governed by and construed and interpreted
in accordance with the laws of the State of New York.

     SECTION 8.6.   Counterparts.
                    -------------

     This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.


        [The remainder of this page has been intentionally left blank.]

                                      15
<PAGE>

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

                                     JOHN HANCOCK FINANCIAL SERVICES, INC.,
                                     as Guarantor



                                     By: ____________________________
                                          Name:
                                          Title:




                                     THE CHASE MANHATTAN BANK,
                                     as Guarantee Trustee



                                     By: ____________________________
                                          Name:
                                          Title: