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                                                                  [Exhibit 10.4]

                     FORM OF [SERIES A][SERIES B] WARRANT(1)

                             VALIDUS HOLDINGS, LTD.

          [SERIES A][SERIES B] WARRANT FOR THE PURCHASE OF COMMON STOCK
                            OF VALIDUS HOLDINGS, LTD.

NO. [A][B]-[_____]

                    [SERIES A][SERIES B] WARRANT TO PURCHASE
                     SHARES EQUAL TO HOLDER'S WARRANT AMOUNT
                               (AS DEFINED BELOW)

          THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED. THIS SECURITY CANNOT BE OFFERED, TRANSFERRED
OR SOLD UNLESS (I) A REGISTRATION STATEMENT UNDER SUCH ACT IS IN EFFECT WITH
RESPECT TO THIS SECURITY OR A WRITTEN OPINION FROM COUNSEL ACCEPTABLE TO THE
COMPANY IS OBTAINED TO THE EFFECT THAT NO SUCH REGISTRATION IS REQUIRED AND (II)
THE TRANSFEREE IS APPROVED BY APPLICABLE REGULATORY AUTHORITIES, IF SUCH
APPROVAL IS REQUIRED. TRANSFERS OF THIS SECURITY ARE SUBJECT TO THE APPROVAL OF
THE BOARD OF DIRECTORS OF THE COMPANY, IN ITS SOLE DISCRETION. THIS SECURITY IS
ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER, VOTING AND OTHER MATTERS AS
SET FORTH IN THE COMPANY'S BYE-LAWS AND ANY SHAREHOLDER'S AGREEMENT TO WHICH THE
HOLDER MAY BE (OR BECOME) A PARTY.

          FOR VALUE RECEIVED, Validus Holdings, Ltd., an exempt company
incorporated in Bermuda with limited liability (the "Company"), hereby certifies
that [_____], its successor or permitted assigns (the "Holder") is entitled,
subject to the terms hereof, to purchase a number of fully paid and
nonassessable shares of [Voting][Non-Voting] Common Stock of the Company, par
value $0.10 per share (the "Warrant Shares"), equal to the Holder's Warrant
Amount (as defined herein), at a purchase price per share equal to the Exercise
Price (as defined herein). The number of Warrant Shares to be received upon the
exercise of this Warrant and the price to be paid for such shares are subject to
adjustment from time to time as hereinafter set forth.

          1. Definitions. The following terms, as used herein, have the
following meanings:

          "Acquisition Event" means (i) any amalgamation, merger, scheme of
arrangement, consolidation, or other similar transactions as a result of which
the Members of the Company immediately prior to such transaction shall, in the
aggregate, beneficially own (as such term is defined in Rule 13d promulgated
under the United States Securities Exchange Act of 1934, as amended) immediately
following the consummation thereof (x) less than 50% of the Common Stock of the
Company if the Company is the entity surviving such amalgamation, scheme of
arrangement or consolidation or (y) less than 50% of

----------
(1)  Warrants to purchase Voting Common Stock will be designated Series A
     Warrants and warrants to purchase Non-Voting Common Stock will be
     designated Series B Warrants.

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the common equity of the entity surviving such amalgamation or formed by such
scheme of arrangement or consolidation if the Company is not the entity
surviving such amalgamation, scheme of arrangement or consolidation or (ii) any
transaction or circumstance approved by at least two-thirds of the Directors of
the Company and Holders of a majority of then outstanding Warrants and
identified as an Acquisition Event for purposes of the Company's Warrants.

          "Affiliate" shall have the meaning given to such term in Rule 12b-2
promulgated under the United States Securities Exchange Act of 1934, as amended.

          "Board of Directors" means the board of directors of the Company.

          "Bye-laws" means the Bye-laws of the Company, as amended from time to
time.

          "Common Stock" means, collectively, the Voting Common Stock and the
Non-Voting Common Stock.

          "Exercise Price" means $10.00 per share.

          "Exercised Percentage" with respect to any exercise of a portion of
this Warrant as of any particular date, means a percentage equal to the product
of (i) 100% and (ii) a fraction, the numerator of which shall be the number of
shares of Common Stock issued upon the exercise of such portion of this Warrant
as of such date of partial exercise, and the denominator of which shall be the
number of shares of Common Stock outstanding as of such date of partial exercise
(calculated on a fully diluted basis and assuming that all options, warrants,
including this Warrant, and any other rights to purchase Common Stock
outstanding on such date shall have been exercised on such date).

          "Expiration Date" means December [__], 2015 at 5:00 p.m. New York City
time.

          "Initial Public Offering" means the first registered public offering
of the Common Stock under the United States securities laws after the date
hereof or any amalgamation, scheme of arrangement or consolidation as a result
of which the Members of the Company receive, as the consideration in such
amalgamation, scheme of arrangement or consolidation, equity securities of a
class that (i) has been registered as part of a public offering under the United
States securities laws and (ii) is publicly traded on a securities exchange in
or outside the United States.

          "Non-Voting Common Stock" means the shares of Non-Voting Common Stock,
par value $0.10 per share, of the Company.

          "Series A Warrants" means the Company's Series A Warrants to purchase
Voting Common Stock[, of which this Warrant is one].

          "Series B Warrants" means the Company's Series B Warrants to purchase
Non-Voting Common Stock[, of which this Warrant is one].

          "Voting Common Stock" means the shares of Voting Common Stock, par
value $0.10 per share, of the Company.

          "Warrant Amount" as of any exercise date, means a number of Warrant
Shares equal to:

          (i) the Warrant Percentage for this Warrant as of such exercise date;
     multiplied by


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          (ii) the aggregate number of shares of Common Stock which would be
     outstanding on such date on a fully diluted basis and assuming that all
     options, warrants (including this Warrant and each other Warrant of the
     Company) and any other rights to purchase Common Stock outstanding on such
     date shall have been exercised on such date (whether or not then
     exercisable),

provided, however, that the Warrant Amount shall be fixed in accordance with the
foregoing formula (subject to changes pursuant to Section 6 or 7 hereof) at the
close of business on the day immediately preceding the date of consummation of
an Initial Public Offering, if any, or the close of business on the day
immediately preceding the date of consummation of an Acquisition Event, if any,
whichever first occurs.

          "Warrant Percentage" as of any exercise date, means [_____]% less (i)
in any case when a portion of this Warrant shall have been previously exercised
on one specific occasion, the Exercised Percentage, or (ii) in the event that a
portion of this Warrant shall have been previously exercised on more than one
occasion, the sum of the Exercised Percentages calculated with respect to each
such prior exercise. In the event that, as of any exercise date, a portion of
this Warrant shall have been previously exercised on more than one occasion, the
calculation of the Exercised Percentage with respect to each such prior exercise
shall be made successively, commencing with the earliest such prior exercise.

          "Warrants" means, collectively, Series A Warrants and Series B
Warrants.

          2. Exercise of Warrant.

          (a) The Holder is entitled to exercise this Warrant in whole or in
part at any time, or from time to time, until the Expiration Date, for the
Holder's Warrant Amount on such exercise date. To exercise this Warrant, the
Holder shall execute and deliver to the Company a Warrant Exercise Notice
substantially in the form attached hereto. Subject to Section 2(d) below, no
earlier than ten days after delivery of the Warrant Exercise Notice, the Holder
shall deliver to the Company this Warrant Certificate, including the Warrant
Exercise Subscription Form attached hereto duly executed by the Holder, together
with payment of the applicable Exercise Price. Upon such delivery and payment,
the Holder shall be deemed to be the holder of record of the Warrant Shares
subject to such exercise, notwithstanding that the register of members of the
Company shall then be closed or that certificates representing such Warrant
Shares shall not then be actually delivered to the Holder.

          (b) Subject to Section 2(d) below, the Exercise Price may be paid in
cash or by certified or official bank check or bank cashier's check payable to
the order of the Company or by any combination of such cash or check. The
Company shall pay any and all documentary, stamp or similar issue or transfer
taxes payable in respect of the issue or delivery of the Warrant Shares.

          (c) Upon surrender of this Warrant Certificate in conformity with the
provisions hereunder, the Company shall transfer to the Holder appropriate
evidence of ownership of the Warrant Shares or any other securities or property
(including any money) to which the Holder is entitled, registered or otherwise
placed in, or payable to the order of, the name or names of the Holder or such
transferee as may be directed in writing by the Holder, and shall deliver such
evidence of ownership and any other securities or property (including any money)
to the Person or Persons entitled to receive the same, together with an amount
in cash in lieu of any fraction of a share as provided in Section 3 below.

          (d) In lieu of making the cash payment required to exercise this
Warrant pursuant to this Section 2, the Holder may elect to (i) deliver as
payment, in whole or in part of the aggregate Exercise Price, Common Stock
having a value calculated by reference to the aggregate Daily Price (as defined
below) on the day immediately preceding the date on which the Holder delivers
written notice to the


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Company pursuant to Section 2(a) equal to or in excess of the applicable portion
of the aggregate Exercise Price for the Warrant Shares or (ii) exchange this
Warrant for Common Stock, in which event the Company will issue to the Holder
the number of shares of Common Stock equal to the result obtained by (A)
subtracting the Exercise Price from the Daily Price, (B) multiplying the
difference by the number of Warrant Shares for which this Warrant is being
exercised, and (C) dividing the product by the Daily Price as set forth in the
following equation:

          X = (A - B) x C where:
          ---------------
                 A

          X = the number of shares of Common Stock issuable upon exercise
     pursuant to this Section 2(d)

          A = the Daily Price (as defined below) on the day immediately
     preceding the date on which the Holder delivers written notice to the
     Company pursuant to Section 2(a).

          B = the Exercise Price.

          C = the number of Shares for which this Warrant is being exercised.

          If the foregoing calculation results in a negative number, then no
Common Stock shall be issued upon exercise pursuant to this Section 2(d)(ii).
Such issue of Common Stock shall be effected pursuant to applicable Bermuda law
and the Company may effect such an issue of Common Stock in any matter permitted
under Bermuda law.

          3. No Fractional Shares. The Company shall not be required to issue a
fractional share of Common Stock upon the exercise of this Warrant. If any
fractional interest in a share of Common Stock would be deliverable upon the
exercise of this Warrant in whole or in part, the Company, in lieu of delivering
any such fractional share, shall pay an amount in cash equal to the book value
per share at the end of the most recent fiscal quarter multiplied by the
fraction of the fractional share which would otherwise have been issued
hereunder. The Company agrees that it will not change the par value of the
Common Stock from par value $0.10 per share to any higher par value which
exceeds the Exercise Price then in effect, and will reduce the par value of the
Common Stock upon any event that would, but for this provision, reduce the
Exercise Price below the par value of the Common Stock.

          4. Reservation of Shares. The Company agrees that it will at all times
reserve for issuance and delivery upon exercise of this Warrant such number of
shares of its authorized but unissued Common Stock sufficient to permit the
exercise in full of this Warrant. All such shares shall be duly authorized and,
when issued upon such exercise, shall be validly issued, fully paid and
nonassessable, free and clear of all liens, security interests, charges and
other encumbrances or restrictions on sale, except to the extent set forth in
the Bye-laws or to the extent the Holder is a party to a shareholders' agreement
with respect to the Company's Common Stock.

          5. Transfer Restrictions.

          (a) Neither this Warrant nor any of the Warrant Shares, nor any
interest in either, may be sold, assigned, pledged, hypothecated, encumbered or
in any other manner transferred or disposed of, in whole or in part, except in
compliance with the terms, conditions and restrictions as set forth in the
Bye-laws of the Company, any shareholders' agreement with respect to the
Company's Common Stock to which the Holder may be (or become) a party,
applicable United States federal and state securities laws and the terms and
conditions hereof. Each certificate for Warrant Shares issued upon exercise of
this


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Warrant, unless at the time of exercise such Warrant Shares are registered under
the United States Securities Act of 1933, as amended, shall bear the following
legend:

          "These securities have not been registered under the United States
     Securities Act of 1933, as amended. These securities cannot be offered,
     transferred or sold unless (i) a registration statement under such Act is
     in effect with respect to such securities or a written opinion from counsel
     acceptable to the Company is obtained to the effect that no such
     registration is required and (ii) the transferee is approved by applicable
     regulatory authorities, if such approval is required. The Company reserves
     the right to refuse the transfer of such securities until such conditions
     have been fulfilled. In all events, transfers of these securities are
     subject to the approval of the Board of Directors of the Company, in its
     sole discretion. The Bye-laws of the Company contain other significant
     restrictions on transfers of shares of the Company."

          (b) Notwithstanding the foregoing, in the event that the laws of any
jurisdiction to which the Holder, or any Affiliate of the Holder, is subject
make it illegal for such entity to hold this Warrant or the Warrant Shares, the
Company shall use its best efforts to facilitate, and shall not unreasonably
withhold its permission to allow for, the transfer, sale or assignment of this
Warrant and/or the Warrant Shares.

          6. Anti-Dilution Provisions.

          (a) In case the Company shall (i) declare a dividend or make a
distribution on Common Stock payable in Common Stock, (ii) subdivide or split
the outstanding Common Stock, (iii) combine or reclassify the outstanding Common
Stock into a smaller number of shares, or (iv) issue any shares of its capital
stock in a reclassification of Common Stock (including any such reclassification
in connection with a consolidation, scheme of arrangement or amalgamation in
which the Company is the surviving entity), the Exercise Price in effect at the
time of the record date for such dividend or distribution or of the effective
date of such subdivision, split, combination or reclassification shall be
proportionately adjusted so that, giving effect to Section 6(i), the exercise of
this Warrant after such time shall entitle the Holder to receive the aggregate
number of shares of Common Stock or other securities of the Company (or shares
of any security into which such Common Stock have been reclassified) which, if
this Warrant had been exercised immediately prior to such time, such holder
would have owned upon such exercise and been entitled to receive by virtue of
such dividend, distribution, subdivision, split, combination, amalgamation,
scheme of arrangement or reclassification. Such adjustment shall be made
successively whenever any event listed above shall occur.

          (b) In case the Company shall issue or sell any Common Stock (other
than Common Stock issued (i) upon exercise of the Warrants, (ii) pursuant to the
Company's stock option plan or pursuant to any similar Common Stock-related
employee compensation plan of the Company approved by the Company's Board of
Directors or (iii) upon exercise or conversion of any security the issuance of
which caused an adjustment under paragraph (c) or (d) hereof) without
consideration or for a consideration per share less than the Current Market
Price per share of Common Stock (as defined in paragraph (f)) immediately
preceding such issuance or sale or immediately preceding the announcement
thereof, if earlier, the Exercise Price to be in effect after such issuance or
sale shall be determined by multiplying the Exercise Price in effect immediately
prior to such issuance or sale or immediately preceding the announcement
thereof, if earlier, as the case may be, by a fraction, the numerator of which
shall be the sum of (x) the number of shares of Common Stock outstanding
immediately prior to the time of such issuance or sale multiplied by the Current
Market Price per share of Common Stock immediately prior to such issuance or
sale or immediately preceding the announcement thereof, as the case may be, and
(y) the aggregate consideration, if any, to be received by the Company upon such
issuance or sale, and the denominator of


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which shall be the product of the aggregate number of shares of Common Stock
outstanding immediately after such issuance or sale and the Current Market Price
per share of Common Stock immediately prior to such issuance or sale or
immediately preceding the announcement thereof, as the case may be. In case any
portion of the consideration to be received by the Company shall be in a form
other than cash, the fair market value of such noncash consideration shall be
utilized in the foregoing computation. Such fair market value shall be
determined by the Board of Directors of the Company; provided that if the Holder
shall object to any such determination, the Board of Directors shall retain an
independent appraiser reasonably satisfactory to the Holder to determine such
fair market value. The Holder shall be notified promptly of any consideration
other than cash to be received by the Company and furnished with a description
of the consideration and the fair market value thereof as determined by the
Board of Directors.

          (c) In case the Company shall fix a record date for the issuance of
rights, options or warrants to the holders of its Common Stock or other
securities entitling such holders to subscribe for or purchase for a period
expiring within 60 days of such record date Common Stock (or securities
convertible into Common Stock) at a price per share (or having a conversion
price per share, if a security convertible into Common Stock) less than the
Current Market Price per share on such record date or immediately preceding the
announcement thereof, if earlier, the maximum number of shares of Common Stock
issuable upon exercise of such rights, options or warrants (or conversion of
such convertible securities) shall be deemed to have been issued and outstanding
as of such record date and the Exercise Price shall be adjusted pursuant to
paragraph (b) hereof as though such maximum number of shares of Common Stock had
been so issued for an aggregate consideration payable by the holders of such
rights, options, warrants or convertible securities prior to their receipt of
such Common Stock. In case any portion of such consideration shall be in a form
other than cash, the fair market value of such noncash consideration shall be
determined as set forth in paragraph (b) hereof. Such adjustment shall be made
successively whenever such record date is fixed; and in the event that such
rights, options or warrants are not so issued or expire unexercised, or in the
event of a change in the number of shares of Common Stock to which the holders
of such rights, options or warrants are entitled (other than pursuant to
adjustment provisions therein comparable to those contained in this Section 6),
the Exercise Price shall again be adjusted to be the Exercise Price which would
then be in effect if such record date had not been fixed, in the former event,
or the Exercise Price which would then be in effect if such holder had initially
been entitled to such changed number of shares of Common Stock, in the latter
event.

          (d) In case the Company shall issue rights, options (other than
options issued pursuant to a plan described in clause (b)(ii) above) or warrants
entitling the holders thereof to subscribe for or purchase Common Stock (or
securities convertible into Common Stock) or shall issue convertible securities,
and the price per share of such rights, options, warrants or convertible
securities (including, in the case of rights, options or warrants, the price at
which they may be exercised) is less than the Current Market Price per share of
Common Stock immediately preceding such issuance of rights, options or warrants
or immediately preceding the announcement thereof, if earlier, the maximum
number of shares of Common Stock issuable upon exercise of such rights, options
or warrants or upon conversion of such convertible securities shall be deemed to
have been issued and outstanding as of the date of such sale or issuance, and
the Exercise Price shall be adjusted pursuant to paragraph (b) hereof as though
such maximum number of shares of Common Stock had been so issued for an
aggregate consideration equal to the aggregate consideration paid for such
rights, options, warrants or convertible securities and the aggregate
consideration payable by the holders of such rights, options, warrants or
convertible securities prior to their receipt of such Common Stock. In case any
portion of such consideration shall be in a form other than cash, the fair
market value of such noncash consideration shall be determined as set forth in
paragraph (b) hereof. Such adjustment shall be made successively whenever such
rights, options, warrants or convertible securities are issued; and in the event
that such rights, options or warrants expire unexercised, or in the event of a
change in the number of shares of Common Stock to which the holders of such
rights, options,


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warrants or convertible securities are entitled (other than pursuant to
adjustment provisions therein comparable to those contained in this Section 6),
the Exercise Price shall again be adjusted to be the Exercise Price which would
then be in effect if such rights, options, warrants or convertible securities
had not been issued, in the former event, or the Exercise Price which would then
be in effect if such holders had initially been entitled to such changed number
of shares of Common Stock, in the latter event. No adjustment of the Exercise
Price shall be made pursuant to this paragraph (d) to the extent that the
Exercise Price shall have been adjusted pursuant to paragraph (c) upon the
setting of any record date relating to such rights, options, warrants or
convertible securities and such adjustment fully reflects the number of shares
of Common Stock to which the holders of such rights, options, warrants or
convertible securities are entitled and the price payable therefor.

          (e) (A) In case the Company shall fix a record date for the making of
a distribution to holders of Common Stock (including any such distribution made
in connection with a consolidation, scheme of arrangement or amalgamation in
which the Company is the surviving entity, but not including any distribution
that is a return of capital, which distribution shall be governed by
subparagraph (B) of this paragraph (e)) of evidences of indebtedness, assets or
other property (other than dividends payable in Common Stock or rights, options
or warrants referred to in, and for which an adjustment is made pursuant to,
paragraph (c) hereof), the Exercise Price to be in effect after such record date
shall be determined by multiplying the Exercise Price in effect immediately
prior to such record date or immediately preceding the announcement thereof, by
a fraction, the numerator of which shall be the Current Market Price per share
of Common Stock on such record date, less the fair market value (determined as
set forth in paragraph (b) hereof) of the portion of the assets, other property
or evidences of indebtedness so to be distributed which is applicable to one
share of Common Stock, and the denominator of which shall be such Current Market
Price per share of Common Stock. Such adjustments shall be made successively
whenever such a record date is fixed; and in the event that such distribution is
not so made, the Exercise Price shall again be adjusted to be the Exercise Price
which would then be in effect if such record date had not been fixed.

               (B) In case the Company shall fix a record date for the making of
a distribution to holders of Common Stock which is a return of capital
(including any such distribution made in connection with a consolidation, scheme
of arrangement or amalgamation in which the Company is the surviving entity) of
evidences of indebtedness, assets or other property (other than dividends
payable in Common Stock or rights, options or warrants referred to in, and for
which an adjustment is made pursuant to, paragraph (c) hereof), the Exercise
Price to be in effect after such record date shall be determined by subtracting
the fair market value (determined as set forth in paragraph (b) hereof) of the
portion of the assets, other property or evidences of indebtedness so to be
distributed which is applicable to one share of Common Stock from the Exercise
Price in effect immediately prior to such record date or immediately preceding
the announcement thereof. Such adjustments shall be made successively whenever
such a record date is fixed; and in the event that such distribution is not so
made, the Exercise Price shall again be adjusted to be the Exercise Price which
would then be in effect if such record date had not been fixed. Notwithstanding
the foregoing, if an adjustment pursuant to this subparagraph (B) (alone or
together with any adjustments required under paragraph (g)) would result in an
Exercise Price of less than zero, the Exercise Price shall be zero.

          (f) For the purpose of any computation under this Section 6, on any
determination date (i) on or prior to the initial public offering of the
Company's Common Stock registered under the United States Securities Act of
1933, as amended, the Current Market Price per share shall, subject to the
penultimate sentence of this paragraph (f), be the fair market value per share
of the applicable class of Common Stock as reasonably determined by the Board of
Directors of the Company, and (ii) after such registered public offering, the
Current Market Price per share shall be deemed to be the average (weighted


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by daily trading volume) of the Daily Prices (as defined below) per share of the
applicable class of Common Stock for the 20 consecutive trading days immediately
prior to such date. "Daily Price" means (A) if the shares of such class of
Common Stock are then listed and traded on the New York Stock Exchange, Inc.
("NYSE"), the closing price on the NYSE on such day as reported on the NYSE
Composite Transactions Tape; (B) if the shares of such class of Common Stock are
then not listed and traded on the NYSE, the closing price on such day as
reported by the principal national securities exchange on which the shares are
listed and traded; (C) if the shares of such class of Common Stock are then not
listed and traded on the NYSE or any such national securities exchange, the last
reported sale price on such day on the National Market of the National
Association of Securities Dealers, Inc. Automated Quotation System ("NASDAQ");
or (D) if the shares of such class of Common Stock are then not listed and
traded on the NYSE or any national securities exchange or traded on the NASDAQ
National Market, the average of the highest reported bid and lowest reported
asked price on such day as reported by NASDAQ. If on any determination date the
shares of such class of Common Stock are not quoted by any such organization,
the Current Market Price per share shall be the fair market value of such shares
on such determination date as determined by the Board of Directors. If the
Holder shall object to any determination by the Board of Directors of the
Current Market Price per share, the Current Market Price per share shall be the
fair market value per share of the applicable class of Common Stock as
determined by an independent appraiser retained by the Company at its expense
and reasonably acceptable to the Holder. For purposes of any computation under
this Section 6, the number of shares of Common Stock outstanding at any given
time shall not include shares owned or held by or for the account of the
Company.

          (g) No adjustment in the Exercise Price shall be required unless such
adjustment would require an increase or decrease of at least one percent in such
price; provided that any adjustments which by reason of this paragraph are not
required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this Section 6 shall be made to
the nearest one tenth of a cent or to the nearest hundredth of a share, as the
case may be.

          (h) In the event that, at any time as a result of the provisions of
this Section 6, the Holder of this Warrant upon subsequent exercise shall become
entitled to receive any shares of capital stock of the Company other than Common
Stock, the number of such other shares so receivable upon exercise of this
Warrant shall thereafter be subject to adjustment from time to time in a manner
and on terms as nearly equivalent as practicable to the provisions contained
herein.

          (i) (A) Upon each adjustment of the Exercise Price as a result of the
calculations made in this Section 6, the number of shares for which this Warrant
is exercisable immediately prior to the making of such adjustment shall
thereafter evidence the right to purchase, at the adjusted Exercise Price, that
number of shares of Common Stock obtained by (i) multiplying the number of
shares covered by this Warrant immediately prior to this adjustment of the
number of shares by the Exercise Price in effect immediately prior to such
adjustment of the Exercise Price and (ii) dividing the product so obtained by
the Exercise Price in effect immediately after such adjustment of the Exercise
Price; provided that no adjustment shall be necessary pursuant to this paragraph
(i) (x) to the extent (but only to the extent) that the number of shares of
Common Stock for which this Warrant is exercisable has already increased (or
would increase, if such Warrant were actually exercised) as a result of the
transaction in question by operation of the definition of "Warrant Amount" or
(y) in connection with an adjustment to the Exercise Price pursuant to
subparagraph (e)(B).

               (B) To the extent that any distribution described in subparagraph
(e)(B) did not result in a reduction of the Exercise Price because the Exercise
Price had already been reduced to zero, there shall be an adjustment made, as
determined by the Board of Directors of the Company (which


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determination shall be final and binding), to the number of shares for which
this Warrant is exercisable so as to preserve for the Holder the economics of
this Warrant.

          (j) Not less than 10 nor more than 30 days prior to the record date of
any action which requires an adjustment pursuant to this Section 6, the Company
shall file in the custody of the secretary of the Company at its principal
executive office an officer's certificate signed by the chairman, president or
chief financial officer of the Company showing the adjusted Exercise Price
determined as herein provided, setting forth in reasonable detail the facts
requiring such adjustment and the computation of such adjustment. Each such
officer's certificate shall be made available at all reasonable times for
inspection by the Holder and the Company shall, promptly after such adjustment,
mail a copy, by first-class mail, of such certificate to the Holder.

          (k) The Holder shall, at its option, be entitled to receive, in lieu
of the adjustment pursuant to this Section 6 otherwise required, on the date of
exercise of this Warrant, the evidences of indebtedness, assets or other
property which such Holder would have been entitled to receive if it had
exercised its Warrant for Common Stock immediately prior to the record date with
respect to such distribution. The Holder may exercise its option under this
paragraph (k) by written notice to the Company within 14 days of its receipt of
the certificate of adjustment required pursuant to paragraph (j) above to be
delivered by the Company in connection with such distribution.

          7. Consolidation, Scheme of Arrangement, Amalgamation or Sale of
Assets. In case of any consolidation of the Company with, or amalgamation of the
Company into, any other Person, any amalgamation of another Person into the
Company (other than an amalgamation which does not result in any
reclassification, conversion, exchange or cancellation of outstanding Common
Stock), any scheme of arrangement, or any sale or transfer of all or
substantially all of the assets, or any similar or analogous procedure or
transaction howsoever described under the law of incorporation of the Company or
any other relevant law, of the Company or of the Person formed by such
consolidation or resulting from such amalgamation or which acquires such assets,
as the case may be, the Holder shall have the right thereafter to exercise this
Warrant for the kind and amount of securities, cash and other property
receivable upon such consolidation, scheme of arrangement, amalgamation, sale or
transfer by a holder of the number of shares of Common Stock for which this
Warrant may have been exercised immediately prior to such consolidation, scheme
of arrangement, amalgamation, sale or transfer, assuming (i) such holder of
Common Stock is not a Person with which the Company consolidated or into which
the Company amalgamated or which amalgamated into the Company or to which such
sale or transfer was made, as the case may be ("Constituent Person"), or an
Affiliate of a Constituent Person and (ii) in the case of a consolidation,
amalgamation, sale or transfer which includes an election as to the
consideration to be received by the holders, such holder of Common Stock failed
to exercise its rights of election as to the kind or amount of securities, cash
and other property receivable upon such consolidation, amalgamation, sale or
transfer (provided that if the kind or amount of securities, cash and other
property receivable upon such consolidation, amalgamation, sale or transfer is
not the same for each share of Common Stock held immediately prior to such
consolidation, amalgamation, sale or transfer by other than a Constituent Person
or an Affiliate thereof and in respect of which such rights of election shall
not have been exercised ("Non-Electing Share"), then for the purpose of this
Section the kind and amount of securities, cash and other property receivable
upon such consolidation, amalgamation, sale or transfer by each Non-Electing
Share shall be deemed to be the kind and amount so receivable per share by a
plurality of the Non-Electing Shares). Adjustments for events subsequent to the
effective date of such a consolidation, amalgamation and sale of assets shall be
as nearly equivalent as may be practicable to the adjustments provided for in
this Warrant. In any such event, effective provisions shall be made in the
certificate or articles of incorporation of the resulting or surviving
corporation, in any contract of sale, conveyance, lease or transfer, or
otherwise so that the provisions set forth herein for the protection of the
rights of the Holder shall thereafter continue to


                                       -9-

<PAGE>

be applicable; and the entity whose securities, cash or other property for which
this Warrant shall have become exercisable shall expressly assume the obligation
to deliver, upon exercise, such securities, cash or other property. The
provisions of this Section 7 shall similarly apply to successive consolidations,
amalgamations, sales, leases or transfers.

          8. Loss or Destruction of Warrant. Upon receipt by the Company of
evidence satisfactory to it (in the exercise of its reasonable discretion) of
the loss, theft, destruction or mutilation of this Warrant Certificate, and (in
the case of loss, theft or destruction) of reasonably satisfactory
indemnification, and upon surrender and cancellation of this Warrant
Certificate, if mutilated, the Company shall execute and deliver a new Warrant
Certificate of like tenor and date.

          9. Notices. Any notice, demand or delivery authorized by this Warrant
Certificate shall be in writing and shall be given to the Holder or the Company,
as the case may be, at its address (or facsimile number) set forth below, or
such other address (or facsimile number) as shall have been furnished to the
party giving or making such notice, demand or delivery:

          IF TO THE COMPANY:

               Validus Holdings, Ltd.
               Mintflower Place
               8 Par-La-Ville Road, Third Floor
               Hamilton HM08 Bermuda
               Attention: Edward Noonan

               with a copy to:

               Cahill Gordon & Reindel LLP
               80 Pine Street
               New York, New York  10005
               Attn: Michael A. Becker, Esq.
                     John Schuster, Esq.
               Facsimile: (212) 269-5420

          IF TO THE HOLDER:

               [_______]

          Each such notice, demand or delivery shall be effective (i) if given
by facsimile, when receipt acknowledged or (ii) if given by any other means,
when received at the address specified herein.

          10. Rights of the Holder. Prior to the exercise of any Warrant, the
Holder shall not, by virtue hereof, be entitled to any rights of a shareholder
of the Company, including, without limitation, the right to vote, to receive
dividends or other distributions, or to receive any notice of meetings of
shareholders or any notice of any proceedings of the Company except as may be
specifically provided for herein.

          11. Governing Law. THIS WARRANT CERTIFICATE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING
EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF.


                                      -10-

<PAGE>

          12. Amendments; Waivers. Any provision of this Warrant may be amended
or waived if, and only if, such amendment or waiver is in writing and signed by
the Company and Holders of a majority of then outstanding Warrants and such
amendment, by its terms, applies to all then outstanding Warrants; provided,
that immaterial waivers may be approved by the party against whom the waiver is
to be effective. No failure or delay by either party in exercising any right,
power or privilege hereunder shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and
remedies herein provided shall be cumulative and not exclusive of any rights or
remedies provided by law.

          13. Entire Agreement; Supersession of Prior Warrant. The Company and
the Holder hereby acknowledge and agree that this Warrant constitutes the entire
agreement between them with respect to the subject matter of this Warrant, and
this Warrant shall supersede all contemporaneous oral and all prior oral and
written agreements and understandings with respect to the subject matter hereof.

          IN WITNESS WHEREOF, the Company has duly caused this Warrant to be
signed and attested by its duly authorized officers and to be dated as of
December 12, 2005

                                        VALIDUS HOLDINGS, LTD.


                                        By:
                                            ------------------------------------
                                        Name: Edward Noonan
                                        Title: Chief Executive Officer


                                      -11-

<PAGE>

                       WARRANT EXERCISE OR EXCHANGE NOTICE

      (To be delivered prior to exercise of the Warrant by execution of the
                       Warrant Exercise Subscription Form)

To: Validus Holdings, Ltd.

          The undersigned hereby notifies you of its intention to exercise or
exchange the Warrant to purchase [Voting][Non-Voting] Common Stock, par value
$0.10 per share, of Validus Holdings, Ltd.

          The undersigned intends to exercise the Warrant to purchase
[Voting][Non-Voting] Common Stock (the "Shares") at $__________ per Share (the
Exercise Price currently in effect pursuant to the Warrant). The undersigned
intends to pay the aggregate Exercise Price for the Shares in cash, certified or
official bank or bank cashier's check (or a combination of cash and check) as
indicated below.

                                      -OR-

          The undersigned intends to exercise the Warrant to purchase __________
shares of [Voting][Non-Voting] Common Stock (the "Shares") and wishes, in lieu
of paying the Exercise Price of $___________ per Share currently in effect
pursuant to the Warrant, to receive that number of shares reduced by a number of
shares of [Voting][Non-Voting] Common Stock having a value calculated by
reference to the aggregate Daily Price (as defined in the Warrant) equal to the
aggregate Exercise Price for the Shares.

                                      -OR-

          The undersigned intends pursuant to Section 2(d)(ii) of the Warrant to
exchange the Warrant (or a portion thereof), insofar as it relates _________ to
[Voting][Non-Voting] Common Stock, for the number of shares of [Voting]
[Non-Voting] Common Stock determined pursuant to such Section 2(d)(ii).

                                      -OR-

          The undersigned intends to exercise the Warrant to purchase [Voting]
[Non-Voting] Common Stock (the "Shares") at the Exercise Price of $_________ per
share currently in effect pursuant to the Warrant, and intends to pay
$__________ of the aggregate Exercise Price for the Shares in cash, certified or
official bank or bank cashier's check (or a combination of cash and check) as
indicated below, and to deliver as payment of $__________ of the aggregate
Exercise Price that number of shares of [Voting] [Non-Voting] Common Stock
having a value calculated by reference to the aggregate Daily Price (as defined
in the Warrant) equal to or in excess of such portion of the aggregate Exercise
Price for the Shares.

Date:
      ---------------


                                        ----------------------------------------
                                                  (Signature of Owner)

                                        ----------------------------------------
                                                        (Address)

Payment: $_______ cash


                                       A-1

<PAGE>

$_______ check

________ Common Stock having a Daily Price of $_____________


                                       A-2

<PAGE>

                       WARRANT EXERCISE SUBSCRIPTION FORM

             (To be executed only upon exercise of the Warrant after
                      delivery of Warrant Exercise Notice)

To: Validus Holdings, Ltd.

          The undersigned irrevocably exercises the Warrant for the purchase of
[Voting] [Non-Voting] Common Stock (the "Shares"), par value $0.10 per share, of
Validus Holdings, Ltd. (the "Company") at $_________ per Share (the Exercise
Price currently in effect pursuant to the Warrant) and herewith makes payment of
$_________ (such payment being made in cash or by certified or official bank or
bank cashier's check payable to the order of the Company or by any permitted
combination of such cash or check), all on the terms and conditions specified in
the within Warrant Certificate, surrenders this Warrant Certificate and all
right, title and interest therein to the Company and directs that the Shares
deliverable upon the exercise of this Warrant be registered or placed in the
name and at the address specified below and delivered thereto.

                                      -OR-

          The undersigned irrevocably exercises the Warrant for the purchase of
[Voting] [Non-Voting] Common Stock (the "Shares"), par value $0.10 per share, of
Validus Holdings, Ltd. (the "Company") at $_________ per Share (the Exercise
Price currently in effect pursuant to the Warrant) (provided that in lieu of
payment of $_________, the undersigned will receive a number of Shares reduced
by a number of shares of [Voting] [Non-Voting] Common Stock having a value
calculated by reference to the aggregate Daily Price (as defined in the Warrant)
equal to the aggregate Exercise Price for the Shares), all on the terms and
conditions specified in the Warrant Certificate, surrenders this Warrant
Certificate and all right, title and interest therein to the Company and directs
that the Shares deliverable upon the exercise of this Warrant be registered or
placed in the name and at the address specified below and delivered thereto.

                                      -OR-

          The undersigned irrevocably exercises the Warrant for the purchase of
[Voting] [Non-Voting] Common Stock (the "Shares"), par value $0.10 per share, of
Validus Holdings, Ltd. (the "Company") at $_________ per share (the Exercise
Price currently in effect pursuant to the Warrant) (such payment being made by
delivering that number of shares of [Voting] [Non-Voting] Common Stock having a
value calculated by reference to the aggregate Daily Price (as defined in the
Warrant) equal to or in excess of the aggregate Exercise Price for the Shares),
all on the terms and conditions specified in the Warrant Certificate, surrenders
this Warrant Certificate and all right, title and interest therein to the
Company and directs that the Shares deliverable upon the exercise of this
Warrant be registered or placed in the name and at the address specified below
and delivered thereto.

                                      -OR-

          The undersigned irrevocably exercises the Warrant for the purchase
[Voting] [Non-Voting] Common Stock (the "Shares"); par value $0.10 per share, of
Validus Holdings, Ltd. (the "Company") at $_________ per Share (the Exercise
Price currently in effect pursuant to the Warrant), and herewith makes payment
of $_________ of the aggregate Exercise Price for the Shares in cash, certified
or official bank or bank cashier's check (or a combination of cash and check),
and herewith delivers as payment of $_________ of the aggregate Exercise Price
that number of shares of [Voting] [Non-Voting] Common Stock having a value
calculated by reference to the aggregate Daily Price (as defined in the Warrant)
equal to or in excess of such portion of the aggregate Exercise Price for the
Shares, all on the


                                       A-3

<PAGE>

terms and conditions specified in the Warrant Certificate, surrenders this
Warrant Certificate and all right, title and interest therein to the Company and
directs that the Shares deliverable upon the exercise of this Warrant be
registered or placed in the name and at the address specified below and
delivered thereto.

Date:
      ---------------


                                        ----------------------------------------
                                                  (Signature of Owner)

                                        ----------------------------------------
                                                        (Address)

                                        ----------------------------------------
                                                        (Address)


                                       A-4

<PAGE>

Securities and/or check to be issued to:

Please insert social security or identifying number: ___________________________

Name: __________________________________________________________________________

Street Address: ________________________________________________________________

City, State and Zip Code: ______________________________________________________

Any unexercised portion of the Warrant evidenced by the within Warrant
Certificate to be issued to:

Please insert social security or identifying number: ___________________________

Name: __________________________________________________________________________

Street Address: ________________________________________________________________

City, State and Zip Code: ______________________________________________________


                                       A-5

<PAGE>

                             WARRANT ASSIGNMENT FORM

                                                              Date:_____________

FOR VALUE RECEIVED, ______________________________________ hereby sells, assigns
and transfers unto _______________________________________ (the "Assignee"),
                   (please type or print in block letters)

________________________________________________________________________________
                                (insert address)

its right to purchase up to ____________ shares of [Voting] [Non-Voting] Common
Stock, par value $0.10 per share, of Validus Holdings, Ltd. (the "Company")
represented by this Warrant and does hereby irrevocably constitute and appoint
__________ Attorney to transfer the same on the books of the Company, with full
power of substitution in the premises.


                                        Signature:
                                                   -----------------------------


                                       A-6