Document:

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                                                                     Exhibit 4.5

                        ENDURANCE SPECIALTY HOLDINGS LTD.

                           WARRANT FOR CLASS A SHARES

                            DATED AS OF JULY __, 2002

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THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY UNITED STATES STATE OR FOREIGN
SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS
(I) (A) A REGISTRATION STATEMENT IS IN EFFECT UNDER THE SECURITIES ACT WITH
RESPECT TO THIS WARRANT, OR (B) A WRITTEN OPINION OF COUNSEL OR OTHER EVIDENCE
REASONABLY ACCEPTABLE TO ENDURANCE SPECIALTY HOLDINGS LTD. ("ENDURANCE") HAS
BEEN OBTAINED TO THE EFFECT THAT NO SUCH REGISTRATION IS REQUIRED, (II) THE
TRANSFEREE, IF REQUIRED BY LAW, IS APPROVED BY THE APPLICABLE BERMUDA REGULATORY
AUTHORITIES, AND (III) THE TRANSFER IS PERMITTED UNDER THE TERMS OF THIS
WARRANT.

ANY SALE, ASSIGNMENT, TRANSFER, PLEDGE OR OTHER DISPOSITION OF THE RIGHTS
REPRESENTED HEREBY IS RESTRICTED BY, AND THE RIGHTS OF THE HOLDER HEREOF ARE
SUBJECT TO, THE TERMS AND CONDITIONS CONTAINED IN THE BYE-LAWS OF ENDURANCE AND
THE SHAREHOLDERS AGREEMENT DATED AS OF JULY __, 2002, AS THEY MAY BE AMENDED
FROM TIME TO TIME.

                         THIS WARRANT IS SUBJECT TO THE
                   RESTRICTIONS ON TRANSFER SET FORTH HEREIN.

No. of Class A Shares: [o]                                      Warrant No. [o]
Date of Issuance: July __, 2002

                                     WARRANT

                 To Purchase Class A Shares, US$1.00 par value,
                      of Endurance Specialty Holdings Ltd.

         THIS WARRANT CERTIFIES THAT, for value received, the registered holder
hereof, [o], a company incorporated under the laws of [o] (together with its
successors and permitted assigns, the "Warrant Holder"), is entitled to purchase
from ENDURANCE SPECIALTY HOLDINGS LTD., an exempt company organized under the
laws of Bermuda (together with its successors and permitted assigns,
"Endurance"), [o] Class A Shares ("Class A Shares"), US$1.00 par value each, of
Endurance (the "Warrant Shares"), at the price of US$100.00 per Warrant Share,
as adjusted in accordance with the terms hereof, but in no event less than par
value (as adjusted, the "Exercise Price"), subject to the limitations contained
in Article IV, at any time from and after the date hereof until December 14,
2011 (the "Warrant Exercise Period").

                     ARTICLE I. OWNERSHIP OF THIS WARRANT.

         Endurance may deem and treat the Warrant Holder as the holder and owner
hereof, notwithstanding any notations of ownership or writing hereon made by
anyone other than Endurance, for all purposes and shall not be affected by any
notice to the contrary, until

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presentation of this Warrant for registration of transfer as provided in Article
III. Endurance shall provide from and after the Original Issue Date for a
transfer agent and registrar (collectively, the "Agent") for this Warrant. The
Agent shall keep a register in which it shall record the registration and
transfer of this Warrant and the name and address of the Warrant Holder.

                            ARTICLE II. REPLACEMENT.

         Upon receipt by Endurance of evidence reasonably satisfactory to it of
the loss, theft, destruction or mutilation of this Warrant, and, in the case of
loss, theft or destruction, of indemnity or security reasonably satisfactory to
it, and upon surrender of this Warrant at the office of the Agent, if mutilated,
Endurance will make and deliver at its own expense a new Warrant of like tenor,
in replacement of this Warrant. At the request of the Warrant Holder to exchange
this Warrant for Warrants of different denominations, and upon surrender of this
Warrant at the office of the Agent, Endurance will deliver at its own expense
new Warrants in exchange therefor, in those denominations requested by the
Warrant Holder. This Warrant shall be promptly canceled by Endurance upon the
surrender hereof in connection with any replacement.

                      ARTICLE III. EXERCISE AND TRANSFER.

         Section 3.1 Procedure for Exercise. In order to exercise this Warrant,
the Warrant Holder shall complete the Subscription Form attached hereto, and
deliver to the Agent this Warrant, together with the aggregate Exercise Price of
the Warrant Shares then being purchased (the "Warrant Price"). Payment of the
Warrant Price shall be made at the option of the Warrant Holder by one or more
of the following methods: (i) by delivery of a certified or bank check in the
amount of the Warrant Price, (ii) by instructing Endurance to withhold a number
of Warrant Shares then issuable upon exercise of this Warrant with an aggregate
Fair Value equal to the Warrant Price or (iii) by surrendering to Endurance
Ordinary Shares or Class A Shares previously acquired by the Warrant Holder with
an aggregate Fair Value equal to the Warrant Price. In the event of any
withholding of Warrant Shares or surrender of Ordinary Shares or Class A Shares
pursuant to clause (ii) or (iii) above where the number of shares whose Fair
Value is equal to the Warrant Price is not a whole number, the number of shares
withheld by or surrendered to Endurance shall be rounded up to the nearest whole
share and Endurance shall make a cash payment to the Warrant Holder based on the
incremental fraction of a share being so withheld by or surrendered to
Endurance. The exercise of this Warrant shall be deemed to be effected, and the
Exercise Price and the number of Warrant Shares issuable in connection with such
exercise shall be determined, as of the close of business on the Business Day on
which delivery of the completed Subscription Form and all other items required
to be delivered in connection with such exercise by the Warrant Holder pursuant
to this Section 3.1 or otherwise shall have been delivered to the Agent (the
"Exercise Date"). Upon receipt of such Subscription Form and other items,
Endurance shall, subject to this Section 3.1, as promptly as practicable, and in
any event other than where it shall be necessary for the Board to determine the
Fair Value of any securities, within five Business Days thereafter, execute or
cause to be executed and deliver or cause to be delivered to the Warrant Holder
a certificate or certificates representing the aggregate number of Warrant
Shares specified in such Subscription Form, and, if applicable, cash in lieu of
a fractional share of a Warrant Share as provided herein. Each certificate so

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delivered shall be in such authorized denomination as may be requested by the
Warrant Holder and shall be registered in the name of the Warrant Holder or, to
the extent permitted by law, the Bye-Laws, Shareholders Agreement and the
provisions of this Warrant, in the name of the Person designated by the Warrant
Holder. The Person (whether the Warrant Holder or Warrant Holder's transferee)
in whose name any such certificate shall be issuable upon such exercise shall be
deemed to have become the holder of record of the Warrant Shares represented
thereby as of the time when the exercise of this Warrant, with respect to such
Warrant Shares, shall be deemed to have been effected. If this Warrant shall
have been exercised only in part, Endurance shall, at its expense at the time of
delivery of said certificate or certificates, deliver to said registered holder
a new Warrant evidencing the rights of said holder to purchase the remaining
Warrant Shares covered by this Warrant. The Warrant Holder understands that this
Warrant shall expire immediately to the extent that it is not exercised before
the end of the Warrant Exercise Period.

         Section 3.2 Expenses; Taxes. Without limiting Section 7.3, Endurance
shall pay all expenses and all Bermuda stamp, transfer or similar duties or
taxes payable in connection with the preparation, execution and delivery of the
certificates pursuant to this Article III. Endurance may make such provision as
it deems appropriate for the withholding of any other taxes or payment of any
other taxes which it determines it may be required to withhold or pay in
connection with the issuance of this Warrant or the Warrant Shares issuable upon
exercise of this Warrant.

                            ARTICLE IV. [RESERVED].

                      ARTICLE V. RESTRICTIONS ON TRANSFER.

         Section 5.1 Limitations on Transfer; Not Registered Under the
Securities Act. This Warrant shall be transferable to the same extent as the
underlying Warrant Shares are transferable in accordance with the procedures
specified in the Bye-Laws and the Shareholders Agreement, subject to Bermuda
Monetary Authority consent, if required. The Warrant Holder, by acceptance
hereof, acknowledges that neither this Warrant nor the Warrant Shares issuable
upon the exercise of this Warrant have been registered under the Securities Act
or the applicable securities laws of any other jurisdiction and that this
Warrant (and the Warrant Shares issuable upon exercise of this Warrant) are
subject to the restrictions on transferability set forth in the legend which
appears on the face of this Warrant and which are referred to in Section 5.2,
respectively.

         Section 5.2 Restrictive Legends on Certificates Representing Warrant
Shares. Each certificate representing Warrant Shares shall contain such legends
as shall be required by the Shareholders Agreement and the Bye-Laws.

         Section 5.3 Reservation of Warrant Shares; Character of Warrant Shares.
From and after the Original Issue Date, Endurance shall at all times reserve and
keep available for issuance upon the exercise of this Warrant such number of its
authorized but unissued Class A Shares as will be sufficient to permit the
exercise in full of this Warrant. All Warrant Shares issuable upon the exercise
of this Warrant shall be, when issued, duly authorized, validly issued and fully
paid.

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                     ARTICLE VI. ANTI-DILUTION PROVISIONS.

         The number of Warrant Shares for which this Warrant is exercisable and
the Exercise Price shall be subject to adjustment from time to time as set forth
in this Article VI.

         Section 6.1 Share Dividends, Subdivisions and Combinations. If at any
time Endurance shall: (i) take a record of the holders of Ordinary Shares for
the purpose of entitling them to receive a dividend payable in, or other
distribution of, additional Ordinary Shares, (ii) subdivide the outstanding
Ordinary Shares into a larger number of Ordinary Shares, or (iii) combine the
outstanding Ordinary Shares into a smaller number of Ordinary Shares; then the
Exercise Price shall be adjusted to equal the product of the Exercise Price in
effect immediately prior to such event multiplied by a fraction the numerator of
which is equal to the number of Ordinary Shares outstanding immediately prior to
the adjustment and the denominator of which is equal to the number of Ordinary
Shares outstanding immediately after such adjustment.

         Section 6.2 Issuance of Additional Ordinary Shares.

                (a) If at any time Endurance shall issue or sell any Ordinary
Shares in a Subsequent Issuance for a consideration per share that is less than
the Exercise Price in effect immediately prior to such issuance or sale, then,
forthwith upon such issuance or sale, the Exercise Price shall be reduced to an
amount determined by dividing (i) an amount equal to the sum of (x) the total
number of Ordinary Shares and Class A Shares outstanding immediately prior to
such Subsequent Issuance multiplied by the then existing Exercise Price, plus
(y) the aggregate consideration (determined in accordance with the provisions of
Section 6.6 hereof), if any, received by Endurance in connection with such
Subsequent Issuance, by (ii) the total number of Ordinary Shares and Class A
Shares outstanding immediately after such Subsequent Issuance.

                (b) The provisions of this Section 6.2 shall not apply to (i)
any issuance of Ordinary Shares for which an adjustment is provided for under
Section 6.1 or (ii) any issuance or sale of Ordinary Shares pursuant to the
exercise of any Share Purchase Rights or Convertible Securities to the extent
that an adjustment shall have been previously made hereunder in connection with
the issuance of such Share Purchase Rights or Convertible Securities pursuant to
the provisions of Section 6.3 hereof.

         Section 6.3 Issuances of Share Purchase Rights and Convertible
Securities.

                (a) In the event that Endurance shall at any time issue, sell
or grant any Share Purchase Rights in a Subsequent Issuance, then, for the
purpose of Section 6.2 above, Endurance shall be deemed to have issued at that
time a number of Ordinary Shares equal to the maximum number of Ordinary Shares
that are or may become issuable upon exercise of such Share Purchase Rights (or
upon exercise of any Convertible Securities issuable upon exercise of such Share
Purchase Rights) for a consideration per share equal to (i) the aggregate
consideration per share (determined in accordance with the provisions of Section
6.6 hereof) received by Endurance in connection with the issuance, sale or grant
of such Share Purchase Rights plus (ii) the minimum amount of such consideration
per share receivable by Endurance in connection

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with the exercise of such Share Purchase Rights (and the exercise of any
Convertible Securities issuable upon exercise of such Share Purchase Rights).

                (b) In the event that Endurance shall at any time issue or sell
any Convertible Securities in a Subsequent Issuance, then, for the purposes of
Section 6.2 above, Endurance shall be deemed to have issued at that time a
number of Ordinary Shares equal to the maximum number of Ordinary Shares that
are or may become issuable upon the exercise of the conversion or exchange
rights associated with such Convertible Securities for a consideration per share
equal to (i) the aggregate consideration per share (determined in accordance
with the provisions of Section 6.6 hereof) received by Endurance in connection
with the issuance or sale of such Convertible Securities plus (ii) the minimum
amount of such consideration per share receivable by Endurance in connection
with the exercise of such conversion or exchange rights.

                (c) If, at any time after any adjustment of the Exercise Price
shall have been made hereunder as the result of any issuance, sale or grant of
any Share Purchase Rights or Convertible Securities, the maximum number of
shares issuable upon exercise of such Share Purchase Rights or of the rights of
conversion or exchange associated with such Convertible Securities shall
increase, or the minimum amount of consideration per share receivable in
connection with such exercise shall decrease, whether by operation of any
antidilution rights pertaining to such Share Purchase Rights or Convertible
Securities, by agreement of the Parties or otherwise, the Exercise Price then in
effect shall first be readjusted to eliminate the effects of the original
issuance, sale or grant of such Share Purchase Rights or Convertible Securities
on such Exercise Price and then readjusted as if such Share Purchase Rights or
Convertible Securities had been issued on the effective date of such increase in
number of shares or decrease in consideration, but only if the effect of such
two-step readjustment is to reduce the Exercise Price below the Exercise Price
in effect immediately prior to such increase or decrease.

                (d) If, at any time after any adjustment of the Exercise Price
shall have been made hereunder as the result of any issuance, sale or grant of
any Share Purchase Rights or Convertible Securities, any of such Share Purchase
Rights or the rights of conversion or exchange associated with such Convertible
Securities shall expire by their terms or any of such Share Purchase Rights or
Convertible Securities shall be repurchased by Endurance or a subsidiary thereof
for a consideration per underlying Ordinary Share not exceeding the amount of
such consideration received by Endurance in connection with the issuance, sale
or grant of such Share Purchase Rights or Convertible Securities, the Exercise
Price then in effect shall forthwith be increased to the Exercise Price that
would have been in effect if such expiring Share Purchase Rights or rights of
conversion or exchange or such repurchased Share Purchase Rights or Convertible
Securities had never been issued. Similarly, if at any time after any such
adjustment of the Exercise Price shall have been made pursuant to Section 6.2,
(i) any additional consideration is received or becomes receivable by Endurance
in connection with the issuance or exercise of such Share Purchase Rights or
Convertible Securities or (ii) there is a reduction in the conversion ratio
applicable to such Convertible Securities so that fewer Ordinary Shares will be
issuable upon the conversion or exchange thereof or there is a decrease in the
number of Ordinary Shares issuable upon exercise of such Share Purchase Rights,
the Exercise Price then in effect shall be forthwith readjusted to the Exercise
Price that would have been in effect had such changes taken place at the time
that such Share Purchase Rights or Convertible Securities were

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initially issued, granted or sold. In no event shall any readjustment under this
Section 6.3(d) affect the validity of any Warrant Shares issued upon any
exercise of this Warrant prior to such readjustment, nor shall any such
readjustment have the effect of increasing the Exercise Price above the Exercise
Price that would have been in effect if the related Share Purchase Rights or
Convertible Securities had never been issued.

         Section 6.4 Adjustment of Number of Shares Purchasable. Upon any
adjustment of the Exercise Price as provided in Section 6.1, 6.2 or 6.3 hereof,
the Warrant Holder shall thereafter be entitled to purchase upon the exercise of
this Warrant, at the Exercise Price resulting from such adjustment, the number
of Class A Shares (calculated to the nearest 1/100th of a share) obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment by
the number of Class A Shares issuable on the exercise hereof immediately prior
to such adjustment and dividing the product thereof by the Exercise Price
resulting from such adjustment.

         Section 6.5 Reorganization, Reclassification, Merger, Amalgamation
Consolidation or Disposition of Assets. In the event that Endurance shall
reorganize its capital, reclassify its capital stock, merge, amalgamate or
consolidate with or into another corporation (where Endurance is not the
surviving corporation or where there is any change whatsoever in, or
distribution with respect to, the outstanding Ordinary Shares), or sell,
transfer or otherwise dispose of all or substantially all of its property,
assets or business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, amalgamation, consolidation or
disposition of assets, (i) shares of common stock of the successor or acquiring
corporation or of Endurance (if it is the surviving corporation) or (ii) any
cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or
in lieu of common stock of the successor or acquiring corporation ("Other
Property") are to be received by or distributed to the holders of Ordinary
Shares who are holders immediately prior to such transaction, then the Warrant
Holder shall have the right thereafter to receive, upon exercise of this
Warrant, the number of common shares of the successor or acquiring corporation
or Endurance, if it is the surviving corporation, and Other Property receivable
upon or as a result of such reorganization, reclassification, merger,
amalgamation, consolidation or disposition of assets by a holder of the number
of Ordinary Shares for which this Warrant is exercisable immediately prior to
such event. In such event, the aggregate Exercise Price otherwise payable for
the Warrant Shares shall be allocated among the common shares and Other Property
receivable as a result of such reorganization, reclassification, merger,
amalgamation, consolidation or disposition of assets in proportion to the
respective fair market values of such common shares and Other Property as
determined in good faith by the Board. In case of any such reorganization,
reclassification, merger, amalgamation, consolidation or disposition of assets,
Endurance shall require as a condition that the successor or acquiring
corporation (if other than Endurance) expressly assume the due and punctual
observance and performance of each and every covenant and condition of this
Warrant to be performed and observed by Endurance and all the obligations and
liabilities hereunder, subject to such modifications as may be reasonably deemed
appropriate (as determined by resolution of the Board) in order to provide for
adjustments of any common shares of such successor or acquiring corporation for
which this Warrant thus becomes exercisable, which modifications shall be as
equivalent as practicable to the adjustments provided for in this Article VI.
For purposes of this

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Section 6.5, "common shares of the successor or acquiring corporation" shall
include stock of such corporation of any class that is not preferred as to
dividends or assets over any other class of stock of such corporation and that
is not subject to redemption and shall also include any evidences of
indebtedness, shares of stock or other securities that are convertible into or
exchangeable for any such stock, either immediately or upon the arrival of a
specified date or the happening of a specified event, and any warrants or other
rights to subscribe for or purchase any such stock. The foregoing provisions of
this Section 6.5 shall similarly apply to successive reorganizations,
reclassifications, mergers, amalgamations, consolidations or dispositions of
assets.

         Section 6.6 Determination of Consideration. For purposes of Sections
6.2, 6.3 and 6.4 hereof, the consideration received and/or receivable by
Endurance in connection with the issuance, sale, grant or exercise of additional
Ordinary Shares, Share Purchase Rights or Convertible Securities, irrespective
of the accounting treatment of such consideration, shall be valued as follows:

                (a) Cash Payment. In the case of cash, the net amount received
by Endurance after deduction of any accrued interest or dividends, but including
any underwriting commissions or concessions paid or allowed by Endurance.

                (b) Securities or Other Property. In the case of securities or
other property, the fair market value thereof as of the date immediately
preceding such issuance, sale, grant or exercise as determined in good faith by
the Board.

                (c) Allocation Related to Ordinary Shares or Class A Shares.
In the event Ordinary Shares or Class A Shares are issued or sold together with
other securities or other assets of Endurance for a consideration which covers
both, the consideration received (computed as provided in (a) and (b) above)
shall be allocable to such Ordinary Shares or Class A Shares, as the case may
be, as determined in good faith by the Board.

                (d) Allocation Related to Share Purchase Rights and Convertible
Securities. In case any Share Purchase Rights or Convertible Securities shall be
issued or sold together with other securities or other assets of Endurance,
together comprising one integral transaction in which no specific consideration
is allocated to the Share Purchase Rights or Convertible Securities, the
consideration allocable to such Share Purchase Rights or Convertible Securities
shall be determined in good faith by the Board.

                (e) Dividends in Securities. In case Endurance shall declare a
dividend or make any other distribution upon any shares of Endurance payable in
either case in Ordinary Shares or Convertible Securities, such Ordinary Shares
or Convertible Securities, as the case may be, issuable in payment of such
dividend or distribution shall be deemed to have been issued or sold without
consideration.

                (f) Amalgamation, Merger, Consolidation or Sale of Assets. In
case any Ordinary Shares, Share Purchase Rights or Convertible Securities shall
be issued in connection with any amalgamation, merger or consolidation in which
Endurance is the surviving corporation, the amount of consideration therefor
shall be deemed to be the fair value of such

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portion of the assets and business of the non-surviving corporation attributable
to such Ordinary Shares, Share Purchase Rights or Convertible Securities, as is
determined in good faith by the Board.

                (g) Challenge to Good Faith Determination. Whenever the Board
shall be required to make a determination in good faith of the fair value of any
item under this Article VI, such determination may be challenged in good faith
by the Warrant Holder, and any dispute shall be resolved by an investment
banking or appraisal firm of recognized national standing selected by Endurance
and acceptable to the Majority Warrant Holders and whose decision shall be
binding on Endurance and the Warrant Holder. The fees and expenses of such firm
shall be paid by Endurance.

         Section 6.7 Other Dilutive Events. In case any event shall occur as to
which the other provisions of this Article VI are not strictly applicable but as
to which the failure to make any adjustment would not fairly protect the
purchase rights represented by this Warrant in accordance with the essential
intent and principles hereof (including, without limitation, the issuance of
securities other than Ordinary Shares or Class A Shares which have the right to
participate in distributions to the holders of Ordinary Shares or Class A
Shares, the granting of "phantom share" rights or "share appreciation rights" or
the repurchase of outstanding Ordinary Shares, Convertible Securities or Share
Purchase Rights for a purchase price exceeding the fair market value thereof),
then, in each such case, the Majority Warrant Holders may select an independent
investment banking firm of nationally recognized standing and reasonably
acceptable to Endurance to make a determination as to the adjustment, if any,
required to be made on a basis consistent with the essential intent and
principles established herein as a result of such event in order to preserve the
purchase rights represented by this Warrant. If the investment bank selected by
the Majority Warrant Holders is not reasonably acceptable to Endurance, and
Endurance and the Majority Warrant Holders cannot agree on a mutually acceptable
investment bank, then Endurance and the Majority Warrant Holders shall each
choose one such investment bank and the respective chosen firms shall jointly
select a third investment bank, which shall make such determination. Endurance
shall pay the costs and fees of each such investment bank (including any such
investment bank selected by the Majority Warrant Holders), and the decision of
the investment bank making such determination shall be final and binding on
Endurance and the Warrant Holder. Promptly after receipt of the opinion of such
investment bank as to any such required adjustments, Endurance shall take any
actions necessary to implement same.

         Section 6.8 Cash and In-Kind Dividends.

                (a) Cash Dividends. In the event that Endurance at any time
after the Original Issue Date shall pay a dividend or make any other
distribution with respect to the Ordinary Shares (or any other shares of
Endurance for which this Warrant becomes exercisable pursuant to this Article
VI) in the form of cash, the Exercise Price shall be reduced by the amount to be
received in respect of each Ordinary Share. In the event that the adjustment
provided for in the immediately preceding sentence would result in the Exercise
Price being less than the par value of a Warrant Share, no such adjustment shall
be made and in lieu thereof an adjustment shall be made pursuant to Section
6.8(b). In the event of an adjustment pursuant to this Section 6.8(a), no
adjustment shall be made to the number and class of securities subject to this
Warrant.

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                (b) In-Kind Dividends. In the event that Endurance at any time
after the Original Issue Date shall pay a dividend or make any other
distribution with respect to the Ordinary Shares (or any other shares of
Endurance for which this Warrant becomes exercisable pursuant to this Article
VI) whether in the form of evidences of indebtedness, securities or other
property (other then a stock dividend subject to the provisions of Section 6.1
above or a cash dividend or distribution with respect to which an adjustment is
made pursuant to Section 6.8(a) above), then the number and class of securities
subject to this Warrant and the Exercise Price shall be appropriately and
equitably adjusted in good faith by the Board, such adjustments to be made
without an increase in the aggregate Exercise Price and to preserve the purchase
rights represented by this Warrant so that, unless otherwise requested by the
Warrant Holder, the property (including securities) to be received by the
Warrant Holder upon exercise of this Warrant after such dividend or other
distribution shall be as nearly as practicable to those which the Warrant Holder
would have been entitled had the Warrant Holder exercised this Warrant
immediately prior to the record date for such dividend or distribution,
provided, that Endurance shall not be required to retain or acquire any property
(including securities) to be delivered to the Warrant Holder upon exercise of
this Warrant if to do so would cause a dividend or distribution that was not
otherwise taxable to Endurance or its shareholders to become taxable. Such
adjustments may be challenged in good faith by the Warrant Holder, in which
cases the Majority Warrant Holders may select an independent investment banking
firm of nationally recognized standing and reasonably acceptable to Endurance to
make a determination as to the adjustments, if any, required to be made on a
basis consistent with the essential intent and principles established herein as
a result of such event in order to preserve the purchase rights represented by
this Warrant. If the investment bank selected by the Majority Warrant Holders is
not reasonably acceptable to Endurance, and Endurance and the Majority Warrant
Holders cannot agree on a mutually acceptable investment bank, then Endurance
and the Majority Warrant Holders shall each choose one such investment bank and
the respective chosen firms shall jointly select a third investment bank, which
shall make such determination. Endurance shall pay the costs and fees of each
such investment bank (including any such investment bank selected by the
Majority Warrant Holders), and the decision of the investment bank making such
determination shall be final and binding on Endurance and the Warrant Holder.
Promptly after receipt of the opinion of such investment bank as to any such
required adjustments, Endurance shall take any actions necessary to implement
same.

         Section 6.9 Other Provisions Applicable to Adjustments Under this
Section. The following provisions shall be applicable to the adjustments
provided for pursuant to this Article VI:

                (a) When Adjustments To Be Made. Adjustments shall be made
whenever and as often as any specified event requiring such an adjustment shall
occur. For the purpose of any such adjustment, any specified event shall be
deemed to have occurred at the close of business on the date of its occurrence.

                (b) Record Date. If Endurance shall take a record of the
holders of the Ordinary Shares for the purpose of entitling them (i) to receive
a dividend or other distribution payable in Ordinary Shares, Convertible
Securities or Share Purchase Rights or (ii) to subscribe for or purchase
Ordinary Shares, Convertible Securities or Share Purchase Rights, then all

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references to the date of the issuance or sale of such Ordinary Shares,
Convertible Securities or Share Purchase Rights shall be deemed to be references
to such record date.

                (c) Fractional Interests. In computing adjustments, fractional
interests in Ordinary Shares shall be taken into account to the nearest 1/100th
of a share.

                (d) When Adjustment Not Required. If Endurance shall take a
record of the holders of its Ordinary Shares for the purpose of entitling them
to receive a dividend or distribution to which the provisions of Section 6.1
would apply, but shall, thereafter and before the distribution to shareholders
thereof, legally abandon its plan to pay or deliver such dividend or
distribution, then thereafter no adjustment shall be required by reason of the
taking of such record and any such adjustment previously made in respect thereof
shall be rescinded and annulled.

                (e) Certain Limitations. Notwithstanding anything herein to the
contrary, Endurance agrees not to enter into any transaction that, by reason of
any adjustment under Section 6.1, 6.2 or 6.3 above, would cause the Exercise
Price to be less than the par value of the Ordinary Shares and Class A Shares,
unless Endurance first reduces the par value of the Ordinary Shares and Class A
Shares to be less than the Exercise Price that would result from such
transaction.

                (f) Notice of Adjustments. Whenever the number of Class A
Shares for which this Warrant is exercisable or the Exercise Price shall be
adjusted pursuant to this Article VI, Endurance shall forthwith prepare a
certificate to be executed by its chief financial officer setting forth, in
reasonable detail, the event requiring the adjustment and the method by which
such adjustment was calculated, specifying the number of Class A Shares for
which this Warrant is exercisable and (if such adjustment was made pursuant to
Section 6.5) describing the number and kind of any other shares or Other
Property for which this Warrant is exercisable, and any related change in the
Exercise Price, after giving effect to such adjustment or change. Endurance
shall promptly cause a signed copy of such certificate to be delivered to the
Warrant Holder. Endurance shall keep at its principal office copies of all such
certificates and cause the same to be available for inspection at said office
during normal business hours by the Warrant Holder.

                (g) Independent Application. Except as otherwise provided
herein, all sections of this Article VI are intended to operate independently of
one another (but without duplication). If an event occurs that requires the
application of more than one section, all applicable sections shall be given
independent effect without duplication.

                           ARTICLE VII. MISCELLANEOUS

         Section 7.1 Notices of Dividends or Distributions. If Endurance shall
take a record of the holders of Ordinary Shares for the purpose of determining
the holders thereof who are entitled to receive any dividend or distribution, in
whatever form, Endurance shall provide to the Warrant Holder a notice specifying
the date or expected date on which any such record is to be taken for the
purpose of such dividend or distribution, and the amount and character of such
dividend or distribution. Such notice shall be given at least thirty (30), but
not more than ninety

                                     - 10 -
<PAGE>

(90), days prior to the record date therein specified, and shall describe the
material terms of the matter in question. In the event that Endurance at any
time sends any other notice to the holders of Ordinary Shares or Class A Shares,
it shall concurrently send a copy of such notice to the Warrant Holder;
provided, however, in no event shall such notice be sent to the Warrant Holder
less than (a) twenty (20) days prior to the record date or the date on which
Endurance's transfer books are to be closed in respect of the event for which
notice is being given and (b) thirty (30) days prior to the event for which
notice is given.

         Section 7.2 Entire Agreement. This Warrant (including any exhibits and
annexes hereto) constitutes the entire agreement among the Parties and
supersedes all prior agreements and understandings, oral and written, among the
Parties with respect to the subject matter hereof.

         Section 7.3 Taxes Payable Upon Exercise. Endurance shall not be
required to pay any federal, state, local or foreign income taxes, if any,
payable by the recipient of such Ordinary Shares upon exercise of this Warrant,
or any taxes which may be payable in respect of any transfer involved in the
issuance of Ordinary Shares in a name other than that of the Warrant Holder, and
Endurance shall not be required to issue or deliver any such shares unless and
until the person requesting such issuance shall have paid to Endurance the
amount of any such transfer taxes, or shall have established to the satisfaction
of Endurance that such taxes have been paid.

         Section 7.4 Fractional Shares. No fractional Class A Shares shall be
issued upon exercise of this Warrant, but in lieu thereof Endurance shall pay a
cash adjustment in an amount equal to such fraction multiplied by the Fair Value
per Class A Share on the date on which this Warrant was duly exercised.

         Section 7.5 Severability. Wherever possible, each provision hereof
shall be interpreted in such manner as to be effective and valid under
applicable law, but in case any one or more of the provisions contained herein
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such provision shall be ineffective to the extent, but only to the
extent, of such invalidity, illegality or unenforceability without invalidating
the remainder of such invalid, illegal or unenforceable provision or provisions
or any other provisions hereof, unless such a construction would be
unreasonable.

         Section 7.6 Assignability. Except as expressly permitted by Section
5.1, this Warrant and the rights hereunder shall not be assignable by the
Warrant Holder without the prior written consent of Endurance. Endurance may not
assign its obligations hereunder.

         Section 7.7 Amendment; Waiver. No provision of this Warrant may be
amended, waived or otherwise modified except by an instrument in writing
executed by Endurance and the Warrant Holder and consented to in writing by all
other Warrant Holders.

         Section 7.8 Headings. The Article and Section headings contained in
this Warrant are for convenience only and shall not affect the meaning or
interpretation of this Warrant.

                                     - 11 -
<PAGE>

         Section 7.9 Notices. All notices or other communications required or
permitted hereunder shall be in writing and shall be deemed given (a) when
delivered personally, (b) if transmitted by facsimile, when confirmation of
transmission is received, (c) if sent by registered or certified mail, postage
prepaid, return receipt requested, on the third Business Day after mailing or
(d) if sent by reputable overnight courier service, when received; and shall be
addressed as follows:

<TABLE>
<CAPTION>

If to Endurance:                          with a copy to:
---------------                           --------------
<S>                                       <C>
Endurance Specialty Holdings Ltd.         Endurance Specialty Holdings Ltd.
Cedar House                               48 Par-la-Ville Road, Suite 784
41 Cedar Avenue                           Hamilton HM 11, Bermuda
Hamilton HM12, Bermuda                    Attention: Chief Executive Officer/President
Attention: The Secretary                  Facsimile:  441-278-0401
Facsimile:  441-292-8666
</TABLE>

         Section 7.10 Payments. Unless otherwise provided in this Warrant,
payments hereunder shall be made by wire transfer of immediately available funds
in the lawful currency of the United States.

         Section 7.11 Arbitration. (a) Except as otherwise expressly set forth
herein, each Party agrees that all disputes arising out of, related to or in
connection with this Warrant or any of the transactions contemplated hereby,
including any question regarding this Warrant's formation, existence, validity
or termination, and whether arising during or after the period of this Warrant,
shall be referred to, and finally resolved by, arbitration in the manner set out
herein. Each Party hereby irrevocably waives any right to trial in any court
that otherwise would have jurisdiction over any dispute set forth in the
foregoing sentence. The place of the arbitration proceedings shall be Bermuda
and the arbitration tribunal (the "Tribunal") shall apply the laws of Bermuda as
the proper law of this Warrant.

         (b) In the event that any Party shall deliver a written demand for
arbitration (the "Arbitration Demand Notice") to another Party with respect to
any such dispute, such Parties shall attempt in good faith to agree upon one
arbitrator to resolve such dispute. If, within thirty days of delivery of the
Arbitration Demand Notice, such Parties are unable to agree upon a single
arbitrator, each such Party shall, within ten days, appoint an arbitrator. The
arbitrators so appointed (the "Appointed Arbitrators") shall promptly (and in
any event within ten days) appoint a third arbitrator to the Tribunal (the
"Chairman"). If the Appointed Arbitrators are unable to agree upon the Chairman
within such ten-day period, the Appointed Arbitrators may apply to the Appointer
(as defined below) for the appointment of the Chairman. The Appointer shall be
the President of the Chartered Institute of Arbitrators Bermuda Branch.

         (c) Unless the Parties to an arbitration proceeding otherwise agree,
each arbitrator shall be impartial and either (i) an attorney with at least ten
years admission to the bar with specialist knowledge of the insurance and
reinsurance industry or (ii) an insurance and reinsurance industry professional
with at least ten years relevant work experience. Any objection

                                     - 12 -
<PAGE>

to the qualifications of any arbitrator, if any, must be made within ten days of
notice of the nomination or appointment of such arbitrator.

         (d) The Tribunal shall decide by majority. If no majority can be
reached, the verdict of the Chairman shall prevail. The Tribunal shall have
power to fix all procedural rules for the holding of the arbitration, including
discretionary power to make orders as to matters such as pleadings, discovery,
examination of witnesses and any other matter whatsoever relating to the conduct
of the arbitration, and may receive and act on such evidence as it shall in its
sole discretion deem proper. All costs and expenses of the arbitration shall be
at the discretion of the Tribunal, which may direct to and by whom and in what
manner such costs and expenses shall be paid. The award of the Tribunal shall be
in writing, shall state reasons for the award and shall be final and binding
upon the parties to such arbitration. Judgment on the award may be entered by
any court having jurisdiction thereof or having jurisdiction over the parties
thereto or their assets.

         Section 7.12 Governing Law. This Warrant shall be governed by and
construed in accordance with the substantive laws of Bermuda, without regard to
its conflicts of laws doctrine.

         Section 7.13 The Parties agree and acknowledge that money damages are
not an adequate remedy for any breach of the provisions of this Warrant and that
any Party is entitled to specific performance and other injunctive relief in
order to enforce or prevent violation of the provisions of this Warrant. Any
dispute arising out of, relating to or in connection with this Warrant for which
specific performance is sought as a remedy will not be subject to arbitration
pursuant to Section 7.11. The failure or delay of any Party to enforce at any
time any provision of this Warrant shall not be construed to be a waiver of such
provision, nor in any way to affect the validity of this Warrant or any part
hereof or the right of any Party thereafter to enforce each and every such
provision. No waiver of any breach of this Warrant shall be held to constitute a
waiver of any other or subsequent breach.

         Section 7.14 Execution in Counterparts. This Warrant may be executed in
any number of counterparts, each of which shall be deemed an original
instrument, but all of which together shall constitute one and the same
instrument, and shall become binding when one or more counterparts have been
signed by and delivered to each of the Parties.

                           ARTICLE VIII. DEFINITIONS

         Section 8.1 Definitions. The following terms shall be defined as set
forth below:

         "Affiliate" shall mean, with respect to any Person, a Person that
directly or indirectly controls, is controlled by or is under common control
with such Person. For the purpose of this definition, the term "control" means
the power to direct the management of an entity, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise; and the
terms "controlled" and "controlling" have meanings correlative to the foregoing.

                                     - 13 -
<PAGE>

         "Appraised Value" per Ordinary Share as of a date specified herein
shall mean the value of such a share as of such date as determined by an
investment bank of nationally recognized standing selected by the Majority
Warrant Holders and reasonably acceptable to Endurance. If the investment bank
selected by the Majority Warrant Holders is not reasonably acceptable to
Endurance, and Endurance and the Majority Warrant Holders cannot agree on a
mutually acceptable investment bank, then Endurance and the Majority Warrant
Holders shall each choose one such investment bank and the respective chosen
firms shall jointly select a third investment bank, which shall make the
determination. Endurance shall pay the costs and fees of each such investment
bank (including any such investment bank selected by the Majority Warrant
Holders), and the decision of the investment bank making such determination of
Appraised Value shall be final and binding on Endurance and the Warrant Holder.
Such Appraised Value shall be determined as a pro rata portion of the value of
Endurance taken as a whole, based on the higher of (A) the value derived from a
hypothetical sale of Endurance as a going concern by a willing seller to a
willing buyer (neither acting under any compulsion) and (B) the liquidation
value of Endurance. No discount shall be applied on account of (i) this Warrant
or Warrant Shares representing a minority interest, (ii) any lack of liquidity
of the Ordinary Shares or this Warrant, (iii) the fact that this Warrant or
Warrant Shares may constitute "restricted securities" for securities law
purposes, (iv) the existence of Endurance's right, as set forth in the Bye-Laws
and the Shareholders Agreement, to require shareholders to sell the Shares to
the Shareholders (as defined in the Shareholders Agreement), to Endurance or to
one or more third parties designated by Endurance or (v) the existence of the
possibility of a reduction in voting power pursuant to the Bye-Laws. The
Appraised Value per Class A Share as of any date shall be identical to the
Appraised Value per Ordinary Share on such date.

         "Board" shall mean the Board of Directors of Endurance.

         "Business Day" shall mean any day except a Saturday, Sunday or other
day on which banks in any of Hamilton, Bermuda, or New York, New York are
authorized or obligated by law or executive order to close.

         "Bye-Laws" means the Bye-Laws of Endurance, as they may be amended from
time to time.

         "Code" shall mean the United States Internal Revenue Code of 1986, as
amended, or any United States federal statute then in effect that has replaced
such statute, and a reference to a particular section thereof shall be deemed to
include a reference to the comparable section, if any, of any such replacement
United States federal statute.

         "Controlled Shares" in reference to any Person shall mean all Shares
that such Person is deemed to own directly, indirectly or by attribution (within
the meaning of Section 958 of the Code).

         "Convertible Securities" shall mean evidences of indebtedness, shares
(including, without limitation, the Class A Shares (notwithstanding any
limitations on conversion thereof)), or other securities that are convertible
into or exchangeable for, with or without payment of additional consideration in
cash or property, Ordinary Shares, either immediately or upon the occurrence of
a specified date or a specified event.

                                     - 14 -
<PAGE>

         "Current Market Price" per Ordinary Share as of any specified date
shall mean the average of the daily market prices of the Ordinary Shares for the
shorter of (x) the twenty (20) consecutive Business Days immediately preceding
such date or (y) the period commencing on the Business Day next following the
first public announcement of any event giving rise to an adjustment of the
Exercise Price pursuant to Article VI of this Warrant. The "daily market price"
for each such Business Day shall be: (i) if the Ordinary Shares are then listed
on a national securities exchange or on The Nasdaq National Market, the last
sale price, regular way, on such day on the principal stock exchange or market
system on which the Ordinary Shares are then listed or admitted to trading, or,
if no such sale takes place on such day, the average of the closing bid and
asked prices for the Ordinary Shares on such day as reported on such stock
exchange or market system or (ii) if the Ordinary Shares are not then listed or
admitted to trading on any national securities exchange or on The Nasdaq
National Market but are traded over-the-counter, the average of the closing bid
and asked prices for the Ordinary Shares as reported on Nasdaq or the Electronic
Bulletin Board or in the National Daily Quotation Sheets, as applicable.

         "Fair Value" per Ordinary Share as of any specified date shall mean (A)
if the Ordinary Shares are publicly traded on such date, the Current Market
Price per share or (B) if the Ordinary Shares are not publicly traded on such
date, (i) the fair market value per Ordinary Share as determined in good faith
by the Board and set forth in a written notice to the Warrant Holder or (ii) if
the Warrant Holder objects in writing to such price as determined by the Board
within thirty days after receiving notice of same, the Appraised Value per
Ordinary Share as of such date. The Fair Value per Class A Share as of any date
shall be identical to the Fair Value per Ordinary Share on such date.

         "Majority Warrant Holders" with respect to a given determination, shall
mean the holders of Original Warrants representing more than fifty percent of
the Warrant Shares then issuable upon exercise of the Original Warrants directly
affected by such determination.

         "Ordinary Shares" shall mean the Ordinary Shares, US$1.00 par value
each, of Endurance.

         "Original Issue Date" shall mean the date on which the Original
Warrants were issued, as set forth on the cover page of this Warrant.

         "Original Warrants" shall mean the warrants originally issued by
Endurance on the Original Issue Date, including this Warrant, that are identical
as to terms and conditions (including the warrants to purchase Ordinary Shares
issued by Endurance on the Original Issue Date that are substantially similar to
this Warrant, except that they may be exercised for Ordinary Shares and, in some
circumstances, Class A Shares), except as to the number of Warrant Shares for
which they may be exercised (and all warrants issued upon transfer, division or
combination thereof, or in substitution therefor, in each case that are
identical as to terms and conditions, except as to the number of Warrant Shares
for which they may be exercised).

         "Party" shall mean Endurance or the Warrant Holder, as the case may be.

                                     - 15 -
<PAGE>

         "Person" shall mean any individual, partnership, corporation, limited
liability company, joint venture, joint-stock company, trust, unincorporated
organization, government (including agencies and political subdivisions thereof)
or other entity.

         "Related Person" with respect to any holder of Endurance securities
shall mean any Person to which ownership of shares in the share capital of
Endurance by such holder is attributed under Section 958 of the Code, provided
that such Person does not own (within the meaning of Section 958 of the Code)
any other shares in the share capital of Endurance.

         "Shares" shall mean any shares in the share capital of Endurance.

         "Share Purchase Rights" shall mean any options, warrants or other
securities or rights to subscribe to or exercisable for the purchase of Ordinary
Shares or Convertible Securities, whether or not immediately exercisable.

         "Shareholders Agreement" shall mean the Shareholders Agreement, dated
as of July __, 2002, by and among Endurance and each of the shareholders and
warrant holders listed on Schedule A thereto.

         "Subsequent Issuance" shall mean any sale or issuance by Endurance of
Ordinary Shares, Convertible Securities or Share Purchase Rights after the
original issuance of this Warrant other than:

                (a) any issuance of Warrant Shares upon exercise of this
Warrant and any issuance of Ordinary Shares, Convertible Securities or Share
Purchase Rights (and any issuance of Ordinary Shares pursuant to the conversion,
exchange or exercise of any such Convertible Securities or Share Purchase
Rights) deemed to have been issued as of the Original Issue Date;

                (b) any issuance of Ordinary Shares, Convertible Securities or
Share Purchase Rights (or any issuance of Ordinary Shares upon exercise of such
Convertible Securities or Share Purchase Rights) to directors, officers,
employees or consultants of Endurance or any of its subsidiaries pursuant to a
stock option or stock incentive plan or agreement approved by the Board.

         "US$" shall mean United States Dollars. To the extent any losses,
liabilities or other amounts described or referred to in this Warrant are stated
or denominated in currencies other than United States Dollars, such losses,
liabilities or amounts shall be stated, for purposes of this Warrant, in their
respective United States Dollar equivalents as shown on the books of Endurance.
All references to "dollars" or "$" shall mean United States Dollars unless
otherwise specifically indicated.

                            [SIGNATURE PAGE FOLLOWS]

                                     - 16 -
<PAGE>

                  IN WITNESS WHEREOF, Endurance has caused this Warrant to be
signed and delivered by its duly authorized officer, and to be dated as of the
date first above written.

                                    ENDURANCE SPECIALTY HOLDINGS LTD.

                                    By:  _______________________________
                                          Name:
                                          Title:

<PAGE>

SUBSCRIPTION FORM

To Be Executed by the Registered Holder
Desiring to Exercise the Within Warrant of

ENDURANCE SPECIALTY HOLDINGS LTD.

                  The undersigned registered holder hereby exercises the right
to purchase ___ Class A Shares covered by the within Warrant, according to the
conditions thereof, and herewith makes payment therefor, all at the price and on
the terms and conditions specified in the Warrant, and requests that the
certificate(s) for such shares be issued in the name of, and delivered to,
______________________________, whose address is ______________________

__________________________________________________________________________.

                                 Name of Registered Holder

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

                                 -------------------------------------------
                                 Signature

                                 -------------------------------------------
                                 Title

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

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

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

NOTICE:

         The signature on the foregoing Subscription Form must correspond to the
name as written upon the face of the within Warrant in every particular, without
alteration or enlargement or any change whatsoever.<PAGE>
                                                                    Exhibit 10.2

                          REGISTRATION RIGHTS AGREEMENT

                           DATED AS OF JULY ___, 2002

                                  BY AND AMONG

                        ENDURANCE SPECIALTY HOLDINGS LTD.

                                       AND

                      THE SHAREHOLDERS LISTED ON SCHEDULE A
<PAGE>
                          REGISTRATION RIGHTS AGREEMENT

      This REGISTRATION RIGHTS AGREEMENT is made as of July ___, 2002 (this
"Agreement"), by and among Endurance Specialty Holdings Ltd., an exempt company
incorporated under the laws of Bermuda (the "Company"), and the shareholders
listed on Schedule A (the "Shareholders").

                                    RECITALS

      WHEREAS, Endurance Specialty Insurance Ltd., a Bermuda company
("Endurance"), and the Shareholders entered into a Registration Rights Agreement
dated as of December 14, 2001 (the "Endurance Registration Rights Agreement") in
connection with the formation and initial capitalization of Endurance;

      WHEREAS, the Shareholders have agreed, among other things, to exchange
their Ordinary Shares, $1.00 par value, of Endurance for Ordinary Shares, $1.00
par value, of the Company (the "Ordinary Shares"), and their Class A Shares,
$1.00 par value, of Endurance for Class A Shares, $1.00 par value, of the
Company (the "Class A Shares" and, together with the Ordinary Shares, the
"Shares") (the "Recapitalization"); and

      WHEREAS, in connection with the Recapitalization, the Company and the
Shareholders desire to enter into a new agreement to establish the identical
arrangement among the Company and the Shareholders that was established among
Endurance and the Shareholders by the Endurance Registration Rights Agreement
with respect to the subject matter thereof.

      NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties hereby
agree as follows:

                                    AGREEMENT

      1. DEFINITIONS.

            1.1 The following terms shall be defined as set forth below:

      "Affiliate" means, with respect to any Person, a Person that directly or
indirectly controls, is controlled by or is under common control with such
Person. For the purpose of this definition, the term "control" means the power
to direct the management of an entity, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms
"controlled" and "controlling" have meanings correlative to the foregoing.

      "Agreement" has the meaning set forth in the first paragraph of this
Agreement.
<PAGE>
      "Business Day" shall mean any day except a Saturday, Sunday or other day
on which banks in any of Hamilton, Bermuda, or New York, New York are authorized
or obligated by law or executive order to close.

      "Class A Shares" has the meaning set forth in the second recital above.

      "Company" has the meaning set forth in the first paragraph of this
Agreement.

      "Demand Registrations" has the meaning set forth in Section 2.1.

      "Endurance" has the meaning set forth in the first recital above.

      "Endurance Registration Rights Agreement" has the meaning set forth in the
first recital above.

      "Exchange Act" means the United States Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

      "Form F-3" means such form under the Securities Act as in effect on the
date hereof or any successor registration form under the Securities Act
subsequently adopted by the SEC which permits inclusion or incorporation by
reference in a registration statement of other documents filed by the Company
with the SEC after the effective date of such registration.

      "Form S-3" means such form under the Securities Act as in effect on the
date hereof or any successor registration form under the Securities Act
subsequently adopted by the SEC which permits inclusion or incorporation by
reference in a registration statement of other documents filed by the Company
with the SEC after the effective date of such registration.

      "Ordinary Shares" has the meaning set forth in the second recital above.

      "Party" means the Company or a Shareholder, as the case may be.

      "Person" means any individual, partnership, corporation, limited liability
company, joint venture, joint-stock company, trust, unincorporated organization,
government (or an agency or political subdivision thereof) or other entity.

      "Piggyback Registration" has the meaning set forth in Section 3.1.

      "Qualified Holders" means Persons that at the time of such determination
collectively hold at least 10% of the Registrable Securities outstanding as of
the date hereof after giving effect to the consummation of the Recapitalization.

      "Qualified Public Offering" means an underwritten offering of Shares
pursuant to a registration statement that is declared effective under the
Securities Act with an aggregate offering price of at least $100 million.

                                       2
<PAGE>
      "Recapitalization" has the meaning set forth in the second recital above.

      "Registrable Securities" means (a) any Shares issued by the Company upon
the consummation of the Recapitalization in exchange for shares of Endurance,
(b) any Shares issuable upon the exercise of warrants issued by the Company upon
the consummation of the Recapitalization in exchange for warrants to purchase
shares of Endurance, and (c) any Shares issued (or issuable upon the exercise of
any option, warrant, right or other security that is issued) with respect to any
of the securities referred to in clauses (a) or (b) above by way of a stock
dividend or stock split or in connection with a combination of Shares,
recapitalization, merger, consolidation or other reorganization. As to any
particular Registrable Securities, such securities shall cease to be Registrable
Securities when (i) they have been distributed to the public pursuant to an
offering registered under the Securities Act, (ii) they have been sold to the
public through a broker, dealer or market maker in compliance with Rule 144
under the Securities Act (or any similar rule then in force) or (iii) at the
time of any Demand Registration or Piggyback Registration, in either case, after
the fifth anniversary of the consummation of the Company's first Qualified
Public Offering, they constitute, together with all other Registrable Securities
held by the holder thereof, less than any of the thresholds described in Rule
144(e)(1)(i), (ii) or (iii) (irrespective of whether the holder thereof is an
"affiliate" as defined in Rule 144) and at such time, Rule 144 or another
similar exemption under the Securities Act is available for the sale of all of
such holder's Registrable Securities during a three-month period without
registration and without restrictions other than those set forth in paragraphs
(f) and (g) of Rule 144.

      For the purposes of this Agreement, a Person shall be deemed to be the
holder of Registrable Securities, and the Registrable Securities shall be deemed
to be outstanding and in existence, whenever such Person has the right to
acquire such Registrable Securities upon conversion or exercise of any other
securities held by such Person, whether or not such acquisition has actually
been effected, and such Person shall be entitled to exercise the rights of a
holder of such Registrable Securities hereunder.

      "Registration Expenses" has the meaning set forth in Section 7(a).

      "Requesting Holders" has the meaning set forth in Section 2.3.

      "Rule 144" means Rule 144 promulgated by the SEC under the Securities Act.

      "SEC" means the United States Securities and Exchange Commission.

      "Securities Act" means the United States Securities Act of 1933, as
amended, together with the rules and regulations promulgated thereunder.

      "Shareholders" has the meaning set forth in the first paragraph of this
Agreement.

      "Shareholders Agreement" means the Shareholders Agreement, dated as of
July ___, 2002, by and among the Company, Endurance and each of the shareholders
and warrant holders listed on Schedule A thereto.

                                       3
<PAGE>
      "Shares" has the meaning set forth in the second recital above and any
shares of capital stock into which such Shares shall thereafter be changed.

      "Violation" has the meaning set forth in Section 8(a).

            1.2 All references to "$" or dollars shall mean United States
Dollars.

      2. DEMAND REGISTRATIONS.

            2.1 Requests for Registration. Following the consummation of the
Company's first Qualified Public Offering, Qualified Holders may, subject to
Section 2.2, request registration under the Securities Act (on any available
form that the Company shall choose in its sole discretion) of the sale of all or
any portion of their Registrable Securities in a firm-commitment underwritten
offering (each such registered offering, a "Demand Registration"). Each request
for a Demand Registration shall specify the number of Registrable Securities
requested to be registered. Within fourteen days after receipt of any such
request, the Company shall give written notice of such requested registration to
all other Shareholders and shall include as part of such Demand Registration all
Registrable Securities with respect to which the Company has received written
requests for inclusion therein within twenty-one days after the Company shall
have given such notice.

            2.2 Number of Demand Registrations. The Company shall not be
obligated to effect for the benefit of the holders of Registrable Securities
more than two Demand Registrations on forms other than Form S-3 or Form F-3
under the Securities Act and shall not be obligated to effect more than five
Demand Registrations (without regard to form) in the aggregate.

            2.3 Priority on Demand Registrations. If the managing underwriters
in a Demand Registration advise the Company in writing that, in their opinion,
the number of Registrable Securities requested to be included in such offering
exceeds the number of securities which can be sold therein without adversely
affecting the marketability of the offering and within a price range acceptable
to the holders of a majority of the Registrable Securities requesting
registration, the Company shall first include in such registration, prior to the
inclusion of any securities that are not Registrable Securities, the Registrable
Securities requested to be included that in the opinion of such underwriters can
be sold without adversely affecting the marketability of the offering, pro rata
among the holders thereof on the basis of the amount of Registrable Securities
owned by each such holder. In the event that the Registrable Securities to be
included in a Demand Registration shall be reduced by virtue of the immediately
preceding sentence, the Company shall deliver to each holder of Registrable
Securities originally requesting inclusion of Registrable Securities in such
registration (the "Requesting Holders") a notice of such reduction. Within 20
days of receiving such notice, the holders of a majority of the Registrable
Securities held by the Requesting Holders and for which registration was
requested shall be permitted to withdraw such request and, if so withdrawn, such
registration shall not constitute a Demand

                                       4
<PAGE>
Registration for purposes of this Agreement and the Company shall not be
obligated to effect the same.

            2.4 Restrictions on Registration. Subject to the proviso below, the
Company may postpone for up to 90 days the filing or the effectiveness of a
registration statement for a Demand Registration if the Company reasonably
believes that the Company may, in the absence of such postponement hereunder, be
required under state or federal securities laws to disclose any corporate
development the disclosure of which could reasonably be expected to have a
material adverse effect upon the Company, its shareholders, a potentially
significant transaction or event involving the Company, or any negotiations,
discussions or proposals directly relating thereto; provided, however, that the
Company shall have the right to so postpone such filing or effectiveness only
one time during any period of 12 consecutive months. Any such determination
shall be evidenced by a resolution of the Board of Directors of the Company and
delivered at such time to the Requesting Holders.

            2.5 Selection of Underwriters. Subject to the approval of the
Company (which approval shall not be unreasonably withheld, conditioned or
delayed), the holders of a majority of the Registrable Securities included in a
Demand Registration shall have the right to select the investment banker(s) and
manager(s) to administer the offering in connection with such Demand
Registration.

      3. PIGGYBACK REGISTRATIONS.

            3.1 Right to Piggyback. Following the consummation of the Company's
first Qualified Public Offering, whenever the Company proposes to register the
sale of any of its securities under the Securities Act in a firm-commitment
underwritten offering (other than (i) pursuant to a Demand Registration, which
shall be governed by Section 2, (ii) registrations related to employee benefit
plans or Rule 145 transactions, (iii) registrations that do not include
substantially the same information as would be required to be included in a
registration statement covering the sale of the Registrable Securities or (iv) a
registration in which the only securities being registered are Shares issuable
upon conversion of debt securities of the Company that are also being
registered) and the registration form to be used may be used for the
registration of Registrable Securities (a "Piggyback Registration"), the Company
shall give prompt written notice (but in no event less than 30 days prior to the
proposed date of filing such registration) to all holders of Registrable
Securities of its intention to effect such a registration and, subject to the
terms hereof, shall include in such registration all Registrable Securities with
respect to which the Company has received written requests for inclusion therein
within thirty days after the Company shall have given such notice.

            3.2 Priority on Piggyback Registrations. If the managing
underwriters in a Piggyback Registration that includes a primary registration on
behalf of the Company advise the Company in writing that, in their opinion, the
number of securities requested to be included in such registration exceeds the
number that can be sold therein without adversely affecting the marketability of
the offering, the Company shall include in such registration (a) first, the

                                       5
<PAGE>
securities the Company proposes to sell, (b) second, the Registrable Securities
requested to be included in such registration, pro rata among the respective
holders thereof on the basis of the amount of Registrable Securities owned by
each such Shareholder and (c) third, other securities requested to be included
in such registration.

            3.3 Selection of Underwriters. The Company shall have the right to
select the investment banker(s) and manager(s) to administer the offering in
connection with any Piggyback Registration.

      4. HOLDBACK AGREEMENTS. To the extent required by the managing
underwriters, no holder of Registrable Securities shall effect any public sale
or distribution (including sales pursuant to Rule 144) of equity securities of
the Company, or any securities convertible into or exchangeable or exercisable
for such securities, or engage in any hedging transactions relating to the same,
during (i) with respect to a Qualified Public Offering, the 180-day period
beginning on the effective date of the registration statement relating thereto
(or such shorter time period imposed on any of the Company's directors, officers
or holders of 5% or more of the Company's capital shares) or (ii) with respect
to (x) any Demand Registration or (y) any Piggyback Registration, in each case
pursuant to which such holder's Registrable Securities are included, the 90-day
period beginning on the date of the underwriting agreement relating thereto (or
such shorter time period imposed on any of the Company's directors, officers or
holders of 5% or more of the Company's capital shares).

      5. RULE 144 REPORTING. With a view to making available to the holders of
Registrable Securities the benefits of certain rules and regulations of the SEC
that may permit the sale of the Registrable Securities to the public without
registration, the Company agrees to use its commercially reasonable efforts to:

            (a) make and keep public information available, as those terms are
understood and defined in Rule 144 or any similar or analogous rule promulgated
under the Securities Act, at all times after the effective date of the first
registration filed by the Company for an offering of its securities to the
general public;

            (b) file with the SEC, in a timely manner, all reports and other
documents required of the Company under the Exchange Act; and

            (c) so long as a Shareholder owns any Registrable Securities,
furnish to such Shareholder forthwith upon request: a written statement by the
Company as to its compliance with the reporting requirements of said Rule 144 of
the Securities Act and of the Exchange Act (at any time after it has become
subject to such reporting requirements); a copy of the most recent annual or
quarterly report of the Company; and such other reports and documents as a
shareholder may reasonably request in availing itself of any rule or regulation
of the SEC allowing it to sell any such securities without registration.

                                       6
<PAGE>
      6. REGISTRATION PROCEDURES. Whenever the holders of Registrable Securities
have requested that any Registrable Securities be registered pursuant to this
Agreement, the Company shall use commercially reasonable efforts to effect the
registration and the sale of such Registrable Securities (including by making
senior management available for a "road show" in any Demand Registration) in
accordance with the intended method of disposition thereof, and pursuant thereto
the Company shall as expeditiously as possible:

            (a) prepare and file with the SEC a registration statement with
respect to such Registrable Securities and use its commercially reasonable
efforts to cause such registration statement to become and remain effective for
a period of time necessary to sell such shares but not to exceed 180 days;

            (b) notify each holder of Registrable Securities of the
effectiveness of each registration statement filed hereunder and prepare and
file with the SEC such amendments and supplements to such registration statement
and the prospectus used in connection therewith as may be necessary to complete
the disposition of securities as contemplated by the applicable underwriting
agreement; provided, however, that at any time, upon written notice and delivery
of a resolution of the Board of Directors of the Company to such effect to the
participating holders of Registrable Securities, the Company may suspend for up
to 90 days the use or effectiveness of any registration statement if the Company
reasonably believes that the Company may, in the absence of such suspension
hereunder, be required under state or federal securities laws to disclose any
corporate development the disclosure of which could reasonably be expected to
have a material adverse effect upon the Company, its shareholders, a potentially
significant transaction or event involving the Company, or any negotiations,
discussions or proposals directly relating thereto; provided further, however,
that the Company shall have the right to so suspend the use or effectiveness
only one time during any period of 12 consecutive months;

            (c) cause all such Registrable Securities to be listed on each
securities exchange and/or quotation system on which similar securities issued
by the Company are then listed and/or quoted;

            (d) provide a transfer agent and registrar for all such Registrable
Securities not later than the effective date of such registration statement;

            (e) enter into such customary agreements (including underwriting
agreements in customary form) and take all such other actions as the
underwriters, if any, or the holders reasonably request in order to expedite or
facilitate the disposition of such Registrable Securities, including, without
limitation, furnishing such number of copies of such registration statement
(including each preliminary prospectus) and such other documents as such
underwriters or holders may reasonably request;

            (f) otherwise use commercially reasonable efforts to comply with all
applicable rules and regulations of the SEC, and make available to its security
holders, as soon as reasonably practicable, an earnings statement covering the
period of at least twelve months

                                       7
<PAGE>
beginning with the first day of the Company's first full calendar quarter after
the effective date of the registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder;

            (g) in the event of the issuance of any stop order suspending the
effectiveness of a registration statement, or of any order suspending or
preventing the use of any related prospectus or suspending the qualification of
any Shares included in such registration statement for sale in any jurisdiction,
the Company shall use its commercially reasonable efforts promptly to obtain the
withdrawal of such order;

            (h) use commercially reasonable efforts to cause such Registrable
Securities covered by such registration statement to be registered with or
approved by such other governmental agencies or authorities as may be necessary
to enable the sellers thereof to consummate the disposition of such Registrable
Securities; and

            (i) use commercially reasonable efforts to furnish, on the date that
such Registrable Securities are delivered to the underwriters for sale (i) an
opinion, dated as of such date, of the counsel representing the Company for the
purposes of such registration, in form and substance as is customarily given to
underwriters in an underwritten public offering, addressed to the underwriters
and (ii) a letter dated as of such date, from the independent certified public
accountants of the Company, in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten
public offering addressed to the underwriters.

      7. REGISTRATION EXPENSES.

            (a) All expenses incident to the Company's performance of or
compliance with this Agreement (whether with respect to a Demand Registration or
Piggyback Registration), including, without limitation, all registration and
filing fees, fees of any transfer agent and registrar, fees and expenses of
compliance with securities or blue sky laws, printing expenses, fees and
disbursements of counsel for the Company and its independent certified public
accountants, fees and expenses of underwriters (excluding discounts and
commissions attributable to the Registrable Securities included in such
registration), the Company's internal expenses and the expenses and fees for
listing the securities to be registered on each securities exchange or quotation
system on which similar securities issued by the Company are then listed or
quoted (all such expenses being herein called "Registration Expenses") shall be
borne by the Company.

            (b) In connection with each Demand Registration and each Piggyback
Registration, the Company shall reimburse the holders of Registrable Securities
included in such registration for the reasonable and customary fees and
disbursements of one counsel chosen by the holders of a majority of the
Registrable Securities included in such registration.

                                       8
<PAGE>
      8. INDEMNIFICATION.

            (a) In connection with any Demand Registration or Piggyback
Registration, the Company agrees to indemnify, to the extent permitted by law,
each holder of Registrable Securities, the partners or officers, directors,
equity holders and representatives of such holder, and each Person who controls
such holder (within the meaning of the Securities Act) against all losses,
claims, damages, liabilities (joint or several) and expenses arising out of,
based upon or caused by any of the following statements, omissions or violations
(each, a "Violation"): (i) any untrue or alleged untrue statement of material
fact contained in any registration statement, prospectus or preliminary
prospectus or any amendment thereof or supplement thereto, (ii) any omission or
alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading, or (iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any state
securities laws or any rule or regulation promulgated under the Securities Act,
the Exchange Act or any state securities laws; and the Company will reimburse
each such holder or controlling person for any legal or other expenses
reasonably incurred by any of them in connection with investigating or defending
any such loss, claim, damage, liability or action; provided, however, that the
Company shall not be liable in any such case for any such loss, claim, damage,
liability or action to the extent that it is caused by a Violation that occurs
in reliance upon and in conformity with any information furnished in writing to
the Company by such holder and not corrected by such holder prior to
effectiveness of the registration statement or as a result of such holder's
failure to deliver a copy of the registration statement or prospectus or any
amendments or supplements thereto after the Company has furnished such holder
with a sufficient number of copies of the same.

            (b) In connection with any Demand Registration or Piggyback
Registration in which a holder of Registrable Securities is participating, each
such holder agrees to indemnify, to the extent permitted by law, the Company,
its directors, officers, equity holders and each Person who controls the Company
(within the meaning of the Securities Act) against all losses, claims, damages,
liabilities (joint or several) and expenses arising out of, based upon or caused
by any Violation, and such holder will reimburse the Company and each such
Person for any legal or other expenses reasonably incurred by any of them in
connection with investigating or defending any such loss, claim, damage,
liability or expense, but only to the extent that such Violation is caused by
any information furnished in writing by such holder and not corrected by such
holder prior to effectiveness of the registration statement; provided, that, the
obligation to indemnify shall be individual, not joint and several, for each
holder and shall be limited to the net amount of proceeds received by such
holder from the sale of Registrable Securities pursuant to such registration
statement; provided, further, that the indemnity agreement contained in this
Section 8(b) shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is effected without the
consent of such holder, which consent shall not be unreasonably withheld.

            (c) Any Person entitled to indemnification hereunder shall (i) give
prompt written notice to the indemnifying party of any claim with respect to
which it seeks indemnification (provided that the failure to give prompt notice
shall not impair any Person's

                                       9
<PAGE>
right to indemnification hereunder to the extent such failure has not prejudiced
the indemnifying party's ability to defend such claim), and (ii) unless in the
written opinion of legal counsel to such indemnified or indemnifying parties a
conflict of interest between such indemnified and indemnifying parties exists
with respect to such claim, permit such indemnifying party to assume the defense
of such claim with counsel reasonably satisfactory to the indemnified party. If
such defense is assumed, the indemnifying party shall not be subject to any
liability for any settlement made by the indemnified party without its consent
(but such consent shall not be unreasonably withheld). An indemnifying party who
is not entitled to, or elects not to, assume the defense of a claim shall be
obligated to pay the fees and expenses of one counsel (but not more than one)
for all parties indemnified by such indemnifying party with respect to such
claim, unless in the reasonable judgment (with written advice of counsel) of any
indemnified party a conflict of interest may exist between such indemnified
party and any other of such indemnified parties with respect to such claim.

            (d) If the indemnification required by this Section 8 from the
indemnifying party is unavailable to an indemnified party hereunder in respect
of any losses, claims, damages, liabilities or expenses referred to in this
Section 8:

                  i. The indemnifying party, in lieu of indemnifying such
            indemnified party, shall contribute to the amount paid or payable by
            such indemnified party as a result of such losses, claims, damages,
            liabilities or expenses in such proportion as is appropriate to
            reflect the relative fault of the indemnifying party and indemnified
            parties in connection with the actions which resulted in such
            losses, claims, damages, liabilities or expenses, as well as any
            other relevant equitable considerations. The relative fault of such
            indemnifying party and indemnified parties shall be determined by
            reference to, among other things, whether any Violation has been
            committed by, or relates to information supplied by, such
            indemnifying party or indemnified parties, and the parties' relative
            intent, knowledge, access to information and opportunity to correct
            or prevent such Violation. The amount paid or payable by a party as
            a result of the losses, claims, damages, liabilities and expenses
            referred to above shall be deemed to include, subject to the
            limitations set forth in Sections 8(a) and 8(b), any legal or other
            fees or expenses reasonably incurred by such party in connection
            with any investigation or proceeding.

                  ii. The Parties agree that it would not be just and equitable
            if contribution pursuant to this Section 8(d) were determined by pro
            rata allocation or by any other method of allocation that does not
            take into account the equitable considerations referred to in
            Section 8(b)(i). No Person guilty of fraudulent misrepresentation
            (within the meaning of Section 11(f) of the Securities Act) shall be
            entitled to contribution from any Person who was not guilty of such
            fraudulent misrepresentation.

                                       10
<PAGE>
            (e) The indemnification provided for under this Agreement shall
remain in full force and effect regardless of any investigation made by or on
behalf of the indemnified party or any partner, officer, director or controlling
Person of such indemnified party and shall survive the transfer of securities.

      9. PARTICIPATION IN UNDERWRITTEN REGISTRATIONS. No Person may participate
in any registration hereunder unless such Person (a) agrees to sell such
Person's securities on the basis provided in any underwriting arrangements
approved by the Company and (b) completes and executes all questionnaires,
powers of attorney and other documents required under the terms of such
underwriting arrangements; provided, however, that no holder of Registrable
Securities included in any underwritten registration shall be required to make
any representations or warranties to the Company or the underwriters (other than
representations and warranties regarding such holder and such holder's intended
method of distribution) or to undertake any indemnification obligations to the
Company or the underwriters with respect thereto, except to the extent of the
indemnification provided in Section 8.

      10. MISCELLANEOUS.

            10.1 Remedies. Any Person having rights under any provision of this
Agreement shall be entitled to enforce such rights specifically to recover
damages caused by reason of any breach of any provision of this Agreement and to
exercise all other rights granted by law. The Parties agree and acknowledge that
money damages are not an adequate remedy for any breach of the provisions of
this Agreement and that any Party is entitled to specific performance and for
other injunctive relief in order to enforce or prevent violation of the
provisions of this Agreement.

            10.2 Amendments and Waivers. Except as otherwise provided herein,
the provisions of this Agreement may be amended or waived only upon the prior
written consent of (a) the Company and (b) the holders of a majority of the
Registrable Securities then outstanding, provided, that no such amendment or
waiver can be effected without the prior written consent of all holders of
Registrable Securities if (i) such amendment or waiver would provide a benefit
to consenting holders of Registrable Securities not shared on a proportionate
basis with all holders of Registrable Securities or (ii) such amendment or
waiver would operate to the detriment of the holders of Registrable Securities
that do not consent thereto relative to the holders of Registrable Securities
that consent.

            10.3 Successors, Assigns and Subsequent Holders. (a) All covenants
and agreements in this Agreement by or on behalf of any of the Parties hereto
shall bind and inure to the benefit of the respective successors and the
permitted assigns of the Parties hereto.

            (b) The rights to cause the Company to register Registrable
Securities pursuant to this Agreement may be assigned (but only with all related
obligations) by a holder of Registrable Securities to a transferee of such
securities.

                                       11
<PAGE>
            (c) No assignment or transfer pursuant to this Section 10.3 shall be
effective unless (i) the Company is, within a reasonable time after such
transfer, furnished with written notice of the name and address of such
transferee or assignee and the securities with respect to which such
registration rights are being assigned and (ii) such transferee or assignee
agrees in writing to be bound by and subject to the terms and conditions of this
Agreement and the Shareholders Agreement.

            10.4 Aggregation of Shares. All Registrable Securities held or
acquired by Affiliates shall be aggregated together for the purpose of
determining the availability of any rights under this Agreement.

            10.5 Entire Agreement. This Agreement (together with the Schedule
hereto) constitutes the entire agreement and understanding among the Parties and
their respective Affiliates with respect to the subject matter contained herein,
and supersedes all prior agreements, negotiations, discussions, understandings,
term sheets, offering memorandums or letters of intent between or among any of
the Parties with respect to such subject matter. Each Party agrees that the
Endurance Registration Rights Agreement is hereby terminated and of no further
force or effect, and each Party further agrees that any provision therein
purporting to survive termination shall be ineffective and unenforceable.

            10.6 Severability. Wherever possible, each provision hereof shall be
interpreted in such manner as to be effective and valid under applicable law,
but in case any one or more of the provisions contained herein shall, for any
reason, be held to be invalid, illegal or unenforceable in any respect, such
provision shall be ineffective to the extent, but only to the extent, of such
invalidity, illegality or unenforceability without invalidating the remainder of
such invalid, illegal or unenforceable provision or provisions or any other
provisions hereof, unless such a construction would be unreasonable.

            10.7 Termination. Except for the provisions of Section 8, this
Agreement shall terminate and be of no further force and effect when no Party
holds Registrable Securities.

            10.8 Notices. All notices or other communications required or
permitted hereunder shall be in writing and shall be deemed given (a) when
delivered personally, (b) if transmitted by facsimile, when confirmation of
transmission is received, (c) if sent by registered or certified mail, postage
prepaid, return receipt requested, on the third Business Day after mailing or
(d) if sent by reputable overnight courier service, when received; and shall be
addressed as follows:

                                       12
<PAGE>
If to the Company:                          with a copy to:

Endurance Specialty Holdings Ltd.           Endurance Specialty Holdings Ltd.
Cedar House                                 48 Par-la-Ville Road, Suite 784
41 Cedar Avenue                             Hamilton HM 11, Bermuda
Hamilton HM12, Bermuda                      Attention: Chief Executive
Attention: The Secretary                    Officer/President
Facsimile: 441-292-8666                     Facsimile:  441-278-0401

If to the Holders of Registrable
Securities:

at their respective addresses set forth
on Schedule A attached hereto.

            10.9 Governing Law. This Agreement (together with the Schedule
hereto) shall be governed by, and construed in accordance with, the laws of the
State of New York, without giving effect to any choice of law or conflict of law
rules or provisions (whether of the State of New York or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the
State of New York. In furtherance of the foregoing, the internal law of the
State of New York shall control the interpretation and construction of this
Agreement (and all schedules and exhibits hereto), even though under that
jurisdiction's choice of law or conflict of law analysis, the substantive law of
some other jurisdiction would ordinarily apply.

            10.10 Submission to Jurisdiction; Waiver of Jury Trial. (a) Each of
the Parties hereby irrevocably agrees that any suit, action or proceeding
arising out of or related to this Agreement, or any of the transactions
contemplated hereby, shall be brought only in the United States District Court
for the Southern District of New York or the Supreme Court of New York located
in New York City and the specific choice from among the foregoing shall be
determined by the Party initiating such suit, action or proceeding. To the
extent permissible by law, each Party hereby consents to the personal
jurisdiction and venue of such courts and hereby waives any and all claims and
objections that any such court is an inconvenient forum.

            (b) EACH OF THE PARTIES HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL
BY JURY IN ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, BETWEEN
OR AMONG ANY OF THE PARTIES ARISING OUT OF OR RELATED TO THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT, OR ANY OTHER INSTRUMENT OR DOCUMENT EXECUTED OR
DELIVERED IN CONNECTION HEREWITH. ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
THE PARTIES TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

            10.11 Attorneys' Fees. In the event of any action or suit based upon
or arising out of any actual or alleged breach by any Party of any provision of
this Agreement, the

                                       13
<PAGE>
prevailing Party shall be entitled to recover its reasonable attorneys' fees and
expenses of such action or suit from the losing Party, in addition to any other
relief ordered by the court.

            10.12 Execution in Counterparts. This Agreement may be executed in
any number of counterparts, each of which shall be deemed an original
instrument, but all of which together shall constitute one and the same
instrument, and shall become binding when one or more counterparts have been
signed by and delivered to each of the Parties.

            10.13 Headings. The Article and Section headings contained in this
Agreement are for convenience only and shall not affect the meaning or
interpretation of this Agreement.

            10.14 Other Registration Rights. The Company shall not grant any
other registration rights to any Person (or register any Shares or other
securities of the Company held by any Person, other than in the case of any
Shareholder, pursuant to a Demand Registration or Piggyback Registration)
without the consent of the holders of a majority of the Registrable Securities
not receiving such registration rights (or in the case of any other
registration, without the consent of the holders of a majority of the
Registrable Securities not given the opportunity to participate), it being
understood that (i) this Section 10.14 shall not limit the ability of the
Company to register any primary offering of securities made by it and (ii) this
Section 10.14 shall not be construed to limit in any manner the ability of the
Company to register the sale of any securities without providing for Piggyback
Registrations in transactions that are specifically set forth in Section 3.1 as
being excluded from transactions with respect to which Piggyback Registrations
are required to be offered.

                            [SIGNATURE PAGE FOLLOWS]

                                       14
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be executed the day and year first above written.

                                ENDURANCE SPECIALTY
                                HOLDINGS LTD.

                                By:  ____________________________
                                     Name:  Kenneth J. LeStrange
                                     Title: Chief Executive Officer

                                SHAREHOLDERS
                                AND WARRANT HOLDERS

                                By:  ____________________________
                                     Name:  Kenneth J. LeStrange
                                     Title: Attorney-in-Fact on behalf of the
                                            Persons listed on Schedule A hereto

                                 SIGNATURE PAGE
                                     TO THE
                          REGISTRATION RIGHTS AGREEMENT
<PAGE>
                SCHEDULE A - HOLDERS OF REGISTRABLE SECURITIES

<TABLE>
<CAPTION>
                                                                     NUMBER OF
                                                                    REGISTRABLE
     NAMES AND ADDRESSES OF HOLDERS OF REGISTRABLE SECURITIES        SECURITIES
--------------------------------------------------------------------------------
<S>                                                                <C>
Aon Pension Plan                                                      121,500
c/o Aon Corporation
200 East Randolph Street
Chicago, IL 60601
Attention:  Jerome Hanner
--------------------------------------------------------------------------------
BG Investments, Ltd.                                                  352,480
The Zurich Centre
90 Pitts Bay Road
Pembroke HM 08, Bermuda
Attention:  Mike Deevy
mike.deevy@bm.zurich.com
--------------------------------------------------------------------------------
Capital Z Financial Services Fund II, L.P.                            845,495
54 Thompson Street
New York, NY 10012
Attention: David Spuria
--------------------------------------------------------------------------------
Capital Z Financial Services Private Fund II, L.P.                      4,505
54 Thompson Street
New York, NY 10012
Attention: David Spuria
--------------------------------------------------------------------------------
Capital Z Investments, LLC                                            409,920
54 Thompson Street
New York, NY 10012
Attention:  David Spuria
--------------------------------------------------------------------------------
CCG Associates-AI, LLC                                                  1,069
One Embarcadero Center
33rd Floor
San Francisco, CA 94111
Attention:  Sue Breedlove sbreedlove@goldengatecap.com
--------------------------------------------------------------------------------
</TABLE>

                                      A-1
<PAGE>
<TABLE>
<CAPTION>
                                                                     NUMBER OF
                                                                    REGISTRABLE
     NAMES AND ADDRESSES OF HOLDERS OF REGISTRABLE SECURITIES        SECURITIES
--------------------------------------------------------------------------------
<S>                                                                <C>
CCG Associates-QP, LLC                                                 11,496
One Embarcadero Center
33rd Floor
San Francisco, CA 94111
Attention:  Sue Breedlove sbreedlove@goldengatecap.com
--------------------------------------------------------------------------------
CCG GP Fund, LLC                                                        5,691
One Embarcadero Center
33rd Floor
San Francisco, CA 94111
Attention:  Sue Breedlove sbreedlove@goldengatecap.com
--------------------------------------------------------------------------------
CCG Investment Fund-AI, LP                                              3,063
One Embarcadero Center
33rd Floor
San Francisco, CA 94111
Attention:  Sue Breedlove sbreedlove@goldengatecap.com
--------------------------------------------------------------------------------
CCG Investments (BVI), LP                                             228,681
One Embarcadero Center
33rd Floor
San Francisco, CA 94111
Attention:  Sue Breedlove
sbreedlove@goldengatecap.com
--------------------------------------------------------------------------------
Centre Strategic Investments Holdings Limited                         352,480
The Zurich Centre
90 Pitts Bay Road
Pembroke HM 08, Bermuda
Attention:  President

with a copy to:
Centre Group, LLC
One Chase Manhattan Plaza
New York, NY 10005
Attention:  General Counsel
--------------------------------------------------------------------------------
</TABLE>

                                      A-2
<PAGE>
<TABLE>
<CAPTION>
                                                                     NUMBER OF
                                                                    REGISTRABLE
     NAMES AND ADDRESSES OF HOLDERS OF REGISTRABLE SECURITIES        SECURITIES
--------------------------------------------------------------------------------
<S>                                                                <C>
Combined Insurance Company of America                                 590,607
200 East Randolph Street
Chicago, Illinois 60601
Attention:  Jerome Hanner
--------------------------------------------------------------------------------
Combined Life Assurance Company of Europe Limited                      20,413
Merrion House
Merrion Road
Dublin 4, Ireland
--------------------------------------------------------------------------------
DLJ Growth Capital Overseas Partners, C.V.                            188,889
c/o DLJ Growth Capital, Inc.
Attn:  George Varughese
11 Madison Avenue
16th Floor
New York, NY 10010

With a copy to:
DLJ Merchant Banking Partners
11 Madison Avenue
16th Floor
New York, NY 10010
Attention:  Ivy Dodes
(F)  212/325-8256

and

Davis Polk & Wardwell
450 Lexington Avenue
New York, NY 10017
Attention:  Nancy L. Sanborn
(F)  212/450-3800
--------------------------------------------------------------------------------
</TABLE>

                                      A-3
<PAGE>
<TABLE>
<CAPTION>
                                                                     NUMBER OF
                                                                    REGISTRABLE
     NAMES AND ADDRESSES OF HOLDERS OF REGISTRABLE SECURITIES        SECURITIES
--------------------------------------------------------------------------------
<S>                                                                <C>
Donaldson, Lufkin & Jenrette Securities Corporation, as Nominee        61,111
for Credit Suisse First Boston Private Equity, Inc., DLJ First
ESC, L.P., EMA 2001 Plan, L.P., Docklands 2001 Plan, L.P.,
Paradeplatz 2001 Plan, L.P. and CSFB 2001 Investors, L.P.
c/o DLJ Growth Capital, Inc.
Attn:  George Varughese
11 Madison Avenue
16th Floor
New York, NY 10010

With a copy to:
DLJ Merchant Banking Partners
11 Madison Avenue
16th Floor
New York, NY 10010
Attention:  Ivy Dodes
(F)  212/325-8256
and
Davis Polk & Wardwell
450 Lexington Avenue
New York, NY 10017
Attention:  Nancy L. Sanborn
(F)  212/450-3800
--------------------------------------------------------------------------------
Dunn, Noel                                                              2,500
c/o Aon Corporation
200 East Randolph Street
Chicago, IL 60601
--------------------------------------------------------------------------------
Farmers Group, Inc.                                                   704,960
4680 Wilshire Blvd.
Los Angeles, CA 90010
Attention:  Laszlo G. Heredy,
laszlo.heredy@farmersinsurance.com
--------------------------------------------------------------------------------
First Plaza Group Trust                                               170,388
c/o General Motors Asset Management
767 Fifth Avenue
New York, NY 10153
</TABLE>

                                      A-4
<PAGE>
<TABLE>
<CAPTION>
                                                                     NUMBER OF
                                                                    REGISTRABLE
     NAMES AND ADDRESSES OF HOLDERS OF REGISTRABLE SECURITIES        SECURITIES
--------------------------------------------------------------------------------
<S>                                                                <C>
Fred L. Turner Trust                                                    5,000
1570 Woodvale
Deerfield, IL 60015
(T) 847/945-1706

--------------------------------------------------------------------------------
GM Capital Partners I, L.P.                                           229,612
c/o General Motors Asset Management
767 Fifth Avenue
New York, NY 10153
--------------------------------------------------------------------------------
Jannotta, Edgar D.                                                     10,000
c/o William Blair & Company, L.L.C.
222 West Adams Street
34th Floor
Chicago, IL 60606
--------------------------------------------------------------------------------
Kiphart, Richard                                                       10,000
c/o William Blair & Company, L.L.C.
222 West Adams Street
34th Floor
Chicago, IL 60606
--------------------------------------------------------------------------------
Knight, Lester B.                                                       2,500
c/o RoundTable Healthcare Partners
272 East Deerpath Road, Suite 350
Lake Forest, IL 60045
--------------------------------------------------------------------------------
LeStrange, Kenneth J.                                                 238,818
c/o Endurance Specialty Insurance Ltd.
kenneth_lestrange@aon.com
Ken.LeStrange@EnduranceBermuda.com
--------------------------------------------------------------------------------
London General Insurance Company                                       31,299
Combined House
15 Wheatfield Way
Kingston-Upon-Thames
Surrey KT1 2PQ
United Kingdom
--------------------------------------------------------------------------------
</TABLE>

                                      A-5
<PAGE>
<TABLE>
<CAPTION>
                                                                     NUMBER OF
                                                                    REGISTRABLE
     NAMES AND ADDRESSES OF HOLDERS OF REGISTRABLE SECURITIES        SECURITIES
--------------------------------------------------------------------------------
<S>                                                                <C>
LY-Endurance, LLC                                                     500,000
c/o Lightyear Capital
51 West 52nd Street
23rd Floor
New York, NY 10019
Attention: William J. Takeuchi
wtakeuchi@lycap.com
--------------------------------------------------------------------------------
McKenna, Andrew J.                                                      5,000
Chairman
Schwarz
8338 Austin Avenue
Morton Grove, IL 60053
--------------------------------------------------------------------------------
Metro Center Investment Pte Ltd.                                      500,000
255 Shoreline Drive
Suite 600
Redwood City, CA 94065
Attention: Brett Fisher (Director)
brettfisher@gic.com.sg
--------------------------------------------------------------------------------
MLL Investments LLC                                                    50,000
2115 Linwood Avenue
Suite 110
Fort Lee, NJ 07024
Attention: William Mack
--------------------------------------------------------------------------------
Perkins, Donald S.                                                      1,000
969 Hill Road
Winnetka, IL 60093
--------------------------------------------------------------------------------
Perry European Fund, L.P.                                              35,340
599 Lexington Avenue
New York, NY 10022
--------------------------------------------------------------------------------
</TABLE>

                                      A-6
<PAGE>
<TABLE>
<CAPTION>
                                                                     NUMBER OF
                                                                    REGISTRABLE
     NAMES AND ADDRESSES OF HOLDERS OF REGISTRABLE SECURITIES        SECURITIES
--------------------------------------------------------------------------------
<S>                                                                <C>
Perry European Fund, Ltd.                                             164,660
c/o CITCO Fund Services
Corporate Center
West Bay Road
P.O. Box 31106 SMB
Grand Cayman, Cayman Islands
--------------------------------------------------------------------------------
Perry Partners International, Inc.                                    564,800
c/o CITCO Fund Services
Corporate Center
West Bay Road
P.O. Box 31106 SMB
Grand Cayman, Cayman Islands
--------------------------------------------------------------------------------
Perry Partners, L.P.                                                  235,200
599 Lexington Avenue
New York, NY 10022
--------------------------------------------------------------------------------
PGR Holding, LLC                                                      150,000
c/o Ryan Enterprises Group, LLC
200 East Randolph Street
19th Floor
Chicago, IL 60601
--------------------------------------------------------------------------------
Putnam Investments Employees' Securities Company I LLC                 10,915
One Post Office Square
Boston, MA 02109
--------------------------------------------------------------------------------
Putnam Investments Employees' Securities Company II LLC                 9,747
One Post Office Square
Boston, MA 02109
--------------------------------------------------------------------------------
Putnam Investments Holdings, LLC                                       12,700
One Post Office Square
Boston, MA 02109
--------------------------------------------------------------------------------
</TABLE>

                                      A-7
<PAGE>
<TABLE>
<CAPTION>
                                                                     NUMBER OF
                                                                    REGISTRABLE
     NAMES AND ADDRESSES OF HOLDERS OF REGISTRABLE SECURITIES        SECURITIES
--------------------------------------------------------------------------------
<S>                                                                <C>
Reservoir Capital Master Fund, L.P.                                    35,975
650 Madison Avenue
26th Floor
New York, NY 10022
Attention: Josh Paulson
jpaulson@reservoircap.com
--------------------------------------------------------------------------------
Reservoir Capital Partners, L.P.                                      214,025
650 Madison Avenue
26th Floor
New York, NY 10022
Attention: Josh Paulson
jpaulson@reservoircap.com
--------------------------------------------------------------------------------
Resource Life Insurance Company                                        40,825
200 East Randolph Street
Chicago, Illinois 60601
Attention:  Jerome Hanner
--------------------------------------------------------------------------------
Richard C. Notebaert 1998 Trust                                        10,000
c/o Richard C. Notebaert
Tellabs, Inc.
One Tellabs Center
1415 W. Diehl Road
Naperville, IL 60563
--------------------------------------------------------------------------------
Ryan, Patrick G. Jr.                                                   10,000
c/o Ryan Enterprises Group, LLC
200 East Randolph Street
19th Floor
Chicago, IL 60601
--------------------------------------------------------------------------------
Ryan, Robert J.W.                                                      10,000
c/o Ryan Enterprises Group, LLC
200 East Randolph Street
19th Floor
Chicago, IL 60601
--------------------------------------------------------------------------------
</TABLE>

                                      A-8
<PAGE>
<TABLE>
<CAPTION>
                                                                     NUMBER OF
                                                                    REGISTRABLE
     NAMES AND ADDRESSES OF HOLDERS OF REGISTRABLE SECURITIES        SECURITIES
--------------------------------------------------------------------------------
<S>                                                                <C>
Schultz, Paul T.                                                        500
c/o Aon Corporation
200 East Randolph Street
Chicago, IL 60601
--------------------------------------------------------------------------------
Services Financiers CDPQ Inc.                                         150,000
1981 McGill College Avenue, 3rd Floor
Montreal, Quebec H3A 3C7
Canada
--------------------------------------------------------------------------------
SIRRAH Associates Limited Partnership                                  10,000
c/o J. Ira Harris
P.O. Box 50401
Henderson, Nevada 89016
--------------------------------------------------------------------------------
State Street Bank and Trust Company, not personally, but solely        3,236
as Trustee under the 1997 Thomas H. Lee Nominee Trust
75 State Street
Boston, MA 02109
--------------------------------------------------------------------------------
Sterling Life Insurance Company                                        27,217
200 East Randolph Street
Chicago, Illinois 60601
Attention:  Jerome Hanner
--------------------------------------------------------------------------------
Teachers Insurance & Annuities Association of America                 150,000
730 3rd Avenue
New York, NY 10017
Attention: Shelly Zoler
szoler@tiaa-cref.org
--------------------------------------------------------------------------------
The Corbett M.W. Ryan Living Trust dated July 13, 2001                 10,000
c/o Ryan Enterprises Group, LLC
200 East Randolph Street
19th Floor
Chicago, IL 60601
--------------------------------------------------------------------------------
</TABLE>

                                      A-9
<PAGE>
<TABLE>
<CAPTION>
                                                                     NUMBER OF
                                                                    REGISTRABLE
     NAMES AND ADDRESSES OF HOLDERS OF REGISTRABLE SECURITIES        SECURITIES
--------------------------------------------------------------------------------
<S>                                                                <C>
Thomas H. Lee (Alternative) Cayman Fund V, L.P.                        22,404
Walkers
Walkers House
Mary Street
P.O. Box 256GT
George Town, Grand Cayman
Cayman Islands
--------------------------------------------------------------------------------
Thomas H. Lee (Alternative) Fund V, L.P.                             1,625,937
Walkers
Walkers House
Mary Street
P.O. Box 256GT
George Town, Grand Cayman
Cayman Islands
--------------------------------------------------------------------------------
Thomas H. Lee (Alternative) Parallel Fund V, L.P.                     421,865
Walkers
Walkers House
Mary Street
P.O. Box 256GT
George Town, Grand Cayman
Cayman Islands
--------------------------------------------------------------------------------
Thomas H. Lee Investors Limited Partnership                            2,605
75 State Street
Boston, MA 02109
--------------------------------------------------------------------------------
TPG Dutch Parallel III, C.V.                                           33,735
301 Commerce Street
Suite 3300
Fort Worth, TX 76102
--------------------------------------------------------------------------------
TPG Endurance Investments (Cayman), L.P.                              164,805
301 Commerce Street
Suite 3300
Fort Worth, TX 76102
--------------------------------------------------------------------------------
</TABLE>

                                      A-10
<PAGE>
<TABLE>
<CAPTION>
                                                                     NUMBER OF
                                                                    REGISTRABLE
     NAMES AND ADDRESSES OF HOLDERS OF REGISTRABLE SECURITIES        SECURITIES
--------------------------------------------------------------------------------
<S>                                                                <C>
TPG Endurance Partners (Cayman), L.P.                                1,910,869
301 Commerce Street
Suite 3300
Fort Worth, TX 76102
--------------------------------------------------------------------------------
Virginia Surety Company, Inc.                                        2,381,479
200 East Randolph Street
Chicago, Illinois 60601
Attention:  Jerome Hanner
--------------------------------------------------------------------------------
</TABLE>

                                      A-11

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