Document:

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                                                                    EXHIBIT 4.18

                                     FORM OF

                               GUARANTEE AGREEMENT

                                     BETWEEN

                           MONTPELIER RE HOLDINGS LTD.

                                 (AS GUARANTOR)

                                       AND

                              THE BANK OF NEW YORK

                             (AS GUARANTEE TRUSTEE)

                                   DATED AS OF

                                [        ], 200__

                              MRH CAPITAL TRUST II

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                              <C>
ARTICLE I.           DEFINITIONS..................................................................................1

     Section 1.1     Definitions..................................................................................1

ARTICLE II.          TRUST INDENTURE ACT..........................................................................5

     Section 2.1     Trust Indenture Act:  Application............................................................5
     Section 2.2     List of Holders..............................................................................5
     Section 2.3     Reports by the Guarantee Trustee.............................................................5
     Section 2.4     Periodic Reports to the Guarantee Trustee....................................................5
     Section 2.5     Evidence of Compliance with Conditions Precedent.............................................6
     Section 2.6     Events of Default; Waiver....................................................................6
     Section 2.7     Event of Default; Notice.....................................................................6
     Section 2.8     Conflicting Interests........................................................................6

ARTICLE III.         POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE...............................................7

     Section 3.1     Powers and Duties of the Guarantee Trustee...................................................7
     Section 3.2     Certain Rights of the Guarantee Trustee......................................................8
     Section 3.3     Indemnity...................................................................................10

ARTICLE IV.          GUARANTEE TRUSTEE...........................................................................11

     Section 4.1     Guarantee Trustee; Eligibility..............................................................11
     Section 4.2     Appointment, Removal and Resignation of Guarantee Trustees..................................11

ARTICLE V.           GUARANTEE...................................................................................12

     Section 5.1     Guarantee...................................................................................12
     Section 5.2     Waiver of Notice and Demand.................................................................12
     Section 5.3     Obligations Not Affected....................................................................12
     Section 5.4     Rights of Holders...........................................................................13
     Section 5.5     Guarantee of Payment........................................................................13
     Section 5.6     Subrogation.................................................................................13
     Section 5.7     Independent Obligations.....................................................................14
     Section 5.8     Net Payments................................................................................14

ARTICLE VI.          LIMITATION OF TRANSACTIONS; RANKING.........................................................15

     Section 6.1     Limitation of Transactions..................................................................15
     Section 6.2     Ranking.....................................................................................16
     Section 6.3     Pari Passu Guarantees.......................................................................16

ARTICLE VII.         TERMINATION.................................................................................16

     Section 7.1     Termination.................................................................................16

ARTICLE VIII.        MISCELLANEOUS...............................................................................16

     Section 8.1     Successors and Assigns......................................................................16
</TABLE>

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<TABLE>
     <S>                                                                                                         <C>
     Section 8.2     Amendments..................................................................................17
     Section 8.3     Notices.....................................................................................17
     Section 8.4     Benefit.....................................................................................18
     Section 8.5     Governing Law...............................................................................18
     Section 8.6     Interpretation..............................................................................18
     Section 8.7     Submission to Jurisdiction..................................................................19
     Section 8.8     Judgment Currency...........................................................................20
</TABLE>

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                               GUARANTEE AGREEMENT

        This GUARANTEE AGREEMENT, dated as of [            ], 200__, is executed
and delivered by Montpelier Re Holdings Ltd., a company incorporated and
organized under the laws of Bermuda ("Montpelier" or the "Guarantor"), having
its principal executive offices at Mintflower Place, 8 Par-La-Ville Road,
Hamilton HM 08, Bermuda, and [            ], a New York banking corporation,
having a corporate trust office located at [                ], as trustee (the
"Guarantee Trustee"), for the benefit of the Holders (as defined herein) from
time to time of the Preferred Securities (as defined herein) of MRH Capital
Trust II, a Delaware statutory trust (the "Issuer").

        WHEREAS, pursuant to an Amended and Restated Trust Agreement, dated as
of [          ], 200__, among the Trustees named therein, the Guarantee Trustee,
as Property Trustee, [                ], a Delaware banking corporation, as
Delaware Trustee, and the Guarantor, as depositor (in such capacity, the
"Depositor"), and the Holders from time to time of undivided beneficial
ownership interests in the assets of the Issuer (the "Trust Agreement"), the
Issuer is issuing up to $[           ] ($[          ] if the underwriters
exercise in full their over-allotment option pursuant to an underwriting
agreement dated [         ], 200__, by and among the Issuer and the underwriters
listed on Schedule A thereto), aggregate liquidation preference of its [ ]%
Trust Originated Preferred Securities (liquidation preference $[ ] per preferred
security) (the "Preferred Securities") representing preferred undivided
beneficial interests in the assets of the Issuer and having the terms set forth
in the Trust Agreement;

        WHEREAS, the Preferred Securities will be issued by the Issuer and the
proceeds thereof, together with the proceeds from the issuance of the Issuer's
Common Securities (as defined herein), will be used to purchase the Debentures
(as defined herein) of Montpelier (in its capacity as issuer of the Debentures,
the "Debenture Issuer"), which will be deposited with [Guarantee Trustee Name],
as Property Trustee under the Trust Agreement, as trust assets; and

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

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

                                    ARTICLE I.
                                   DEFINITIONS

        Section 1.1 Definitions. As used in this Guarantee Agreement, the terms
set forth below shall, unless the context otherwise requires, have the following
meanings. Capitalized or

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otherwise defined terms used, but not otherwise defined herein shall have the
meanings assigned to such terms in the Trust Agreement as in effect on the date
hereof.

        "Additional Amounts" means any additional amounts which are required
hereby or by the terms of the Preferred Securities, under circumstances
specified herein or therein, to be paid by the Guarantor in respect of certain
taxes, assessments or other governmental charges imposed on Holders specified
therein and which are owing to such Holders.

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

        "Authorized Officer" means, when used with respect to any Person, the
Chairman of the Board of Directors, a Vice Chairman, the President, the Vice
President, the Chief Financial Officer, the Treasurer, an Assistant Treasurer,
the Chief Investment Officer, the Chief Accounting Officer, the General Counsel,
the Secretary or an Assistant Secretary, of such Person.

        "Capitalized Lease Obligation" means an obligation under a lease that is
required to be capitalized for financial reporting purposes in accordance with
generally accepted accounting principles, and the amount of Indebtedness
represented by such obligation shall be the capitalized amount of such
obligation determined in accordance with such principles.

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

        "Debentures" means the series of subordinated debt securities of the
Debenture Issuer designated the [ ]% Junior Subordinated Debentures due
[            ], [   ] held by the Property Trustee.

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

        "Guarantee Payments" means the following payments or distributions,
without duplication, with respect to the Preferred Securities, to the extent not
paid or made by or on behalf of the Issuer: (i) any accrued and unpaid
Distributions (as defined in the Trust Agreement) that are required to be paid
on such Preferred Securities, to the extent the Issuer shall have funds on hand
available therefor at such time, (ii) the redemption price, including all
accrued and unpaid Distributions to the date of redemption (the "Redemption
Price") with respect to Preferred Securities called for redemption by the Issuer
to the extent the Issuer shall have funds on hand available therefor at such
time and (iii) upon a voluntary or involuntary dissolution, winding-up or
liquidation of the Issuer, unless Debentures are distributed to the Holders, the

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lesser of (a) the aggregate of the liquidation preference of $[  ] per Preferred
Security plus accrued and unpaid Distributions on the Preferred Securities to
the date of payment, to the extent the Issuer shall have funds on hand available
to make such payment at such time and (b) the amount of assets of the Issuer
remaining available for distribution to Holders in liquidation of the Issuer (in
either case, the "Liquidation Distribution").

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

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

        "Indebtedness" means, with respect to any Person, (i) the principal of
and any premium and interest on (a) indebtedness of such Person for money
borrowed or (b) indebtedness evidenced by notes, debentures, bonds or other
similar instruments for the payment of which such Person is responsible or
liable; (ii) all Capitalized Lease Obligations of such Person; (iii) all
obligations of such Person issued or assumed as the deferred purchase price of
property, all conditional sale obligations and all obligations under any title
retention agreement (but excluding trade accounts payable arising in the
ordinary course of business); (iv) all obligations of such Person for the
reimbursement of any obligor on any letter of credit, banker's acceptance or
similar credit transaction (other than obligations with respect to letters of
credit securing obligations (other than obligations described in (i) through
(iii) above) entered into in the ordinary course of business of such Person to
the extent such letters of credit are not drawn upon or, if and to the extent
drawn upon, such drawing is reimbursed no later than the third Business Day
following receipt by such Person of a demand for reimbursement following payment
on the letter of credit); (v) all obligations of the type referred to in clauses
(i) through (iv) of other Persons and all dividends of other Persons for the
payment of which, in either case, such Person is responsible or liable as
obligor, guarantor or otherwise, the amount thereof being deemed to be the
lesser of the stated recourse, if limited, and the amount of the obligation or
dividends of the other person; and (vi) all obligations of the type referred to
in clauses (i) through (v) of other Persons secured by any Lien on any property
or asset of such Person (whether or not such obligation is assumed by such
Person), the amount of such obligation being deemed to be the lesser of the
value of such property or assets or the amount of the obligation so secured; and
(vii) any amendments, modifications, refundings, renewals or extensions of any
indebtedness or obligation described as Indebtedness in clauses (i) through (vi)
above.

        "Indenture" means the Junior Subordinated Indenture dated as of
[            ], 200__ among the Debenture Issuer and [            ], as trustee,
and any indenture supplemental thereto pursuant to which the Debentures are to
be issued to the Property Trustee of the Issuer.

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

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

        "Officers' Certificate" means, with respect to any Person, a certificate
signed by two Authorized Officers, at least one of which is a principal
executive, principal financial or principal accounting officer, and is delivered
to the Guarantee Trustee. Any Officers' Certificate delivered with respect to
compliance with a condition or covenant provided for in this Guarantee shall
include:

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

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

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

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

        "Person" means any individual, corporation, limited liability company,
partnership, joint venture, association, joint stock company, trust,
unincorporated association or government or any agency or political subdivision
thereof.

        "Responsible Officer" means, with respect to the Guarantee Trustee, any
officer assigned to the Corporate Trust Office, including any vice president,
assistant vice president, assistant treasurer or any other officer of the
Trustee customarily performing functions similar to those performed by any of
the above designated officers, and also, with respect to a particular matter,
any other officer, to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject.

        "Senior Indebtedness" means all Indebtedness of the Guarantor
outstanding at any time, except (a) the Indebtedness under this Guarantee
Agreement, (b) Indebtedness as to which, by the terms of the instrument creating
or evidencing the same, it is provided that such Indebtedness is subordinated to
or pari passu with this Guarantee Agreement or to other Indebtedness of the
Guarantor which is subordinated to or pari passu with this Guarantee Agreement,
(c) Indebtedness of the Guarantor to an Affiliate of the Guarantor, (d) interest
accruing after the filing of a petition initiating any proceeding referred to in
Section [  ] and [  ] of the Indenture unless such interest is an allowed claim
enforceable against the Guarantor in a proceeding under federal or state
bankruptcy laws, (e) trade accounts payable and (f) similar Guarantee Agreements
issued by the Guarantor on behalf of holders of preferred securities of any
trust, partnership or other entity affiliated with the Guarantor which is a
financing vehicle of the Guarantor or any Affiliate of the Guarantor in
connection with the issuance by such entity of preferred securities or other
securities which are similar to preferred securities that are

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guaranteed by the Guarantor pursuant to an instrument that ranks pari passu with
or junior in right of payment to this Guarantee Agreement.

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

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

                                   ARTICLE II.
                               TRUST INDENTURE ACT

        Section 2.1     Trust Indenture Act: Application

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

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

        Section 2.2     List of Holders

                (a)     The Guarantor shall furnish or cause to be furnished to
the Guarantee Trustee (i) semiannually, not later than May 1 and November 1 of
each year, a list, in such form as the Guarantee Trustee may reasonably require,
of the names and addresses of the Holders ("List of Holders") as of the
applicable date, and (ii) at such other times as the Guarantee Trustee may
request in writing, within 30 days after the receipt by the Guarantor of any
such request, a List of Holders as of a date not more than 15 days prior to the
time such list is furnished, in each case to the extent such information is in
the possession or control of the Guarantor and is not identical to a previously
supplied List of Holders or has not otherwise been received by the Guarantee
Trustee in its capacity as such. The Guarantee Trustee may destroy any List of
Holders previously given to it on receipt of a new List of Holders.

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

        Section 2.3     Reports by the Guarantee Trustee

        Within 60 days after May 15 of each year commencing with May 15, [    ],
the Guarantee Trustee shall provide to the Holders such reports as are required
by Section 313 of the Trust Indenture Act, if any, in the form and in the manner
provided by Section 313 of the Trust Indenture Act. The Guarantee Trustee shall
also comply with the requirements of Section 313(d) of the Trust Indenture Act.

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        Section 2.4     Periodic Reports to the Guarantee Trustee

        The Guarantor shall provide to the Guarantee Trustee, the Securities and
Exchange Commission and the Holders, such documents, reports and information, if
any, as required by Section 314 of the Trust Indenture Act and the compliance
certificate required by Section 314 of the Trust Indenture Act, in the form, in
the manner and at the times required by Section 314 of the Trust Indenture Act.
The delivery of such reports, information and documents to the Guarantee Trustee
pursuant to this Section 2.4 is for informational purposes only and the
Guarantee Trustee's receipt of such shall not constitute constructive notice of
any information contained therein or determinable from information contained
therein, including the Company's compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officers'
Certificates) other than with respect to Section 3.2.

        Section 2.5     Evidence of Compliance with Conditions Precedent

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

        Section 2.6     Events of Default; Waiver

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

        Section 2.7     Event of Default; Notice

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

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

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        Section 2.8     Conflicting Interests

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

                                  ARTICLE III.
                 POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE

        Section 3.1     Powers and Duties of the Guarantee Trustee

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

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

                (c)     The Guarantee Trustee, before the occurrence of any
Event of Default and after the curing or waiver of all Events of Default that
may have occurred, shall undertake to perform only such duties as are
specifically set forth in this Guarantee Agreement, and no implied covenants
shall be read into this Guarantee Agreement against the Guarantee Trustee. In
case an Event of Default has occurred (that has not been cured or waived
pursuant to Section 2.6), the Guarantee Trustee shall exercise such of the
rights and powers vested in it by this Guarantee Agreement, and use the same
degree of care and skill in its exercise thereof, as a prudent person would
exercise or use under the circumstances in the conduct of his or her own
affairs.

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

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

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

                                (B)     in the absence of bad faith on the part
                                        of the Guarantee Trustee, the Guarantee
                                        Trustee may conclusively rely, as to

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                                        the truth of the statements and the
                                        correctness of the opinions expressed
                                        therein, upon any certificates or
                                        opinions furnished to the Guarantee
                                        Trustee and conforming to the
                                        requirements of this Guarantee
                                        Agreement; but in the case of any such
                                        certificates or opinions that by any
                                        provision hereof are specifically
                                        required to be furnished to the
                                        Guarantee Trustee, the Guarantee Trustee
                                        shall be under a duty to examine the
                                        same to determine whether or not they
                                        conform to the requirements of this
                                        Guarantee Agreement;

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

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

                        (iv)    no provision of this Guarantee shall require the
                                Guarantee Trustee to expend or risk its own
                                funds or otherwise incur personal financial
                                liability in the performance of any of its
                                duties or in the exercise of any of its rights
                                or powers, if the Guarantee Trustee shall have
                                reasonable grounds for believing that the
                                repayment of such funds or liability is not
                                reasonably assured to it under the terms of this
                                Guarantee Agreement or adequate indemnity
                                against such risk or liability is not reasonably
                                assured to it.

        Section 3.2     Certain Rights of the Guarantee Trustee

                (a)     Subject to the provisions of Section 3.1:

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

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

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

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

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

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

                        (vii)   The Guarantee Trustee may execute any of the
                                trusts or powers hereunder or perform any duties
                                hereunder either directly or by or

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                                through agents, attorneys, custodians or
                                nominees, and the Guarantee Trustee shall not be
                                responsible for any misconduct or negligence on
                                the part of any such agent, attorney, custodian
                                or nominee appointed with due care by it
                                hereunder.

                        (viii)  Any action taken by the Guarantee Trustee or its
                                agents hereunder shall bind the Holders, and the
                                signature of the Guarantee Trustee or its agents
                                alone shall be sufficient and effective to
                                perform any such action. No third party shall be
                                required to inquire as to the authority of the
                                Guarantee Trustee to so act or as to its
                                compliance with any of the terms and provisions
                                of this Guarantee Agreement, both of which shall
                                be conclusively evidenced by the Guarantee
                                Trustee's or its agent's taking such action.

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

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

        Section 3.3     Indemnity

        The Guarantor agrees to indemnify the Guarantee Trustee and its
officers, directors, employees and agents for, and to hold them harmless
against, any loss, liability, claim, damage or expense incurred without
negligence, bad faith or willful misconduct on the part of the Guarantee
Trustee, arising out of or in connection with the acceptance or administration
of this Guarantee Agreement, including the costs and expenses of defending
itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder and including the
reasonable fees and expenses of its counsel. The Guarantee Trustee will not
claim or exact any lien or charge on any Guarantee Agreement as a result of any
amount due to it under this Guarantee Agreement.

        The provisions of this Section 3.3 shall survive the termination of this
Guarantee Agreement or the resignation or removal of the Guarantee Trustee.

                                       10

<PAGE>

                                   ARTICLE IV.
                                GUARANTEE TRUSTEE

        Section 4.1     Guarantee Trustee; Eligibility

                (a)     There shall at all times be a Guarantee Trustee which
shall:

                        (i)     not be an Affiliate of the Guarantor or the
                                Depositor; and

                        (ii)    be a Person that is eligible pursuant to the
                                Trust Indenture Act to act as such and has a
                                combined capital of at least $50,000,000, and
                                shall be a corporation meeting the requirements
                                of Section 310(c) of the Trust Indenture Act. If
                                such corporation publishes reports of condition
                                at least annually, pursuant to law or to the
                                requirements of the supervising or examining
                                authority, then, for the purposes of this
                                Section 4.1(a)(ii), the combined capital and
                                surplus of such corporation shall be deemed to
                                be its combined capital and surplus as set forth
                                in its most recent report of condition so
                                published.

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

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

        Section 4.2     Appointment, Removal and Resignation of Guarantee
Trustees

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

                (b)     The Guarantee Trustee shall not be removed in accordance
with Section 4.2(a) until a Successor Guarantee Trustee has been appointed and
has accepted such appointment by written instrument executed by such Successor
Guarantee Trustee and delivered to the Guarantor.

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

                (d)     If no Successor Guarantee Trustee shall have been
appointed and accepted appointment as provided in this Section 4.2 within 60
days after delivery to the Guarantor of an

                                       11

<PAGE>

instrument of resignation, the resigning Guarantee Trustee may petition at the
expense of the Guarantor any court of competent jurisdiction for appointment of
a Successor Guarantee Trustee. Such court may thereupon, after prescribing such
notice, if any, as it may deem proper, appoint a Successor Guarantee Trustee.

                                   ARTICLE V.
                                   GUARANTEE

        Section 5.1     Guarantee

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

        Section 5.2     Waiver of Notice and Demand

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

        Section 5.3     Obligations Not Affected

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

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

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

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

                                       12

<PAGE>

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

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

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

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

        Section 5.4     Rights of Holders

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

        Section 5.5     Guarantee of Payment

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

        Section 5.6     Subrogation

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

                                       13

<PAGE>

        Section 5.7     Independent Obligations

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

        Section 5.8     Net Payments

        All Guarantee Payments required to be made hereunder shall be made by
the Guarantor without withholding or deduction at source for, or on account of,
any present or future taxes, fees, duties, assessments or governmental charges
of whatever nature imposed or levied by or on behalf of the Islands of Bermuda
or such other jurisdiction in which the Guarantor (or any of its successors
under the Guarantee Agreement) may be organized (each, a "taxing jurisdiction")
or any political subdivision or taxing authority thereof or therein, unless such
taxes, fees, duties, assessments or governmental charges are required to be
withheld or deducted by (i) the laws (or any regulations or ruling promulgated
thereunder) of a taxing jurisdiction or any political subdivision or taxing
authority thereof or therein or (ii) an official position regarding the
application, administration, interpretation or enforcement of any such laws,
regulations or rulings (including, without limitation, a holding by a court of
competent jurisdiction or by a taxing authority in a taxing jurisdiction or any
political subdivision thereof). If a withholding or deduction at source is
required, the Guarantor shall, subject to certain limitations and exceptions set
forth below, pay to the Holder of any Preferred Security such Additional Amounts
as may be necessary so that every Guarantee Payment made to such Holder, after
such withholding or deduction, shall not be less than the amount provided for in
this Guarantee Agreement to be then due and payable; provided, however, that the
Guarantor shall not be required to make payment of such Additional Amounts for
or on account of:

        (1)     any tax, fee, duty, assessment or governmental charge of
                whatever nature which would not have been imposed but for the
                fact that such Holder: (A) was a resident, domiciliary or
                national of, or engaged in business or maintained a permanent
                establishment or was physically present in, the relevant taxing
                jurisdiction or any political subdivision thereof or otherwise
                had some connection with the relevant taxing jurisdiction other
                than by reason of the mere ownership of, or receipt of payment
                under, such Preferred Security; (B) presented, where
                presentation is required, such Preferred Security for payment in
                the relevant taxing jurisdiction or any political subdivision
                thereof, unless such Preferred Security could not have been
                presented for payment elsewhere; or (C) presented, where
                presentation is required, such Preferred Security more than
                thirty (30) days after the date on which the payment in respect
                of such Preferred Security first became due and payable or
                provided for, whichever is later, except to the extent that the
                Holder would have been entitled to such Additional Amounts if it
                had presented such Preferred Security for payment on any day
                within such period of thirty (30) days;

                                       14

<PAGE>

        (2)     any estate, inheritance, gift, sale, transfer, personal property
                or similar tax, assessment or other governmental charge;

        (3)     any tax, assessment or other governmental charge that is imposed
                or withheld by reason of the failure by the Holder or the
                beneficial owner of such Preferred Security to comply with any
                reasonable request by the Guarantor or the Trust addressed to
                the Holder within 90 days of such request (A) to provide
                information concerning the nationality, residence or identity of
                the Holder or such beneficial owner or (B) to make any
                declaration or other similar claim or satisfy any information or
                reporting requirement, which is required or imposed by statute,
                treaty, regulation or administrative practice of the relevant
                taxing jurisdiction or any political subdivision thereof as a
                precondition to exemption from all or part of such tax,
                assessment or other governmental charge;

        (4)     any withholding or deduction required to be made pursuant to any
                EU Directive on the taxation of savings implementing the
                conclusions of the ECOFIN Council meetings of 26-27 November
                2000, 3 June 2003 or any law implementing or complying with, or
                introduced in order to conform to, such EU Directive; or

        (5)     any combination of items (1), (2), (3) and (4);

nor shall Additional Amounts be paid with respect to any Guarantee Payment to
any Holder who is a fiduciary or partnership or other than the sole beneficial
owner of the related Preferred Security, but only to the extent such payment
would be required by the laws of the relevant taxing jurisdiction (or any
political subdivision or relevant taxing authority thereof or therein) to be
included in the income for tax purposes of a beneficiary or partner or settlor
with respect to such fiduciary or a member of such partnership or a beneficial
owner who would not have been entitled to such Additional Amounts had it been
the Holder of such Preferred Security.

                                   ARTICLE VI.
                       LIMITATION OF TRANSACTIONS; RANKING

        Section 6.1     Limitation of Transactions

        The Guarantor hereby covenants and agrees that, so long as any Preferred
Securities remain outstanding, it will not, and will not permit any of its
Subsidiaries to, (a) declare or pay any dividends or distributions on, or
redeem, purchase, acquire or make a liquidation payment with respect to, any of
the outstanding capital shares of the Guarantor or (b) make any payment of
principal of, interest or premium, if any, on or repay, repurchase or redeem any
debt security of the Guarantor that ranks junior in interest to the Debentures
or the guarantee in respect thereof, as the case may be, or make any guarantee
payments with respect to any guarantee by the Guarantor of the debt securities
of any Subsidiary of the Guarantor if such guarantee ranks junior in interest to
the Debentures or the guarantee in respect thereof, as the case may be (other
than (i) dividends or distributions in Common Shares (as defined in the
Indenture) of the Guarantor, (ii) redemptions or purchases of any rights
outstanding under a shareholder rights plan of the Guarantor or the declaration
of a dividend of such rights or the issuance of stock or shares under such plans
in the future, (iii) payments under any preferred securities guarantee, and

                                       15

<PAGE>

(iv) purchases of Common Shares related to the issuance of Common Shares under
any benefit plans of the Guarantor for its directors, officers or employees) if
at such time (1) there shall have occurred any event of which the Guarantor has
actual knowledge that (A) with the giving of notice or the lapse of time or
both, would constitute an Event of Default under the Indenture and (B) in
respect of which the Guarantor, as the case may be, shall not have taken
reasonable steps to cure, (2) the Guarantor shall be in default with respect to
its payment of any obligations under this Guarantee Agreement or (3) the
Guarantor shall have given notice of its election to begin an Extension Period
(as defined in the Indenture) with respect to the Debentures as provided in the
Indenture and shall not have rescinded such notice, or such Extension Period, or
any extension thereof, shall be continuing.

        Section 6.2     Ranking

        This Guarantee will constitute an unsecured obligation of the Guarantor
and will rank subordinate and junior in right of payment to all Senior
Indebtedness of the Guarantor. The obligations of the Guarantor hereunder do not
constitute Senior Indebtedness of the Guarantor.

        Section 6.3     Pari Passu Guarantees

        This Guarantee Agreement shall rank pari passu with the Expense
Agreement (as defined in the Trust Agreement) and any similar Guarantee
Agreements issued by the Guarantor on behalf of holders of preferred securities
of any trust, partnership or other entity affiliated with the Guarantor which is
a financing vehicle of the Guarantor or any Affiliate of the Guarantor in
connection with the issuance by such entity of preferred securities or other
securities which are similar to preferred securities that are guaranteed by the
Guarantor pursuant to an instrument that ranks pari passu with or junior in
right of payment to this Guarantee Agreement.

                                  ARTICLE VII.
                                  TERMINATION

        Section 7.1     Termination

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

                                  ARTICLE VIII.
                                  MISCELLANEOUS

        Section 8.1     Successors and Assigns

        All guarantees and agreements contained in this Guarantee Agreement
shall bind the successors, assigns, receivers, trustees and representatives of
the Guarantor and shall inure to the benefit of the Holders of the Preferred
Securities then outstanding. Except in connection with a

                                       16

<PAGE>

consolidation, merger, or sale involving the Guarantor that is permitted under
Article [   ] of the Indenture and pursuant to which the assignee agrees in
writing to perform the Guarantor's obligations hereunder, the Guarantor shall
not assign its obligations hereunder.

        Section 8.2     Amendments

        Except with respect to any changes that do not adversely affect the
rights of Holders in any material respect (in which case no consent of Holders
will be required), this Guarantee Agreement may only be amended in writing by
the parties hereto with the prior approval of the Holders of at least a Majority
in liquidation preference of the Preferred Securities. The provisions of [     ]
of the Trust Agreement concerning meetings of Holders apply to the giving of
such approval.

        Section 8.3     Notices

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

                (a)     If given to the Guarantee Trustee, at the Guarantee
Trustee's mailing address set forth below (or such other address as the
Guarantee Trustee may give notice of to the Guarantor and the Holders):

                        [               ]

                (b)     If given to the Guarantor, at the Guarantor's mailing
address set forth below (or such other address as the Guarantor may give notice
of to the Holders):

                        Montpelier Re Holdings Ltd.
                        Mintflower Place
                        8 Par-La-Ville Road
                        Hamilton HM 08
                        Bermuda
                        Attention: [               ]

                with a copy to:

                        LeBoeuf, Lamb, Greene & MacRae, L.L.P.
                        125 West 55th Street
                        New York, New York 10019
                        Attention: [               ]

                (c)     If given to the Issuer, in care of the Guarantee
Trustee, at the Issuer's (and the Guarantee Trustee's) address set forth below
or such other address as the Guarantee Trustee on behalf of the Issuer may give
notice to the Holders:

                                       17

<PAGE>

                        MRH Capital Trust I
                        c/o Montpelier Re Holdings Ltd.
                        Mintflower Place
                        8 Par-La-Ville Road
                        Hamilton HM 08
                        Bermuda
                        Attention: [               ]

                with a copy to:

                        LeBoeuf, Lamb, Greene & MacRae, L.L.P.
                        125 West 55th Street
                        New York, New York 10019
                        Attention: [               ]

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

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

        Section 8.4     Benefit

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

        Section 8.5     Governing Law

        THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE
AND PERFORMED IN THAT STATE.

        Section 8.6     Interpretation

        In this Guarantee, unless the context otherwise requires:

                (a)     capitalized terms used in this Guarantee Agreement, but
not defined in the preamble hereto have the respective meanings assigned to them
in this Section 1.1 or in the Trust Agreement, as the case may be;

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

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

                                       18

<PAGE>

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

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

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

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

        Section 8.7     Submission to Jurisdiction

        The Guarantor agrees that any judicial proceedings instituted in
relation to any matter arising under this Guarantee Agreement may be brought in
any United States Federal or New York State court sitting in the Borough of
Manhattan, The City of New York, New York to the extent that such court has
subject matter jurisdiction over the controversy, and, by execution and delivery
of this Guarantee Agreement, the Guarantor hereby irrevocably accepts, generally
and unconditionally, the jurisdiction of the aforesaid courts, acknowledges
their competence and irrevocably agrees to be bound by any judgment rendered in
such proceeding. The Guarantor also irrevocably and unconditionally waives for
the benefit of the Guarantee Trustee and the Holders any immunity from
jurisdiction and any immunity from legal process (whether through service or
notice, attachment prior to judgment, attachment in the aid of execution,
execution or otherwise) in respect of this Guarantee Agreement. The Guarantor
hereby irrevocably designates and appoints for the benefit of the Guarantee
Trustee and the Holders for the term of this Guarantee Agreement
[             ], as its agent to receive on its behalf service of all process
(with a copy of all such service of process to be delivered to LeBoeuf, Lamb,
Greene & MacRae, L.L.P., 125 West 55th Street, New York, New York 10019,
Attention: [             ]) brought against it with respect to any such
proceeding in any such court in The City of New York, such service being hereby
acknowledged by the Guarantor to be effective and binding service on it in every
respect whether or not the Guarantor shall then be doing or shall have at any
time done business in New York. Such appointment shall be irrevocable so long as
any of the Preferred Securities or the obligations of the Guarantor hereunder
remain outstanding, or until the appointment of a successor by the Guarantor and
such successor's acceptance of such appointment. Upon such acceptance, the
Guarantor shall notify the Guarantee Trustee in writing of the name and address
of such successor. The Guarantor further agrees for the benefit of the Guarantee
Trustee and the Holders to take any and all action, including the execution and
filing of any and all such documents and instruments, as may be necessary to
continue such designation and appointment of said [Agent Name] in full force and
effect so long as any of the Preferred Securities or the obligations of the
Guarantor hereunder shall be outstanding. The Guarantee Trustee shall not be
obligated and shall have no responsibility with respect to any failure by the
Guarantor to take any such action. Nothing herein shall affect the right to
serve process in any other manner permitted by any law or limit the right of the
Guarantee Trustee or any Holder to institute proceedings against the Guarantor
in the courts of any other jurisdiction or jurisdictions.

                                       19

<PAGE>

        Section 8.8     Judgment Currency

        The Guarantor agrees, to the fullest extent that it may effectively do
so under applicable law, that (a) if for the purpose of obtaining judgment in
any court it is necessary to convert the sum due in respect of any Guarantee
Payment (the "Required Currency") into a currency in which a judgment will be
rendered (the "Judgment Currency"), the rate of exchange used shall be the rate
at which in accordance with normal banking procedures the Guarantee Trustee
could purchase in The City of New York the requisite amount of the Required
Currency with the Judgment Currency on the New York Banking Day preceding the
day on which a final unappealable judgment is given and (b) its obligations
under this Guarantee Agreement to make payments in the Required Currency (i)
shall not be discharged or satisfied by any tender, or any recovery pursuant to
any judgment (whether or not entered in accordance with clause (a)), in any
currency other than the Required Currency, except to the extent that such tender
or recovery shall result in the actual receipt, by the payee, of the full amount
of the Required Currency expressed to be payable in respect of such payments,
(ii) shall be enforceable as an alternative or additional cause of action for
the purpose of recovering in the Required Currency the amount, if any, by which
such actual receipt shall fall short of the full amount of the Required Currency
so expressed to be payable and (iii) shall not be affected by judgment being
obtained for any other sum due under this Guarantee Agreement. For purposes of
the foregoing, "New York Banking Day" means any day except a Saturday, Sunday or
a legal holiday in The City of New York or a day on which banking institutions
in The City of New York are authorized or obligated by law, regulation or
executive order to be closed.

                [THE REST OF THIS PAGE LEFT INTENTIONALLY BLANK]

                                       20

<PAGE>

        THIS GUARANTEE AGREEMENT is executed as of the day and year first above
written.

                                        MONTPELIER RE HOLDINGS LTD.,
                                         as Guarantor

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

[SEAL]
                                        [                ],
                                         as Guarantee Trustee

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                       21<PAGE>

                                                                    EXHIBIT 4.19

================================================================================

                           MONTPELIER RE HOLDINGS LTD.

                                       AND

                            [                      ],

                                  as Depositary

                                       AND

                         HOLDERS OF DEPOSITARY RECEIPTS

                                     FORM OF

                                DEPOSIT AGREEMENT

                          Dated as of [       ], 200__

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                           <C>
ARTICLE I          DEFINITIONS.................................................................................1

ARTICLE II         FORM OF RECEIPTS, DEPOSIT OF PREFERENCE SHARES, EXECUTION AND DELIVERY, TRANSFER,
                   SURRENDER, REDEMPTION AND CONVERSION OF RECEIPTS............................................2

   Section 2.01.   Form and Transfer of Receipts...............................................................2
   Section 2.02.   Deposit of Preference Shares; Execution and Delivery of Receipts in Respect Thereof.........3
   Section 2.03.   Redemption and Conversion of Preference Shares..............................................4
   Section 2.04.   Register of Transfer of Receipts............................................................6
   Section 2.05.   Combination and Split-ups of Receipts.......................................................7
   Section 2.06.   Surrender of Receipts and Withdrawal of Preference Shares...................................7
   Section 2.07.   Limitations on Execution and Delivery, Transfer, Split-up, Combination, Surrender and
                   Exchange of Receipts and Withdrawal or Deposit of Preference Shares.........................8
   Section 2.08.   Lost Receipts, etc..........................................................................8
   Section 2.09.   Cancellation and Destruction of Surrendered Receipts........................................8

ARTICLE III        CERTAIN OBLIGATIONS OF HOLDERS OF RECEIPTS AND THE COMPANY..................................9

   Section 3.01.   Filing Proofs, Certificates and Other Information...........................................9
   Section 3.02.   Payment of Taxes or Other Governmental Charges..............................................9
   Section 3.03.   Withholding.................................................................................9
   Section 3.04.   Representations and Warranties as to Ordinary Shares........................................9

ARTICLE IV         THE PREFERENCE SHARES, NOTICES.............................................................10

   Section 4.01.   Cash Distributions.........................................................................10
   Section 4.02.   Distributions Other Than Cash..............................................................10
   Section 4.03.   Subscription Rights, Preferences or Privileges.............................................10
   Section 4.04.   Notice of Dividends, Fixing of Record Date for Holders of Receipts.........................11
   Section 4.05.   Voting Rights..............................................................................12
   Section 4.06.   Changes Affecting Preference Shares and Reclassifications, Recapitalizations, etc..........12
   Section 4.07.   Reports....................................................................................12
   Section 4.08.   Lists of Receipt Holders...................................................................12

ARTICLE V          THE DEPOSITARY, THE DEPOSITARY'S AGENTS, THE REGISTRAR AND THE COMPANY.....................13

   Section 5.01.   Maintenance of Offices, Agencies, Transfer Books by the Depositary; the Registrar..........13
   Section 5.02.   Prevention or Delay in Performance by the Depositary, the Depositary's Agents, the
                   Registrar or the Company...................................................................13
   Section 5.03.   Obligations of the Depositary, the Depositary's Agents, the Registrar and the Company......14
</TABLE>

                                       -i-

<PAGE>

<TABLE>
<S>                                                                                                           <C>
   Section 5.04.   Resignation and Removal of the Depositary, Appointment of Successor Depositary.............15
   Section 5.05.   Corporate Notices and Reports..............................................................16
   Section 5.06.   Deposit of Preference Shares by the Company................................................16
   Section 5.07.   Indemnification by the Company.............................................................16
   Section 5.08.   Fees, Charges and Expenses.................................................................16

ARTICLE VI         AMENDMENT AND TERMINATION..................................................................17

   Section 6.01.   Amendment..................................................................................17
   Section 6.02.   Termination................................................................................17

ARTICLE VII        MISCELLANEOUS..............................................................................18

   Section 7.01.   Counterparts...............................................................................18
   Section 7.02.   Exclusive Benefits of Parties..............................................................18
   Section 7.03.   Invalidity of Provisions...................................................................18
   Section 7.04.   Notices....................................................................................18
   Section 7.05.   Depositary's Agents........................................................................19
   Section 7.06.   Holders of Receipts Are Parties............................................................19
   Section 7.07.   Governing Law..............................................................................19
   Section 7.08.   Headings...................................................................................19
</TABLE>

                                      -ii-

<PAGE>

                                DEPOSIT AGREEMENT

        DEPOSIT AGREEMENT, dated as of [       ],200__, among Montpelier Re
Holdings Ltd., a company incorporated and organized under the laws of Bermuda
(the "Company"),         [       ], a [          ], as Depositary (the
"Depositary"), and all holders from time to time of Receipts issued hereunder.

                              W I T N E S S E T H:

        WHEREAS, the Company desires to provide as hereinafter set forth in this
Deposit Agreement, for the deposit of Preference Shares (as hereinafter defined)
with the Depositary (as hereinafter defined), as agent for the beneficial owners
of the Preference Shares, for the purposes set forth in this Deposit Agreement
and for the issuance hereunder of the Receipts evidencing Depositary Shares (as
hereinafter defined) representing an interest in the Preference Shares so
deposited;

        NOW, THEREFORE, in consideration of the premises contained herein, it is
agreed by and among the parties hereto as follows:

                                    ARTICLE I

                                   DEFINITIONS

        The following definitions shall apply to the respective terms (in the
singular and plural forms of such terms) used in this Deposit Agreement and the
Receipts:

        "Certificate" shall mean the document evidencing the preferences and
rights of a series of the Preference Shares adopted by the Board of Directors of
the Company establishing a series of the Preference Shares as a series of
preference shares of the Company.

        "Common Shares" shall mean the Company's Common Shares, par value 1/6
cent per share.

        "Corporate Office" shall mean the office of the Depositary in
[         ], [      ] at which at any particular time its business in respect of
matters governed by this Deposit Agreement shall be administered, which at the
date of this Deposit Agreement is located at [ ].

        "Deposit Agreement" shall mean this agreement, as the same may be
amended, modified or supplemented from time to time.

        "Depositary Share" shall mean the rights evidenced by the Receipts
executed and delivered hereunder, including the interests in Preference Shares
granted to holders of Receipts pursuant to the terms and conditions of the
Deposit Agreement. Each Depositary Share shall represent an interest in [insert
fractional interest] of a share of Preference Shares deposited with the
Depositary hereunder and the same proportionate interest in any and all other
property received by the Depositary in respect of such share of Preference
Shares and held under this Deposit Agreement. Subject to the terms of this
Deposit Agreement, each record holder of a

<PAGE>

Receipt evidencing a Depositary Share or Shares is entitled, proportionately, to
all the rights, preferences and privileges of the Preference Shares represented
by such Depositary Share or Shares, including the dividend, voting and
liquidation rights contained in the applicable Certificate, and to the benefits
of all obligations and duties of the Company in respect of the Preference Shares
under the Memorandum of Association (including the applicable Certificate).

        "Depositary's Agent" shall mean an agent appointed by the Depositary as
provided, and for the purposes specified, in Section 7.05.

        "Memorandum of Association" shall mean the Memorandum of Association, as
amended and restated from time to time, of the Company.

        "New York Office" shall mean the facility maintained by the Depositary
in the Borough of Manhattan, The City of New York for accepting, executing and
delivering Receipts and other instruments prior to processing such instruments
at the Corporate Office, which facility at the date of this Deposit Agreement is
located at [               ].

        "Preference Shares" shall mean shares of the Company's Preference
Shares, [       ] par value per share.

        "Receipt" shall mean one of the depositary receipts issued hereunder,
whether in definitive or temporary form, evidencing one or more Depositary
Shares.

        "Record holder" or "Holder" as applied to a Receipt shall mean the
person in whose name a Receipt is registered on the books maintained by or on
behalf of the Depositary for such purpose.

        "Registrar" shall mean any bank or trust company appointed to register
ownership and transfers of Receipts as herein provided.

        "Securities Act" shall mean the Securities Act of 1933, as amended.

                                   ARTICLE II

                 FORM OF RECEIPTS, DEPOSIT OF PREFERENCE SHARES,
                  EXECUTION AND DELIVERY, TRANSFER, SURRENDER,
                      REDEMPTION AND CONVERSION OF RECEIPTS

        Section 2.01. Form and Transfer of Receipts. Definitive Receipts shall
be engraved or printed or lithographed on steel-engraved borders and shall be
substantially in the form set forth in Exhibit A annexed to this Deposit
Agreement, with appropriate insertions, modifications and omissions, as
hereinafter provided. Pending the preparation of definitive Receipts, the
Depositary, upon the written order of the Company delivered in compliance with
Section 2.02, shall execute and deliver temporary Receipts which are printed,
lithographed, typewritten, mimeographed or otherwise substantially of the tenor
of the definitive Receipts in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the
persons executing such Receipts may determine, as evidenced by their execution
of such Receipts. If temporary Receipts are issued, the Company and the
Depositary will cause

                                       -2-

<PAGE>

definitive Receipts to be prepared without unreasonable delay. After the
preparation of definitive Receipts, the temporary Receipts shall be exchangeable
for definitive Receipts upon surrender of the temporary Receipts at the
Corporate Office, the New York Office, or such other office as the Depositary
may designate, without charge to the holder. Upon surrender for cancellation of
any one or more temporary Receipts, the Depositary shall execute and deliver in
exchange therefor definitive Receipts representing the same number of Depositary
Shares as represented by the surrendered temporary Receipt or Receipts. Such
exchange shall be made at the Company's expense and without any charge thereof.
Until so exchanged, the temporary Receipts shall in all respects be entitled to
the same benefits under this Deposit Agreement, and with respect to the
Preference Shares, as definitive Receipts.

        Receipts shall be executed by the Depositary by the manual signature of
a duly authorized signatory of the Depositary; provided, however, that such
signature may be a facsimile if a Registrar (other than the Depositary) shall
have countersigned the Receipts by manual signature of a duly authorized
signatory of the Registrar. No Receipt shall be entitled to any benefits under
this Deposit Agreement or be valid or obligatory for any purpose unless it shall
have been executed as provided in the preceding sentence. The Depositary shall
record on its books each Receipt executed as provided above and delivered as
hereinafter provided. Receipts bearing the facsimile signature of anyone who was
at any time a duly authorized officer of the Depositary shall bind the
Depositary, notwithstanding that such officer has ceased to hold such office
prior to the delivery of such Receipts.

        Receipts may be issued in denominations of any number of whole
Depositary Shares.

        Receipts may be endorsed with or have incorporated in the text thereof
such legends or recitals or changes not inconsistent with the provisions of this
Deposit Agreement as may be required by the Depositary or required to comply
with any applicable law or regulation or with the rules and regulations of any
securities exchange upon which the Preference Shares or the Depositary Shares
may be listed or to conform with any usage with respect thereto, or to indicate
any special limitations or restrictions to which any particular Receipts are
subject by reason of the date of issuance of the Preference Shares or otherwise.

        Title to any Receipt (and to the Depositary Shares evidenced by such
Receipt) that is properly endorsed or accompanied by a properly executed
instrument of transfer shall be transferable by delivery with the same effect as
in the case of a negotiable instrument; provided, however, that the Depositary
may, notwithstanding any notice to the contrary, treat the record holder thereof
at such time as the absolute owner thereof for the purpose of determining the
person entitled to distributions of dividends or other distributions or to any
notice provided for in this Deposit Agreement and for all other purposes.

        Section 2.02. Deposit of Preference Shares; Execution and Delivery of
Receipts in Respect Thereof. Subject to the terms and conditions of this Deposit
Agreement, the Company or any holder of Preference Shares may deposit such
Preference Shares under this Deposit Agreement by delivery to the Depositary of
a certificate or certificates for the Preference Shares to be deposited,
properly endorsed or accompanied, if required by the Depositary, by a properly
executed instrument of transfer in form satisfactory to the Depositary, together
with (i) all such certifications as may be required by the Depositary in
accordance with the provisions of this

                                       -3-

<PAGE>

Deposit Agreement and (ii) a written order of the Company or such holder, as the
case may be, directing the Depositary to execute and deliver to or upon the
written order of the person or persons stated in such order a Receipt or
Receipts for the number of Depositary Shares representing such deposited
Preference Shares.

        Upon receipt by the Depositary of a certificate or certificates for
Preference Shares deposited in accordance with the provisions of this Section,
together with the other documents required as above specified, and upon
recordation of the Preference Shares so deposited in the register of members of
the Company in the name of the Depositary or its nominee, the Depositary,
subject to the terms and conditions of this Deposit Agreement, shall execute and
deliver, to or upon the order of the person or persons named in the written
order delivered to the Depositary referred to in the first paragraph of this
Section, a Receipt or Receipts for the number of Depositary Shares relating to
the Preference Shares so deposited and registered in such name or names as may
be requested by such person or persons. The Depositary shall execute and deliver
such Receipt or Receipts at the Corporate Office, the New York Office, or such
other office, if any, as the Depositary may designate. Delivery at other offices
shall be at the risk and expense of the person requesting such delivery.

        The Company shall deliver to the Depositary from time to time such
quantities of Receipts as the Depositary may request to enable the Depositary to
perform its obligations under this Deposit Agreement.

        Section 2.03. Redemption and Conversion of Preference Shares./1/
Whenever the Company shall elect to redeem or be required to convert shares of
Preference Shares into shares of Common Shares in accordance with the applicable
Certificate, it shall (unless otherwise agreed in writing with the Depositary)
give the Depositary in its capacity as Depositary not less than 5 business days'
prior notice of the proposed date of the mailing of a notice of redemption or
conversion of Preference Shares and the simultaneous redemption or conversion of
the Depositary Shares representing the Preference Shares to be redeemed or
converted and of the number of such shares of Preference Shares held by the
Depositary to be redeemed or converted. The Depositary shall, as directed by the
Company in writing, mail, first class postage prepaid, notice of the redemption
or conversion of Preference Shares and the proposed simultaneous redemption or
conversion of the Depositary Shares representing the Preference Shares to be
redeemed or converted, not less than 30 and not more than 60 days prior to the
date fixed for redemption or conversion of such Preference Shares and Depositary
Shares, to the record holders of the Receipts evidencing the Depositary Shares
to be so redeemed or converted, at the addresses of such holders as the same
appear on the records of the Depositary; provided, that if the effectiveness of
a Merger or Consolidation (as defined in the applicable Certificate) makes it
impracticable to provide at least 30 days' notice, the Depositary shall provide
such notice as soon as practicable prior to such effectiveness. Any such notice
shall also be published in the same manner as notices of redemption or
conversion of Preference Shares are required to be published pursuant to the
applicable Certificate. Notwithstanding the foregoing, neither failure to mail
or publish any such notice to one or more such holders nor any defect in any
notice shall affect the sufficiency of the proceedings for redemption or
conversion. The Company shall provide the

----------
/1/     This section to be modified to discuss specific redemption or conversion
terms of the Preference Shares, if any.

                                       -4-

<PAGE>

Depositary with such notice, and each such notice shall state: the redemption or
conversion date; the number of Depositary Shares to be redeemed or converted; if
fewer than all the Depositary Shares held by any holder are to be redeemed, the
number of such Depositary Shares held by such holder to be so redeemed; in the
case of a call for redemption, the call price payable upon redemption; whether
the Company is exercising any option in the applicable Certificate to deliver
Common Shares in lieu of any cash consideration and the method used to calculate
the number of such shares; the place or places where Receipts evidencing
Depositary Shares to be redeemed or converted are to be surrendered for
redemption or conversion; whether the Company is depositing with a bank or trust
company on or before the redemption or conversion date, the Common Shares and
cash, if any, payable by the Company and the proposed date of such deposit; the
amount of accrued and unpaid dividends payable per share of Preference Shares to
be redeemed or converted to and including such redemption or conversion date, as
the case may be, and that dividends in respect of the Preference Shares
represented by the Depositary Shares to be redeemed or converted will cease to
accrue on such redemption or conversion date (unless the Company shall default
in delivering Common Shares and cash, if any, at the time and place specified in
such notice).

        On the date of any such redemption or conversion, the Preference Shares
of the Depositary shall be automatically redeemed or converted and the
Depositary shall surrender to the Company the certificate or certificates held
by the Depositary evidencing the number of Preference Shares so redeemed or
converted in the manner specified in the notice of redemption or conversion of
Preference Shares provided by the Company pursuant to the applicable Certificate
with an instrument of transfer for transfer of all the Common Shares to be
issued in such redemption or conversion to the record holders of Receipts. The
Depositary shall, thereafter, redeem or convert the number of Depositary Shares
representing such redeemed or converted Preference Shares upon the surrender of
Receipts evidencing such Depositary Shares in the manner provided in the notice
sent to record holders of Receipts; provided, that the Depositary shall have
received, upon surrendering such certificate or certificates as aforesaid, a
sufficient number of Common Shares registered in the name of the holders of
Receipts to convert or redeem such number of Depositary Shares (including, in
the event that the Company elects pursuant to the applicable Certificate to
exercise any option to deliver Common Shares in lieu of any cash consideration
payable on the Effective Date (as defined in the applicable Certificate) of any
Merger or Consolidation, a number of Common Shares equal to such cash
consideration (as determined in the manner set forth in the applicable
Certificate)), plus any accrued and unpaid dividends payable with respect
thereto to and including the date of any such redemption or conversion and any
other cash consideration payable on the Effective Date of a Merger or
Consolidation (other than any dividends or other cash consideration payable on
the Effective Date of a Merger or Consolidation that the Company has elected to
pay in Common Shares pursuant to the applicable Certificate) as instructed and
calculated by the Company. In case fewer than all the outstanding Depositary
Shares are to be redeemed, the Depositary Shares to be redeemed shall be
selected by the Depositary by lot or on a pro rata basis.

        Notice having been mailed by the Depositary as aforesaid, from and after
the redemption or conversion date (unless the Company shall have failed to
redeem or convert the Preference Shares to be redeemed or converted by it upon
the surrender of the certificate or certificates therefor by the Depositary as
described in the preceding paragraph), the Depositary Shares called for
redemption or subject to conversion shall be deemed no longer to be outstanding
and all

                                       -5-

<PAGE>

rights of the holders of Receipts evidencing such Depositary Shares (except the
right to receive the Common Shares and cash, if any, payable upon redemption or
conversion upon surrender of such Receipts) shall, to the extent of such
Depositary Shares, cease and terminate. Upon surrender in accordance with said
notice of the Receipts evidencing such Depositary Shares (properly endorsed or
assigned for transfer, if the Depositary shall so require), such Depositary
Shares shall be exchanged for Common Shares at a rate equal to [insert
fractional interest] of the number of Common Shares delivered, and the holders
thereof shall be entitled to [insert fractional interest] of the cash, if any,
payable, in respect of the shares of Preference Shares pursuant to the
applicable Certificate. The foregoing shall be subject further to the terms and
conditions of the applicable Certificate.

        If fewer than all of the Depositary Shares evidenced by a Receipt are
called for redemption, the Depositary will deliver to the holder of such Receipt
upon its surrender to the Depositary, together with the Common Shares and all
accrued and unpaid dividends to and including the date fixed for redemption
payable in respect of the Depositary Shares called for redemption, a new Receipt
evidencing the Depositary Shares evidenced by such prior Receipt and not called
for redemption.

        To the extent that Depositary Shares are exchanged for Common Shares and
all of such Common Shares cannot be distributed to the record holders of
Receipts converted or called for redemption without creating fractional
interests in such shares, the Depositary may, with the consent of the Company,
adopt such method as it deems equitable and practicable for the purpose of
effecting such distribution, including the sale (at public or private sale) of
such Common Shares at such place or places and upon such terms as it may deem
proper, and the net proceeds of any such sale shall, subject to Section 3.02, be
distributed or made available for distribution to such record holders that would
otherwise receive fractional interests in such Common Shares.

        The Depositary shall not be required (a) to issue, transfer or exchange
any Receipts for a period beginning at the opening of business 15 days next
preceding any selection of Depositary Shares and Preference Shares to be
redeemed and ending at the close of business on the day of the mailing of notice
of redemption of Depositary Shares or (b) to transfer or exchange for another
Receipt any Receipt evidencing Depositary Shares called or being called for
redemption, in whole or in part, or subject to conversion except as provided in
the second preceding paragraph of this Section 2.03.

        Section 2.04. Register of Transfer of Receipts. Subject to the terms and
conditions of this Deposit Agreement, the Depositary shall register on its books
from time to time transfers of Receipts upon any surrender thereof at the
Corporate Office, the New York Office or such other office as the Depositary may
designate for such purpose, by the record holder in person or by a duly
authorized attorney, properly endorsed or accompanied by a properly executed
instrument of transfer, together with evidence of the payment of any transfer
taxes as may be required by law. Upon such surrender, the Depositary shall
execute a new Receipt or Receipts and deliver the same to or upon the order of
the person entitled thereto evidencing the same aggregate number of Depositary
Shares evidenced by the Receipt or Receipts surrendered.

                                       -6-

<PAGE>

        Section 2.05. Combination and Split-ups of Receipts. Upon surrender of a
Receipt or Receipts at the Corporate Office, the New York Office or such other
office as the Depositary may designate for the purpose of effecting a split-up
or combination of Receipts, subject to the terms and conditions of this Deposit
Agreement, the Depositary shall execute and deliver a new Receipt or Receipts in
the authorized denominations requested evidencing the same aggregate number of
Depositary Shares evidenced by the Receipt or Receipts surrendered; provided,
however, that the Depositary shall not issue any Receipt evidencing a fractional
Depositary Share.

        Section 2.06. Surrender of Receipts and Withdrawal of Preference
Shares./2/ Any holder of a Receipt or Receipts may withdraw any or all of the
Preference Shares (but only in whole shares of Preference Shares) represented by
the Depositary Shares evidenced by such Receipts and all money and other
property, if any, represented by such Depositary Shares by surrendering such
Receipt or Receipts at the Corporate Office, the New York Office or at such
other office as the Depositary may designate for such withdrawals. After such
surrender, without unreasonable delay, the Depositary shall deliver to such
holder, or to the person or persons designated by such holder as hereinafter
provided, the whole number of Preference Shares and all such money and other
property, if any, represented by the Depositary Shares evidenced by the Receipt
or Receipts so surrendered for withdrawal. If the Receipt or Receipts delivered
by the holder to the Depositary in connection with such withdrawal shall
evidence a number of Depositary Shares in excess of the number of whole
Depositary Shares representing the whole number of Preference Shares to be
withdrawn, the Depositary shall at the same time, in addition to such whole
number of Preference Shares and such money and other property, if any, to be
withdrawn, deliver to such holder, or (subject to Section 2.04) upon his order,
a new Receipt or Receipts evidencing such excess number of whole Depositary
Shares. Delivery of the Preference Shares and such money and other property
being withdrawn may be made by the delivery of such certificates, documents of
title and other instruments as the Depositary may deem appropriate, which, if
required by the Depositary, shall be properly endorsed or accompanied by proper
instruments of transfer.

        If the Preference Shares and the money and other property being
withdrawn are to be delivered to a person or persons other than the record
holder of the Receipt or Receipts being surrendered for withdrawal of Preference
Shares, such holder shall execute and deliver to the Depositary a written order
so directing the Depositary and the Depositary may require that the Receipt or
Receipts surrendered by such holder for withdrawal of such shares of Preference
Shares be properly endorsed in blank or accompanied by a properly executed
instrument of transfer in blank and that the signature on such instrument of
transfer be guaranteed by an eligible guarantor institution (banks,
stockbrokers, savings and loan associations and credit unions with membership in
an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of
the Securities Exchange Act of 1934, as amended.

        The Depositary shall deliver the Preference Shares and the money and
other property, if any, represented by the Depositary Shares evidenced by
Receipts surrendered for withdrawal, without unreasonable delay, at the office
at which such Receipts were surrendered, except that, at the request, risk and
expense of the holder surrendering such Receipt or Receipts and for the

----------
/2/     This Section to be modified to reflect any restrictions on withdrawal of
underlying securities.

                                       -7-

<PAGE>

account of the holder thereof, such delivery may be made, without unreasonable
delay, at such other place as may be designated by such holder.

        Section 2.07. Limitations on Execution and Delivery, Transfer, Split-up,
Combination, Surrender and Exchange of Receipts and Withdrawal or Deposit of
Preference Shares. As a condition precedent to the execution and delivery,
registration of transfer, split-up, combination, surrender or exchange of any
Receipt, the delivery of any distribution thereon or the withdrawal or deposit
of Preference Shares, the Depositary, any of the Depositary's Agents or the
Company may require any or all of the following: (i) payment to it of a sum
sufficient for the payment (or, in the event that the Depositary or the Company
shall have made such payment, the reimbursement to it) of any tax or other
governmental charge with respect thereto (including any such tax or charge with
respect to the Preference Shares being deposited or withdrawn or with respect to
the Common Shares or other securities or property of the Company being issued
upon conversion or redemption); (ii) production of proof satisfactory to it as
to the identity and genuineness of any signature; and (iii) compliance with such
reasonable regulations, if any, as the Depositary or the Company may establish
not inconsistent with the provisions of this Deposit Agreement.

        The deposit of Preference Shares may be refused, the delivery of
Receipts against Preference Shares or the registration of transfer, split-up,
combination, surrender or exchange of outstanding Receipts and the withdrawal of
deposited Preference Shares may be suspended (i) during any period when the
register of members of the Company is closed, (ii) if any such action is deemed
necessary or advisable by the Depositary, any of the Depositary's Agents or the
Company at any time or from time to time because of any requirement of law or of
any government or governmental body or commission, or under any provision of
this Deposit Agreement, or (iii) with the approval of the Company, for any other
reason. Without limitation of the foregoing, the Depositary shall not knowingly
accept for deposit under this Deposit Agreement any Preference Shares that are
required to be registered under the Securities Act unless a registration
statement under the Securities Act is in effect as to such Preference Shares.

        Section 2.08. Lost Receipts, etc. In case any Receipt shall be mutilated
or destroyed or lost or stolen, the Depositary shall execute and deliver a
Receipt of like form and tenor in exchange and substitution for such mutilated
Receipt or in lieu of and in substitution for such destroyed, lost or stolen
Receipt unless the Depositary has notice that such Receipt has been acquired by
a bona fide purchaser; provided, however, that the holder thereof provides the
Depositary with (i) evidence satisfactory to the Depositary of such destruction,
loss or theft of such Receipt, of the authenticity thereof and of his ownership
thereof, (ii) reasonable indemnification satisfactory to the Depositary or the
payment of any charges incurred by the Depositary in obtaining insurance in lieu
of such indemnification and (iii) payment of any expense (including fees,
charges and expenses of the Depositary) in connection with such execution and
delivery.

        Section 2.09. Cancellation and Destruction of Surrendered Receipts. All
Receipts surrendered to the Depositary or any Depositary's Agent shall be
cancelled by the Depositary. Except as prohibited by applicable law or
regulation, the Depositary is authorized to destroy such Receipts so cancelled.

                                       -8-

<PAGE>

                                   ARTICLE III

                         CERTAIN OBLIGATIONS OF HOLDERS
                           OF RECEIPTS AND THE COMPANY

        Section 3.01. Filing Proofs, Certificates and Other Information. Any
person presenting Preference Shares for deposit or any holder of a Receipt may
be required from time to time to file such proof of residence or other
information, to execute such certificates and to make such representations and
warranties as the Depositary or the Company may reasonably deem necessary or
proper. The Depositary or the Company may withhold or delay the delivery of any
Receipt, the registration of transfer, redemption, conversion or exchange of any
Receipt, the withdrawal of the Preference Shares represented by the Depositary
Shares evidenced by any Receipt or the distribution of any dividend or other
distribution until such proof or other information is filed, such certificates
are executed or such representations and warranties are made.

        Section 3.02. Payment of Taxes or Other Governmental Charges. If any tax
or other governmental charge shall become payable by or on behalf of the
Depositary with respect to (i) any Receipt, (ii) the Depositary Shares evidenced
by such Receipt, (iii) the Preference Shares (or fractional interest therein) or
other property represented by such Depositary Shares, or (iv) any transaction
referred to in Section 4.06, such tax (including transfer, issuance or
acquisition taxes, if any) or governmental charge shall be payable by the holder
of such Receipt, who shall pay the amount thereof to the Depositary. Until such
payment is made, registration of transfer of any Receipt or any split-up or
combination thereof or any withdrawal of the Preference Shares or money or other
property, if any, represented by the Depositary Shares evidenced by such Receipt
may be refused, any dividend or other distribution may be withheld and any part
or all of the Preference Shares or other property (including Common Shares
received in connection with a conversion or redemption of Preference Shares)
represented by the Depositary Shares evidenced by such Receipt may be sold for
the account of the holder thereof (after attempting by reasonable means to
notify such holder prior to such sale). Any dividend or other distribution so
withheld and the proceeds of any such sale may be applied to any payment of such
tax or other governmental charge, the holder of such Receipt remaining liable
for any deficiency.

        Section 3.03. Withholding. The Depositary shall act as the tax
withholding agent for any payments, distributions and exchanges made with
respect to the Depositary Shares and Receipts, and the Preference Shares, Common
Shares or other securities or assets represented thereby (collectively, the
"Securities"). The Depositary shall be responsible with respect to the
Securities for the timely (i) collection and deposit of any required withholding
or backup withholding tax, and (ii) filing of any information returns or other
documents with federal (and other applicable) taxing authorities.

        Section 3.04. Representations and Warranties as to Common Shares. In the
case of the initial deposit of the Preference Shares, the Company and, in the
case of subsequent deposits thereof, each person so depositing Preference Shares
under this Deposit Agreement shall be deemed thereby to represent and warrant
that such Preference Shares and each certificate therefor are valid and that the
person making such deposit is duly authorized to do so. Such

                                       -9-

<PAGE>

representations and warranties shall survive the deposit of the Preference
Shares and the issuance of Receipts therefor.

                                   ARTICLE IV

                         THE PREFERENCE SHARES, NOTICES

        Section 4.01. Cash Distributions. Whenever the Depositary shall receive
any cash dividend or other cash distribution on the Preference Shares, the
Depositary shall, subject to Section 3.02, distribute to record holders of
Receipts on the record date fixed pursuant to Section 4.04 such amounts of such
sum as are, as nearly as practicable, in proportion to the respective numbers of
Depositary Shares evidenced by the Receipts held by such holders; provided,
however, that in case the Company or the Depositary shall be required by law to
withhold and does withhold from any cash dividend or other cash distribution in
respect of the Preference Shares an amount on account of taxes, the amount made
available for distribution or distributed in respect of Depositary Shares shall
be reduced accordingly. The Depositary shall distribute or make available for
distribution, as the case may be, only such amount, however, as can be
distributed without attributing to any owner of Depositary Shares a fraction of
one cent and any balance not so distributable shall be held by the Depositary
(without liability for interest thereon) and shall be added to and be treated as
part of the next sum received by the Depositary for distribution to record
holders of Receipts then outstanding.

        Section 4.02. Distributions Other Than Cash. Whenever the Depositary
shall receive any distribution other than cash, rights, preferences or
privileges upon the Preference Shares, the Depositary shall, subject to Section
3.02, distribute to record holders of Receipts on the record date fixed pursuant
to Section 4.04 such amounts of the securities or property received by it as
are, as nearly as practicable, in proportion to the respective numbers of
Depositary Shares evidenced by the Receipts held by such holders, in any manner
that the Depositary and the Company may deem equitable and practicable for
accomplishing such distribution. If, in the opinion of the Company after
consultation with the Depositary, such distribution cannot be made
proportionately among such record holders, or if for any other reason (including
any tax withholding or securities law requirement), the Depositary deems, after
consultation with the Company, such distribution not to be feasible, the
Depositary may, with the approval of the Company which approval shall not be
unreasonably withheld, adopt such method as it deems equitable and practicable
for the purpose of effecting such distribution, including the sale (at public or
private sale) of the securities or property thus received, or any part thereof,
at such place or places and upon such terms as it may deem proper. The net
proceeds of any such sale shall, subject to Section 3.02, be distributed or made
available for distribution, as the case may be, by the Depositary to record
holders of Receipts as provided by Section 4.01 in the case of a distribution
received in cash.

        Section 4.03. Subscription Rights, Preferences or Privileges. If the
Company shall at any time offer or cause to be offered to the persons in whose
names Preference Shares are registered on the books of the Company any rights,
preferences or privileges to subscribe for or to purchase any securities or any
rights, preferences or privileges of any other nature, such rights, preferences
or privileges shall in each such instance be made available by the Depositary to
the record holders of Receipts in such manner as the Company shall instruct
(including by the issue

                                      -10-

<PAGE>

to such record holders of warrants representing such rights, preferences or
privileges); provided, however, that (a) if at the time of issue or offer of any
such rights, preferences or privileges the Company determines and instructs the
Depositary that it is not lawful or feasible to make such rights, preferences or
privileges available to some or all holders of Receipts (by the issue of
warrants or otherwise) or (b) if and to the extent instructed by holders of
Receipts who do not desire to exercise such rights, preferences or privileges,
the Depositary shall then, in each case, and if applicable laws or the terms of
such rights, preferences or privileges so permit, sell such rights, preferences
or privileges of such holders at public or private sale, at such place or places
and upon such terms as it may deem proper. The net proceeds of any such sale
shall be distributed by the Depositary to the record holders of Receipts
entitled thereto as provided by Section 4.01 in the case of a distribution
received in cash.

        If registration under the Securities Act of the securities to which any
rights, preferences or privileges relate is required in order for holders of
Receipts to be offered or sold such securities, the Company shall promptly file
a registration statement pursuant to the Securities Act with respect to such
rights, preferences or privileges and securities and use its best efforts and
take all steps available to it to cause such registration statement to become
effective sufficiently in advance of the expiration of such rights, preferences
or privileges to enable such holders to exercise such rights, preferences or
privileges. In no event shall the Depositary make available to the holders of
Receipts any right, preference or privilege to subscribe for or to purchase any
securities unless and until such registration statement shall have become
effective or unless the offering and sale of such securities to such holders are
exempt from registration under the provisions of the Securities Act.

        If any other action under the law of any jurisdiction or any
governmental or administrative authorization, consent or permit is required in
order for such rights, preferences or privileges to be made available to holders
of Receipts, the Company agrees with the Depositary that the Company will use
its reasonable best efforts to take such action or obtain such authorization,
consent or permit sufficiently in advance of the expiration of such rights,
preferences or privileges to enable such holders to exercise such rights,
preferences or privileges.

        Section 4.04. Notice of Dividends, Fixing of Record Date for Holders of
Receipts. Whenever (i) any cash dividend or other cash distribution shall become
payable, or any distribution other than cash shall be made, or any rights,
preferences or privileges shall at any time be offered, with respect to the
Preference Shares, or (ii) the Depositary shall receive notice of any meeting at
which holders of Preference Shares are entitled to vote or of which holders of
Preference Shares are entitled to notice or of the mandatory conversion of, or
any election on the part of the Company to call for the redemption of, any
shares of Preference Shares, the Company shall in each such instance fix a
record date (which shall be the same date as the record date fixed by the
Company with respect to the Preference Shares) for the determination of the
holders of Receipts (x) who shall be entitled to receive such dividend,
distribution, rights, preferences or privileges or the net proceeds of the sale
thereof, or (y) who shall be entitled to give instructions for the exercise of
voting rights at any such meeting or to receive notice of such meeting or of
such conversion or redemption. The Company shall advise the Depositary of all
such record dates.

                                      -11-

<PAGE>

        Section 4.05. Voting Rights. Upon receipt of notice of any meeting at
which the holders of Preference Shares are entitled to vote, the Depositary
shall, as soon as practicable thereafter, mail to the record holders of Receipts
a notice, which shall be provided by the Company and which shall contain (i)
such information as is contained in such notice of meeting, (ii) a statement
that the holders of Receipts at the close of business on a specified record date
fixed pursuant to Section 4.04 will be entitled, subject to any applicable
provision of law, the Memorandum of Association (including the applicable
Certificate), to instruct the Depositary as to the exercise of the voting rights
pertaining to the Preference Shares represented by their respective Depositary
Shares and (iii) a brief statement as to the manner in which such instructions
may be given. Upon the written request of a holder of a Receipt on such record
date, the Depositary shall endeavor insofar as practicable to vote or cause to
be voted the Preference Shares represented by the Depositary Shares evidenced by
such Receipt in accordance with the instructions set forth in such request. The
Company hereby agrees to take all reasonable action that may be deemed necessary
by the Depositary in order to enable the Depositary to vote such Preference
Shares or cause such Preference Shares to be voted. In the absence of specific
instructions from the holder of a Receipt, the Depositary will abstain from
voting to the extent of the Preference Shares represented by the Depositary
Shares evidenced by such Receipt.

        Section 4.06. Changes Affecting Preference Shares and Reclassifications,
Recapitalizations, etc. Upon any split-up, consolidation or any other
reclassification of Preference Shares, or upon any recapitalization,
reorganization, merger, amalgamation or consolidation affecting the Company or
to which it is a party (other than a Merger or Consolidation) or sale of all or
substantially all of the Company's assets, the Depositary shall treat any shares
of Preference Shares or other securities or property (including cash) that shall
be received by the Depositary in exchange for or upon conversion of or in
respect of the Preference Shares as new deposited property under this Deposit
Agreement, and Receipts then outstanding shall thenceforth represent the
proportionate interests of holders thereof in the new deposited property so
received in exchange for or upon conversion or in respect of such Preference
Shares. In any such case the Depositary may, in its discretion, with the
approval of the Company, execute and deliver additional Receipts, or may call
for the surrender of all outstanding Receipts to be exchanged for new Receipts
specifically describing such new deposited property.

        Section 4.07. Reports. The Depositary shall make available for
inspection by holders of Receipts at the Corporate Office, the New York Office
and at such other places as it may from time to time deem advisable during
normal business hours any reports and communications received from the Company
that are received by the Depositary as the holder of Preference Shares.

        Section 4.08. Lists of Receipt Holders. Promptly upon request from time
to time by the Company, the Depositary shall furnish to it a list, as of a
recent date, of the names, addresses and holdings of Depositary Shares of all
persons in whose names Receipts are registered on the books of the Depositary.
At the expense of the Company, the Company shall have the right to inspect
transfer and registration records of the Depositary, any Depositary's Agent or
the Registrar, take copies thereof and require the Depositary, any Depositary's
Agent or the Registrar to supply copies of such portions of such records as the
Company may request.

                                      -12-

<PAGE>

                                    ARTICLE V

                    THE DEPOSITARY, THE DEPOSITARY'S AGENTS,
                          THE REGISTRAR AND THE COMPANY

        Section 5.01. Maintenance of Offices, Agencies, Transfer Books by the
Depositary; the Registrar. Upon execution of this Deposit Agreement in
accordance with its terms, the Depositary shall maintain (i) at the New York
Office facilities for the execution and delivery, registration, registration of
transfer, surrender and exchange, split-up, combination, redemption and
conversion of Receipts and deposit and withdrawal of Preference Shares and
(ii) at the Corporate Office and at the offices of the Depositary's Agents, if
any, facilities for the delivery, registration, registration of transfer,
surrender and exchange, split-up, combination, conversion and redemption of
Receipts and deposit and withdrawal of Preference Shares, all in accordance with
the provisions of this Deposit Agreement.

        The Depositary shall keep books at the Corporate Office for the
registration and transfer of Receipts, which books at all reasonable times shall
be open for inspection by the record holders of Receipts; provided that any such
holder requesting to exercise such right shall certify to the Depositary that
such inspection shall be for a proper purpose reasonably related to such
person's interest as an owner of Depositary Shares. The Depositary shall consult
with the Company upon receipt of any request for inspection. The Depositary may
close such books, at any time or from time to time, when deemed expedient by it
in connection with the performance of its duties hereunder.

        If the Receipts or the Depositary Shares evidenced thereby or the
Preference Shares represented by such Depositary Shares shall be listed on one
or more stock exchanges, the Depositary shall, with the approval of the Company,
appoint a Registrar for registry of such Receipts or Depositary Shares in
accordance with the requirements of such exchange or exchanges. Such Registrar
(which may be the Depositary if so permitted by the requirements of such
exchange or exchanges) may be removed and a substitute registrar appointed by
the Depositary upon the request or with the approval of the Company. In
addition, if the Receipts, such Depositary Shares or such Preference Shares are
listed on one or more stock exchanges, the Depositary will, at the request of
the Company, arrange such facilities for the delivery, registration,
registration of transfer, surrender and exchange, split-up, combination,
redemption or conversion of such Receipts, such Depositary Shares or such
Preference Shares as may be required by law or applicable stock exchange
regulations.

        Section 5.02. Prevention or Delay in Performance by the Depositary, the
Depositary's Agents, the Registrar or the Company. Neither the Depositary nor
any Depositary's Agent nor the Registrar nor the Company shall incur any
liability to any holder of any Receipt, if by reason of any provision of any
present or future law or regulation thereunder of the United States of America
or of any other governmental authority or, in the case of the Depositary, the
Registrar or any Depositary's Agent, by reason of any provision, present or
future, of the Memorandum of Association (including the applicable Certificate)
or, in the case of the Company, the Depositary, the Registrar or any
Depositary's Agent, by reason of any act of God or war or other circumstances
beyond the control of the relevant party, the Depositary, any Depositary's
Agent, the Registrar or the Company shall be prevented or forbidden from doing
or performing any act

                                      -13-

<PAGE>

or thing that the terms of this Deposit Agreement provide shall be done or
performed; nor shall the Depositary, any Depositary's Agent, the Registrar or
the Company incur any liability to any holder of a Receipt (i) by reason of any
nonperformance or delay, caused as aforesaid, in the performance of any act or
thing that the terms of this Deposit Agreement provide shall or may be done or
performed, or (ii) by reason of any exercise of, or failure to exercise, any
discretion provided for in this Deposit Agreement except, in the case of the
Depositary, any Depositary's Agent or the Registrar, if any such exercise or
failure to exercise discretion is caused by its negligence or bad faith.

        Section 5.03. Obligations of the Depositary, the Depositary's Agents,
the Registrar and the Company. The Company assumes no obligation and shall be
subject to no liability under this Deposit Agreement or the Receipts to holders
or other persons, except to perform in good faith such obligations as are
specifically set forth and undertaken by it to perform in this Deposit
Agreement. Each of the Depositary, the Depositary's Agents and the Registrar
assumes no obligation and shall be subject to no liability under this Deposit
Agreement or the Receipts to holders or other persons, except to perform such
obligations as are specifically set forth and undertaken by it to perform in
this Deposit Agreement without negligence or bad faith.

        Neither the Depositary nor any Depositary's Agent nor the Registrar nor
the Company shall be under any obligation to appear in, prosecute or defend any
action, suit or other proceeding with respect to Preference Shares, Depositary
Shares, Receipts or Common Shares that in its opinion may involve it in expense
or liability, unless indemnity satisfactory to it against all expense and
liability be furnished as often as may be required.

        Neither the Depositary nor any Depositary's Agent nor the Registrar nor
the Company shall be liable for any action or any failure to act by it in
reliance upon the advice of or information from legal counsel, accountants, any
person presenting Preference Shares for deposit, any holder of a Receipt or any
other person believed by it in good faith to be competent to give such advice or
information. The Depositary, any Depositary's Agent, the Registrar and the
Company may each rely and shall each be protected in acting upon any written
notice, request, direction or other document believed by it to be genuine and to
have been signed or presented by the proper party or parties.

        The Depositary, the Registrar and any Depositary's Agent may own and
deal in any class of securities of the Company and its affiliates and in
Receipts or Depositary Shares. The Depositary may also act as transfer agent or
registrar of any of the securities of the Company and its affiliates.

        It is intended that neither the Depositary nor any Depositary's Agent
shall be deemed to be an "issuer" of the Preference Shares, the Depositary
Shares, the Receipts or the Common Shares issued upon conversion or redemption
of the Preference Shares under the federal securities laws or applicable state
securities laws, it being expressly understood and agreed that the Depositary
and any Depositary's Agent are acting only in a ministerial capacity as
Depositary for the Preference Shares; provided, however, that the Depositary
agrees to comply with all information reporting and withholding requirements
applicable to it under law or this Deposit Agreement in its capacity as
Depositary.

                                      -14-

<PAGE>

        Neither the Depositary (or its officers, directors, employees or agents)
nor any Depositary's Agent makes any representation or has any responsibility as
to the validity of the Registration Statement pursuant to which the Depositary
Shares are registered under the Securities Act, the Preference Shares, the
Depositary Shares or any instruments referred to therein or herein, or as to the
correctness of any statement made therein or herein; provided, however, that the
Depositary is responsible for its representations in this Deposit Agreement.

        The Depositary assumes no responsibility for the correctness of the
description that appears in the Receipts, which can be taken as a statement of
the Company summarizing certain provisions of this Deposit Agreement.
Notwithstanding any other provision herein or in the Receipts, the Depositary
makes no warranties or representations as to the validity, genuineness or
sufficiency of any Preference Shares at any time deposited with the Depositary
hereunder or of the Depositary Shares, as to the validity or sufficiency of this
Deposit Agreement, as to the value of the Depositary Shares or as to any right,
title or interest of the record holders of Receipts in and to the Depositary
Shares except that the Depositary hereby represents and warrants as follows: (i)
the Depositary has been duly organized and is validly existing and in good
standing under the laws of the State of New York, with full power, authority and
legal right under such law to execute, deliver and carry out the terms of this
Deposit Agreement; (ii) this Deposit Agreement has been duly authorized,
executed and delivered by the Depositary; and (iii) this Deposit Agreement
constitutes a valid and binding obligation of the Depositary, enforceable
against the Depositary in accordance with its terms, except as enforcement
thereof may be limited by bankruptcy, insolvency, reorganization or other
similar laws affecting enforcement of creditors' rights generally and except as
enforcement thereof is subject to general principles of equity (regardless of
whether enforcement is considered in a proceeding in equity or at law). The
Depositary shall not be accountable for the use or application by the Company of
the Depositary Shares or the Receipts or the proceeds thereof.

        Section 5.04. Resignation and Removal of the Depositary, Appointment of
Successor Depositary. The Depositary may at any time resign as Depositary
hereunder by written notice via registered mail of its election to do so
delivered to the Company, such resignation to take effect upon the appointment
of a successor depositary and its acceptance of such appointment as hereinafter
provided.

        The Depositary may at any time be removed by the Company by written
notice of such removal delivered to the Depositary, such removal to take effect
upon the appointment of a successor depositary and its acceptance of such
appointment as hereinafter provided.

        In case at any time the Depositary acting hereunder shall resign or be
removed, the Company shall, within sixty (60) days after the delivery of the
notice of resignation or removal, as the case may be, appoint a successor
depositary, which shall be a bank or trust company, or an affiliate of a bank or
trust company, having its principal office in the United States of America and
having a combined capital and surplus of at least $50,000,000. If a successor
depositary shall not have been appointed in sixty (60) days, the resigning or
removed Depositary may petition a court of competent jurisdiction to appoint a
successor depositary. Every successor depositary shall execute and deliver to
its predecessor and to the Company an instrument in writing accepting its
appointment hereunder, and thereupon such successor depositary, without any
further act or deed, shall become fully vested with all the rights, powers,
duties and

                                      -15-

<PAGE>

obligations of its predecessor and for all purposes shall be the Depositary
under this Deposit Agreement, and such predecessor, upon payment of all sums due
it and on the written request of the Company, shall promptly execute and deliver
an instrument transferring to such successor all rights and powers of such
predecessor hereunder, shall duly assign, transfer and deliver all rights, title
and interest in the Preference Shares and any moneys or property held hereunder
to such successor and shall deliver to such successor a list of the record
holders of all outstanding Receipts. Any successor depositary shall promptly
mail notice of its appointment to the record holders of Receipts.

        Any corporation into or with which the Depositary may be merged,
consolidated or converted shall be the successor of such Depositary without the
execution or filing of any document or any further act. Such successor
depositary may execute the Receipts either in the name of the predecessor
depositary or in the name of the successor depositary.

        Section 5.05. Corporate Notices and Reports. The Company agrees that it
will deliver to the Depositary, and the Depositary will, promptly after receipt
thereof, transmit to the record holders of Receipts, in each case at the address
recorded in the Depositary's books, copies of all notices and reports (including
financial statements) required by law, by the rules of any national securities
exchange upon which the Preference Shares, the Depositary Shares or the Receipts
are listed or by the Memorandum of Association (including the applicable
Certificate) to be furnished by the Company to holders of Preference Shares.
Such transmission will be at the Company's expense and the Company will provide
the Depositary with such number of copies of such documents as the Depositary
may reasonably request. In addition, the Depositary will transmit to the record
holders of Receipts at the Company's expense such other documents as may be
requested by the Company.

        Section 5.06. Deposit of Preference Shares by the Company. The Company
agrees with the Depositary that neither the Company nor any company controlled
by the Company will at any time deposit any Preference Shares if such Preference
Shares are required to be registered under the provisions of the Securities Act
and no registration statement is at such time in effect as to such Preference
Shares.

        Section 5.07. Indemnification by the Company. The Company agrees to
indemnify the Depositary, any Depositary's Agent and any Registrar against, and
hold each of them harmless from, any liability, costs and expenses (including
reasonable fees and expenses of counsel) that may arise out of or in connection
with its acting as Depositary, Depositary's Agent or Registrar, respectively,
under this Deposit Agreement and the Receipts, except for any liability arising
out of negligence, bad faith or willful misconduct on the part of any such
person or persons.

        Section 5.08. Fees, Charges and Expenses. No fees, charges and expenses
of the Depositary or any Depositary's Agent hereunder or of any Registrar shall
be payable by any person other than the Company, except for any taxes and other
governmental charges and except as provided in this Deposit Agreement. If, at
the request of a holder of a Receipt, the Depositary incurs fees, charges or
expenses for which it is not otherwise liable hereunder, such holder or other
person will be liable for such fees, charges and expenses. All other fees,
charges and expenses of the Depositary and any Depositary's Agent hereunder and
of any Registrar (including, in each case, reasonable fees and expenses of
counsel) incident to the performance of

                                      -16-

<PAGE>

their respective obligations hereunder will be paid from time to time upon
consultation and agreement between the Depositary and the Company as to the
amount and nature of such fees, charges and expenses.

                                   ARTICLE VI

                            AMENDMENT AND TERMINATION

        Section 6.01. Amendment. The form of the Receipts and any provision of
this Deposit Agreement may at any time and from time to time be amended by
agreement between the Company and the Depositary in any respect that they may
deem necessary or desirable. Any amendment that shall impose or increase any
fees, taxes or charges payable by holders of Receipts (other than taxes and
other governmental charges, fees and other expenses payable by holders pursuant
to the terms hereof or of the Receipts), or that shall otherwise prejudice any
substantial existing right of holders of Receipts, shall not become effective as
to outstanding Receipts until the expiration of ninety (90) days after notice of
such amendment shall have been given to the record holders of outstanding
Receipts. Every holder of an outstanding Receipt at the time any such amendment
becomes effective shall be deemed, by continuing to hold such Receipt, to
consent and agree to such amendment and to be bound by this Deposit Agreement as
amended thereby. In no event shall any amendment impair the right, subject to
the provisions of Sections 2.03, 2.06 and 2.07 and Article III, of any owner of
any Depositary Shares to surrender the Receipt evidencing such Depositary Shares
with instructions to the Depositary to deliver to the holder the Preference
Shares and all money and other property, if any, represented thereby, except in
order to comply with mandatory provisions of applicable law.

        Section 6.02. Termination. Whenever so directed by the Company, the
Depositary will terminate this Deposit Agreement by mailing notice of such
termination to the record holders of all Receipts then outstanding at least
thirty (30) days prior to the date fixed in such notice for such termination.
The Depositary may likewise terminate this Deposit Agreement if at any time
sixty (60) days shall have expired after the Depositary shall have delivered to
the Company a written notice of its election to resign and a successor
depositary shall not have been appointed and accepted its appointment as
provided in Section 5.04.

        If any Receipts shall remain outstanding after the date of termination
of this Deposit Agreement, the Depositary thereafter shall discontinue the
transfer of Receipts, shall suspend the distribution of dividends to the holders
thereof and shall not give any further notices (other than notice of such
termination) or perform any further acts under this Deposit Agreement, except as
provided below and that the Depositary shall continue to collect dividends and
other distributions pertaining to Preference Shares, shall sell rights,
preferences or privileges as provided in this Deposit Agreement and shall
continue to deliver the Preference Shares and any money and other property
represented by Receipts, without liability for interest thereon, upon surrender
thereof by the holders thereof. At any time after the expiration of two years
from the date of termination, the Depositary may sell Preference Shares then
held hereunder at public or private sale, at such places and upon such terms as
it deems proper and may thereafter hold in a segregated account the net proceeds
of any such sale, together with any money and other property held by it
hereunder, without liability for interest, for the benefit, pro rata in
accordance with their holdings, of the holders of Receipts that have not
heretofore been surrendered. After making

                                      -17-

<PAGE>

such sale, the Depositary shall be discharged from all obligations under this
Deposit Agreement except to account for such net proceeds and money and other
property. Upon the termination of this Deposit Agreement, the Company shall be
discharged from all obligations under this Deposit Agreement except for its
obligations to the Depositary, any Depositary's Agent and any Registrar under
Sections 5.07 and 5.08. In the event this Deposit Agreement is terminated, the
Company hereby agrees to use its best efforts to list the underlying Preference
Shares on the New York Stock Exchange, Inc.

                                   ARTICLE VII

                                  MISCELLANEOUS

        Section 7.01. Counterparts. This Deposit Agreement may be executed by
the Company and the Depositary in separate counterparts, each of which
counterparts, when so executed and delivered, shall be deemed an original, but
all such counterparts taken together shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this
Deposit Agreement by telecopier shall be effective as delivery of a manually
executed counterpart of this Deposit Agreement. Copies of this Deposit Agreement
shall be filed with the Depositary and the Depositary's Agents and shall be open
to inspection during business hours at the Corporate Office and the New York
Office and the respective offices of the Depositary's Agents, if any, by any
holder of a Receipt.

        Section 7.02. Exclusive Benefits of Parties. This Deposit Agreement is
for the exclusive benefit of the parties hereto, and their respective successors
hereunder, and shall not be deemed to give any legal or equitable right, remedy
or claim to any other person whatsoever.

        Section 7.03. Invalidity of Provisions. In case any one or more of the
provisions contained in this Deposit Agreement or in the Receipts should be or
become invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein or therein shall
in no way be affected, prejudiced or disturbed thereby.

        Section 7.04. Notices. Any notices to be given to the Company hereunder
or under the Receipts shall be in writing and shall be deemed to have been duly
given if personally delivered or sent by mail, or by telegram or telex or
telecopier confirmed by letter, addressed to the Company at Mintflower Place, 8
Par-la-Ville Road, Hamilton HM 08, Bermuda, or at any other place to which the
Company may have transferred its principal executive office.

        Any notices to be given to the Depositary hereunder or under the
Receipts shall be in writing and shall be deemed to have been duly given if
personally delivered or sent by mail, or by telegram or telex or telecopier
confirmed by letter, addressed to the Depositary at the Corporate Office.

        Any notices given to any record holder of a Receipt hereunder or under
the Receipts shall be in writing and shall be deemed to have been duly given if
personally delivered or sent by mail, or by telegram or telex or telecopier
confirmed by letter, addressed to such record holder at the address of such
record holder as it appears on the books of the Depositary or, if such holder

                                      -18-

<PAGE>

shall have filed with the Depositary a written request that notices intended for
such holder be mailed to some other address, at the address designated in such
request.

        Delivery of a notice sent by mail, or by telegram or telex or telecopier
shall be deemed to be effected at the time when a duly addressed letter
containing the same (or a duly addressed letter confirming an earlier notice in
the case of a telegram or telex or telecopier message) is deposited, postage
prepaid, in a post office letter box. The Depositary or the Company may,
however, act upon any telegram or telex or telecopier message received by it
from the other or from any holder of a Receipt, notwithstanding that such
telegram or telex or telecopier message shall not subsequently be confirmed by
letter as aforesaid.

        Section 7.05. Depositary's Agents. The Depositary may, with the approval
of the Company which approval shall not be unreasonably withheld, from time to
time appoint one or more Depositary's Agents to act in any respect for the
Depositary for the purposes of this Deposit Agreement and may vary or terminate
the appointment of such Depositary's Agents.

        Section 7.06. Holders of Receipts Are Parties. Notwithstanding that
holders of Receipts have not executed and delivered this Deposit Agreement or
any counterpart thereof, the holders of Receipts from time to time shall be
deemed to be parties to this Deposit Agreement and shall be bound by all of the
terms and conditions, and be entitled to all of the benefits, hereof and of the
Receipts by acceptance of delivery of Receipts.

        Section 7.07. Governing Law. This Deposit Agreement and the Receipts and
all rights hereunder and thereunder and provisions hereof and thereof shall be
governed by, and construed in accordance with, the law of the State of New York
without giving effect to principles of conflict of laws.

        Section 7.08. Headings. The headings of articles and sections in this
Deposit Agreement and in the form of the Receipt set forth in Exhibit A hereto
have been inserted for convenience only and are not to be regarded as a part of
this Deposit Agreement or to have any bearing upon the meaning or interpretation
of any provision contained herein or in the Receipts.

                                      -19-

<PAGE>

        IN WITNESS WHEREOF, Montpelier Re Holdings Ltd. and [        ] have duly
executed this Deposit Agreement as of the day and year first above set forth and
all holders of Receipts shall become parties hereto by and upon acceptance by
them of delivery of Receipts issued in accordance with the terms hereof.

                           MONTPELIER RE HOLDINGS LTD.

Attest:

By:                                     By:
   ------------------------------          -------------------------------
                                           Authorized Officer

                                [               ]

Attest:

By:                                     By:
   ------------------------------          -------------------------------
                                           Authorized Signatory

                                      -20-

<PAGE>

                                                                       EXHIBIT A

DEPOSITARY RECEIPT
FOR
DEPOSITARY SHARES
EACH REPRESENTING [INSERT FRACTIONAL INTEREST] OF A SHARE OF
[         ] PREFERENCE SHARES

OF

MONTPELIER RE HOLDINGS LTD.

(a company incorporated and organized under the laws of Bermuda)

No.

        [         ] (the "Depositary") hereby certifies that [         ] is the
registered owner of [         ] Depositary Shares (the "Depositary Shares"),
each Depositary Share representing [insert fractional interest][         ]
Preference Shares, [   ] par value per share (the "Preference Shares"), of
Montpelier Re Holdings Ltd., a company incorporated and organized under the laws
of Bermuda (the "Company"), and the same proportionate interest in any and all
other property received by the Depositary in respect of such shares of
Preference Shares and held by the Depositary under the Deposit Agreement, dated
as of [         ],200_ (the "Deposit Agreement"), among the Company, the
Depositary and all holders from time to time, of Receipts. Subject to the terms
of the Deposit Agreement, each owner of a Depositary Share is entitled,
proportionately, to all the rights, preferences and privileges of the Preference
Shares represented thereby, including the dividend, voting, liquidation and
other rights contained in the Certificate of Designations establishing the
rights, preferences, privileges and limitations of the Preference Shares (the
"Certificate"), copies of which are on file at the office of the Depositary at
which at any particular time its business in respect of matters governed by the
Deposit Agreement shall be administered, which at the time of the execution of
the Deposit Agreement is located at [                  ] (the "Corporate
Office").

        This Depositary Receipt ("Receipt") shall not be entitled to any
benefits under the Deposit Agreement or be valid or obligatory for any purpose
unless this Receipt shall have been executed manually or, if a Registrar for the
Receipts (other than the Depositary) shall have been appointed, by facsimile by
the Depositary by the signature of a duly authorized signatory and, if executed
by facsimile signature of the Depositary, shall have been countersigned manually
by such Registrar by the signature of a duly authorized signatory.

THE DEPOSITARY IS NOT RESPONSIBLE FOR THE VALIDITY OF ANY DEPOSITED PREFERENCE
SHARES. THE DEPOSITARY ASSUMES NO RESPONSIBILITY FOR THE CORRECTNESS OF THE
DESCRIPTION SET FORTH IN THIS RECEIPT, WHICH CAN BE TAKEN AS A STATEMENT OF THE
COMPANY SUMMARIZING CERTAIN PROVISIONS OF THE DEPOSIT AGREEMENT. UNLESS
EXPRESSLY SET FORTH IN THE DEPOSIT AGREEMENT, THE DEPOSITARY MAKES NO WARRANTIES
OR REPRESENTATIONS AS TO THE VALIDITY, GENUINENESS OR SUFFICIENCY OF

                                       A-1

<PAGE>

ANY PREFERENCE SHARES AT ANY TIME DEPOSITED WITH THE DEPOSITARY UNDER THE
DEPOSIT AGREEMENT OR OF THE DEPOSITARY SHARES, AS TO THE VALIDITY OR SUFFICIENCY
OF THE DEPOSIT AGREEMENT, AS TO THE VALUE OF THE DEPOSITARY SHARES OR AS TO ANY
RIGHT, TITLE OR INTEREST OF THE RECORD HOLDERS OF THE DEPOSITARY RECEIPTS IN AND
TO THE DEPOSITARY SHARES.

        This Receipt is continued on the reverse hereof and the additional
provisions therein set forth for all purposes have the same effect as if set
forth at this place.

Dated:

[                     ],
as Depositary and Registrar

By:
   ----------------------------
    Authorized Signatory

                                       A-2

<PAGE>

                                [FORM OF REVERSE
                             OF DEPOSITARY RECEIPT]

        Depositary Receipts, of which this Receipt is one, are made available
upon the terms and conditions set forth in the Deposit Agreement. The Deposit
Agreement (copies of which are on file at the Corporate Office, the office
maintained by the Depositary in the Borough of Manhattan, the City of New York
which at the time of the execution of the Deposit Agreement is located at
[                ]   (the "New York Office") and at the office of any agent of
the Depositary) sets forth the rights of holders of Receipts and the rights and
duties of the Depositary. The statements made on the face and the reverse of
this Receipt are summaries of certain provisions of the Deposit Agreement and
are subject to the detailed provisions thereof, to which reference is hereby
made.

        The Company will furnish to any holder of this Receipt without charge,
upon request addressed to its executive office, a full statement of the
designation, relative rights, preferences and limitations of the shares of each
authorized class, and of each class of preference shares authorized to be
issued, so far as the same may have been fixed, and a statement of the authority
of the Board of Directors of the Company to designate and fix the relative
rights, preferences and limitations of other classes.

                                       A-3

<PAGE>

                               FORM OF ASSIGNMENT

        FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto [         ] the within Receipt and all rights and interests represented by
the Depositary Shares evidenced thereby, and hereby irrevocably constitutes and
appoints [         ] his attorney, to transfer the same on the books of the
within-named Depositary, with full power of substitution in the premises.

Dated:                         Signature:_______________________________________
                                         NOTE: The signature to this assignment
                                         must correspond with the name as
                                         written upon the face of the Receipt in
                                         every particular, without alteration or
                                         enlargement, or any change whatever.

                                       A-4

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