Document:

CERTIFICATE OF DESIGNATIONS

OF

NON-CUMULATIVE PREFERENCE SHARES, SERIES A

OF

RAM HOLDINGS LTD.

          
          RAM
Holdings Ltd., a Bermuda exempted company (the “Company”), HEREBY CERTIFIES
that, pursuant to resolutions of the Board of Directors (the “Board of Directors”)
of the Company adopted on May 3, 2007, a series of the Company’s duly
authorized preference shares, US$0.10 par value per share, was created and the
designation, preferences and privileges, voting rights, relative,
participating, optional and other special rights, and qualifications,
limitations and restrictions of such series (the “Series A Preference Shares”),
in addition to those set forth in the Memorandum of Association (“Memorandum of
Association”) and Amended and Restated Bye-laws (as amended and restated from
time to time, the “Bye-laws”) of the Company, were fixed as follows:

          
          SECTION
1. DESIGNATION. The distinctive serial designation of the Series A Preference
Shares is “Non-Cumulative Preference Shares, Series A.” Each Series A
Preference Share shall be identical in all respects to every other Series A
Preference Share, except as to the respective dates from which dividends
thereon shall accrue, to the extent such dates may differ as permitted pursuant
to Section 4(a) below.

          
          SECTION
2. NUMBER OF SHARES. The authorized number of Series A Preference Shares shall
be 75,000. Any Series A Preference Shares retired and cancelled by purchase or
redemption, or otherwise acquired by the Company or converted into another
series of Preference Shares, will have the status of authorized but unissued
Series A Preference Shares and may be reissued as part of the same class or
series or may be reclassified and reissued by the Board of Directors in the
same manner as any other authorized and unissued shares. 

          
          SECTION
3. DEFINITIONS. As used herein with respect to Series A Preference Shares: 

          
          (a)
“Business Day” means any day that is not a Saturday, a Sunday or a day on which
banking institutions in New York City or Bermuda generally are authorized or
obligated by law or executive order to close. 

          
          (b)
“calculation agent” means the nationally recognized calculation agent appointed
by the Company prior to the date of any redemption notice and prior to December
15, 2016, or any successor calculation agent appointed by the Company.

          
          (c)
“change in tax law” has the meaning specified in Section 7(d)(1).

          
          (d)
“Certificate of Designations” means this Certificate of Designations relating
to the Series A Preference Shares, as it may be amended from time to time. 

          
          (e)
“Common Shares” means the Common Shares, par value US$0.10 per share, of the
Company.

          
          (f)
“Companies Act” means the Companies Act 1981 of Bermuda. 

          
          (g)
“Dividend Payment Date” has the meaning specified in Section 4(a). 

          
          (h)
“Dividend Period” has the meaning specified in Section 4(a).

          
          (i)
“Dividend Record Date” has the meaning specified in Section 4(a).

          

          (j)
“Dividend Reset Date” means, for each quarterly dividend period, the first day
of such quarterly dividend period, and for the first quarterly dividend period,
March 15, 2017.

          
          (k)
“early make-whole premium” has the meaning specified in Section 7(a).

          
          (l)
“early redemption date” has the meaning specified in Section 7(a).

          
          (m)
 “H.15 Statistical Release” has the
meaning specified in Section 7(a).

          
          (n)
“Independent Investment Banker” has the meaning specified in Section 7(a).

          
          (o)
“Junior Shares” means the Common Shares and any other class or series of share
capital of the Company that ranks junior to the Series A Preference Shares
either as to the payment of dividends (whether such dividends are cumulative or
non-cumulative) or as to the distribution of assets upon any liquidation,
dissolution or winding-up of the Company. 

          
          (p)
“LIBOR Determination Date” means, with respect to any quarterly dividend
period, the second London banking day immediately preceding the Dividend Reset
Date for that quarterly dividend period.

          
          (q)
“Liquidation Preference” has the meaning specified in Section 6(b).

          
          (r)
“London banking day” means any day on which commercial banks are open for
general business (including business dealings in deposits in U.S. dollars) in
London, England.

          
          (s)
“mandatory redemption date” has the meaning specified in Section 7(g).

          
          (t)
“mandatory redemption price” has the meaning specified in Section 7(a).

          
          (u)
“MoneyLine Telerate Page” means the display on Moneyline Telerate, Inc., or any
successor service, on Telerate Page 3750 or any replacement page or pages on
that service.

2

          
          (v)
“Parity Shares” means the Series A Preference Shares and any other class or
series of share capital of the Company that ranks equally with the Series A
Preference Shares in both the payment of dividends (whether such dividends are
cumulative or non-cumulative) and in the distribution of assets on any
liquidation, dissolution or winding-up of the Company.

          
          (w)
“Preference Shares” means any and all series of preference shares of the
Company, including the Series A Preference Shares. 

          
          (x)
“Quarterly Dividend Payment Date” has the meaning specified in Section 4(a).

          
          (y)  “Relevant Date” has the meaning specified
in
Section 5(b)(i).

          
          (z)
“Remaining Term” has the meaning specified in Section 7(a).

          
          (aa)
“Semi-Annual Dividend Payment Date” has the meaning specified in
Section 4(a).

          
          (bb)
“Shelf Registration Statement” means a shelf registration statement that covers
resales of the Series A Preference Shares by the holders thereof.

          
          (cc)
“tax event make-whole premium” has the meaning specified in Section 7(f)(1).

          
          (dd)
“tax event redemption date” has the meaning specified in Section 7(f)(1).

          
          (ee)
“tax event redemption price” has the meaning specified in Section 7(f)(1).

          
          (ff)
“Taxing Jurisdiction” has the meaning specified in Section 5(a).

          
          (gg)
“Telerate Page 3750” means the display designated on page 3750 on MoneyLine
Telerate Page (or such other page as may replace the 3750 page on the service
or on such other service as may be nominated by the British Bankers’
Association for the purpose of displaying London interbank offered rates for
U.S. Dollar deposits).

          
          (hh)
“Three-Month LIBOR” means, with respect to any quarterly dividend period, the
rate (expressed as a percentage per annum) for deposits in U.S. dollars for a
three-month period commencing on the first day of that quarterly dividend
period that appears on Moneyline Telerate Page 3750 as of 11:00 a.m. (London
time) on the LIBOR Determination Date for that quarterly dividend period. If
such rate does not appear on Moneyline Telerate Page 3750, three-month LIBOR
will be determined on the basis of the rates at which deposits in U.S. dollars
for a three-month period commencing on the first day of that quarterly dividend
period and in a principal amount of not less than US$1,000,000.00 are offered to
prime banks in the London interbank market by four major banks in the London
interbank market selected by the calculation agent (after consultation with the
Company), at approximately 11:00 a.m. (London time) on the LIBOR Determination
Date for that quarterly dividend period. The calculation agent will request the
principal London office of each of such banks to provide a quotation of its
rate. If at least two such quotations are provided, Three-Month LIBOR with
respect to that 

3

quarterly
dividend period will be the arithmetic mean (rounded upward, if necessary, to
the nearest whole multiple of 0.00001%) of the two or more quotations received.
If less than two such quotes are provided, Three-Month LIBOR with respect to
that quarterly dividend period will be the arithmetic mean (rounded upward, if
necessary, to the nearest whole multiple of 0.00001%) of the rates quoted by
three major banks in New York City selected by the calculation agent (after
consultation with the Company), at approximately 11:00 a.m. (New York City
time) on the first day of that quarterly dividend period for loans in the U.S.
dollars to leading European banks for a three-month period commencing on the
first day of that quarterly dividend period and in a principal amount of not
less than US$1,000,000.00. However, if fewer than three banks selected by the
calculation agent to provide quotations are quoting as described above, Three-Month
LIBOR for that quarterly dividend period will be the same as Three-Month LIBOR
as determined for the previous quarterly dividend period or, in the case of the
quarterly dividend period beginning on December 15, 2016, 5.353%. The establishment
of Three-Month LIBOR for each quarterly dividend period by the calculation
agent shall (in the absence of manifest error) be final and binding.

          
          (ii)
“Transfer Restricted Series A Preference Shares” means each Series A
Preference Share until the earliest to occur of: (1) the date on which such
Series A Preference Share has been exchanged for a freely transferable Exchange
Share in the Exchange; or (2) the date on which such Series A Preference Share
has been effectively registered under the Securities Act and disposed of in
accordance with a Shelf Registration Statement.

          
          (jj)
“Treasury Yield” has the meaning specified in Section 7(a).

          
          (kk)
“Voting Preference Shares” means, with regard to any matter as to which the
holders of Series A Preference Shares are entitled to vote as specified in
Section 8 of this Certificate of Designations, any and all series of Parity
Shares upon which like voting rights have been conferred and are exercisable
with respect to such matter.

          
          SECTION
4. DIVIDENDS.

          
          (a)
RATE. Dividends on the Series A Preference Shares will be payable on a
non-cumulative basis, only when, as and if declared by the Board of Directors
(or a duly authorized committee of the Board of Directors) out of lawfully
available funds for the payment of dividends under Bermuda law, semi-annually
in arrears (as provided below in this Section 4(a) on June 15 and December
15 of each year (each, a “Semi-Annual Dividend Payment Date”), beginning on
June 15, 2007 and ending on December 15, 2016. These dividends will accrue
with respect to a particular semi-annual dividend period, on the liquidation
preference amount of US$1,000.00 per share, at an annual rate equal to 7.500%.

          
          After
December 15, 2016, if the Series A Preference Shares have not been redeemed or
repurchased, dividends on the Series A Preference Shares will be payable on a
non-cumulative basis, only when, as and if declared by the Board of Directors
(or a duly authorized committee of the Board of Directors) out of lawfully
available funds for the payment of dividends under Bermuda law, quarterly in
arrears (as provided below in this Section 4(a) on March 15, June 15, September
15 and December 15 of each year (each, a “Quarterly Dividend Payment Date” and
together with each Semi-Annual Dividend Payment Date, a “Dividend 

4

Payment Date”),
beginning on March 15, 2017. These dividends will accrue with respect to a
particular quarterly dividend period, on the liquidation preference amount of
US$1,000.00 per share, at an annual rate equal to Three-Month LIBOR plus
3.557%.

          
          Dividends,
if so declared, that are payable on Series A Preference Shares on any Dividend
Payment Date will be payable to holders of record of Series A Preference Shares
as they appear in the register of members of the Company on the applicable
record date, which shall be the 15th calendar day before such Dividend Payment
Date or such other record date fixed by the Board of Directors (or a duly
authorized committee of the Board of Directors) that is not more than 60 nor
less than 10 days prior to such Dividend Payment Date (each, a “Dividend Record
Date”). Any such day that is a Dividend Record Date shall be a Dividend Record
Date whether or not such day is a Business Day. 

          
          Each
dividend period (a “Dividend Period”) shall commence on and include a Dividend
Payment Date and shall end on and include the calendar day immediately
preceding the next Dividend Payment Date (other than the initial Dividend
Period, which shall commence on and include December 7, 2006 and will end on
and include June 14, 2007, provided that, for any Series A Preference Shares
issued after such original issue date, the initial Dividend Period for such
shares may commence on and include such other date as the Board of Directors
(or a duly authorized committee of the Board of Directors) shall determine and
publicly disclose at the time such additional shares are issued).

          
          Dividends
payable on the Series A Preference Shares in respect of any Dividend Period
commencing prior to the December 15, 2016 Dividend Payment Date will be
computed on the basis of a 360-day year consisting of twelve 30-day months. The
dividend payment for any period prior to the December 15, 2016 Dividend Payment
Date that is shorter than six months will be computed based on a 30-day month
and, for periods of less than a month, the actual number of days elapsed in
such period, over a 360-day year. If any date on which dividends would
otherwise be payable on or prior to December 15, 2016 is not a Business Day,
then the Dividend Payment Date will be the next succeeding Business Day with
the same force and effect as if made on the original Dividend Payment Date, and
no additional dividends shall accrue on the amount so payable from such date to
such next succeeding Business Day. If any date on which dividends would
otherwise be payable after December 15, 2016 is not a Business Day, than the
Dividend Payment Date will be the next succeeding Business Day, unless the
payment date would fall in the next calendar month, in which case the Dividend
Payment Date will be made on the next Business Day immediately before the
scheduled payment date. Dividends payable on the Series A Preference Shares in
respect of any dividend period commencing on or after the December 15, 2016
Dividend Payment Date will be computed based on the actual number of days
elapsed over a 360-day year. Dividends payable in respect of a Dividend Period
shall be payable in arrears (i.e., on the first Dividend Payment Date after
such Dividend Period).

          
          Dividends
on the Series A Preference Shares shall be non-cumulative. Accordingly, if the
Board of Directors (or a duly authorized committee of the Board of Directors)
does not declare a dividend on the Series A Preference Shares payable in
respect of any Dividend Period before the related Dividend Payment Date, in
full or otherwise, then such undeclared dividends shall not cumulate and will
not accrue and will not be payable and the 

5

Company shall
have no obligation to pay such undeclared dividends for the applicable Dividend
Period on the related Dividend Payment Date or at any future time or to pay
interest with respect to such dividends, whether or not dividends are declared
on Series A Preference Shares or any other preference shares the Company may
issue in the future.

          
          Holders
of Series A Preference Shares shall not be entitled to any dividends or other
distributions, whether payable in cash, securities or other property, other
than dividends (if any) declared and payable on the Series A Preference Shares
as specified in this Section 4 (subject to the other provisions of this
Certificate of Designations).

          
          In
the event that additional Series A Preference Shares are issued after the
original issue date, dividends on such Series A Preference Shares will accrue
from the original issue date or from any other date specified by the Company at
the time such additional Series A Preference Shares are issued and will accrue,
with respect to each Dividend Period, in the manner set forth above in this
Section 4(a).

          
          (b)
PRIORITY OF DIVIDENDS. So long as any Series A Preference Shares remain
outstanding for any Dividend Period, unless the full dividends for the latest
completed Dividend Period on all issued and outstanding Series A Preference
Shares and any Parity Shares have been declared and paid (or declared and a sum
sufficient for the payment thereof has been set aside), (1) no dividend shall
be declared or paid on the Common Shares or any other Junior Shares (other than
a dividend payable solely in Junior Shares); and (2) no Common Shares or other
Junior Shares shall be purchased, redeemed or otherwise acquired for
consideration by the Company, directly or indirectly (other than (i) as a
result of a reclassification of Junior Shares for or into other Junior Shares,
or the exchange or conversion of one Junior Share for or into another Junior
Share; (ii) through the use of the proceeds of a substantially contemporaneous
sale of Junior Shares; (iii) as permitted by the Bye-laws in effect as of the
date of this Certificate of Designations and (iv) as required by any employment
contract, benefit plan or similar agreement or arrangement with or for the
benefit of one or more of the Company’s present or former employees, officers,
directors or consultants entered into prior to the date of this Certificate of
Designations).

          
          When
dividends are not paid (or declared and a sum sufficient for payment thereof
set aside) in full on any Dividend Payment Date (or, in the case of Parity
Shares having dividend payment dates different from the Dividend Payment Dates,
on a dividend payment date falling within a Dividend Period) upon the Series A
Preference Shares and any Parity Shares, all dividends declared by the Board of
Directors (or a duly authorized committee of the Board of Directors) on the
Series A Preference Shares and all such Parity Shares and payable on such
Dividend Payment Date (or, in the case of Parity Shares having dividend payment
dates different from the Dividend Payment Dates, on a dividend payment date
falling within the Dividend Period related to such Dividend Payment Date) shall
be declared by the Board of Directors (or such committee of the Board of
Directors) on a pro rata basis in proportion to the total amounts that are due
on such securities.

          
          (c)
RESTRICTIONS ON PAYMENT OF DIVIDENDS. Pursuant to and subject to the Companies
Act, the Company may not lawfully declare or pay a dividend if the Company has
reasonable grounds for believing that the Company is, and would after payment
of 

6

the dividend
be, unable to pay its liabilities as they become due, or that the realizable
value of the Company’s assets would, after payment of the dividend, be less
than the aggregate value of the Company’s liabilities, issued share capital and
share premium accounts.

          
          SECTION
5. PAYMENT OF ADDITIONAL AMOUNTS.

          
          (a)
Subject to the terms of the Companies Act, the Company will make all payments
and distributions on the Series A Preference Shares free and clear of and
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 Bermuda or any other jurisdiction
in which the Company is organized (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 (x) the laws (or any regulations or rulings promulgated thereunder)
of a Taxing Jurisdiction or any political subdivision or taxing authority
thereof or therein or (y) 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 in respect of any
payment or distribution on the Series A Preference Shares (whether in respect
of a declared dividend, upon redemption, upon liquidation, dissolution or
winding up of the Company or otherwise), the Company will, subject to certain
limitations and exceptions described below, pay to the holders of the Series A
Preference Shares such additional amounts as dividends as may be necessary so
that every net payment made to such holders, after the withholding or
deduction, will not be less than the amount provided for in this Certificate of
Designations to be then due and payable.

          
          (b)
The Company will not be required to pay any additional amounts for or on
account of:

	
 

	
 

	
 

	
          (i)
  any tax, fee, duty, assessment or governmental charge of whatever nature that
  would not have been imposed but for the fact that such holder 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 Series A Preference Shares or any
  Series A Preference Shares presented for payment more than 30 days after the
  Relevant Date. The “Relevant Date” means, in respect of any payment, the date
  on which such payment first becomes due and payable, but if the full amount
  of the moneys payable has not been received by the dividend disbursing agent
  on or prior to such due date, it means the first date on which, the full
  amount of such moneys having been so received and being available for payment
  to holders, notice to that effect shall have been duly given to the holders
  of the Series A Preference Shares;

	
 

	
 

	
 

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

7

	
 

	
 

	
 

	
charge that
  is payable otherwise than by withholding or deduction from payment of the
  liquidation preference;

	
 

	
 

	
 

	
          (iii)
  any tax, fee, duty, assessment or other governmental charge that is imposed
  or withheld by reason of the failure by the holder of such Series A
  Preference Shares to comply with any reasonable request by the Company
  addressed to the holder within 90 days of such request (a) to provide
  information concerning the nationality, residence or identity of the holder
  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, fee, duty, assessment or other
  governmental charge;

	
 

	
 

	
 

	
          (iv)
  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

	
 

	
 

	
 

	
          (v)
  any combination of items (i), (ii), (iii) and (iv).

          
          (c)
In addition, the Company will not pay additional amounts with respect to any
payment on any such Series A Preference Shares to any holder who is a
fiduciary, partnership, limited liability company or other pass-thru entity
other than the sole beneficial owner of such Series A Preference Shares if 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, limited
liability company or other pass-thru entity or a beneficial owner to the extent
such beneficiary, partner or settlor would not have been entitled to such
additional amounts had it been the holder of the Series A Preference Shares.

          
          SECTION
6. LIQUIDATION RIGHTS.

          
          (a)
VOLUNTARY OR INVOLUNTARY LIQUIDATION. In the event of any liquidation,
dissolution or winding-up of the affairs of the Company, whether voluntary or
involuntary, holders of Series A Preference Shares and any Parity Shares shall
be entitled to receive, out of the assets of the Company or proceeds thereof
(whether capital or surplus) available for distribution to shareholders of the
Company, after satisfaction of all liabilities and obligations to creditors of
the Company, if any, but before any distribution of such assets or proceeds is
made to or set aside for the holders of Common Shares and any other Junior
Shares, in full an amount equal to US$1,000.00 per Series A Preference Share,
plus any declared and unpaid dividends.

          
          (b)
PARTIAL PAYMENT. If in any distribution described in Section 6(a) above, the
assets of the Company or proceeds thereof are not sufficient to pay the
Liquidation Preferences (as defined below) in full to all holders of Series A
Preference Shares and all holders of any Parity Shares, the amounts paid to the
holders of Series A Preference Shares and to the

8

holders of all such other Parity Shares
shall be paid on a pro rata basis in proportion to the total amounts that are
due on such Series A Preference Shares and all such other Parity Shares but
only to the extent the Company has assets or proceeds thereof available after
satisfaction of all liabilities to creditors. In any such distribution, the
“Liquidation Preference” of any holder of Preference Shares of the Company
shall mean the amount otherwise payable to such holder in such distribution
(assuming no limitation on the assets of the Company available for such
distribution), including any declared and unpaid dividends (and, in the case of
any holder of shares other than Series A Preference Shares and on which
dividends accrue on a cumulative basis, an amount equal to any unpaid, accrued
cumulative dividends, whether or not declared, as applicable).

          
          (c)
RESIDUAL DISTRIBUTIONS. If the Liquidation Preference has been paid in full to
all holders of Series A Preference Shares and any holders of Parity Shares, the
holders of other shares of the Company shall be entitled to receive all
remaining assets of the Company (or proceeds thereof) according to their
respective rights and preferences.

          
          (d)
MERGER, CONSOLIDATION AND SALE OF ASSETS NOT LIQUIDATION. For purposes of this
Section 6, the consolidation, amalgamation, merger, arrangement,
reincorporation, discontinuance, de-registration or reconstruction involving the
Company or the sale, assignment, lease, conveyance or transfer of all or
substantially all of the shares or the property or business of the Company
shall not constitute a liquidation, dissolution or winding-up.

          
          SECTION
7. REDEMPTION.

          
          (a)
OPTIONAL REDEMPTION.

          
          Prior
to December 15, 2016, the Company, at its option, may redeem, in whole at any
time or in part from time to time, the Series A Preference Shares at the time
issued and outstanding, upon notice given as provided in Section 7(c) below, at
a redemption price equal to the sum of (i) the US$1,000.00 liquidation
preference per Series A Preference Share plus (ii) declared and unpaid
dividends per Series A Preference Share, if any, without accumulation of any
undeclared dividends plus (iii) any applicable early make-whole premium.

          
          The
amount of the “early make-whole premium” per Series A Preference Share to be
redeemed in accordance with the foregoing paragraph will be equal to the
excess, if any, of:

	
 

	
 

	
 

	
 

	
          (i)
  the sum of the present values, calculated as of the date fixed for redemption
  (the “early redemption date”), of:

	
 

	
 

	
 

	
 

	
          (x)
  each dividend payment that, but for such redemption, would have been payable
  on the Series A Preference Share being redeemed on each Dividend Payment Date
  occurring during the period beginning on the early redemption date and ending
  on December 15, 2016, assuming for the purpose of calculating this “early
  make-whole premium” only that the Board of Directors of the Company (or a
  duly authorized committee of the Board) had declared a dividend payable on
  that Series A Preference Share on each such Dividend Payment Date; and

9

	
 

	
 

	
 

	
 

	
 

	
          (y)
  the mandatory redemption price (as defined below) that, but for such
  redemption, would have been payable on the mandatory redemption date (as
  defined below) in respect of such Series A Preference Share being redeemed;
  over

	
 

	
 

	
 

	
 

	
          (ii)
  the US$1,000.00 liquidation preference per Series A Preference Share being
  redeemed.

          
          The
present value of the dividend payments and mandatory redemption price referred
to in clause (i) above will be determined in accordance with generally accepted
principles of financial analysis. Such present values will be calculated by
discounting the amount of each dividend payment or mandatory redemption price
from the date that such dividend payment or mandatory redemption price would
have been payable, but for the redemption, to the early redemption date at a
discount rate equal to the Treasury Yield plus 37.5 basis points.

          
          The
Company will appoint an independent investment banking institution of national
standing to calculate the early make-whole premium; provided that Merrill
Lynch, Pierce, Fenner & Smith Incorporated will make such calculation if
(i) the Company fails to make such appointment at least 30 days prior to the
early redemption date, or (ii) the institution so appointed is unwilling or
unable to make such calculation. If Merrill Lynch, Pierce, Fenner & Smith
Incorporated is to make such calculation but is unwilling or unable to do so,
then the calculation agent will appoint an independent investment banking
institution of national standing to make such calculation. In any case, the
institution making such calculation is referred to in this Certificate of
Designations as an “Independent Investment Banker.”

          
          For
purposes of determining the early make-whole premium, “Treasury Yield” means a
rate of interest per year equal to the weekly average yield to maturity of
United States Treasury Notes that have a constant maturity that corresponds to
the remaining term to December 15, 2016 of the Series A Preference Shares to be
redeemed, calculated to the nearest 1/12th of a year (the “Remaining Term”).
The Independent Investment Banker will determine the Treasury Yield as of the
third business day immediately preceding the applicable early redemption date.

          
          The
Independent Investment Banker will determine the weekly average yields of
United States Treasury Notes by reference to the most recent statistical
release published by the Federal Reserve Bank of New York and designated
“H.15(519) Selected Interest Rates” or any successor release (the “H.15
Statistical Release”). If the H.15 Statistical Release sets forth a weekly
average yield for United States Treasury Notes having a constant maturity that
is the same as the Remaining Term, then the Treasury Yield will be equal to
such weekly average yield. In all other cases, the Independent Investment
Banker will calculate the Treasury Yield by interpolation, on a straight-line
basis, between the weekly average yields on the United States Treasury Notes
that have a constant maturity closest to and greater than the Remaining Term
and the United States Treasury Notes that have a constant maturity closest to
and less than the Remaining Term (in each case as set forth in the H.15
Statistical Release). The Independent Investment Banker will round any weekly
average yields so calculated to the nearest 1/100th of a 1%, and will round upward
for any figure of 1/200th of 1% or above. If weekly average yields for United
States Treasury Notes are not available in the H.15 Statistical Release or
otherwise, 

10

then the
Independent Investment Banker will select comparable rates and calculate the
Treasury Yield by reference to those rates.

          
          On
and after December 15, 2016, the Company, at its option, may redeem, in whole
at any time or in part from time to time, the Series A Preference Shares at the
time outstanding, upon notice given as provided in Section 7(c) below, at a
redemption price equal to the liquidation preference amount of US$1,000.00 per
Series A Preference Share plus declared and unpaid dividends, if any, without
accumulation of any undeclared dividends.

          
          The
redemption price for any Series A Preference Shares shall be payable on the
redemption date to the holder of such shares against book entry transfer or
surrender of the certificate(s) evidencing such shares to the Company or its
agent. Any declared but unpaid dividends payable on a redemption date that
occurs subsequent to the Dividend Record Date for a Dividend Period shall not
be paid to the holder entitled to receive the redemption price on the
redemption date, but rather shall be paid to the holder of record of the
redeemed shares on such Dividend Record Date relating to the Dividend Payment
Date as provided in Section 4 above.

          
          Prior
to delivering notice of redemption as provided below, the Company will file
with its corporate records (which may include its minute book) a certificate
signed by one of the Company’s officers affirming the Company’s compliance with
the redemption provisions under the Companies Act relating to the Series A
Preference Shares, and stating that there are reasonable grounds for believing
that the Company is, and after the redemption will be, able to pay its
liabilities as they become due. The Company will mail a copy of this
certificate with the notice of any redemption.

          
          (b)
NO SINKING FUND. The Series A Preference Shares will not be subject to any
mandatory redemption, sinking fund, retirement fund or purchase fund or other
similar provisions. Except as provided in Section 7(g) below, holders of
Series A Preference Shares will have no right to require redemption, repurchase
or retirement of any Series A Preference Shares.

          
          (c)
NOTICE OF REDEMPTION. Notice of every redemption of Series A Preference Shares
shall be given by first class mail, postage prepaid, addressed to the holders
of record of the shares to be redeemed at their respective last addresses
appearing on the register of members of the Company. Such mailing shall be at
least 30 days and not more than 60 days before the date fixed for redemption.
Any notice mailed as provided in this subsection shall be conclusively presumed
to have been duly given, whether or not the holder receives such notice, but
failure duly to give such notice by mail, or any defect in such notice or in
the mailing thereof, to any holder of Series A Preference Shares designated for
redemption shall not affect the validity of the proceedings for the redemption
of any other Series A Preference Shares. Notwithstanding the foregoing, if the
Series A Preference Shares or any depositary shares representing interests in
the Series A Preference Shares are issued in book-entry form through The
Depository Trust Company or any other similar facility, notice of redemption
may be given to the holders of Series A Preference Shares at such time and in
any manner permitted by such facility. Each such notice given to a holder shall
state: (1) the redemption date; (2) the number of Series A Preference Shares to
be redeemed and, if less than all the Series A Preference Shares held by such
holder are to be redeemed, the number of such Series A Preference Shares to be
redeemed from such holder; (3) the redemption price; and (4) that the Series A
Preference Shares 

11

should be
delivered via book entry transfer or the place or places where certificates for
such Series A Preference Shares are to be surrendered for payment of the
redemption price.

          
          (d)
TAX REDEMPTION. (1) Prior to December 15, 2016, if there is a “change in tax
law” that would require the Company or any successor company to pay any
additional amounts with respect to the Series A Preference Shares on the next
succeeding Dividend Payment Date, and the payment of those additional amounts
cannot be avoided by the use of any reasonable measures available to the
Company or any successor company, the Company shall be entitled at any time
thereafter, upon notice given as provided in Section 7(c) above, to redeem any
or all Series A Preference Shares pursuant to this clause for cash at a “tax
event redemption price” equal to the sum of (i) 100% of the US$1,000.00
liquidation preference per Series A Preference Share plus (ii) declared and
unpaid dividends per Series A Preference Share, if any, without accumulation of
any undeclared dividends plus (iii) any applicable tax event make-whole
premium.

          
          The
amount of the “tax event make-whole premium” per Series A Preference Share to
be redeemed in accordance with the foregoing paragraph will be equal to the
excess, if any, of:

	
 

	
 

	
 

	
 

	
          (i)
  the sum of the present values, calculated as of the date fixed for redemption
  (the “tax event redemption date”), of:

	
 

	
 

	
 

	
 

	
 

	
          (x)
  each dividend payment that, but for such redemption, would have been payable
  on the Series A Preference Share being redeemed on each Dividend Payment Date
  occurring during the period beginning on the tax event redemption date and
  ending on December 15, 2016, assuming for the purpose of calculating this
  “tax event make-whole premium” only that the Board of Directors of the
  Company (or a duly authorized committee of the Board) had declared a dividend
  payable on that Series A Preference Share on each such Dividend Payment Date;
  and

	
 

	
 

	
 

	
 

	
 

	
          (y)
  the mandatory redemption price (as defined below) that, but for such
  redemption, would have been payable on the mandatory redemption date (as
  defined below) in respect of such Series A Preference Share being redeemed;
  over

	
 

	
 

	
 

	
 

	
          (ii)
  the US$1,000.00 liquidation preference per Series A Preference Share being
  redeemed.

          
          The
present values of dividend payments and mandatory redemption price referred to
in clause (1) above will be determined in accordance with generally accepted
principles of financial analysis. Such present values will be calculated by
discounting the amount of each dividend payment or mandatory redemption price
from the date that each such dividend payment or mandatory redemption price
would have been payable, but for the redemption, to the tax event redemption
date at a discount rate equal to the Treasury Yield plus 50 basis points.

          
          The
Independent Investment Banker will determine the Treasury Yield in the manner
described in Section 7(a).

12

          
          For
the purposes of this provision, a “change in tax law” shall be (a) a change in
or amendment to laws, regulations or rulings of any jurisdiction, political
subdivision or taxing authority described in the next sentence, (b) a change in
the official application or interpretation of those laws, regulations or
rulings, or (c) any execution of or amendment to any treaty affecting taxation
to which any jurisdiction, political subdivision or taxing authority described
in the next sentence is party after the date of original issuance of the Series
A Preference Shares. The jurisdictions, political subdivisions and taxing
authorities referred to in the previous sentence are (a) Bermuda or any
political subdivision or governmental authority of or in Bermuda with the power
to tax, (b) any jurisdiction from or through which the Company or its dividend
disbursing agent is making payments on the Series A Preference Shares or any
political subdivision or governmental authority of or in that jurisdiction with
the power to tax, or (c) any other jurisdiction in which the Company or its
successor company is organized or generally subject to taxation or any
political subdivision or governmental authority of or in that jurisdiction with
the power to tax.

          
          (2)
Prior to December 15, 2016, if the entity formed by a consolidation, merger or
amalgamation involving the Company or the entity to which the Company conveys,
transfers or leases substantially all of its properties and assets is required
to pay additional amounts in respect of any tax, assessment or governmental
charge imposed on any holder of Series A Preference Shares as a result of a
change in tax law that occurred after the date of the consolidation, merger,
amalgamation, conveyance, transfer or lease, and the payment of those amounts
cannot be avoided by the use of any reasonable measures available to the
Company or any successor company, the Company shall be entitled at any time thereafter,
upon notice given as provided in Section 7(c) above, to redeem any or all
Series A Preference Shares pursuant to this clause for cash at the tax event
redemption price per share being redeemed.

          
          (e)
PARTIAL REDEMPTION. In case of any redemption of only part of the Series A
Preference Shares at the time issued and outstanding, the shares to be redeemed
shall be selected either pro rata or in such other manner as the Company may
determine to be fair and equitable. Subject to the provisions hereof, the
Company shall have full power and authority to prescribe the terms and
conditions upon which Series A Preference Shares shall be redeemed from time to
time. If fewer than all the shares represented by any certificate are redeemed,
a new certificate shall be issued representing the unredeemed shares without
charge to the holder thereof.

          
          (f)
MANDATORY REDEMPTION. On December 15, 2066 (the “mandatory redemption date”),
the Company shall redeem, in whole, the Series A Preference Shares at a
redemption price of US$1,000.00 per share (the “mandatory redemption price”),
plus declared and unpaid dividends, without accumulation of any undeclared
dividends. The Company shall be required to deposit with a bank or trust
company sufficient funds for the payment of the full amount payable upon
redemption of such shares on December 15, 2066 in accordance with Section 7(g)
below.

          
          If and for
so long as the Company fails for any reason to deposit such funds sufficient to
redeem the Series A Preference Shares on December 15, 2066, the Company and its subsidiaries
will not (i) redeem or otherwise acquire any Parity Shares or discharge any
mandatory or optional redemption, sinking fund or other similar obligation in
respect of any 

13

Parity Shares (except in connection with a redemption, sinking fund or
other similar obligation in which Series A Preference Shares receive a pro rata share) or (ii)
declare or make any distribution on any Junior Shares, or redeem or otherwise
acquire any Junior Shares, or discharge any mandatory or optional redemption,
sinking fund or other similar obligation in respect of the Junior Shares.

          
          (g)
DEPOSIT OF FUNDS FOR REDEMPTION. (1)               On
or prior to the date fixed for redemption of the Series A Preference Shares or
any part thereof as specified in the notice of redemption given as provided in
Section 7(c) above, the Company shall deposit adequate funds for such
redemption, in trust for the account of holders of the Series A Preference
Shares, with a bank or trust company that has an office in the United States,
and that has, or is an affiliate of a bank or trust company that has, capital
and surplus of at least US$50,000,000. If the name and address of such bank or
trust company and the deposit of or intent to deposit the redemption funds in
such trust account have been stated in the redemption notice, then from and
after the mailing of the notice and the making of such deposit the Series A
Preference Shares called for redemption will no longer be deemed to be outstanding
for any purpose whatsoever, and all rights of the holders of such Series A
Preference Shares in or with respect to us will cease and terminate except to
the right of the holders of the Series A Preference Shares: (i) to transfer
such Series A Preference Shares prior to the date fixed for redemption; and
(ii) to receive the redemption price of such Series A Preference Shares,
including declared and unpaid dividends and any applicable make-whole premium,
without accumulation of any undeclared dividends, upon surrender of the
certificate or certificates representing the Series A Preference Shares to be
redeemed.

          
          (2)
Any moneys so deposited by the Company that remain unclaimed by the holders of
the Series A Preference Shares called for redemption will, at the end of six
years after the redemption date, be paid to the Company upon its request, after
which repayment the holders of the Series A Preference Shares called for
redemption can no longer look to such bank or trust company for the payment of
the redemption price but must look only to the Company for the payment of any
lawful claim for such moneys which holders of such Series A Preference Shares
may have. After such six-year period, the right of any shareholder or other
person to receive such payment may lapse through limitations imposed in the
manner and with the effect provided under the laws of Bermuda.

          
          (h)
REDUCTION OF SHARE CAPITAL. Any redemption of Series A Preference Shares under
this Section 7shall not be taken as reducing the amount of the Company’s
authorized share capital. 

          
          SECTION
8. VOTING RIGHTS.

          
          (a)
GENERAL. The holders of Series A Preference Shares shall not have any voting
rights except as set forth below in the Bye-laws of the Company or as otherwise
from time to time required by law. Notwithstanding anything to the contrary
contained in the Bye-laws of the Company, the affirmative vote or consent of at
least 66 2/3% of the issued and outstanding Series A Preference Shares will be
required for the authorization or issuance of any share capital that will rank
senior to the Series A Preference Shares as to dividends and/or distribution
upon the liquidation dissolution or winding-up of the affairs of the Company.

14

          
          (b)
CHANGES FOR CLARIFICATION. Without the consent of the holders of the Series A
Preference Shares, so long as such action does not affect the special rights,
preferences, privileges and voting powers, and limitations and restrictions, of
the Series A Preference Shares taken as a whole, the Company may amend, alter,
supplement or repeal any terms of the Series A Preference Shares: 

	
 

	
 

	
 

	
          (i)
  to cure any ambiguity, or to cure, correct or supplement any provision
  contained in this Certificate of Designations that may be defective or
  inconsistent; or

	
 

	
 

	
 

	
          (ii)
  to make any provision with respect to matters or questions arising with
  respect to the Series A Preference Shares that is not inconsistent with the
  provisions of this Certificate of Designations. 

          
          (c)
CHANGES AFTER PROVISION FOR REDEMPTION. No vote or consent of the holders of
Series A Preference Shares shall be required pursuant to Section 8(a), (b) or
(c) above if, at or prior to the time when any such vote or consent would
otherwise be required pursuant to such Section, all outstanding Series A
Preference Shares shall have been redeemed, or shall have been called for
redemption upon proper notice and sufficient funds shall have been set aside
for such redemption, in each case pursuant to Section 7 above.

          
          (d)
PROCEDURES FOR VOTING AND CONSENTS. The rules and procedures for calling and
conducting any meeting of the holders of Series A Preference Shares (including,
without limitation, the fixing of a record date in connection herewith), the
solicitation and use of proxies at such a meeting, the obtaining of written
consents and any other aspect or matter with regard to such a meeting or such
consents shall be governed by any rules the Board of Directors (or a duly
authorized committee of the Board of Directors) in its discretion, may adopt
from time to time, which rules and procedures shall conform to the requirements
of this Certificate of Designations, the Memorandum of Association, the
Bye-laws, applicable law and any national securities exchange or other trading
facility on which the Series A Preference Shares is listed or traded at the
time. Whether the vote or consent of the holders of a plurality, majority or
other portion of the Series A Preference Shares and any Voting Preference Shares
has been cast or given on any matter on which the holders of Series A
Preference Shares are entitled to vote shall be determined by the Company by
reference to the aggregate voting power, as determined by the Bye-laws of the
Company, of the shares voted or covered by the consent.

          
          SECTION
9. RANKING. The Series A Preference Shares will, with respect to the payment of
dividends and distributions of assets upon liquidation, dissolution and
winding-up, rank senior to Junior Shares and pari passu with any Parity
Shares of the Company, including other series of Preference Shares that the
Company may issue from time to time in the future.

          
          SECTION
10. RECORD HOLDERS. To the fullest extent permitted by applicable law, the
Company and the transfer agent for the Series A Preference Shares may deem and
treat the record holder of any Series A Preference Shares as the true and
lawful owner thereof for all purposes, and neither the Company nor such
transfer agent shall be affected by any notice to the contrary. 

15

          
          SECTION
11. NOTICES. All notices or communications in respect of Series A Preference
Shares shall be sufficiently given if given in writing and delivered in person
or by first class mail, postage prepaid, or if given in such other manner as
may be permitted in this Certificate of Designations, the Memorandum of
Association, Bye-laws or by applicable law.

          
          SECTION
12. NO PREEMPTIVE RIGHTS. No Series A Preference Share shall have any rights of
preemption whatsoever as to any securities of the Company, or any warrants,
rights or options issued or granted with respect thereto, regardless of how
such securities, or such warrants, rights or options, may be designated, issued
or granted.

          
          SECTION
13. CONVERSION. The Series A Preference Shares shall not be convertible into or
exchangeable for any other securities or property of the Company. 

          
          SECTION
14. OTHER RIGHTS. Series A Preference Shares shall not have any voting powers,
preferences or relative, participating, optional or other special rights, or
qualifications, limitations or restrictions thereof, other than as set forth
herein or in the Memorandum of Association, Bye-laws or as provided by
applicable law.

          
          IN
WITNESS WHEREOF, RAM HOLDINGS LTD. has caused this certificate to be signed by
Victoria Guest, its General Counsel and Secretary, this 14th day of December,
2006.

[Signature Page Follows]

16

	
 

	
 

	
 

	
 

	
 

	
RAM HOLDINGS
  LTD.

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Name:
  Victoria Guest

	
 

	
 

	
Title:
  General Counsel and Secretary

	
 

	
 

	
Date:Exhibit 4.1

                          STOCK COMPENSATION AGREEMENT

      THIS AGREEMENT, is made effective May 13, 2007, and is by and between
Perfisans Holdings Limited with address at 7828 Kennedy Road, Suite 201,
Markham, Ontario, Canada, L3R 6P1 (the "Company") and Cheer Chain Enterprise,
Limited (the "Consultant") with address at RM601 6/F., Kimberley House, 35
Kimberley Road, Tsim Sha Tsui, Kowloon, Hong Kong (the "Consultant"):

         WHEREAS Consultant has provided good and valuable services to the
Company as detailed on Exhibit A hereto:

          The Company does not currently have adequate cash available to pay
Consultant in cash for the services provided by him and to pay for the ongoing
operation of the Company; and

          Consultant is willing to accept shares of the Company's Common Stock
in lieu of cash for the services provided by him under the terms and conditions
set forth herein;

         NOW, THEREFORE, in consideration of the covenants and agreements set
forth herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Consultant and the Company agree as
follows:

1. The Company and Consultant agree that the value of the services performed by
Consultant is equal to the amount set forth in Exhibit A hereto, and that the
services shown represent all of the which Consultant is entitled to
compensation.

2. The Company hereby agrees to issue the number of shares of the Company's
Common Stock set forth on Exhibit A hereto, and Consultant hereby agrees to
accept such shares in full payment for the services detailed on Exhibit A
hereto, and it is agreed that the value of each share of common stock is equal
in value to $0.02.

3. Consultant represents and warrants to the Company that he is acquiring the
shares of Common Stock for investment purposes only, and not with a view to, or
for, resale, distribution or fractionalization thereof, in whole or in part, and
no other person has a direct or indirect beneficial interest in such shares of
Common Stock.

4. Consultant hereby acknowledges that, upon the issuance thereof, and until
such time as the same is no longer required under the applicable securities laws
and regulations, the certificates representing any of the shares of Common Stock
will bear a legend in substantially the following form:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE AND
HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND,

<PAGE>

ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS.

5. The Company will use its best efforts to register the shares of Common Stock
issued pursuant to this Agreement for resale by Consultant in a registration
statement to be filed under the Securities Act of 1933, as amended.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
first above written.

                                            PERFISANS HOLDINGS LIMITED

                                        By: /s/ Bok Wong
                                            --------------------------
                                            (Printed Name and Title)

                                            CHEER CHAIN ENTERPRISE, LIMITED

                                            /s/ E. Jin Chen
                                            --------------------------
                                            (Signature)

<PAGE>

                    EXHIBIT A TO STOCK COMPENSATION AGREEMENT

Name: Cheer Chain Enterprise,Limited

Description of Services Provided: Business Plan development, Marketing Plan,
Strategic corporate development plan consulting services.

Agreed Value of Services: $60,000.00

Terms: 6 Months.

Number of Shares of Common Stock to be issued under Agreement: 3,000,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]