Exhibit 10.24

EXECUTION COPY

AMENDMENT NO. 2

AMENDMENT NO. 2 (this “Amendment No. 2”) dated as of March 3, 2008 among AMBAC
FINANCIAL GROUP, INC. and AMBAC ASSURANCE CORPORATION (collectively the
“Borrowers” and each a “Borrower”), the Lenders executing this Amendment No. 2
and CITIBANK, N.A., in its capacity as Administrative Agent under the Credit
Agreement referred to below (the “Administrative Agent”).

The Borrowers, the Lenders party thereto (including the Lenders executing this
Amendment No. 2) and the Administrative Agent are parties to a First Amended and
Restated Revolving Credit Agreement dated as of July 30, 2007 (as amended by
Amendment No. 1 thereto and as amended, supplemented and otherwise modified from
time to time and in effect on the date hereof, the “Credit Agreement”).

The Borrowers and the Lenders party hereto wish now to amend the Credit
Agreement in certain respects, and, accordingly, the parties hereto hereby agree
as follows:

Section 1. Definitions. Except as otherwise defined in this Amendment No. 2,
terms defined in the Credit Agreement are used herein as defined therein.

Section 2. Amendments. Subject to the satisfaction of the conditions precedent
specified in Section 4 hereof, but effective as of the date hereof, the Credit
Agreement shall be amended as follows:

2.01. References Generally. References in the Credit Agreement (including
references to the Credit Agreement as amended hereby) to “this Agreement” (and
indirect references such as “hereunder”, “hereby”, “herein” and “hereof”) shall
be deemed to be references to the Credit Agreement as amended hereby.

2.02. Asset Dispositions. Section 5.02(c) of the Credit Agreement is hereby
amended to read in its entirety as follows:

“(c) Asset Dispositions. It will not, and will not permit any of its Material
Subsidiaries to, sell, transfer, lease, contribute or otherwise convey, or grant
options, warrants or other rights with respect to, all or any substantial part
of its property, revenues or assets (including accounts receivable and capital
stock of any of its Material Subsidiaries) to any Person (any of the foregoing,
an “Asset Disposition”); provided, however, that (X) each Borrower and its
Material Subsidiaries may consummate (i) Asset Dispositions in the ordinary
course of their business and (ii) any Asset Disposition, to the extent that
immediately after giving effect to such Asset Disposition, the aggregate fair
market value (determined at the time of the applicable transactions) of all
assets subject to Asset Dispositions (other than those described in clause
(i) consummated by the Borrowers and their respective Subsidiaries in such
fiscal year) and consummated in such fiscal year, would not exceed 25% of the
stockholders’ equity of Ambac Financial and its Subsidiaries, on a Consolidated
basis (excluding unrealized gains on investments and unrealized losses on
investments), at the end of the next preceding fiscal year and (Y) this
Section 5.02(c) shall not prohibit Ambac Financial from contributing to Ambac
Assurance all or any part of the proceeds of one or more issuances of equity or
other securities by Ambac Financial so long as any such issuance shall have been
consummated by Ambac Financial on or before the date that is 75 days after the
date of Amendment No. 2 hereto.”

AMENDMENT NO. 2

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Section 3. Representations and Warranties. Each Borrower represents and warrants
to the Lenders and the Administrative Agent, as to itself and each of its
Subsidiaries, that (a) except, for purposes of the last sentence of
Section 4.01(e) of the Credit Agreement and Section 4.01(f) of the Credit
Agreement, as described in Ambac Financial Group, Inc.’s Form 10-K for the
fiscal year ended December 31, 2007 (as filed with the Securities and Exchange
Commission on February 29, 2008), the representations and warranties set forth
in Article IV of the Credit Agreement (after giving effect to the amendments
contemplated herein) are true and complete on the date hereof as if made on and
as of the date hereof (or, if any such representation or warranty is expressly
stated to have been made as of a specific date, such representation or warranty
shall be true and correct as of such specific date), and as if each reference in
said Article IV to “this Agreement” included reference to this Amendment No. 2
(it being agreed that it shall be deemed to be an Event of Default under the
Credit Agreement if any of the foregoing representations and warranties shall
prove to have been incorrect in any material respect when made), and (b) no
Default or Event of Default has occurred and is continuing.

Section 4. Conditions Precedent.

(a) General. The amendments set forth in Section 2 hereof shall become
effective, as of the date hereof, upon satisfaction of the following conditions:

(i) Execution. The Administrative Agent shall have received counterparts of this
Amendment No. 2 executed by the Borrowers, the Administrative Agent and the
Lenders party to the Credit Agreement constituting the Required Lenders.

(ii) Amendment Fee. The Administrative Agent shall have received for the account
of each Lender that, not later than 6:00 p.m. New York City time on March 3,
2008 (the “Final Consent Time”), shall have executed a counterpart of this
Amendment No. 2 and delivered the same to the Administrative Agent, an amendment
fee in an amount that shall have been agreed among the Borrowers and the
Administrative Agent.

(iii) Expenses. The Borrowers shall have paid in full the costs, expenses and
fees as set forth in Section 8.04(a) of the Credit Agreement.

Section 5. Miscellaneous. Except as herein provided, the Credit Agreement shall
remain unchanged and in full force and effect. This Amendment No. 2 may be
executed in any number of counterparts, all of which taken together shall
constitute one and the same amendatory instrument and any of the parties hereto
may execute this Amendment No. 2 by signing any such counterpart. Delivery of a
counterpart by electronic transmission shall be effective as delivery of a
manually executed counterpart hereof. This Amendment No. 2 shall be governed by,
and construed in accordance with, the law of the State of New York.

AMENDMENT NO. 2

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to be
duly executed by their respective authorized officers as of the day and year
first above written.

 

AMBAC FINANCIAL GROUP, INC. By  

/s/ David Trick

Name:   David Trick Title:   Managing Director and Treasurer AMBAC ASSURANCE
CORPORATION By  

/s/ David Trick

Name:   David Trick Title:   Managing Director and Treasurer CITIBANK, N.A., as
Administrative Agent By  

/s/ Maureen P. Maroney

Name:   Maureen P. Maroney Title:   Director

AMENDMENT NO. 2

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LENDERS CITIBANK, N.A. By  

/s/ Maureen P. Maroney

Name:   Maureen P. Maroney Title:   Director

AMENDMENT NO. 2

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LENDERS The Bank of New York By  

/s/ Lizanne T. Eberle

Name:   Lizanne T. Eberle Title:   Managing Director

AMENDMENT NO. 2

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LENDERS KeyBank National Association By  

/s/ Mary K. Young

Name:   Mary K. Young Title:   Senior Vice President

AMENDMENT NO. 2

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HSBC Bank USA, National Association By  

/s/ Lawrence Karp

Name:   Lawrence Karp Title:   Senior Vice President

AMENDMENT NO. 2

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LENDERS

MERRILL LYNCH BANK USA

By

 

/s/ Louis Alder

Name:

 

Louis Alder

Title:

 

First Vice President

AMENDMENT NO. 2