EXHIBIT 10.39

 

FOURTH AMENDMENT

 

FOURTH AMENDMENT (this “Fourth Amendment”), dated as of January 8, 2004, among
RADIAN REINSURANCE INC. (f/k/a Enhance Reinsurance Company), a New York stock
insurance company (the “Borrower”), the Banks from time to time party to the
Credit Agreement referred to below, and DEUTSCHE BANK, AG NEW YORK BRANCH, as
Agent. Unless otherwise defined herein, capitalized terms used herein and
defined in the Credit Agreement are used herein as therein defined.

 

W I T N E S S E T H :

 

WHEREAS, the Borrower, the Banks, and the Agent have entered into Credit
Agreement, dated as of November 7, 2001 (as amended, modified or supplemented
through the date hereof, the “Credit Agreement”); and

 

WHEREAS, subject to the terms and conditions set forth below, the parties hereto
wish to amend and/or modify certain provisions of the Credit Agreement as
provided herein;

 

NOW, THEREFORE, it is agreed;

 

A. Amendments to the Credit Agreement

 

1. The definition of the term “Loss Threshold Incurrence Date” appearing in
Section 1.01 of the Credit Agreement is hereby amended by deleting the amount
“$340,000,000” appearing therein and inserting the amount “$210,000,000” in lieu
thereof.

 

2. Section 3.04(a) of the Credit Agreement is hereby amended by deleting the
date “January 9, 2010” appearing immediately before the text “(the “Expiry
Date”)” in said Section and inserting the new date “January 9, 2011” in lieu
thereof.

 

3. The Credit Agreement is hereby further amended by deleting Schedule I thereto
and inserting Schedule I attached hereto in lieu thereof.

 

B. Miscellaneous Provisions

 

1. In order to induce the Banks to enter into this Fourth Amendment, the
Borrower hereby represents and warrants to each of the Banks that (i) all of the
representations and warranties contained in the Credit Agreement and in the
other Credit Documents are true and correct in all material respects on and as
of the Fourth Amendment Effective Date (as defined below), both before and after
giving effect to this Fourth Amendment (unless such representations and
warranties relate to a specific earlier date, in which case such representations
and warranties shall be true and correct as of such earlier date) and (ii) there
exists no Default or Event of Default on the Fourth Amendment Effective Date,
both before and after giving effect to this Fourth Amendment.

 

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2. All parties hereby acknowledge and agree that Coöperatieve Centrale
Raiffeisen-Boerenleenbank, B.A., “Rabobank Nederland”, New York Branch is hereby
released as a party under the Credit Agreement and its commitments thereunder
terminated, and is hereby released of any and all obligations thereunder (except
for those provisions that expressly survive termination).

 

3. This Fourth Amendment is limited as specified and shall not constitute a
modification, acceptance or waiver of any other provision of the Credit
Agreement or any other Credit Document.

 

4. This Fourth Amendment may be executed in any number of counterparts and by
the different parties hereto on separate counterparts, each of which
counterparts when executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument. A complete set of
counterparts executed by all the parties hereto shall be lodged with, the
Borrower and the Agent.

 

5. THIS FOURTH AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF
NEW YORK.

 

6. This Fourth Amendment shall become effective on the date (the “Fourth
Amendment Effective Date”) when:

 

(i) the Borrower and each Bank shall have signed a counterpart hereof (whether
the same or different counterparts) and shall have delivered (including by way
of facsimile transmission) the same to the Agent; and

 

(ii) the Borrower shall have paid to the Agent and to the Banks all costs, fees
and expenses (including, without limitation, legal fees and expenses) payable to
the Agent and/or the Banks to the extent then due.

 

7. From and after the Fourth Amendment Effective Date, all references in the
Credit Agreement and in the other Credit Documents to the Credit Agreement shall
be deemed to be referenced to the Credit Agreement as modified hereby.

 

*     *     *

 

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IN WITNESS WHEREOF, the undersigned have caused this Fourth Amendment to be duly
executed and delivered as of the date first above written.

 

RADIAN REINSURANCE INC.

By

 

/s/ Ari B. Ginsburg

   

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Title: Ari B. Ginsburg – Vice President

 

WESTLB AG NEW YORK BRANCH

By

 

/s/ Samuel Bridges

   

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Title:

 

Samuel Bridges

Director

 

By

 

/s/ David Sellers

   

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Title:

 

David Sellers

Executive Director

 

NORDDEUTSCHE LANDESBANK
GIROZENTRALE, NEW YORK
BRANCH

 

By

 

/s/ Stephen K. Hunter

   

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Title:

 

Stephen K. Hunter

SVP & Deputy General Manager

 

By

 

/s/ Stephanie Finnen

   

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Title:

 

Stephanie Finnen

Vice President

 

COÖPERATIVE CENTRALE
RAIFFEISEN-BOERENLEENBANK,
B.A., “RABOBANK NEDERLAND”,
NEW YORK BRANCH

 

By

 

/s/ Brett Delfino

   

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Title:

 

Brett Delfino

Executive Director

 

By

 

/s/ Wing Ng

   

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Title:

 

Wing Ng

Executive Director

 

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DEUTSCHE BANK AG,
NEW YORK BRANCH,
Individually and as Agent

 

By

 

/s/ John S. McGill

   

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Title:

 

John S. McGill

Director

 

By

 

/s/ Ruth Leung

   

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Title:

 

Ruth Leung

Director

 

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SCHEDULE I

 

PART A

 

Commitments

 

Name

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   Commitment

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Deutsche Bank AG, New York Branch

   $ 50,000,000

WestLB AG New York Branch

   $ 25,000,000

Norddeutsche Landesbank Girozentrale, New York Branch

   $ 20,000,000

Total

   $ 95,000,000     

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PART B

 

Part B Banks

 

Deutsche Bank AG New York Branch

WestLB AG New York Branch

Norddeutsche Landesbank Girozentrale, New York Branch

 

PART C

 

Part C Banks/Contingent Commitments

 

None.