Exhibit 10.27.1
EXECUTION VERSION

AMENDMENT NO. 1

     AMENDMENT NO. 1, dated as of December 26, 2007, to the Credit Agreement
referred to below, between SECURITY CAPITAL ASSURANCE LTD, a Bermuda limited
liability company (“SCA”), XL CAPITAL ASSURANCE INC., a New York corporation
(“XLCA”), XL FINANCIAL ASSURANCE LTD., a Bermuda limited liability company
(“XLFA” and, together with SCA and XLCA, each an “Account Party” and
collectively, the “Account Parties”), and the Lenders party hereto.

     The Account Parties, the lenders party thereto (the “Lenders”) and
Citibank, N.A., as the administrative agent are parties to a Credit Agreement
dated as of August 1, 2006 (as amended and in effect immediately prior to the
effectiveness of this Amendment No. 1, the “Credit Agreement”), providing,
subject to the terms and conditions thereof, for extensions of credit to be made
by or on behalf of the Lenders to the Account Parties in an aggregate principal
or face amount not exceeding $500,000,000. The Account Parties and the Lenders
party hereto wish 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.
1, terms defined in the Credit Agreement are used herein as defined therein.

     Section 2. Amendments. Effective as provided in Section 4 of this Amendment
No. 1, the Credit Agreement is hereby amended as follows:

     2.01. 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. The definition of “Change in Control” in Section 1.01 of the Credit
Agreement is hereby amended by amending clause (c) thereof to read in its
entirety as follows: “(c) occupation of a majority of the seats (other than
vacant seats) on the board of directors of SCA by Persons who were neither (i)
nominated by the board of directors of SCA or by XL Capital Ltd nor (ii)
appointed by directors so nominated.”

     2.03 Section 3.13 of the Credit Agreement shall be amended by amending
clause (z) of the second sentence thereof to read in its entirety as follows:
“(z) except as disclosed in filings of SCA with the SEC prior to the date
hereof, there are no outstanding Equity Rights with respect to any Account Party
(other than SCA).”

     Section 3. Representations and Warranties. Each Account Party hereby
represents and warrants to the Administrative Agent and the Lenders that (i) the
representations and warranties of such Account Party set forth in Article III of
the Credit Agreement (other than

Amendment No. 1 to Credit Agreement

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

-2-

in Section 3.04(b) thereof) are true and correct on and as of the date hereof
(after giving effect to this Amendment No. 1) (or, if any such representation or
warranty is expressly stated to have been made as of a specific date, as of such
specific date) and as if each reference in said Article III to “this Agreement”
includes reference to this Amendment No. 1 and (ii) both immediately prior to
and as of the date hereof, no Default has occurred and is continuing.

     Section 4. Conditions Precedent. The amendments to the Credit Agreement set
forth in Section 2 of this Amendment No. 1 shall become effective, as of the
date hereof, upon receipt by the Administrative Agent of one or more
counterparts of this Amendment No. 1 signed on behalf of the Account Parties and
Lenders constituting the Required Lenders.

     Section 5. Miscellaneous. Except as herein provided, the Credit Agreement
shall remain unchanged and in full force and effect. Nothing in this Amendment
No. 1 shall constitute a waiver of any rights and/or remedies that the Lenders
and/or the Administrative Agent may have under the Credit Agreement and nothing
contained herein shall obligate the Lenders to grant any future waiver of any
provision of the Credit Agreement. SCA shall pay all reasonable expenses
incurred by the Administrative Agent, including the reasonable fees, charges and
disbursements of Milbank, Tweed, Hadley & McCloy LLP, special New York counsel
to Citibank, in connection with the preparation, negotiation, execution and
delivery of this Amendment No. 1. This Amendment No. 1 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. 1 by signing any such counterpart. This Amendment No. 1 shall be
governed by, and construed in accordance with, the law of the State of New York.

 

 

Amendment No. 1 to Credit Agreement

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

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to
be duly executed and delivered as of the day and year first above written.

      SECURITY CAPITAL ASSURANCE LTD               By    /s/ Tom Currie    
Name: Tom Currie     Title: Senior Vice President               XL CAPITAL
ASSURANCE INC.               By /s/ David P. Shea     Name: David P. Shea    
Title: Chief Financial Officer               XL FINANCIAL ASSURANCE LTD.        
      By /s/ Tom Currie     Name: Tom Currie     Title: Senior Vice President

 

[Signature Page to Amendment No. 1 to Credit Agreement]

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

  LENDERS         CITIBANK, N.A.               By:    /s/ Maureen P. Maroney    
Name: Maureen P. Maroney     Title: Vice President         JPMORGAN CHASE BANK,
N.A.               By: /s/ Erin O’Rourke     Name: Erin O’Rouke     Title:
Executive Director         DEUTSCHE BANK AG NEW YORK BRANCH               By:
/s/ Richard Herder     Name: Richard Herder     Title: Managing Director        
      By: /s/ Valerie Shapiro     Name: Valerie Shapiro     Title: Assistant
Vice President         BANK HAPOALIM               By:
                                      Name:     Title:         HSBC BANK USA,
N.A.               By: /s/ Joseph Travaghone     Name: Joseph Travaghone    
Title: Senior Vice President

 

[Signature Page to Amendment No. 1 to Credit Agreement]

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

  MERRILL LYNCH BANK USA               By:    /s/ Louis Alder     Name: Louis
Alder     Title: Director         WACHOVIA BANK, NATIONAL ASSOCIATION          
    By: /s/ Ronald J. Fry     Name: Ronald J. Fry     Title: Vice President    
    ABN AMRO BANK N.V.               By: /s/ Andrew C. Salerno     Name: Andrew
C. Salerno     Title: Director         By: /s/ Michael DeMarco     Name: Michael
DeMarco     Title: Vice President         BANK OF AMERICA, N.A.              
By: /s/ Authorized Signatory     Name: Authorized Signatory     Title: Senior
Vice President         THE BANK OF NEW YORK               By: /s/ Richard G.
Shaw     Name: Richard G. Shaw     Title: Vice President

 

[Signature Page to Amendment No. 1 to Credit Agreement]

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

  CALYON NEW YORK BRANCH               By:    /s/ Sebastian Rocco     Name:
Sebastian Rocco     Title: Managing Director         By: /s/ Gina Harth-Cryde  
  Name: Gina Harth-Cryde     Title: Managing Director         LEHMAN BROTHERS
BANK, FSB               By: /s/ Janine M Shugan     Name: Janine M. Shugan    
Title: Authorized Signatory         UBS AG, STAMFORD BRANCH               By:
/s/ David B. Julie     Name: David B. Julie     Title: Associate Director      
  By: /s/ Mary E. Evans     Name: Mary E. Evans     Title: Associate Director

 

[Signature Page to Amendment No. 1 to Credit Agreement]

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