Exhibit 10.4

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “First Amendment”) is made and
entered into as of the 15th day of December, 2005, by and among

 

(i) RADIAN GROUP INC., a Delaware corporation, and its successors and assigns
(the “Borrower”);

 

(ii) THE FINANCIAL INSTITUTIONS as signatory lender parties hereto and their
successors and assigns (collectively, the “Lenders”, with each individually a
“Lender”); and

 

(iii) KEYBANK NATIONAL ASSOCIATION, a national banking association, in its
capacity as Administrative Agent for the Lenders under this Agreement, and its
successors and assigns (the “Administrative Agent”).

 

Recitals:

 

A. The Borrower, the Lenders, the Administrative Agent and certain other parties
are the parties to that certain Credit Agreement dated as of December 16, 2004
(the “Credit Agreement”), pursuant to which, inter alia, the Lenders agreed,
subject to the terms and conditions thereof, to advance Loans (as this and other
capitalized terms used herein and not otherwise defined herein are defined in
the Credit Agreement) to the Borrower.

 

B. The Borrower has requested that the Lenders agree to amend the Credit
Agreement to extend the 364-Day Revolving Availability Termination Date.

 

C. Subject to the terms and conditions of this First Amendment, the Lenders have
agreed to grant such request.

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Agreements:

 

NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual
agreements hereinafter set forth, the Borrower, the Lenders and the
Administrative Agent, intending to be legally bound, hereby agree as follows:

 

1. Amendment to Credit Agreement. The definition of 364-Day Revolving
Availability Termination Date in Section 1.01 (Defined Terms) of the Credit
Agreement is hereby amended and restated in its entirety to provide as follows:

 

“364-Day Revolving Availability Termination Date” means December 14, 2006 (or if
such date is not a Business Day with respect to Eurodollar Loans, the next
preceding day that is a Business Day with respect to Eurodollar Loans).

 

2. Amendment Effective Date; Conditions Precedent. The amendment set forth in
Paragraph 1, above, shall not be effective unless and until the date on which
the Borrower has satisfied all of the following conditions precedent (such date
of effectiveness being the “Amendment Effective Date”):

 

A. Officer’s Certificate. On the Amendment Effective Date and after giving
effect to the amendment set forth in Paragraph 1, above, (i) there shall exist
no Default, and a Senior Officer of the Borrower shall have delivered to the
Administrative Agent written confirmation thereof dated as of the Amendment
Effective Date, and (ii) the representations and warranties of the Borrower
under Article 3 of the Credit Agreement shall have been reaffirmed in writing as
being true and correct in all material respects as of the Amendment Effective
Date, except that for the purposes of such reaffirmation references in such
representations and warranties to (a) the “Effective Date” shall be deemed to
refer to the Amendment Effective Date, (b) “December 31, 2003” shall be deemed
to refer to December 31, 2004, (c) “September 30, 2004” shall be deemed to refer
to September 30, 2005 and (d) Schedule 3.06 to the Credit Agreement shall be

 

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deemed to refer to the revised Schedule 3.06 attached to such reaffirmation,
which revised Schedule 3.06 shall be satisfactory in form and substance to the
Administrative Agent in its reasonable discretion.

 

B. Corporate Authorization. The Borrower shall have delivered to the
Administrative Agent a copy, certified by its Secretary or Assistant Secretary,
of its Board of Directors’ resolutions authorizing the execution and delivery of
this First Amendment.

 

C. Legal Matters. All legal matters incident to this First Amendment and the
consummation of the transactions contemplated hereby shall be reasonably
satisfactory to Squire, Sanders & Dempsey L.L.P., Cleveland, Ohio, special
counsel to the Administrative Agent and the Lenders (the “Special Counsel”).

 

D. Other Matters. The Administrative Agent and the Lenders shall have received
such other certificates, opinions and documents, in form and substance
reasonably satisfactory to the Administrative Agent, as the Administrative Agent
may reasonably request.

 

3. Other Loan Documents. Any reference to the Credit Agreement in the other Loan
Documents shall, from and after the Amendment Effective Date, be deemed to refer
to the Credit Agreement, as amended by this First Amendment.

 

4. Confirmation of Agreement. The Borrower hereby affirms all of its obligations
to the Lenders and the Administrative Agent under the Credit Agreement and the
other Loan Documents and that as of the Amendment Effective Date the Borrower
has no claims, defenses or set-offs to the obligations of the Borrower to each
of them under the Credit Agreement and the other Loan Documents.

 

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5. Administrative Agent’s Expense. The Borrower agrees to reimburse the
Administrative Agent promptly for its reasonable documented out-of-pocket costs
and expenses incurred in connection with this First Amendment and the
transactions contemplated hereby, including, without limitation, the reasonable
fees and expenses of the Special Counsel.

 

6. No Other Modifications. Except as expressly provided in this First Amendment,
all of the terms and conditions of the Credit Agreement and the other Loan
Documents remain unchanged and in full force and effect.

 

7. Governing Law; Binding Effect. This First Amendment shall be governed by and
construed in accordance with the laws of the State of New York and shall be
binding upon and inure to the benefit of the Borrower, the Lenders and the
Administrative Agent and their respective successors and assigns.

 

8. Counterparts. This First Amendment may be executed in separate counterparts,
each of which shall be deemed to be an original, and all of which together shall
be deemed a fully executed agreement.

 

IN WITNESS WHEREOF, the Borrower, the Lenders and the Administrative Agent have
hereunto set their hands as of the date first above written.

 

BORROWER

RADIAN GROUP INC.

By:

  /s/    TERRY L. LATIMER             Terry L. Latimer

Title:

  Treasurer

 

 

 

ADMINISTRATIVE AGENT

KEYBANK NATIONAL ASSOCIATION,

as Administrative Agent

By:

  /s/    MARY K. YOUNG             Mary K. Young

Title:

  Vice President

 

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LENDERS

BANK OF AMERICA, N.A., as Lender

By

  /s/    SHELLY HARPER             Shelly Harper, Senior Vice President

 

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BARCLAYS BANK PLC, as Lender

By

  /s/    RICHARD ASKEY             Richard Askey, Relationship Director

 

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BEAR STEARNS CORPORATE

LENDING INC., as Lender

By:

  /s/    VICTOR BULZACCHELLI        

Name:

  Victor Bulzacchelli

Title:

  Vice President

 

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THE ROYAL BANK OF SCOTLAND PLC, as Lender

By Greenwich Capital Markets, Inc., as its agent

By

  /S/    GEORGE URBAN     George Urban, Vice President

 

 

 

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[RESERVED — THIS PAGE IS BLANK INTENTIONALLY]

 

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JPMORGAN CHASE BANK, N.A., as

Lender

By

  /s/    HELEN NEWCOMB             Helen Newcomb, Vice President

 

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KEYBANK NATIONAL ASSOCIATION,

as Lender

By

  /s/    MARY K. YOUNG             Mary K. Young, Vice President

 

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THE NORTHERN TRUST COMPANY, as

Lender

By

  /s/    CHRIS MCKEAN             Chris McKean, Vice President

 

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WELLS FARGO BANK, NATIONAL

ASSOCIATION, as Lender

By

  /s/    ROBERT C. MEYER             Robert C. Meyer, Senior Vice President

By

  /s/    BETH C. MCGINNIS, SENIOR VICE PRESIDENT             Beth C. McGinnis,
Senior Vice President

 

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