##### 



EXHIBIT 10.30
 EXCHANGE AGREEMENT
 BY AND AMONG
 TRIAD GUARANTY INC.
 COLLATERAL INVESTMENT CORP.
 AND
 THE SHAREHOLDERS OF COLLATERAL INVESTMENT CORP.
LISTED ON THE SIGNATURE PAGES HERETO
 Dated as of May 18, 2005




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EXCHANGE AGREEMENT
 Triad CIC Principal CIC Shareholders
 W I T N E S S E T H:
 Old Triad Shares
 New Triad Shares Section 2.4(A) Transaction CML CML Transaction Liquidation
   Code




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ARTICLE I.
 DEFINITIONS
 Definitions
     Section 3.3
 Section
3.9
  Section 2.4(B)
 provided however
 Section 9.13
 Section 3.4




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Section 3.3
  Section
2.6(D)
 Section 3.4
 Section 6.1
    Section 3.11
   Section 2.6(D
 Section 2.4(B)
  Section 3.6
 Section 3.6
 Article VIII
 Article VIII
   Section 3.7




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Section 2.6(C)
    Section 5.1(A)
   Section 2.6(B)
  Section 5.1(B)
   Section 4.6




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Section
2.8(A)
       Section 4.4
 provided




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Section 4.6
 Interpretation
 ARTICLE II.
 THE TRANSACTION AND RELATED MATTERS
 Transfer of Old Triad Shares
 Delivery of Old Triad Shares by CIC
 No Assumption of Debt
 Consideration for Transfer of Old Triad Shares




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CIC Escrow Certificates Escrow Shares
 Article VIII Article VIII
 Payment of Transaction Expenses by CIC
 CML Transaction; CIC Liquidation; Escrow Certificates
  Section 2.4(B)




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Plan of Liquidation
 Liquidation Notice
 Escrow
Liquidation Notice CIC Shareholder Escrow Certificate
 No Fractional Shares.




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,
 Transfer Legends
 
 ARTICLE III.
 REPRESENTATIONS AND WARRANTIES OF CIC
AND THE INDEMNIFYING CIC SHAREHOLDERS
  Organization, Standing and Qualification of Company
 Company Subsidiaries
 Capital Stock CIC Common Stock




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CIC Securities
 Authorization CIC Shareholder Meeting CIC Requisite Vote




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Certificate of Incorporation and Bylaws
 Consents and Approvals Governmental Authority
 Defaults and Conflicts Law
 Title to Old Triad Shares Section
2.4(B)




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CIC Consolidated Financial Statements
 CIC Consolidated Financial Statements
   Undisclosed Liabilities
 Environmental Issues Environmental Laws




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Litigation
 Compliance with Laws
 Employee Benefit Plans ERISA
 Taxes




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Finder and Investment Bankers
 Investment Company
 Historical Operations
 No Assets/Liabilities
 No Extraordinary Distributions
 Reorganization
 ARTICLE IV.
 REPRESENTATIONS AND WARRANTIES OF TRIAD
  Organization of Triad
 Capital Stock




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Authorization
 Regulatory Consents and Approvals Triad Disclosure Schedule
 Defaults and Conflicts
 SEC Reports SEC Triad SEC Reports
 Finder and Investment Bankers




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Fairness Opinion
 ARTICLE V.
 COVENANTS
 Registration of New Triad Stock; No-Action Letter
 No-Action Letter
   Registration Statement
 Implementing Agreement
 Press Release




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Tax Matters
 Shareholder Transfer Restriction Agreement and Escrow Agreement
 ARTICLE VI.
 CLOSING
 Closing Closing Article VII
 Deliveries by CIC




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Section 2.5
 Section 7.2(C)
  Deliveries by Triad




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Section 7.3(C)
  ARTICLE VII.
 CONDITIONS TO CLOSING
 Conditions Precedent to Obligations of Each Party
 No Injunctions or Restraints
 Consents and Approvals of Governmental Authorities
 Conditions Precedent to Obligation of Triad
 Representations and Warranties
 Performance of Obligations by CIC and the Principal CIC Shareholders
 Compliance Certificate Section 7.2(A) Section 7.2(B)




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Consents
 No Proceedings
 Registration Rights Agreement
 Transaction Documents
 Closing Deliveries Section 6.2
 Conditions Precedent to Obligations of CIC and the Principal CIC Shareholders
 Representation and Warranties
 Performance of Obligations by Triad
 Compliance Certificate Section 7.3(A) Section 7.3(B)




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No-Action Letter; Registration Statement
 Transaction Documents
 Closing Deliveries Section 6.3
 ARTICLE VIII.
 INDEMNIFICATION
 Survival.
 Indemnification by CIC and the Indemnifying CIC Shareholders




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Section 8.3
      Indemnification by Triad
   Claims Section 8.5 Section 8.6 provided Article VIII
 Notice of Third Party Claims; Assumption of Defense provided




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Article VIII Section
8.2 Section 8.3 provided
 Disputes Related to Taxes provided Article VIII Section 8.2 provided provided




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provided further Section 8.6 Section 8.2
 Settlement or Compromise Section 8.5 Section 8.6 provided Section 8.5 provided Section 8.5 provided
 Failure of Indemnifying Person to Act
 Acknowledgment of No Obligation to Set-Off Against Escrow Fund




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Treatment of Indemnification Payments Section 8.2 Section 8.3
 ARTICLE IX.
 MISCELLANEOUS
 Amendment
 Notices




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Effect of Investigation
 Payments in Dollars




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Waivers
 Counterparts
 Assignment provided
 No Third Party Beneficiaries
 Further Assurances
 Severability
 Remedies Cumulative
 Entire Understanding
 CIC Representative CIC Representative




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Applicable Law
 Acknowledgment of CIC and each Principal CIC Shareholder
 Termination




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TRIAD GUARANTY INC.By:
    /s/ Darryl W. ThompsonName: Darryl W. ThompsonTitle: President and CEO COLLATERAL INVESTMENT CORP.By:
    /s/ William T. Ratliff, IIIWilliam T. Ratliff, IIIIts Chief Executive Officer /s/William T. Ratliff, Jr.William T. Ratliff, Jr.,individually /s/ William T. Ratliff, IIIWilliam T. Ratliff, III, individually /s/ Carolyn Sloss RatliffCarolyn Sloss Ratliff, individually /s/ William T. Ratliff, IIIWilliam T. Ratliff, III,as custodian forWilliam T. Ratliff, IV under the Alabama
Uniform Transfers to Minors Act /s/ William T. Ratliff, IIIWilliam T. Ratliff, III, as custodian forCatherine Leigh Ratliff under the Alabama
Uniform Transfers to Minors Act




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/s/ William T. Ratliff, IIIWilliam T. Ratliff, III, as custodian forLillian Sloss Ratliff under the Alabama
Uniform Transfers to Minors Act /s/ Carolyn S. RatliffCarolyn S. Ratliff, as custodian for WilliamT. Ratliff, IV under the Alabama Uniform
Transfers to Minors Act /s/ Carolyn S. RatliffCarolyn S. Ratliff, as custodian for CatherineLeigh Ratliff under the Alabama Uniform
Transfers to Minors Act /s/ Carolyn S. RatliffCarolyn S. Ratliff, as custodian for LillianSloss Ratliff under the Alabama Uniform
Transfers to Minors Act The William T. Ratliff, Jr. 
Grandchildrens Trust By:
    /s/ William T. Ratliff, IIIWilliam T. Ratliff, IIIIts Co-Trustee By:
    /s/ Amelie L. RatliffAmelie L. RatliffIts Co- Trustee




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By:
    /s/ Carlton M. RayCarlton M. RayIts Co- Trustee By:
    /s/ Mary Johnson-ButterworthMary Johnson-ButterworthIts Co- Trustee By:
    /s/ Daniel T. RatliffDaniel T. RatliffIts Co- Trustee




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Exhibit A
 ESCROW AGREEMENT
 BY AND AMONG
 TRIAD GUARANTY INC.
 COLLATERAL INVESTMENT CORP.
 THE SHAREHOLDERS OF COLLATERAL INVESTMENT CORP. LISTED AS PRINCIPAL CIC SHAREHOLDERS ON THE
SIGNATURE PAGES HERETO
 THE PERSONS LISTED AS OTHER CIC SHAREHOLDERS
 ON THE SIGNATURE PAGE HEREIN
 AND
 AMSOUTH BANK




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ESCROW AGREEMENT
 Agreement    Triad CIC Principal CIC
Shareholders CIC
Shareholders Escrow
Agent
  Exchange Agreement Transaction CML CML
Transaction Liquidation
  Section 2.4 Original Escrow
Shares Article VIII




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ARTICLE I
 DEFINITIONS
 Definitions
   Section 4.1(a)
 Section 4.1(a)
 Section 2.3
 Section 2.4
 Section 6.13
 Section 2.4
  Section 3.1
  Section 2.1
 Section 4.1(d)
 Section 4.1(b)
  Section 4.5(a)
 2




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Section 3.5
 Section 4.3
 Section 3.5
 Interpretation
 ARTICLE II
 PLEDGE AND DELIVERY OF ESCROW SHARES
 Pledge and Grant of Security Interest
 Article VIII Section 3.3
 3




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Escrow Shares
 Article VIII
 Priority and Perfection of Security Interest
     Delivery of CIC Escrow Certificates to Escrow Agent CIC Escrow Certificates
 4




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Liquidation; Replacement of Escrow Certificates CIC Liquidation Notice CIC Shareholder Escrow Certificate
 Delivery of Additional Escrow Shares
 Delivery of Additional Stock Powers
 5




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ARTICLE III
 ESTABLISHMENT OF ESCROW FUND; SPECIAL PROVISIONS RELATED TO ESCROW SHARES
 Escrow Fund Escrow
Fund
 Dividends and Distributions
 Stock Splits and Dividends
 Voting Rights
 No Transfers of Escrow Shares Section 3.5 Transfer
 6




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Permitted Transferee
 Books and Records
 Taxes
 ARTICLE IV
 DISTRIBUTION OF ESCROW SHARES
 Article IV
 Distribution from Escrow Fund for Indemnification Claims
 Article VIII Claim Claim Notice
 Objection Notice Section 4.4
 Section 4.1(b)
 7




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Section 4.4 [ ] Article
VIII
 Market Value
 Distributions Upon Certain Events
 Final Distribution Section 6.1 provided however
 8




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Section 4.4 Section 4.3 provided
further Tax Dispute Section 4.4 Section 4.3 Section 4.3
 Order of Distribution provided Section 4.3
 9




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provided
 Procedures for Distribution
 Section 4.5(a) Original Holder Section
4.5(a)
 10




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Commercially Reasonable Distribution Procedures Article IV
 ARTICLE V
 ESCROW AGENT
 Duties [ ]
 No Additional Liability
 Assumed Validity of Documents
 Fees and Expenses Exhibit A Section 6.5(iii) provided however Article IV
 11




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Indemnification Section 5.5
 Resignation or Removal of the Escrow Agent
 Disputes
 Advice of Counsel; Litigation Article IV
 12




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Article IV Article IV provided however Article V
 Successor Escrow Agent
 Statements
 Court Orders; Judgments or Decrees
 ARTICLE VI
 MISCELLANEOUS
 Termination
 13




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No Obligation to Set-Off Against Escrow Fund Article VIII provided however Article VIII
 Implementing Agreement
 Amendment provided Section
2.4 provided
further
 Notices
 (i)
    
    If to CIC, addressed as follows:
 Collateral Investment Corp.c/o Collateral Mortgage1900 Crestwood Blvd.Birmingham, Alabama 35210Attention: William T. RatliffFacsimile No.: (205) 951-4070with copies to:Collateral Investment Corp.
 14




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c/o Collateral Mortgage1900 Crestwood Blvd.Birmingham, Alabama 35210Attention: Cheryl R. StoneFacsimile No.: (205) 951-4070andMaynard, Cooper & Gale, P.C.1901 6th Avenue NorthSuite 2400Birmingham, Alabama 35203Attention: Gregory S. CurranFacsimile No.: (205) 254-1999
 (ii)
    
    If to any CIC Shareholder, addressed to a CIC Representative as follows:
 Collateral Investment Corp.c/o Collateral Mortgage1900 Crestwood Blvd.Birmingham, Alabama 35210Attention: William T. RatliffFacsimile No.: (205) 951-4070with copies to:Collateral Investment Corp.c/o Collateral Mortgage1900 Crestwood Blvd.Birmingham, Alabama 35210Attention: Cheryl R. StoneFacsimile No.: (205) 951-4070andMaynard, Cooper & Gale, P.C.1901 6th Avenue NorthSuite 2400Birmingham, Alabama 35203Attention: Gregory S. CurranFacsimile No.: (205) 254-1999
 (iii)
    
    If to Triad, addressed as follows:
 A.
    
    Triad Guaranty Inc.B.
    
    101 S. Stratford Rd.
 15




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C.
    
    Winston-Salem, NC 27104D.
    
    Attention: Earl F. Wall, Esq.E.
    
    Facsimile: (336) 331-1519F.G.
    
    with a copy to:H.I.
    
    Lord, Bissell & Brook, LLPJ.
    
    115 South LaSalle StreetK.
    
    Chicago, Illinois 60603L.
    
    Attention: John S. ChapmanM.
    
    Facsimile: (312) 443-0336(iv)
    
    If to the Escrow Agent, addressed as follows:Attention:Facsimile No.:
  Waivers
 Counterparts
 Assignment provided Section 5.6
 16




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Section 6.5(v)
 Third Party Beneficiaries
 Severability
 Remedies Cumulative
 Entire Understanding
 CIC Representative CIC Representatives )
 Applicable Law
 Acknowledgment of CIC and each CIC Shareholder
 17




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TRIAD GUARANTY INC.By:Name:Title:COLLATERAL INVESTMENT CORP.By:Name:Title:AmSouth Bank, as Escrow AgentBy:Name:Title:THE PRINCIPAL CIC SHAREHOLDERS:[Principal CIC Shareholder][Principal CIC Shareholder][Principal CIC Shareholder]
 18




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OTHER CIC SHAREHOLDERSName:Name:Name:
 19




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EXHIBIT A ESCROW AGENT FEE SCHEDULE
 Acceptance Fee:
    
    $
    0.00Annual Fee:
    
    $
    0.00
   The W. T. Ratliff, Jr. 2002 CIC GrantorRetained Annuity TrustBy:
    
    /s/ William T Ratliff, IIIName: William T. Ratliff, IIIIts Trustee
 20




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Exhibit B
 SHARE TRANSFER RESTRICTION AGREEMENT
 BY AND AMONG
 TRIAD GUARANTY INC.
 COLLATERAL INVESTMENT CORP.
 THE SHAREHOLDERS OF COLLATERAL INVESTMENT CORP. LISTED AS
PRINCIPAL CIC SHAREHOLDERS ON THE SIGNATURE PAGES HERETO
 THE PERSONS LISTED AS OTHER CIC SHAREHOLDERS
ON THE SIGNATURE PAGE HEREIN
 DATED OF  , 2005
 21




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SHARE TRANSFER RESTRICTION AGREEMENT
 Agreement   Triad CIC Principal CIC
Shareholders CIC
Shareholders
  Transaction CML CML Transaction Liquidation
 Section 3.4




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ARTICLE I
 DEFINITIONS
 Definitions
        
    2




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Section
4.1
  Interpretation
 ARTICLE II
 RESTRICTIONS ON TRANSFERS OF THE RESTRICTED SHARES
  3




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Escrow Shares
 Initial 90-Day Lock-Up
 Primary Restriction Period
 Termination of Transfer Restraints
 ARTICLE III
 REPRESENTATIONS AND WARRANTIES OF CIC SHAREHOLDERS
 Article III
 Due Organization
 Due Authorization
 4




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Consents and Approvals; Authority
  ,
 Ownership of Triad Common Stock
 ARTICLE IV
 LEGENDS
 Legends
 5




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Share Transfer Restriction Agreement Legend
 
 Removal of Legends
   Later Delivery of Certificates
 Uncertificated Shares
 6




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No Limitation of Indemnification Obligations Article IV Article VIII
 ARTICLE V
 MISCELLANEOUS
 Termination In Certain Events
 Implementing, Agreement
 Amendment
 Notices
 Section 3.4
 Collateral Investment Corp.c/o Collateral Mortgage1900 Crestwood Blvd.Birmingham, Alabama 35210Attention:
    
    William T. RatliffFacsimile No.:
    
    (205) 951-4070with copies to:Collateral Investment Corp.c/o Collateral Mortgage1900 Crestwood Blvd.Birmingham, Alabama 35210
 7




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Attention
    
    : Cheryl R. StoneFacsimile No.:
    
    (205) 951-4070andMaynard, Cooper & Gale, P.C.1901 6th Avenue NorthSuite 2400Birmingham, Alabama 35203Attention:
    
    Gregory S. CurranFacsimile No.:
    
    (205) 254-1999
 (b)
    
    If to Triad, addressed as follows:N.
    
    Triad Guaranty Inc.O.
    
    101 S. Stratford Rd.P.
    
    Winston-Salem, NC 27104Q.
    
    Attention:
    
    Earl F. Wall, Esq.R.
    
    Facsimile:
    
    (336) 331-1519S.T.
    
    with a copy to:U.V.
    
    Lord, Bissell & Brook, LLPW.
    
    115 South LaSalle StreetX.
    
    Chicago, Illinois 60603Y.
    
    Attention:
    
    John S. ChapmanZ.
    
    Facsimile:
    
    (312) 443-0336
  Waivers
 Counterparts
 Successors And Assigns
 8




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Section 5.7
 Severability
 Remedies
 Entire Understanding
 Applicable Law
  9




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TRIAD GUARANTY INC.By:Name:Title:
 COLLATERAL INVESTMENT CORP.By:
 Name:
 Title:
 THE PRINCIPAL CIC SHAREHOLDERS:[Principal CIC Shareholder][Principal CIC Shareholder][Principal CIC Shareholder]
 10




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Exhibit C
    1
    
 1
    
    This opinion will require reliance on
information provided by the Companys transfer agent. 11




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12