Common use of Core Adjusted Book Value Clause in Contracts

Core Adjusted Book Value. The “Core Adjusted Book Value” of the Company as of any date shall equal shareholders’ equity attributable to Assured Guaranty Ltd., as reported under accounting principles generally accepted in the United States of America (GAAP), adjusted for the following: (i) Elimination of the effects of consolidating financial guaranty variable interest entities and consolidated investment vehicles; (ii) Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments; (iii) Elimination of fair value gains (losses) on the Company’s committed capital securities; (iv) Elimination of unrealized gains (losses) on the Company’s investments that are recorded as a component of accumulated other comprehensive income; (v) Elimination of deferred acquisition costs, net; (vi) Addition of the net present value of estimated future revenue, discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-income securities such as loss mitigation securities, from the Company’s non-financial guaranty insurance contracts (other than credit derivatives with net expected losses), net of reinsurance, ceding commissions, and premium taxes; (vii) Addition of the deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance; and (viii) Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments. Notwithstanding the foregoing, the Committee, in its discretion, may adjust the determination of the Company’s Core Adjusted Book Value as it deems necessary or desirable to achieve the purpose and/or preserve the benefits or potential benefits of the Award (including, without limitation, adjustments to reflect corporate transactions).

Core Adjusted Book Value. The “Core Adjusted Book Value” of the Company as of any date shall equal shareholders’ equity attributable to Assured Guaranty Ltd., as reported under accounting principles generally accepted in the United States of America (GAAP), adjusted for the following: (i) Elimination of the effects of consolidating financial guaranty variable interest entities and consolidated investment vehiclesentities; (ii) Elimination of non-credit impairmentcredit-related impairment unrealized fair value gains (losses) on credit derivatives, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments; (iii) Elimination of fair value gains (losses) on the Company’s committed capital securities; (iv) Elimination of unrealized gains (losses) on the Company’s investments that are recorded as a component of accumulated other comprehensive incomeincome (excluding foreign exchange remeasurement); (v) Elimination of deferred acquisition costs, net; (vi) Addition of the net present value value, discounted at 6%, of estimated future revenue, discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-income securities such as loss mitigation securities, revenue from the Company’s non-financial guaranty insurance contracts (other than credit derivatives with net without expected economic losses), net of reinsurance, ceding commissions, commissions and premium taxes; (vii) Addition of the deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance; and (viii) Elimination of the tax effects asset or liability related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments. [Notwithstanding the foregoing, the Committee, in its discretion, may adjust the determination of the Company’s Core Adjusted Book Value as it deems necessary or desirable to achieve the purpose and/or preserve the benefits or potential benefits of the Award (including, without limitation, adjustments to reflect corporate transactions).]

Core Adjusted Book Value. The “Core Adjusted Book Value” of the Company as of any date shall equal shareholders’ equity attributable to Assured Guaranty Ltd., as reported under accounting principles generally accepted in the United States of America (GAAP), adjusted for the following: (i) Elimination of the effects of consolidating financial guaranty variable interest entities and consolidated investment vehiclesentities; (ii) Elimination of non-credit impairmentcredit-related impairment unrealized fair value gains (losses) on credit derivatives, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments; (iii) Elimination of fair value gains (losses) on the Company’s committed capital securities; (iv) Elimination of unrealized gains (losses) on the Company’s investments that are recorded as a component of accumulated other comprehensive incomeincome (excluding foreign exchange remeasurement); (v) Elimination of deferred acquisition costs, net; (vi) Addition of the net present value of estimated future revenuevalue, discounted at the approximate average pre-tax book yield of fixed-fixed maturity securities purchased during the prior calendar year, other than certain fixed-income securities such as loss mitigation securities, of estimated future revenue from the Company’s non-financial guaranty insurance contracts (other than credit derivatives with net without expected economic losses), net of reinsurance, ceding commissions, commissions and premium taxes; (vii) Addition of the deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance; and (viii) Elimination of the tax effects asset or liability related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments. Notwithstanding the foregoing, the Committee, in its discretion, may adjust the determination of the Company’s Core Adjusted Book Value as it deems necessary or desirable to achieve the purpose and/or preserve the benefits or potential benefits of the Award (including, without limitation, adjustments to reflect corporate transactions).

Core Adjusted Book Value. The “Core Adjusted Book Value” of the Company as of any date shall equal shareholders’ equity attributable to Assured Guaranty Ltd., as reported under accounting principles generally accepted in the United States of America (GAAP), adjusted for the following: (i) Elimination of the effects of consolidating financial guaranty variable interest entities and consolidated investment vehiclesentities; (ii) Elimination of non-credit impairmentcredit-related impairment unrealized fair value gains (losses) on credit derivatives, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments; (iii) Elimination of fair value gains (losses) on the Company’s committed capital securities; (iv) Elimination of unrealized gains (losses) on the Company’s investments that are recorded as a component of accumulated other comprehensive incomeincome (excluding foreign exchange remeasurement); (v) Elimination of deferred acquisition costs, net; (vi) Addition of the net present value of estimated future revenuevalue, discounted at the approximate average pre-tax book yield of fixed-fixed maturity securities purchased during the prior calendar year, other than certain fixed-income securities such as loss mitigation securities, of estimated future revenue from the Company’s non-financial guaranty insurance contracts (other than credit derivatives with net without expected economic losses), net of reinsurance, ceding commissions, and premium taxes; (vii) Addition of the deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance; and (viii) Elimination of the tax effects asset or liability related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments. Notwithstanding the foregoing, the Committee, in its discretion, may adjust the determination of the Company’s Core Adjusted Book Value as it deems necessary or desirable to achieve the purpose and/or preserve the benefits or potential benefits of the Award (including, without limitation, adjustments to reflect corporate transactions).