Modified Adjusted Book Value

Modified Adjusted Book Value. The 'Modified Adjusted Book Value' of the Company as of any date shall equal the book value of the Company, derived by determining shareholders' equity, and by then adding the after-tax value of the financial guaranty and mortgage guaranty net unearned premium reserves less deferred acquisition costs, plus the present value of estimated net future installment premiums (as reported in the Company's quarterly Financial Supplement), excluding the effects of Accumulated Other Comprehensive Income... (AOCI) and the effects of unrealized gains and losses on derivative financial instruments (FAS 133). In the event of a corporate transaction involving the Company (including, without limitation, any share dividend, share split, extraordinary cash dividend, recapitalization, reorganization, merger, amalgamation, consolidation, split-up, spin-off, sale of assets or subsidiaries, combination or exchange of shares), the Committee may further adjust the calculation of the Company's Modified Adjusted Book Value as the Committee deems necessary or desirable in order to preserve the benefits or potential benefits of the Performance Retention Awards granted under the Plan, provided that such adjustment may not adversely affect the treatment of the Award as performance-based compensation exempt from Code section 162(m). View More