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PURCHASING GROUP AMENDMENT <br /> THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. <br /> The following terms are hereby added to the policy and supersede any similar terms which maybe contained <br /> therein. <br /> In the event this policy contains a condition titled CANCELLATION, that condition shall be deleted in its <br /> entirety and replaced by the following: <br /> I. CANCELLATION.This insurance may be canceled on the customary short rate basis; by the Named <br /> Insured at any time by written notice or by surrender of this insurance to the Company or its <br /> authorized representative and the Company shall refund the paid premium less the earned portion <br /> thereof within thirty(30) days of the latter of the effective date of cancellation or the(late of delivery <br /> of the Named Insured's notice of intent to cancel, subject always to the retention by I he Company of <br /> any minimum premium stipulated herein (or proportion thereof previously agreed upon). <br /> The earned portion of the premium shall be computed on the customary short rate basis unless any <br /> state law or regulation of the state shown in the mailing address of the Named Insured in the <br /> Declarations requires that return premium be computed on a pro-rata basis, even in the event of <br /> cancellation by the Named Insured. <br /> This insurance may also be canceled,with or without the return or tender of the unearned premium, <br /> by the Company or by its authorized representative on its behalf, by sending to the Named Insured, <br /> by first class registered or certified mail, at the Named Insured's address last known to the <br /> Company or its authorized agent, not less than ninety(90) days written notice stating the specific <br /> reason for such cancellation and when the cancellation shall be effective. In such case, the <br /> Company shall refund the paid premium less the earned portion thereof within ten ,;10) business <br /> days after the effective date of cancellation. In case of nonpayment of premium cnly thirty (30) <br /> days written notice of cancellation must be given by the Company. Minimum premium shall not <br /> apply to the return of unearned premium if cancellation is by the Company. <br /> Cancellation by the Company shall only be effective if based on one or more cf the following <br /> reasons: <br /> a. nonpayment of premium; <br /> b. the policy was obtained through material misrepresentation that was relied on by the <br /> Company, and such policy would not have been issued by the Company under the same <br /> terms and conditions if correct information had been disclosed; <br /> C. material failure to comply with policy terms, conditions or contractual duties; <br /> d. the risk originally accepted has measurably increased; <br /> ll. In the event that this policy's introduction references the Company's reliance upon statements made <br /> in an application, that reference is deleted in its entirety. <br /> III. In the event this policy contains a DECLARATIONS condition, it is amended to inclide: <br /> By acceptance of this policy, the Insured agrees that: <br /> a. the statements in the Declarations are accurate and complete, <br /> b. those statements are based upon representations made by the Insured to the Company,and <br /> C. the Company has issued this policy in reliance upon the Insured's represertations. <br /> PLE-2087(04/00) Paga 1 of <br />