# Policy Number: WE1300226

## ENDORSEMENT NUMBER SIX

## CANCELLATION CLAUSE

It is hereby noted and agreed that the following Cancellation terms and conditions apply:

Notwithstanding anything to the contrary in the terms and conditions of this Policy including any conditions relating to minimum earned premium or short rate provisions, the Insured may, at any time during the policy period, have the right to cancel this Policy, subject to the following:

(1) The Insurer's financial rating by Standard & Poor's or A.M. Best Co. drops below A-, and/or the Insurer has experienced a Change of Control, in which instance a pro rata return of premium shall apply if the Insured exercises their right to cancel.

(2) The Insured mailing or delivering to the Company at the address set forth in Item 8 of the Declarations of this Policy advance written notice of cancellation, in which instance the Company shall return ninety percent (90%) of the unearned portion of the premium calculated on a pro rata basis less any applicable Minimum Earned Premium.

In case of notice of cancellation by the Named Insured, the Policy Period terminates in no event prior to the date such notice is received by the Company.

This Policy may be canceled by or on behalf of the Company by delivering to the Named Insured or by mailing to the Named Insured, by registered, certified, or other first class mail, at the Named Insured's address set forth in Item 1. b) of the Declarations of this Policy, written notice stating when thereafter, not less than fifteen (15) days in the event any premium is not paid when due, and not less than ninety (90) days in all other cases, cancellation shall be effective. Proof of mailing of such notice as aforesaid shall be sufficient proof of notice. It is agreed that the Named Insured shall act on behalf of all Insureds with respect to giving and receiving notice of cancellation. The Policy Period terminates at the date and hour specified in such notice.

If this Policy shall be canceled by the Company, the Company shall return to the first Named Insured the unearned portion of the premium calculated on a pro rata basis.

*Change of Control for this purpose means when any "Person" or "Group" (within the meanings of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934 ("the Act")), becomes the "beneficial owner" (within the meaning of Rule 13d-3 and/or 13d-5 under the Act), except that a Person shall be deemed to have "beneficial ownership" of all shares that such person has the right to acquire without condition, other than the passage of time, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total voting power of the then outstanding voting stock or other securities of (the Insurer) or any corporate or other parent or ultimate parent entity of (the Insurer) (the "Control Group"); or any member of the Control Group consolidates with or merges into another Person or conveys, transfers, or leases all or substantially all its assets to any Person, or any corporation consolidates with or merges into any member of the control Group pursuant to a transaction in which the outstanding voting stock or other securities of any member of the Control Group is changed into or exchanged for cash, securities or other property, other than a transaction between members of the Control Group and their Affiliates (within the meaning of section 1504 of the Internal Revenue Code of 1986, as amended, or any successor provision thereto).

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.

Market Submission - Endorsement
Page 5 of 26
SG 17/05/13 02
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This text is a legal document detailing the cancellation clause of an insurance policy, outlining the conditions under which the policy can be terminated by either the insured or the insurer.