**(The Attaching Clause need be completed only when this endorsement is issued subsequent to preparation of the policy.)**

GU 207
(6-78)

**ENDORSEMENT** 3

This endorsement, effective on May 21, 1996 at 12:01 A.M. standard time, forms a part of Policy No. NEA 0109021 of the Reliance Insurance Company Issued to International Business Machines Corp., Etal

**NEW YORK COMMERCIAL EXCESS LIABILITY POLICY CANCELLATION AND TERMINATION PROVISIONS**

**NOTICE:** THESE POLICY FORMS AND THE APPLICABLE RATES ARE EXEMPT FROM THE FILING REQUIREMENTS OF THE NEW YORK STATE INSURANCE DEPARTMENT. HOWEVER, SUCH FORMS AND RATES MUST MEET THE MINIMUM STANDARDS OF THE NEW YORK INSURANCE LAW AND REGULATIONS.

In consideration of the premium paid, it is understood and agreed that Section VIII, GENERAL CONDITIONS., subsection D., Cancellation, is deleted and replaced as follows:

**D (i) Cancellation of Policies in Effect Sixty (60) Days or Less**

1. The Company may cancel this policy by mailing or delivering written notice stating the reason for cancellation to the Named Insured at the mailing address shown in Item 1. of the Declarations and to the Named Insured's authorized agent or broker at least:
   a. twenty (20) days before the effective date of cancellation if the policy is canceled for any reason not included in paragraph b. below; or
   b. fifteen (15) days before the effective date of cancellation if the policy is canceled for any of the following reasons:
      1. nonpayment of premium;
      2. conviction of a crime arising out of acts increasing the hazards insured against;
      3. discovery of fraud or material misrepresentation in the obtaining of the policy or in the presentation of a claim thereunder;
      4. after the issuance of the policy or after the last renewal date, discovery of an act or omission or a violation of any policy condition that substantially and materially increases the hazard insured against and that occurred subsequent to inception of the current policy period.

Class Code: 2-13000
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GU 207 (6-78)
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