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Right to Change the Prepayment Fee (continued) <br />3. when the Organization's subsidiary, affiliate, division, branch or other similar entity is added to or <br />deleted from this contract for any reason Including corporate restructuring, acquisition, spin-off or <br />similar situations; <br />4. when there is a significant change in the geographic distribution of Covered Persons; <br />5. when applicable law requires a change in: <br />a. the benefits provided by this contract; and/or <br />b. the class of persons eligible for benefits under this contract; or <br />6. when a Prepayment Fee Due Date coincides with or next follows: <br />a. a change greater than 10% in the number of Covered Persons since the later of the contract <br />Effective Date and the last date that the Prepayment Fee was changed; or <br />b. a change greater than 5% in the amount of benefits provided by this contract since the later of the <br />contract Effective Date and the last date that the Prepayment Fee was changed. <br />In addition, SafeGuard may change the Prepayment Fee: <br />1. except as may be stated in the Exhibits, on any date on or after the first Contract Anniversary; this will <br />be done no more frequently than every 12 months and only If SafeGuard notifies the Organization, in <br />Writing, at least 30 days before such change; and <br />2. on any other date agreed to by SafeGuard and the Organization. <br />The new Prepayment Fee will apply only to a Prepayment Fee due on or after the date the rate change <br />takes effect. <br />GRACE PERIOD <br />Each Prepayment Fee due after the Effective Date of this contract may be paid up to 15 days after its <br />Prepayment Fee Due Date. This period is the grace period. The benefits provided by this contract will <br />stay in effect during this period. SafeGuard will notify the Organization in Writing that, if the Prepayment <br />Fee is not paid by the end of the grace period, this contract will end at the end of the last day of the grace <br />period. If SafeGuard fails to give Written notice to the Organization, this contract will continue in effect <br />until the date such notice is given. <br />Organization's intent to end this contract during the grace period. The Organization may notify <br />SafeGuard in Writing prior to the end of the grace period of its intent to end this contract before the end of <br />the grace period. In this case, this contract will end on the later of: <br />1. the date stated in the notice; or <br />2. the date SafeGuard receives the notice. <br />If the Organization replaces this contract with another group contract but does not give SafeGuard notice <br />of Intent to end this contract, the grace period provisions will apply. <br />GPNP10-DHMO <br />25C-7 <br />Page 5 <br />