b. The operations of such organization are not materially different from your operations prior to such acquisition or formation;

c. This insurance does not apply to "bodily injury" or "property damage" that occurred before you acquired, joined or formed the organization; and

d. This insurance does not apply to "personal and advertising injury" arising out of an offense committed before you acquired, joined or formed the organization;

6. Any organization, other than a partnership, joint venture or limited liability company, you newly acquire or form after the inception date of this policy that does not meet the criteria to be a "Named Insured" in paragraph 5. above, in which the first "Named Insured" shown in the Declarations maintains, directly or indirectly, more than a fifty percent (50%) ownership interest, provided:

a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or the end of the "policy period", whichever is earlier;

b. This insurance does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization;

c. This insurance does not apply to "personal and advertising injury" arising out of an offense committed before you acquired or formed the organization; and

d. We reserve the right to charge an additional premium if the organization qualifies as a "Named Insured".

2. Section VII. DEFINITIONS is amended to add the following definition:

- "Subsidiary" means an organization that is both 1.) under the direct or indirect financial control and active management of the first "Named Insured" shown in the Declarations; and 2.) qualifies as a "insured" under this policy.

Notwithstanding the above, "subsidiary" shall not include a partnership, joint venture, or limited liability company (other than a partnership or limited liability company owned 100%, as of the inception date of this policy, by any single or combination of the first "Named Insured" shown in the Declarations and any "subsidiary").

3. Section VII. DEFINITIONS, "Insured", is amended to delete sub-paragraph 1. after 'Notwithstanding anything above:' and replace it with the following:

Notwithstanding anything above:

1. Only the first "Named Insured" shown in the Declarations and its "subsidiaries" are "insureds" with respect to the conduct of any current or past partnership, joint venture, or limited liability company that is not a "Named Insured".

All other terms and conditions of the policy remain unchanged.