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consolidated subsidiaries and affiliates as most recently reported to the Company for rating purposes prior to such Annual Period;

(b) the incremental annual gross revenues attributable to such acquisition, formation or merger or series of interrelated acquisitions, formations or mergers do not exceed 5% of the total annual gross revenues of the Named Insured and its consolidated subsidiaries and affiliates as most recently reported to the Company for rating purposes prior to such Annual Period; and

(c) neither the operations of the Potential Additional Insured prior to such acquisition, formation or merger or any series of interrelated acquisitions, formations or mergers nor the resultant combined or consolidated operations of the Insured and the Potential Additional Insured subsequent to such acquisition, formation or merger or any series of interrelated acquisitions, formations or mergers are materially different from those of such Insured prior to such acquisition, formation or merger or series of interrelated acquisitions, formations or mergers.

Unless notice to the Company shall have been given and additional premium, if any, shall have been paid in respect of any acquisition, formation or merger (or series thereof) not meeting the criteria set forth herein, such Potential Additional Insured shall not be an Insured hereunder, and liability assumed by an Insured in connection with such acquisition, formation or merger (or series thereof) shall not be indemnified hereunder.

With respect to any Occurrence giving rise to liability of any Potential Additional Insured that qualifies as an Insured hereunder, the Inception Date shall be the date of merger with or acquisition or formation of the Potential Additional Insured by an Insured or such other date as may be agreed in writing between the Named Insured and the Company. If during any Annual Period an Insured acquires a business, division or other operations by asset acquisition, such asset acquisition shall be considered an acquisition of an entity for purposes of this paragraph (7).

Q. "Insured's Products" means goods or products manufactured, sold, tested, handled or distributed by the Insured or others trading under its name, or tools, uninstalled equipment or abandoned or unused materials that were the subject of completed operations performed for others by the Insured.