eligible for consolidation if United States generally accepted accounting principles applied) and whose financial statements were submitted to the Insurer with such financial statements of the Named Insured as of such date;

(b) any subsidiary, affiliate or associated company of the Named Insured listed on Schedule A hereto;

(3) any present or former officer, director, stockholder or employee of any person or entity named in paragraph (1) or (2) above or (6) below, but only while acting within the scope of his or her duties as such, and any person or organization with respect to liability for providing real estate management for any such person or entity named in paragraph (1) or (2) above or (6) below;

(4) any person, organization, trustee or estate to whom any person or entity named in paragraph (1) or (2) above or (6) below is obligated by virtue of a written contract or agreement to provide insurance such as is afforded by this Policy, but only to the extent of such obligation and only in respect of operations (other than commercial insurance operations) by or on behalf of such person or entity named in paragraph (1) or (2) above or (6) below or of facilities owned or used by such person or entity named in paragraph (1) or (2) above or (6) below;

(5) with respect to any Automobile owned by any person or entity named in paragraph (1), (2) or (3) above or (6) below or hired for use on behalf of any such person or entity, any person or organization legally responsible for the use thereof, provided the actual use of the Automobile is with the permission of such person or entity;

(6) any Joint Venture in which any entity listed in paragraph (1) or (2) above has an interest, but only:

(a) if, and only to the extent that, the Insured is obligated to provide insurance for the Joint Venture in its entirety such as is afforded by this Policy, or

(b) if the Joint Venture is listed on Schedule A hereto.

(7) It is agreed automatically to include as an Insured without listing on Schedule A hereto or adjustment of premium under this Policy for any Annual Period any entity acquired or formed by or merged with an Insured (a "Potential Additional Insured") during such Annual Period provided that:

(a) the fair value of the sum of all cash, securities, assumed indebtedness and other consideration expended by all Insureds for any such acquisition, formation or merger or any series of interrelated acquisitions, formations or mergers does not exceed 5% of the total assets of the Named Insured and its consolidated subsidiaries and affiliates as most recently reported to the Insurer 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 Insurer 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