HODGES LACY & ASSOCIATES, LLC - 2014

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b. shall have the right to purchase, by paying the additional premium set forth in Item 8, of the Declarations for this Policy, an Extended Reporting Period to report any Claim first made against an Insured after the effective date of such expiration, cancellation or nonrenewal, The Automatic Extended Reporting Period and/or the Extended Reporting Period shall only apply to a Wrongful Act committed before the date of the Policy expiration, cancellation or nonrenewal. For the purpose of this Section, any change in premium or terms on renewal shall not constitute a refusal to renew. The Named Insured must notify the Insurer in writing and must pay the additional premium due no later than sixty (60) days after the effective date of such expiration, cancellation or nonrenewal. The Extended Reporting Period begins on the expiration date or the effective date of cancellation or nonrenewal of the Policy, The Extended Reporting Period will run concurrently with the Automatic Extended Reporting Period, All premiums paid with respect to the Extended Reporting Period shall be deemed fully earned as of the first day of the Extended Reporting Period. The extension of coverage granted hereunder shall be subject to all the terms and conditions of the Policy and shall only apply to Professional Services rendered before such Policy expiration, cancellation or nomenewal. 11. ACQUISITION OR CREATION OF ANOTHER ENTITY If, after the beginning of the Policy Period, the Named Insured: a. acquires substantially all of the assets of another entity; or b. acquires voting securities in another entity or creates another entity, which as a result of such acquisition or creation becorries a Subsidiary; or c. acquires another entity by merger such that the Named Insured is the surviving entity; then the coverage provided under this Policy shall apply to such new creation or acquisition; but only with respect to Wrongful Acts occurring or allegedly occurring after the acquisition, merger or creation. As a condition for any coverage Linder this Section I I ., if the current year annual gross receipts of the new entity created or acquired under Paragraphs a., b. or c., above, exceed fifteen percent (15%) of the current year annual gross receipts of the Named Insured as reflected in the niost recent Application on file with the Insurer, then coverage for such newly created or acquired entity will cease ninety (90) days after the effective date of such creation or acquisition unless, within such ninety (90) day period: (i) the Named Insured provides the Insurer with written notice of such creation or acquisition; and (ii) the Named Insured provides the Insurer with such information in connection therewith as the Insurer may deem necessary-, and (iii) the Narned Insured accepts any special terms, conditions, exclusions, or additional premium charge as may be required by the Insurer; and (iv;) the Insurer, in its sole discretion, agrees by written endorsement to provide Such coverage. The Named Insured is not required to provide written notice to the Insurer under this Section if. 1, the current year annual gross receipts of the newly created or acquired entity do not exceed Fifteen percent (15%) of the current year annual gross receipts of the Named Insured as reflected in the most recent Application on file with the Insurer; or 2. the creation or acquisition occurs Tess than ninety (90) days prior to the end ofthe Policy Period, HOD ES LACEY & ASSOCIATES, L.LT A-2014-037 REVIEVVED BY: EUMCE l-IEREDA (PG 16 OF 24) RTP 101 (09/11) Page 8 of 10 Insured