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sole proprietorship, the refund shall be computed pro rate. Payment or tender of any unearned premium by the Insurer shall not be a condition precedent to the effectiveness of such termination, but such payment shall be made as soon as practicable. 9. AUTOMATIC EXTENDED REPORTING PERIOD AND EXTENDED REPORTING PERIOD a. Provided the Policy's premium has been paid in full and all the terms of the Policy have been fully complied with, the Named Insured shall be entitled to a sixty (60) day Automatic Extended Reporting Period for no additional premium. This extension shall apply to any Claim first made against an Insured during the Policy Period arising out of Wrongful Acts committed on or subsequent to the Retroactive Date and prior to the end of the Policy Period and first reported to the Insurer, in writing, during the sixty (60) days immediately following the end of the Policy Period. The Automatic Extended Reporting Period shall immediately expire upon the effective date of replacement coverage. b. If the Policy is canceled or nonrenewed for any reason other than nonpayment of premium, the Named Insured may purchase, by paying the additional premium set forth in Item 9. of the Declarations for this Policy, an Ex- tended Reporting Period to report any Claim first made against the Insured during the Extended Reporting Period arising out of Wrongful Acts committed on or subsequent to the Retroactive Date and prior to the end of the Policy Period and first reported to the Insurer, in writing, during the Extended Reporting Period. The ability to purchase an Extended Reporting Period shall immediately expire upon the effective date of replacement coverage. The Named Insured must request the purchase of the Extended Reporting Period, in writing to the Insurer and in accordance with Section 7.c. of this Policy, and pay the additional premium due no later than sixty (60) days after the effective date of such cancellation or nonrenewal. If purchased, the Extended Reporting Period begins on 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 Limit of Liability applicable to the Automatic Extended Reporting Period and Extended Reporting Period will be the Limit of Liability remaining under the terminated Policy or as otherwise required by the regulatory guidelines governing this type of insurance. For the purpose of this Section, any change in premium or terms on renewal shall not constitute a refusal to renew. 10. 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 becomes 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 cover- age under this Section 10., if the current year annual gross receipts of the new entity created or acquired under Par- agraphs a., b. or c., above, 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, 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 RTP 101 (02/17) Page 8 of 10 Insured