A. We will have no duty to defend any “suit” against the “insured” until the above Self-Insured Retention is exhausted by payment of “loss” covered by virtue of an exception to this pollution exclusion. We will, however, have the right, but not the duty, to participate in the defense of any “suit” and the investigation of any claim to which this endorsement may apply. If we exercise this right, we will do so at our own expense. When the Self-Insured Retention has been exhausted in accordance with this paragraph, we will have the right and duty to defend the “insured” against any “suit” seeking damages for “bodily injury” or “property damage”, even if groundless, false or fraudulent, to which this insurance applies.

For the purpose of this endorsement only, the following definition is added to the policy:

“Defense expenses” means payments allocated to defend a specific “suit”, including but not limited to:

1. Attorneys’ fees and all other investigation, loss adjustment and litigation expenses;

2. Premiums on bonds to release attachments;

3. Premiums on appeal bonds required by law to appeal any claim or “suit”;

4. Court costs taxed against the “insured” in any “suit”;

5. Pre-judgment interest awarded against the “insured”; and

6. Interest that accrues after entry of judgment.

All other terms, definitions, conditions, and exclusions of this policy remain unchanged.