(d) In the event the Retroactive Date, if any, set forth in Item 3 of the Declarations ("Policy Retention Date") is not the same as the Retroactive Date, if any, in the Followed Policy ("F.P. Retroactive Date"), this Policy will apply as if the F.P. Retroactive Date were the same as the Policy Retroactive Date; provided, however, this Policy will recognize the erosion or exhaustion of underlying aggregate limits by Occurrences prior to the Policy Retroactive Date, pursuant to such F.P. Retroactive Date.

(e) The inclusion or addition hereunder of more than one Insured shall not operate to increase the Company's limits of liability beyond those set forth herein.

III. DEFINITIONS AND CONFORMING OF TERMS

Except as set forth below, all terms that are in boldface type in this Policy are defined terms in the Followed Policy (whether in boldface type or not in the Followed Policy).

The following terms in boldface type in this Policy are defined as follows:

(a) "Annual Period" means the period commencing at the first date set forth in Item 2 of the Declarations and expiring on the anniversary thereof.

(b) "Attached Endorsements" means only those endorsements, if any, which are physically attached to this Policy. "Attached Endorsements" are separate from, and in addition to, any which are part of the Followed Policy.

(c) "Defense Costs," means "Defense Costs," "Defense Expense" or the cost items within supplementary payments whichever is present in the Followed Policy. If none of those are present in the Followed Policy, Defense Costs means reasonable and necessary legal costs and other expenses incurred by or on behalf of the Insured in connection with the defense of any claim or suit for damages covered under this Policy, including attorneys' fees and disbursements, law costs, premiums on attachment or appeal bonds, post judgment interest, expenses for experts and for investigation, adjustment, appraisal and settlement, excluding the salaries, wages and benefits of the Insured's employees and Insured's administrative expenses.

(d) "Followed Policy" means the Policy described in Item 7 of the Declarations issued to the Named Insured and annexed as Exhibit A hereto. In the event of any conflict between the contents of the Followed Policy in the copy annexed hereto and any other version thereof, those of the copy annexed hereto shall control, except as regards any endorsements which are specifically agreed to in writing by the Company subsequent to the inception date of this Policy.