and, except as stated in the Schedule A to this policy, the limits of liability for the underlying insurance at the time of loss or payment of the claim, as set forth in Schedule A, of this policy does not apply to:

(i) personal injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of an aircraft owned by or chartered without crew by the named insured but those exclusion do not apply to personal injury to employees of the insured;

(ii) personal injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of a watercraft over fifty (50) feet in length owned by or chartered without crew by the named insured but this exclusion does not apply to personal injury to employees of the insured.

(k) any employee with respect to personal injury to another employee of the same employer or a subcontractor thereof, provided such employee is not an employee of the insured.

## III. LIMITS OF LIABILITY - RETAINED LIMIT

Regardless of the number of (1) insureds under this policy, (2) persons or organizations who sustain injury or damage, or (3) claims made or suits brought on account of personal injury, property damage, or advertising liability, the company's liability is as follows:

With respect to personal injury, property damage or advertising liability, or any combination thereof, the company's liability shall be only for the ultimate net loss in excess of the insured's retained limit, the latter being defined as the greater of:

(a) an amount equal to the limits of liability shown for the underlying insurance (listed in Schedule A hereof), plus the applicable limits of any other underlying insurance collectible by the insured; or

(b) the amount specified in Item 3(c) of the Limits of Liability section of the Declarations as the result of any one occurrence not covered by the said insurance.

and then for an amount not exceeding the amount specified in Item 3(a) of the Limits of Liability section of the Declarations as the result of any one occurrence.

There is no limit to the number of occurrences during the policy period for which claims may be made, except that the liabilities of the company arising out of either the products hazard or the completed operations hazard, or both combined, on account of all occurrences or separately all occupational disease sustained by all employees of the insured arising out of and in the course of their employment during each policy year shall not exceed the amount specified in Item 3(b) of the Limits of Liability section of the Declarations.

If this policy is issued for more than one year, the aggregate limit of liability in the immediately foregoing paragraph applies separately to each consecutive annual period of this policy or if the last consecutive period is less than twelve months, to such period of less than 12 months, unless such period of less than 12 months is specifically designated in the Declarations or by endorsement is other than the last.

In the event that the aggregate limits of liability of the underlying policies listed in Schedule A are reduced or exhausted, the company shall, subject to the company's limit of liability which is stated above and to the other conditions of this policy, with respect to occurrences which take place during the period of this policy continue in force as excess of the reduced primary insurance or, in the event of exhaustion, continue in force as underlying insurance.

## IV. POLICY PERIOD, TERRITORY

This policy applies to personal injury, property damage or advertising liability which occur anywhere during the policy period.

## V. PERSONS OR ENTITIES INSURED

Each of the following is an insured under this policy to the extent set forth below:

(1) if the named insured as designated in the Declarations is an individual, the person so designated but only with respect to the conduct of a business of which he is the sole proprietor;

(2) if the named insured as designated in the declarations is a partnership or joint venture, the partnership or joint venture so designated and any partner or member thereof but only with respect to his liability as such provided that, however, this policy does not apply to personal injury, property damage or advertising liability arising out of the conduct of a partnership or joint venture of which the insured is a partner or member and which is not designated in this policy as a named insured;