**a. In the event of claim or claims arising which appear likely to exceed the underlying limit, no "costs" shall be incurred by the insured without the written consent of the Company.**

**b. Should such claim or claims become adjustable previous to going into court for not more than underlying limit, then no "costs" shall be payable by the Company.**

**c. Should, however, the sum for which the said claim or claims may be so adjustable exceed the underlying limit, then the Company if it consents to the proceedings, continuing, shall contribute to the "costs" incurred by the Insured in the ratio of their proportion of the ultimate net loss as finally adjusted bears to the whole amount of such ultimate net loss.**

**d. In the event that the Insured elects not to appeal a judgment in excess of the underlying limit, the Company may elect to conduct such appeal at its own cost and expense, and shall be liable for the taxable court costs and interest incidental thereto, but in no event shall the total liability of the Company exceed its limit of liability as stated above, plus the expense of such appeal.**

**4. Application of Salvage.**

All salvage, recoveries, or payments recovered or received subsequent to a loss settlement under this policy shall be applied as if recovered or received prior to such settlement, and all necessary adjustments shall then be made between the Insured and the Company, provided always that nothing in this clause shall be construed to mean that losses under this policy are not recoverable until the Insured's ultimate net loss has been finally ascertained.

**5. Attachment of Liability.** Liability under this policy shall not attach unless and until the underlying insurers shall have admitted liability for the retained limit or unless and until the Insured has by final judgment been adjudged to pay a sum which exceeds such retained limit.

**6. Application of Underlying Policies.** This policy, except where provisions to the contrary appear herein, is subject to all of the conditions, agreements, exclusions and limitations of and shall follow the excess liability policies designated in Item 5 of the Declarations in all respects, including changes by endorsement.

**7. Maintenance of Underlying Insurance.** It is a condition of this policy that the policy of the underlying insurer shall be maintained in full effect during the currency of this policy, except for any reduction of the aggregate limits contained therein by payment of losses during the policy period.

**Policy No. EX-3006262**
**Date of Issue: 6-13-67**