# INSURING AGREEMENTS

## I COVERAGE

X.L. Insurance Company, Ltd. (the "Company") shall, subject to the limitations, terms, conditions and exclusions below, indemnify the Insured for Ultimate Net Loss the Insured pays by reason of liability:

- (a) imposed by law, or
- (b) of a person or party who is not an Insured assumed by the Insured under contract or agreement,

for Damages on account of:

- (i) Personal Injury
- (ii) Property Damage
- (iii) Advertising Liability

encompassed by an Occurrence, provided:

- **COVERAGE A:** notice of the Occurrence shall have been first given by the Insured in an Annual Period during the Policy Period in accordance with Article V of this Policy, or
- **COVERAGE B:** notice of the Occurrence shall have been first given during the Discovery Period in accordance with Article V of this Policy, but only if the Discovery Period option has been elected in accordance with the provisions of this Policy.

## II LIMITS OF LIABILITY

A. Regardless of the number of Insureds under this Policy, for each layer of coverage set forth in Item 2(a) of the Declarations the Company shall be liable only for that amount of Ultimate Net Loss for each Occurrence covered under this Policy which is in excess of the greater of:

(1) the amounts indicated as the limits (including, without limitation, any reinstatements thereof, where applicable) of the underlying insurances and any self-insured retentions listed, or which should have been listed, on the present or any prior Schedule B annexed to this Policy and any other underlying insurance, as to which the Company and the Named Insured expressly agree that the insurance provided by this Policy shall: