Notice of an "occurrence" is not a notice of "claim". The "occurrence" must occur after the Retroactive Date but before the expiration date of this policy.

Notice of a potential "claim" shall include:
1. how, when and where the "occurrence" took place; and
2. the names and addresses of any injured persons and any witnesses.

## II. DEFENSE

A. After any aggregate limits in the Retained Amounts are exhausted through payment of actual damages:

1. We will defend any subsequent suit(s) against the "insured" alleging liability insured under the provisions of this policy and seeking recovery for damages on account thereof, even if such suit is groundless, false or fraudulent, but we will have the right to make such investigation and negotiation and settlement of any "claim(s)" or suit(s) as may be deemed expedient by us.
2. We will pay: (a) all premiums on bonds to release attachments for an amount not in excess of the applicable limit of liability of this policy; (b) all premiums on appeal bonds required in any such defended suit, but without any obligation to apply for or furnish such bonds; (c) all costs taxed against the "insured" in any such suit; (d) all expenses incurred by us; and (e) all interest accruing after entry of judgment until we have paid, tendered or deposited in court that part of any judgment as does not exceed the limit of our liability thereon.
3. We will reimburse the "insured" for all reasonable expenses incurred at our request, (including actual loss of wages or salary, but not loss of other income, not to exceed $100 per day) because of the "insured's attendance at hearings or trials at such request.
4. We will pay all pre-judgment interest awarded against the "insured" on that part of the judgment we pay. If we make an offer to pay the applicable limit of insurance, we will not pay any pre-judgment interest based on that period of time after the offer.

LEX-CM-STA-2
(Ed. 4/86)