We will pay the amounts incurred under this Section "A", but any such payments shall:

1) serve to reduce the limits of liability of this policy as stated in the Declarations, and

2) be subject to the "insured's" retention of an amount equal to that stated in the Declarations as Self Insured Retention. The Self Insured Retention applies separately to each and every "occurrence".

B. In all other instances except "A" above:

We shall not be called upon to assume charge of the investigation, settlement or defense of any "claim" made or suit brought or proceedings instituted against the "insured", but shall have the right and be given the opportunity to be associated in the defense and trial of any such "claims", suits or proceedings relative to any "occurrence" which, in our opinion, may create liability for us under the terms of this policy.

III. LIMIT OF LIABILITY

A. Aggregate

This policy is subject to an aggregate limit of liability as stated in the Declarations. This aggregate limit of liability is the maximum amount which will be paid under this policy for the total of all "claims" first made during the policy period applying separately to:

1. the "Products Hazard" and "Completed Operations Hazard" combined;

2. all other coverages combined, except automobile liability which is not subject to any aggregate limit.

B. Retained Amounts

1. Coverage is limited to apply only in excess of the amounts as stated in Item 7 of the Declarations, Schedule of Retained Amounts (herein referred to as Retained Amounts), and only for those coverages for which an amount is shown.

2. These Retained Amounts apply whether or not the "insured" maintains applicable underlying insurance.

3. These Retained Amounts shall only comprise the payment of actual damages. The Named Insured shall

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