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b. If we defend an insured against a "suit" <br />and an indemnitee of the insured Is also <br />named as a party to the "suit", we will <br />defend that Indemnitee if all of the <br />following conditions are met: <br />(1) The "suit" against the Indemnitee <br />seeks damages for which the insured <br />has assumed the liability of the <br />indemnitee in a contract or agreement <br />that Is an "insured contract'; <br />(2) This insurance applies to such liability <br />assumed by the insured; <br />(3) The obligation to defend, or the cost of <br />the defense of, that indemnitee, has <br />also been assumed by the insured in <br />the same "insured contract"; <br />(4) The allegations in the "suit" and the <br />information we know about the <br />"occurrence" are such that no conflict <br />appears to exist between the interests <br />of the insured and the interest of the <br />indemnitee; <br />(5) The indemnitee and the insured ask <br />us to conduct and control the defense <br />of that indemnitee against such "suit" <br />and agree that we can assign the <br />same counsel to defend the insured <br />and the indemnitee; and <br />(6) The indemnitee: <br />(a) Agrees in writing to: <br />(i) Cooperate with us in the <br />investigation, settlement or <br />defense of the "suit"; <br />(ii) Immediately send us copies of <br />any demands, notices, <br />summonses or legal papers <br />received in connection with <br />the "suit"; <br />(iii) Notify any other insurer whose <br />coverage is available to the <br />indemnitee; and <br />(iv) Cooperate with us with <br />respect to coordinating other <br />applicable insurance available <br />to the indemnitee; and <br />(b) Provides us with written <br />authorization to: <br />(i) Obtain records and other <br />Information related to the <br />"suit"; and <br />(li) Conduct and control the <br />defense of the indemnitee in <br />such "suit <br />Form SS 00 08 04 05 <br />BUSINESS LIABILITY COVERAGE FORM <br />So long as the above conditions are met, <br />attorneys' fees incurred by us in the <br />defense of that indemnitee, necessary <br />litigation expenses incurred by us and <br />necessary litigation expenses incurred <br />by the indemnitee at our request will be <br />paid as Supplementary Payments. <br />Notwithstanding the provisions of <br />Paragraph 1,b.(b) of Section B. — <br />Exclusions, such payments will not be <br />deemed to be damages for "bodily <br />injury" and "property damage" and will <br />not reduce the Limits of Insurance. <br />Our obligation to defend an insured's <br />indemnitee and to pay for attorneys' fees <br />and necessary litigation expenses as <br />Supplementary Payments ends when: <br />(1) We have used up the applicable limit <br />of insurance in the payment of <br />judgments or settlements; or <br />(2) The conditions set forth above, or the <br />terms of the agreement described in <br />Paragraph (6) above, are no longer met. <br />B. EXCLUSIONS <br />Applicable To Business Liability Coverage <br />This insurance does not apply to: <br />a. Expected Or Intended Injury <br />(1) "Bodily injury" or "property damage" <br />expected or intended from the <br />standpoint of the insured. This <br />exclusion does not apply to "bodily <br />injury" or "property damage" resulting <br />from the use of reasonable force to <br />protect persons or property; or <br />(2) "Personal and advertising injury" arising <br />out of an offense committed by, at the <br />direction of or with the consent or <br />acquiescence of the insured with the <br />expectation of inflicting "personal and <br />advertising injury". <br />b. Contractual Liability <br />(1) "Bodily injury" or "property damage" or <br />(2) "Personal and advertising injury" <br />for which the insured is obligated to pay <br />damages by reason of the assumption of <br />liability in a contract or agreement. <br />This exclusion does not apply to liability <br />for damages because of: <br />(a) "Bodily injury", "property damage" or <br />"personal and advertising injury" that <br />the insured would have in the <br />absence of the contract or <br />agreement; or <br />Page 3 of 24 <br />