Common use of FIRST COME, FIRST SERVED Clause in Contracts

FIRST COME, FIRST SERVED. The Parties acknowledge that the provisions set forth in Section 6(a) hereof could result in the exhaustion of Prior Coverage policy or indemnity limits by one or a small number of Exposed Parties as a result of the “first come/first served” nature of the provision. With respect to the application of the provisions set forth in Section 6(a), the Parties agree to, and shall cause their respective Representatives to, act in good faith and to avoid taking any actions for the purpose of, or with the intention of, accelerating or delaying claims payments or losses in order to obtain some advantage vis-à-vis the other Parties and their Representatives in connection with the Prior Coverage, including, without limitation, anticipated exhaustion of applicable Prior Coverage limits and the anticipated costs associated with satisfying Prior Coverage deductible requirements. In addition, the Parties shall not, and shall cause their Representatives not to, enter into any written settlement agreement with any insurer that has the effect of reducing Prior Coverage limits or increasing Prior Coverage deductibles, including “tipping basket” deductibles that would otherwise be potentially available under this Agreement to any Party and its Representatives without first giving the affected Party at least thirty (30) days’ advance written notice of its intention to enter into such settlement accompanied by a copy of the proposed settlement so that the other Party may have an opportunity to consider the impact of such proposed settlement on its interests and those of its Representatives. The Parties agree to, and shall cause their respective Representatives to, consult with each other and negotiate in good faith about such impacts.