2 Conduct of ProceedingsIn the even

2 Conduct of ProceedingsIn the event of any claim being made or action brought against the Contractor which is covered by the indemnity set out in above paragraph 1 hereof, the Contractor shall promptly notify the Subcontractor thereof and the Subcontractor may at its own expense conduct all negotiations for the settlement of the same, and any litigation that may arise therefrom. The conduct by the Subcontractor of such negotiations or litigation shall be conditional upon the Subcontractor having first given to the Contractor such reasonable security as shall from time to time be required by the Contractor to cover the amount ascertained or agreed or estimated, as the case may be, of any compensation, damages, expenses and costs for which the Contractor may become liable. The Contractor shall not, unless and until the Subcontractor shall have failed to take over the conduct of the negotiations or litigation, agree to any settlement of such negotiations or litigation or make any admission, which might be prejudicial thereto.