BLANKET BOND INSURANCE AGREEMENT
This Agreement is made as of the 8th day of March, 2010, by and among
the investment companies listed in Appendix A (collectively referred to herein
as the "Funds"), First Trust Advisors L.P. (the "Advisor") and First Trust
Portfolios L.P. (collectively, with the Advisor and the Funds referred to as the
"Parties").
W I T N E S S E T H:
Whereas, the Parties have agreed to acquire a joint insured policy (the
"Policy") issued by ICI Mutual Insurance Company containing broker's blanket
bond coverage ("Blanket Bond Coverage") which shall cover all Parties;
Whereas, the total amount of the Blanket Bond Coverage under the Policy
will be $11,500,000 ("Bond Amount") based upon the determination of each Fund's
Board of Trustees that such insured Parties should have an amount of coverage,
in the aggregate, of at least $10,950,000 ("Basic Bond Coverage") as provided in
Appendix B;
Whereas, the Parties desire to provide herein for an allocation of the
premiums for the Blanket Bond Coverage and a manner of allocating any loss
proceeds received under the Policy.
The Parties, therefore, agree that:
1. Allocation of Blanket Bond Coverage Premium. Each Party shall pay a
proportionate share of the Blanket Bond Coverage annual premium based on the
allocation as set forth in Appendix C.
2. Losses.
(a) General. The Policy is a "claims made" insurance policy and a
Policy Year is the period from October 9th through the next succeeding October
9th (or any modification of that period as may be agreed by the Parties and the
insurer). The insured loss (including all related expenses) of a Party which
relates to a claim made by that Party relating to a particular Policy Year under
the Blanket Bond Coverage is hereinafter referred to as a "Blanket Bond Loss."
Party includes the trustees and officers of an insured Party and other insured
agents or employees of such a Party.
(b) Blanket Bond Loss. If only one insured Party incurs a Blanket Bond
Loss relating to a Policy Year, the proceeds of the Blanket Bond Coverage for
that Policy Year will be allocated to that Party. If more than one insured Party
incurs a Blanket Bond Loss relating to a particular Policy Year, the proceeds of
the Blanket Bond Coverage for that Policy Year will first be allocated among
those insured Parties in proportion to their respective premiums paid under
Paragraph 1 hereof for Blanket Bond Coverage. If, for that particular Policy
Year, after initial allocation, there are remaining proceeds of the Blanket Bond
Coverage and there are then insured Parties whose Blanket Bond Losses have not
been paid in full, such proceeds shall be further allocated among such insured
Parties in proportion to their respective premiums paid for such Coverage
(repeating this further allocation procedure as each of such insured Parties is
paid in full, until all proceeds have been allocated). If all Blanket Bond
Losses relating to a particular Policy Year are not paid at the same time, the
insured Parties who claim such Losses for that Policy Year shall make such
provisions as they deem suitable to the particular circumstances (taking into
account the size of any payment received, the size, nature and expected result
of any remaining claims, and all other relevant factors) to permit a later
re-allocation of amounts first paid. In no event shall any insured Party that
incurs a Blanket Bond Loss relating to a Policy Year which equals or exceeds its
Basic Bond Coverage be allocated proceeds of the Blanket Bond Coverage for that
particular Policy Year in an amount less than its Basic Bond Coverage.
3. Notices. Each Party agrees to give promptly to the insurer all
notices required under the Policy.
4. Agent. The Advisor is hereby appointed as the agent for all of the
Parties for the purpose of making, adjusting, receiving and enforcing payment of
all claims under the Policy and otherwise dealing with the insurer with respect
to the Policy. All expenses incurred by the Advisor in its capacity as agent for
claims shall be shared by the Parties (including the Advisor) in the same manner
as above provided for the sharing of Losses.
5. Modification and Termination. This Agreement may be modified or
amended from time to time by mutual written agreement among all of the Parties.
It may be terminated with respect to any one Party by not less than 60 days'
written notice to the other Parties which are still parties to the Agreement. It
shall terminate with respect to any Party as of the date that Party ceases to be
an insured under the Policy; provided that such termination shall not affect
that Party's rights and obligations hereunder with respect to any claims on
behalf of that Party which are paid under the Policy by the insurer after the
date the Party ceases to be an insured under the Policy.
6. Further Assurances. Each Party agrees to perform such further acts
and execute such further documents as are necessary to effectuate the purposes
hereof.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed as of the day and year first above written.
Energy Income and Growth Fund
First Defined Portfolio Fund, LLC
First Trust Enhanced Equity Income Fund
First Trust/Four Corners Senior Floating Rate Income Fund
First Trust/Four Corners Senior Floating Rate Income Fund II
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund
First Trust/Aberdeen Global Opportunity Income Fund
First Trust/FIDAC Mortgage Income Fund
First Trust Strategic High Income Fund
First Trust Exchange-Traded Fund
First Trust Strategic High Income Fund II
First Trust Strategic High Income Fund III
First Trust/Aberdeen Emerging Opportunity Fund
First Trust Exchange-Traded AlphaDEX(R) Fund
First Trust Specialty Finance and Financial Opportunities Fund
First Trust Active Dividend Income Fund
First Trust Exchange-Traded Fund II
First Trust Advisors L.P.
First Trust Portfolios L.P.
By: /s/ Xxxxx X. Xxxxx
--------------------------------------
Xxxxx X. Xxxxx, President
APPENDIX A
Energy Income and Growth Fund
First Defined Portfolio Fund, LLC
Target Managed VIP Portfolio
Dow DART 10 Portfolio
Global Target 15 Portfolio
S&P Target 24 Portfolio
NASDAQ Target 15 Portfolio
First Trust Target Focus Four Portfolio
Value Line Target 25 Portfolio
Dow Target Dividend Portfolio
First Trust Enhanced Equity Income Fund
First Trust/Four Corners Senior Floating Rate Income Fund
First Trust/Four Corners Senior Floating Rate Income Fund II
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund
First Trust/Aberdeen Global Opportunity Income Fund
First Trust/FIDAC Mortgage Income Fund
First Trust Strategic High Income Fund
First Trust Exchange-Traded Fund
First Trust Dow Xxxxx Select MicroCap Index(SM) Fund
First Trust Morningstar(R) Dividend Leaders(SM) Index Fund
First Trust US IPO Index Fund
First Trust NASDAQ-100 Equal Weighted Index(SM) Fund
First Trust NASDAQ-100-Technology Sector Index(SM) Fund
First Trust NYSE Arca Biotechnology Index Fund
First Trust Dow Xxxxx Internet Index(SM) Fund
First Trust DB Strategic Value Index Fund
First Trust Value Line(R) Equity Allocation Index Fund
First Trust Value Line(R) Dividend Index Fund
First Trust NASDAQ-100 Ex-Technology Sector Index(SM) Fund
First Trust NASDAQ(R) Clean Edge(R) Green Energy Index Fund
First Trust S&P REIT Index Fund
First Trust ISE Water Index Fund
First Trust ISE-Revere Natural Gas Index Fund
First Trust ISE Chindia Index Fund
First Trust Value Line(R) 100 Index Fund
First Trust NASDAQ(R) ABA Community Bank Index Fund
First Trust Strategic High Income Fund II
First Trust Strategic High Income Fund III
First Trust/Aberdeen Emerging Opportunity Fund
First Trust Exchange-Traded AlphaDEX(R) Fund
First Trust Consumer Staples AlphaDEX(R) Fund
First Trust Consumer Discretionary AlphaDEX(R) Fund
First Trust Energy AlphaDEX(R) Fund
First Trust Financials AlphaDEX(R) Fund
First Trust Health Care AlphaDEX(R) Fund
First Trust Industrials/Producer Durables AlphaDEX(R) Fund
First Trust Materials AlphaDEX(R) Fund
First Trust Technology AlphaDEX(R) Fund
First Trust Utilities AlphaDEX(R) Fund
First Trust Large Cap Core AlphaDEX(R) Fund
First Trust Mid Cap Core AlphaDEX(R) Fund
First Trust Small Cap Core AlphaDEX(R) Fund
First Trust Large Cap Growth Opportunities AlphaDEX(R) Fund
First Trust Large Cap Value Opportunities AlphaDEX(R) Fund
First Trust Multi Cap Growth AlphaDEX(R) Fund
First Trust Multi Cap Value AlphaDEX(R) Fund
First Trust Specialty Finance and Financial Opportunities Fund
First Trust Active Dividend Income Fund
First Trust Exchange-Traded Fund II
First Trust Dow Xxxxx STOXX(R) European Select Dividend Index Fund
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund
First Trust Dow Xxxxx Global Select Dividend Index Fund
First Trust ISE Global Wind Energy Index Fund
First Trust ISE Global Engineering and Construction Index Fund
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund
First Trust ISE Global Copper Index Fund
First Trust ISE Global Platinum Index Fund
First Trust XXXX Index Fund
APPENDIX B
PARTY BASIC
BOND COVERAGE
Energy Income and Growth Fund $750,000
First Defined Portfolio Fund, LLC $525,000
Target Managed VIP Portfolio
Dow DART 10 Portfolio
Global Target 15 Portfolio
S&P Target 24 Portfolio
NASDAQ Target 15 Portfolio
First Trust Target Focus Four Portfolio
Value Line Target 25 Portfolio
Dow Target Dividend Portfolio
First Trust Enhanced Equity Income Fund $750,000
First Trust/Four Corners Senior Floating Rate Income Fund $450,000
First Trust/Four Corners Senior Floating Rate Income Fund II $900,000
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund $600,000
First Trust/Aberdeen Global Opportunity Income Fund $750,000
First Trust/FIDAC Mortgage Income Fund $525,000
First Trust Strategic High Income Fund $350,000
First Trust Exchange-Traded Fund $1,500,000
First Trust Dow Xxxxx Select MicroCap Index(SM) Fund
First Trust Morningstar(R) Dividend Leaders(SM) Index Fund
First Trust US IPO Index Fund
First Trust NASDAQ-100 Equal Weighted Index(SM) Fund
First Trust NASDAQ-100-Technology Sector Index(SM) Fund
First Trust NYSE Arca Biotechnology Index Fund
First Trust Dow Xxxxx Internet Index(SM) Fund
First Trust DB Strategic Value Index Fund
First Trust Value Line(R) Equity Allocation Index Fund
First Trust Value Line(R) Dividend Index Fund
First Trust NASDAQ-100 Ex-Technology Sector Index(SM) Fund
First Trust NASDAQ(R) Clean Edge(R) Green Energy Index Fund
First Trust S&P REIT Index Fund
First Trust ISE Water Index Fund
First Trust ISE-Revere Natural Gas Index Fund
First Trust ISE Chindia Index Fund
First Trust Value Line(R) 100 Index Fund
First Trust NASDAQ(R) ABA Community Bank Index Fund
First Trust Strategic High Income Fund II $450,000
First Trust Strategic High Income Fund III $400,000
First Trust/Aberdeen Emerging Opportunity Fund $525,000
First Trust Exchange-Traded AlphaDEX(R) Fund $900,000
First Trust Consumer Staples AlphaDEX(R) Fund
First Trust Consumer Discretionary AlphaDEX(R) Fund
First Trust Energy AlphaDEX(R) Fund
First Trust Financials AlphaDEX(R) Fund
First Trust Health Care AlphaDEX(R) Fund
First Trust Industrials/Producer Durables AlphaDEX(R) Fund
First Trust Materials AlphaDEX(R) Fund
First Trust Technology AlphaDEX(R) Fund
First Trust Utilities AlphaDEX(R) Fund
First Trust Large Cap Core AlphaDEX(R) Fund
First Trust Mid Cap Core AlphaDEX(R) Fund
First Trust Small Cap Core AlphaDEX(R) Fund
First Trust Large Cap Growth Opportunities AlphaDEX(R) Fund
First Trust Large Cap Value Opportunities AlphaDEX(R) Fund
First Trust Multi Cap Growth AlphaDEX(R) Fund
First Trust Multi Cap Value AlphaDEX(R) Fund
First Trust Specialty Finance and Financial Opportunities Fund $525,000
First Trust Active Dividend Income Fund $450,000
First Trust Exchange-Traded Fund II $600,000
First Trust Dow Xxxxx STOXX(R) European Select Dividend Index Fund
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund
First Trust Dow Xxxxx Global Select Dividend Index Fund
First Trust ISE Global Wind Energy Index Fund
First Trust ISE Global Engineering and Construction Index Fund
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund
First Trust ISE Global Copper Index Fund
First Trust ISE Global Platinum Index Fund
First Trust XXXX Index Fund
Total Coverage $10,950,000
APPENDIX C
Fund Premium
Energy Income and Growth Fund $1,647
First Defined Portfolio Fund, LLC
Target Managed VIP Portfolio $302
Dow DART 10 Portfolio $54
Global Target 15 Portfolio $447
S&P Target 24 Portfolio $78
NASDAQ Target 15 Portfolio $28
First Trust Target Focus Four Portfolio $103
Value Line Target 25 Portfolio $111
Dow Target Dividend Portfolio $219
First Trust Enhanced Equity Income Fund $2,251
First Trust/Four Corners Senior Floating Rate Income Fund $834
First Trust/Four Corners Senior Floating Rate Income Fund II $4,279
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund $1,538
First Trust/Aberdeen Global Opportunity Income Fund $3,581
First Trust/FIDAC Mortgage Income Fund $968
First Trust Strategic High Income Fund $243
First Trust Exchange-Traded Fund
First Trust Dow Xxxxx Select MicroCap Index(SM) Fund $167
First Trust Morningstar(R) Dividend Leaders(SM) Index Fund $419
First Trust US IPO Index Fund $101
First Trust NASDAQ-100 Equal Weighted Index(SM) Fund $340
First Trust NASDAQ-100-Technology Sector Index(SM) Fund $407
First Trust NYSE Arca Biotechnology Index Fund $629
First Trust Dow Xxxxx Internet Index(SM) Fund $447
First Trust DB Strategic Value Index Fund $431
First Trust Value Line(R) Equity Allocation Index Fund $63
First Trust Value Line(R) Dividend Index Fund $1,374
First Trust NASDAQ-100 Ex-Technology Sector Index(SM) Fund $84
First Trust NASDAQ(R) Clean Edge(R) Green Energy Index Fund $413
First Trust S&P REIT Index Fund $118
First Trust ISE Water Index Fund $364
First Trust ISE-Revere Natural Gas Index Fund $3,659
First Trust ISE Chindia Index Fund $953
First Trust Value Line(R) 100 Index Fund $654
First Trust NASDAQ(R) ABA Community Bank Index Fund $53
First Trust Strategic High Income Fund III $332
First Trust/Aberdeen Emerging Opportunity Fund $1,112
First Trust Exchange-Traded AlphaDEX(R) Fund
First Trust Consumer Staples AlphaDEX(R) Fund $119
First Trust Consumer Discretionary AlphaDEX(R) Fund $138
First Trust Energy AlphaDEX(R) Fund $216
First Trust Financials AlphaDEX(R) Fund $144
First Trust Health Care AlphaDEX(R) Fund $207
First Trust Industrials/Producer Durables AlphaDEX(R) Fund $89
First Trust Materials AlphaDEX(R) Fund $180
First Trust Technology AlphaDEX(R) Fund $161
First Trust Utilities AlphaDEX(R) Fund $153
First Trust Large Cap Core AlphaDEX(R) Fund $201
First Trust Mid Cap Core AlphaDEX(R) Fund $161
First Trust Small Cap Core AlphaDEX(R) Fund $136
First Trust Large Cap Growth Opportunities AlphaDEX(R) Fund $189
First Trust Large Cap Value Opportunities AlphaDEX(R) Fund $206
First Trust Multi Cap Growth AlphaDEX(R) Fund $65
First Trust Multi Cap Value AlphaDEX(R) Fund $110
First Trust Specialty Finance and Financial Opportunities Fund $954
First Trust Active Dividend Income Fund $738
First Trust Exchange-Traded Fund II
First Trust Dow Xxxxx STOXX(R) Select Dividend 30 Index Fund $80
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund $149
First Trust Dow Xxxxx Global Select Dividend Index Fund $307
First Trust ISE Global Wind Energy Index Fund $930
First Trust ISE Global Engineering and Construction Index Fund $340
