BLANKET BOND INSURANCE AGREEMENT
THIS AGREEMENT is made as of this 29th day of September, 2005, by and
among the investment companies listed in Appendix A (collectively referred to
herein as the "Funds" or the "Parties").
WITNESSETH:
WHEREAS, the Funds, each of which is advised by FIRST TRUST ADVISORS,
L.P., an Illinois Limited Partnership ("Adviser"), have agreed to acquire a
joint insured policy (the "Policy") issued by Chubb Group of Insurance Companies
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 $9,025,000 ("Bond Amount") based upon the determination of each insured
Party's Board of Trustees, that such insured Parties should have an amount of
coverage, in the aggregate, of $9,025,000 ("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
portion of the Blanket Bond Coverage annual premium as set forth in Appendix C.
These amounts have been determined based upon the proportion of the premium that
each such insured Party would pay for its Basic Bond Coverage if it maintained a
single insured bond to the total of such premiums by all of such insured
Parties.
2. Losses.
(a) General. The Policy is a "claims made" insurance policy and a
Policy Year is the period from October 9, 2004, through the next succeeding
October 9, 2005 (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, directors 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 who
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 and to send a copy of each such notice to the
Adviser.
4. Agent. The Adviser 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 Adviser in its capacity as agent for
claims shall be shared by the Parties (including the Adviser) 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 assured 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.
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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/FOUR CORNERS SENIOR FLOATING RATE
INCOME FUND
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE
INCOME FUND II
FIRST TRUST/FIDUCIARY ASSET MANAGEMENT COVERED
CALL FUND
FIRST TRUST VALUE LINE(R) 100 FUND
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY
ALLOCATION FUND
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
By /s/ Xxxxx X. Xxxxx
-------------------------
President
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APPENDIX A
FUNDS
Energy Income and Growth Fund
First Defined Portfolio Fund, LLC
First Trust/Fiduciary Asset Management Covered Call Fund
First Trust/Four Corners Senior Floating Rate Income Fund
First Trust/Four Corners Senior Floating Rate Income Fund II
First Trust Value Line(R) 100 Fund
First Trust Value Line(R) Dividend Fund
First Trust/Value Line(R) & Ibbotson Equity Allocation Fund
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
APPENDIX B
BASIC BOND ADDITIONAL TOTAL
PARTY COVERAGE COVERAGE COVERAGE
Energy Income and Growth Fund $600,000 $600,000
First Defined Portfolio Fund, LLC $600,000 $600,000
First Trust/Fiduciary Asset Management $750,000 $750,000
Covered Call Fund
First Trust/Four Corners Senior Floating Rate $600,000 $600,000
Income Fund
First Trust/Four Corners Senior Floating Rate $1,000,000 $1,000,000
Income Fund II
First Trust Value Line(R) 100 Fund $750,000 $750,000
First Trust Value Line(R) Dividend Fund $900,000 $900,000
First Trust/Value Line(R) & Ibbotson Equity $525,000 $525,000
Allocation Fund
Macquarie/First Trust Global Infrastructure/Utilities $750,000 $750,000
Dividend & Income Fund
First Trust/Aberdeen Global Opportunity Income Fund $900,000 $900,000
First Trust/FIDAC Mortgage Income Fund $450,000 $450,000
First Trust Strategic High Income Fund $600,000 $600,000
First Trust Exchange-Traded Fund $600,000 $600,000
Total Coverage $9,025,000 $9,025,000
APPENDIX C
PARTY ANNUAL PREMIUM
Energy Income and Growth Fund $2,770
First Defined Portfolio Fund, LLC $2,201
First Trust/Fiduciary Asset Management $6,717
Covered Call Fund
First Trust/Four Corners Senior Floating Rate $2,715
Income Fund
First Trust/Four Corners Senior Floating Rate $13,286
Income Fund II
First Trust Value Line(R) 100 Fund $4,797
First Trust Value Line(R) Dividend Fund $8,904
First Trust/Value Line(R) & Ibbotson Equity $2,186
Allocation Fund
Macquarie/First Trust Global Infrastructure/Utilities $4,422
Dividend & Income Fund
First Trust/Aberdeen Global Opportunity Income Fund $4,000
First Trust/FIDAC Mortgage Income Fund $1,075
First Trust Strategic High Income Fund $1,425
First Trust Exchange-Traded Fund $1,000
