FIRST TRUST EXCHANGE-TRADED FUND
EXCESS EXPENSE AGREEMENT
WHEREAS, First Trust Advisors, L.P. is the investment adviser (the
"Adviser") of the First Trust Exchange-Traded Fund Trust (the "Trust");
WHEREAS, the Adviser proposes to waive fees and/or absorb certain
expenses of one or more portfolios of the Trust (each a "Fund") as set forth in
Appendix I, as may be amended from time to time, in order to maintain expense
ratios of the Funds at or below a predetermined level (each an "Expense Cap");
and
WHEREAS, the Trust desires to induce the Adviser to waive fees and/or
absorb expenses of the Funds to the extent necessary to maintain the expense
ratios of the Funds at or below their applicable Expense Caps.
NOW, THEREFORE, the parties hereto agree as follows:
1. Subject to the limitations specified below, each Fund shall
reimburse the Adviser, without interest, for fees waived and/or expenses
absorbed by the Adviser on or after the date set forth on Appendix I on behalf
of each respective Fund, for the purpose of maintaining the Fund's expense ratio
at or below its Expense Cap (the "Reimbursement Payments"). The Expense Cap for
each Fund and the period of time it will remain in effect is set forth in
Appendix I attached hereto, as it may be amended from time to time.
2. The Adviser shall be entitled to Reimbursement Payments from a Fund
on the earliest date that any such payments may be made without thereby causing
the Fund to (i) exceed its Expense Cap then in effect, or (ii) if the Expense
Cap is no longer in effect, exceed an expense ratio equal to the most recent
applicable Expense Cap (the "Maximum Expense Level"), but shall have no right to
any Reimbursement Payments from a Fund to the extent any such payment would
result in the Fund exceeding its Expense Cap or Maximum Expense Level.
3. A Fund's obligation to make Reimbursement Payments with respect to
any particular fees waived, and/or expenses absorbed, shall expire three years
from the date the fee or expense would otherwise have been accrued by the Fund.
4. This Agreement may be terminated by the Trust or the Adviser,
without penalty, upon 60 days prior written notice.
5. The Adviser shall, upon termination of the Agreement, have no claim
against the Trust or any Fund for any unreimbursed amounts.
FIRST TRUST EXCHANGE-TRADED FUND TRUST
By: /s/ Xxxxx X. Xxxxx
------------------------------
Name: Xxxxx X. Xxxxx
Title: President
FIRST TRUST ADVISORS, L.P.
By: /s/ Xxxxx X. Xxxxx
------------------------------
Name: Xxxxx X. Xxxxx
Title: President
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APPENDIX I
FIRST TRUST PRODUCTS EXPENSE CAP COMMENCEMENT EFFECTIVE
DATE PERIOD
1. First Trust Dow Xxxxx Select MicroCap 0.60% 09/24/2005 09/24/2005 -
Index(sm) Fund 09/24/2008
2. First Trust Value(R) Line Arithmetic
Index Fund
3. First Trust Morningstar(R) Dividend 0.45% 03/15/2006 03/15/2006 -
Leaders(sm) Index Fund 03/15/2009
