FEE WAIVER AGREEMENT
THIS FEE WAIVER AGREEMENT (this "Agreement") is entered into between First
Trust Exchange-Traded Fund IV, a Massachusetts business trust (the "Trust"), on
behalf of First Trust Enhanced Short Maturity ETF (the "Fund"), and First Trust
Advisors L.P., an Illinois limited partnership ("FTA"), as of August 1, 2014.
RECITALS:
A. The Trust is an open-end management investment company registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), comprised
of various exchange-traded funds, including the Fund.
B. FTA is the investment advisor to the Fund pursuant to that certain
Investment Management Agreement by and between the Trust and FTA, effective for
the Fund as of July 25, 2014 (the "Management Agreement"), and is responsible
for the selection and ongoing monitoring of the securities in the Fund's
portfolio and certain other services necessary for the management of the Fund
and is paid an annual management fee by the Fund.
C. FTA has agreed to waive a portion of its annual management fees in an
amount equal to 0.10% of the Fund's net assets until August 6, 2015 and the Fund
desires to induce FTA to do so.
D. FTA and the Trust desire to more fully describe and document the
above-described fee waivers for the Fund all in accordance with the terms and
provisions hereinafter set forth.
NOW, THEREFORE, IN CONSIDERATION of the foregoing facts and other good and
valuable consideration, the parties hereto hereby agree as follows:
Section 1. Waiver of Fees. FTA agrees to waive investment management fees
otherwise payable to it by the Fund in the amount of 0.10% of the Fund's net
assets. The aggregate amount of management fees waived shall be accrued daily
and paid on a monthly basis for the Fund but calculated on an annualized basis.
FTA shall not have any right to reimbursement of any amount so waived.
Section 2. Accounting. FTA's fund accounting department shall develop and
maintain appropriate internal accounting policies and procedures to monitor and
calculate the aggregate amount of investment management fees waived on a monthly
basis for the Fund.
Section 3. Term and Continuation. This Agreement shall be effective as of
the inception date of the Fund and shall continue until August 6, 2015 (the
"Waiver Term"). This Agreement may be continued and the Waiver Term may be
extended for additional periods as agreed to in writing by the parties. This
Agreement may be terminated by the Trust on behalf of the Fund at any time by
action of the Trust's Board of Trustees and by FTA after the expiration of the
Waiver Term upon sixty (60) days' written notice to the other party.
Section 4. Notices. Any notice shall be sufficient when sent by
registered or certified mail to the other party at the address of such party,
set forth below such party's signature on this Agreement.
Address: First Trust Advisors L.P. Address: First Trust Exchange-Traded Fund
000 Xxxx Xxxxxxx Xxxxx 000 Xxxx Xxxxxxx Xxxxx
Xxxxxxx, Xxxxxxxx 00000 Xxxxxxx, Xxxxxxxx 00000
Attention: W. Xxxxx Xxxxxxx, Attention: W. Xxxxx Xxxxxxx,
General Counsel Secretary
Section 5. Entire Agreement; Amendments. This Agreement supersedes and
abrogates all prior understandings, communications and agreements (whether
written or oral) between the parties with respect to the subject matter hereof,
and this Agreement constitutes the entire agreement between the parties with
respect to such subject matter. This Agreement may not be amended except by an
instrument in writing signed by each of the parties hereto. No assignment by
either party shall be of any force except with the prior written consent of the
other party.
Section 6. Governing Law; Miscellaneous. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of Illinois (without
regard to principles of law), including all matters of construction, validity,
and performance; provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act or any rule or regulation of the Securities and
Exchange Commission. If any provision of this Agreement shall be held or made
invalid by a court's decision, statute, rule or otherwise, the remainder of this
Agreement shall not be affected thereby. The captions in this Agreement are
included for convenience only and in no way define any of the provisions hereof
or otherwise affect their construction or effect. This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective successors.
Section 7. Massachusetts Trust. All parties hereto are expressly put on
notice of the Trust's Declaration of Trust and all amendments thereto, a copy of
which is on file with the Secretary of the Commonwealth of Massachusetts, and
the limitation of shareholder and trustee liability contained therein. This
Agreement is executed on behalf of the Trust by the Trust's officers as officers
and not individually and the obligations imposed upon the Trust or the Fund by
this Agreement are not binding upon any of the Trust's Trustees, officers or
shareholders individually but are binding only upon the assets and property of
the Fund, and persons dealing with the Trust must look solely to the assets of
the Fund for the enforcement of any claims.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.
FIRST TRUST ADVISORS L.P.
/s/ Xxxx X. Xxxxxxx
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Xxxx X. Xxxxxxx
Chief Financial Officer and Chief Operating Officer
FIRST TRUST EXCHANGE-TRADED FUND IV,
ON BEHALF OF FIRST TRUST ENHANCED SHORT MATURITY ETF
/s/ Xxxxx X. Xxxxx
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Xxxxx X. Xxxxx
Treasurer, Chief Financial Officer and Chief Accounting Officer
