ADDITIONAL COMPENSATION AGREEMENT
ADDITIONAL COMPENSATION AGREEMENT (the "Agreement"), dated as of March
30, 2004, between Xxxxxxx Xxxxx & Co., Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated ("Xxxxxxx Xxxxx") and First Trust Advisors L.P. ("First Trust").
WHEREAS, Macquarie/First Trust Global Infrastructure/Utilities Dividend
& Income Fund (including any successor by merger or otherwise, the "Fund") is a
non-diversified, closed-end management investment company registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), and its common
shares are registered under the Securities Act of 1933, as amended;
WHEREAS, First Trust is the investment adviser of the Fund;
WHEREAS, Xxxxxxx Xxxxx is acting as lead underwriter in an offering of
the Fund's common shares;
WHEREAS, First Trust desires to provide additional compensation to
Xxxxxxx Xxxxx for acting as lead underwriter in an offering of the Fund's common
shares; and
WHEREAS, First Trust desires to retain Xxxxxxx Xxxxx to provide
after-market support services designed to maintain the visibility of the Fund on
an ongoing basis, and Xxxxxxx Xxxxx is willing to render such services;
NOW, THEREFORE, in consideration of the mutual terms and conditions set
forth below, the parties hereto agree as follows:
1. (a) First Trust hereby employs Xxxxxxx Xxxxx, for the period and on
the terms and conditions set forth herein, to provide the following
services at the reasonable request of First Trust:
(1) after-market support services designed to maintain the
visibility of the Fund on an ongoing basis;
(2) relevant information, including statistical and financial
market information and comparative information, studies or
reports regarding general trends in the closed-end
investment company and asset management industries, if
reasonably obtainable, and consult with representatives of
First Trust in connection therewith; and
(3) information to and consult with First Trust with respect
to applicable strategies designed to address market value
discounts, if any.
(b) At the request of First Trust, Xxxxxxx Xxxxx shall limit or cease
any action or service provided hereunder to the extent and for the
time period requested by First Trust; provided, however, that
pending termination of this Agreement as provided for in Section 6
hereof, any such limitation or cessation shall not relieve First
Trust of its payment obligations pursuant to Section 2 hereof.
(c) Xxxxxxx Xxxxx will promptly notify First Trust if it learns of any
material inaccuracy or misstatement in, or material omission from,
any written information, as of the date such information was
published, provided by Xxxxxxx Xxxxx to First Trust in connection
with the performance of services by Xxxxxxx Xxxxx under this
Agreement.
2. First Trust shall pay Xxxxxxx Xxxxx a fee computed weekly and payable
quarterly in arrears commencing [______], 2004 at an annualized rate of
0.15% of the Fund's Managed Assets (as defined below) for a term as
described in Section 5 hereof; provided that the sum total amount of
the fee hereunder, shall not exceed 3.99679% of the total price to the
public of the Fund's common shares offered by the prospectus dated
March [25], 2004 (the "Prospectus") (including all Initial Securities
and Option Securities as such terms are described in the Purchase
Agreement, dated March 25, 2004, by and among the Fund, First Trust,
Macquarie Infrastructure Fund Adviser, LLC, Four Corners Capital
Management, LLC and each of the Underwriters named therein (the
"Purchase Agreement")). The sum total of this fee, any additional
compensation fees payable to Xxxxxxx Xxxxx & Associates, Inc., plus the
amounts paid by the Fund as the $.00667 per common share partial
reimbursement to the Underwriters and as payment of certain expenses of
counsel to the Underwriters pursuant to the Purchase Agreement, shall
not exceed 4.5% of the total price of the Trust's common shares offered
by the Prospectus. "Managed Assets" is defined as the total assets of
the Fund (including any assets attributable to any Preferred Shares
that may be outstanding or otherwise attributable to the use of
leverage) minus the sum of accrued liabilities (other than debt
representing financial leverage). All quarterly fees payable hereunder
shall be paid to Xxxxxxx Xxxxx within 15 days following the end of each
calendar quarter.
3. First Trust shall be permitted to discharge all or a portion of its
payment obligations hereunder upon prepayment in full or in part of the
remaining balance due of the maximum additional commission amount
described in paragraph 2 above.
4. First Trust acknowledges that the services of Xxxxxxx Xxxxx provided
for hereunder do not include any advice as to the value of securities
or regarding the advisability of purchasing or selling any securities
for the Fund's portfolio. No provision of this Agreement shall be
considered as creating, nor shall any provision create, any obligation
on the part of Xxxxxxx Xxxxx, and Xxxxxxx Xxxxx is not hereby agreeing,
to: (i) furnish any advice or make any recommendations regarding the
purchase or sale of portfolio securities or (ii) render any opinions,
valuations or recommendations of any kind or to perform any such
similar services in connection with providing the services described in
Section 1 hereof.
5. Nothing herein shall be construed as prohibiting Xxxxxxx Xxxxx or its
affiliates from providing similar or other services to any other
clients (including other registered investment companies or other
investment advisors), so long as Xxxxxxx Xxxxx'x services to First
Trust are not impaired thereby.
6. The term of this Agreement shall commence upon the date referred to
above and shall be in effect so long as First Trust acts as the
investment advisor to the Fund pursuant to the Investment Management
Agreement (as such term is defined in the Purchase Agreement) or other
subsequent advisory agreement.
7. First Trust will xxxxxxx Xxxxxxx Xxxxx with such information as Xxxxxxx
Xxxxx believes appropriate to its assignment hereunder (all such
information so furnished being the "Information"). First Trust
recognizes and confirms that Xxxxxxx Xxxxx (a) will use and rely
primarily on the Information and on information available from
generally recognized public sources in performing the services
contemplated by this Agreement without having independently verified
the same and (b) does not assume responsibility for the accuracy or
completeness of the Information and such other information. To the best
of First Trust's knowledge, the Information to be furnished by First
Trust, when delivered, will be true and correct in all material
respects and will not contain any material misstatement of fact or omit
to state any material fact necessary to make the statements contained
therein not misleading. First Trust will promptly notify Xxxxxxx Xxxxx
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if it learns of any material inaccuracy or misstatement in, or material
omission from, any Information delivered to Xxxxxxx Xxxxx.
8. First Trust agrees that Xxxxxxx Xxxxx shall have no liability to First
Trust or the Fund for any act or omission to act by Xxxxxxx Xxxxx in
the course of its performance under this Agreement, in the absence of
gross negligence or willful misconduct on the part of Xxxxxxx Xxxxx.
First Trust agrees to the indemnification and other agreements set
forth in the Indemnification Agreement attached hereto, the provisions
of which are incorporated herein by reference and shall survive the
termination, expiration or supersession of this Agreement.
9. This Agreement and any claim, counterclaim or dispute of any kind or
nature whatsoever arising out of or in any way relating to this
Agreement ("Claim") shall be governed by and construed in accordance
with the laws of the State of New York.
10. No Claim may be commenced, prosecuted or continued in any court other
than the courts of the State of New York located in the City and County
of New York or in the United States District Court for the Southern
District of New York, which courts shall have exclusive jurisdiction
over the adjudication of such matters, and First Trust and Xxxxxxx
Xxxxx consent to the jurisdiction of such courts and personal service
with respect thereto. Each of Xxxxxxx Xxxxx and First Trust waives all
right to trial by jury in any proceeding (whether based upon contract,
tort or otherwise) in any way arising out of or relating to this
Agreement. First Trust agrees that a final judgment in any proceeding
or counterclaim brought in any such court shall be conclusive and
binding upon First Trust and may be enforced in any other courts to the
jurisdiction of which First Trust is or may be subject, by suit upon
such judgment.
11. This Agreement may not be assigned by either party without the prior
written consent of the other party.
12. This Agreement (including the attached Indemnification Agreement)
embodies the entire agreement and understanding between the parties
hereto and supersedes all prior agreements and understandings relating
to the subject matter hereof. If any provision of this Agreement is
determined to be invalid or unenforceable in any respect, such
determination will not affect such provision in any other respect or
any other provision of this Agreement, which will remain in full force
and effect. This Agreement may not be amended or otherwise modified or
waived except by an instrument in writing signed by both Xxxxxxx Xxxxx
and First Trust.
13. All notices required or permitted to be sent under this Agreement shall
be sent, if to First Trust:
First Trust Advisors L.P.
0000 Xxxxxxxxxxx Xxxx, Xxxxx 000
Xxxxx, Xxxxxxxx 00000
Attention: W. Xxxxx Xxxxxxx
or if to Xxxxxxx Xxxxx:
Xxxxxxx Xxxxx & Co.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
0 Xxxxx Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxx Xxxx
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or such other name or address as may be given in writing to the other
parties. Any notice shall be deemed to be given or received on the
third day after deposit in the US mail with certified postage prepaid
or when actually received, whether by hand, express delivery service or
facsimile transmission, whichever is earlier.
14. This Agreement may be executed in separate counterparts, each of which
is deemed to be an original and all of which taken together constitute
one and the same agreement.
[signatures on following page]
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IN WITNESS WHEREOF, the parties hereto have duly executed this
Additional Compensation Agreement as of the date first above written.
FIRST TRUST ADVISORS X.X. XXXXXXX XXXXX & CO.
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX
INCORPORATED
By: _____________________________ By: _____________________________
Name: Name:
Title: Title:
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XXXXXXX XXXXX & CO. INDEMNIFICATION AGREEMENT
March 30, 2004
Xxxxxxx Xxxxx & Co.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
0 Xxxxx Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
In connection with the engagement of Xxxxxxx Xxxxx & Co., Xxxxxxx
Lynch, Pierce, Xxxxxx & Xxxxx Incorporated ("Xxxxxxx Xxxxx") to advise and
assist the undersigned (together with its affiliates and subsidiaries, referred
to as the "Company") with the matters set forth in the Additional Compensation
Agreement dated March 30, 2004 between the Company and Xxxxxxx Xxxxx (the
"Agreement"), in the event that Xxxxxxx Xxxxx becomes involved in any capacity
in any claim, suit, action, proceeding, investigation or inquiry (including,
without limitation, any shareholder or derivative action or arbitration
proceeding) (collectively, a "Proceeding") in connection with any matter in any
way relating to or referred to in the Agreement or arising out of the matters
contemplated by the Agreement, the Company agrees to indemnify, defend and hold
Xxxxxxx Xxxxx harmless to the fullest extent permitted by law, from and against
any losses, claims, damages, liabilities and expenses in connection with any
matter in any way relating to or referred to in the Agreement or arising out of
the matters contemplated by the Agreement, except to the extent that it shall be
determined by a court of competent jurisdiction in a judgment that has become
final in that it is no longer subject to appeal or other review, that such
losses, claims, damages, liabilities and expenses resulted solely from the gross
negligence or willful misconduct of Xxxxxxx Xxxxx. In addition, in the event
that Xxxxxxx Xxxxx becomes involved in any capacity in any Proceeding in
connection with any matter in any way relating to or referred to in the
Agreement or arising out of the matters contemplated by the Agreement, the
Company will reimburse Xxxxxxx Xxxxx for its legal and other expenses (including
the cost of any investigation and preparation) as such expenses are incurred by
Xxxxxxx Xxxxx in connection therewith. If such indemnification were not to be
available for any reason, the Company agrees to contribute to the losses,
claims, damages, liabilities and expenses involved (i) in the proportion
appropriate to reflect the relative benefits received or sought to be received
by the Company and its stockholders and affiliates and other constituencies, on
the one hand, and Xxxxxxx Xxxxx, on the other hand, in the matters contemplated
by the Agreement or (ii) if (but only if and to the extent) the allocation
provided for in clause (i) is for any reason held unenforceable, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) but also the relative fault of the Company and its stockholders
and affiliates and other constituencies, on the one hand, and the party entitled
to contribution, on the other hand, as well as any other relevant equitable
considerations. The Company agrees that for the purposes of this paragraph the
relative benefits received, or sought to be received, by the Company and its
stockholders and affiliates, on the one hand, and the party entitled to
contribution, on the other hand, of a transaction as contemplated shall be
deemed to be in the same proportion that the total value received or paid or
contemplated to be received or paid by the Company or its stockholders or
affiliates and other constituencies, as the case may be, as a result of or in
connection with the transaction (whether or not consummated) for which Xxxxxxx
Xxxxx has been retained to perform financial services bears to the fees paid to
Xxxxxxx Xxxxx under the Agreement; provided, that in no event shall the Company
contribute less than the amount necessary to assure that Xxxxxxx Xxxxx is not
liable for losses, claims, damages, liabilities and expenses in excess of the
amount of fees actually received by Xxxxxxx Xxxxx pursuant to the Agreement.
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Relative fault shall be determined by reference to, among other things, whether
any alleged untrue statement or omission or any other alleged conduct relates to
information provided by the Company or other conduct by the Company (or its
employees or other agents), on the one hand, or by Xxxxxxx Xxxxx, on the other
hand. The Company will not settle any Proceeding in respect of which indemnity
may be sought hereunder, whether or not Xxxxxxx Xxxxx is an actual or potential
party to such Proceeding, without Xxxxxxx Xxxxx'x prior written consent. For
purposes of this Indemnification Agreement, Xxxxxxx Xxxxx shall include Xxxxxxx
Xxxxx & Co., Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated, any of its
affiliates, each other person, if any, controlling Xxxxxxx Xxxxx or any of its
affiliates, their respective officers, current and former directors, employees
and agents, and the successors and assigns of all of the foregoing persons. The
foregoing indemnity and contribution agreement shall be in addition to any
rights that any indemnified party may have at common law or otherwise.
The Company agrees that neither Xxxxxxx Xxxxx nor any of its
affiliates, directors, agents, employees or controlling persons shall have any
liability to the Company or any person asserting claims on behalf of or in right
of the Company in connection with or as a result of either Xxxxxxx Xxxxx'x
engagement under the Agreement or any matter referred to in the Agreement,
including, without limitation, related services and activities prior to the date
of the Agreement, except to the extent that it shall be determined by a court of
competent jurisdiction in a judgment that has become final in that it is no
longer subject to appeal or other review that any losses, claims, damages,
liabilities or expenses incurred by the Company resulted solely from the gross
negligence or willful misconduct of Xxxxxxx Xxxxx in performing the services
that are the subject of the Agreement.
THIS INDEMNIFICATION AGREEMENT AND ANY CLAIM, COUNTERCLAIM OR DISPUTE
OF ANY KIND OR NATURE WHATSOEVER ARISING OUT OF OR IN ANY WAY RELATING TO THIS
AGREEMENT ("CLAIM"), DIRECTLY OR INDIRECTLY, SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EXCEPT AS SET FORTH BELOW,
NO CLAIM MAY BE COMMENCED, PROSECUTED OR CONTINUED IN ANY COURT OTHER THAN THE
COURTS OF THE STATE OF NEW YORK LOCATED IN THE CITY AND COUNTY OF NEW YORK OR IN
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WHICH
COURTS SHALL HAVE EXCLUSIVE JURISDICTION OVER THE ADJUDICATION OF SUCH MATTERS,
AND THE COMPANY AND XXXXXXX XXXXX CONSENT TO THE JURISDICTION OF SUCH COURTS AND
PERSONAL SERVICE WITH RESPECT THERETO. THE COMPANY HEREBY CONSENTS TO PERSONAL
JURISDICTION, SERVICE AND VENUE IN ANY COURT IN WHICH ANY CLAIM ARISING OUT OF
OR IN ANY WAY RELATING TO THIS AGREEMENT IS BROUGHT BY ANY THIRD PARTY AGAINST
XXXXXXX XXXXX OR ANY INDEMNIFIED PARTY. EACH OF XXXXXXX XXXXX AND THE COMPANY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING OR CLAIM (WHETHER BASED UPON
CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR IN ANY WAY RELATING TO THIS
AGREEMENT. THE COMPANY AGREES THAT A FINAL JUDGMENT IN ANY PROCEEDING OR CLAIM
ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT BROUGHT IN ANY SUCH
COURT SHALL BE CONCLUSIVE AND BINDING UPON THE COMPANY AND MAY BE ENFORCED IN
ANY OTHER COURTS TO THE JURISDICTION OF WHICH THE COMPANY IS OR MAY BE SUBJECT,
BY SUIT UPON SUCH JUDGMENT.
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The foregoing Indemnification Agreement shall remain in full force and
effect notwithstanding any termination of Xxxxxxx Xxxxx'x engagement. This
Indemnification Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the
same agreement.
Very truly yours,
FIRST TRUST ADVISORS L.P.
By: ______________________
Name:
Title:
Accepted and agreed to as of
the date first above written:
XXXXXXX XXXXX & CO.
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX
INCORPORATED
By ______________________
Name:
Title:
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