JOINT INSURED BOND AGREEMENT
This Agreement is made the 11th day of November, 2006 by and between Firsthand
Funds, a Delaware statutory trust (the "Firsthand Trust"), and Black Pearl
Funds, a Delaware statutory trust (the "Black Pearl Trust") (collectively, the
"Joint Insureds").
WITNESSETH:
WHEREAS, each of the Firsthand Trust and the Black Pearl Trust are registered
management investment companies; and
WHEREAS, the Firsthand Trust and the Black Pearl Trust are named insureds under
a certain fidelity bond with Federal Insurance Company (the "Insurer") with
fidelity coverage of $1,000,000 (the "Bond"), for the one year term commencing
November 30, 2006 through November 30, 2007 and which Bond is intended to be in
full compliance with Rule 17g-1 under the Investment Company Act of 1940; and
WHEREAS, the board of trustees of the Firsthand Trust and the Black Pearl Trust
(collectively, the "Boards"), including a majority of each of the Boards who are
not "interested persons" of such investment company as defined in Section
2(a)(19) of the Investment Company Act of 1940, as amended, has authorized and
approved, pursuant to Rule 17g-1, a joint insured bond; and
WHEREAS, the Joint Insureds, pursuant to Rule 17g-1(f), are required to enter
into an agreement dealing with, among other things, their respective rights
under the bond in the event of a loss thereunder.
NOW, THEREFORE, the parties hereto agree as follows:
1. As often as their fiduciary duties require but, in the case of each
registered management investment company, not less than once every
twelve months, the Boards of the Joint Insureds, including a majority
of the Boards of each registered management investment company who are
not "interested persons" of such investment company as defined in
Section 2(a)(19) of the Investment Company Act of 1940 shall, with due
consideration to all relevant factors, approve the form, amount and
coverage of the joint insured bond, including the portion of the
premium to be paid by such company, which shall meet the requirements
of Rule 17g-1.
2. The premium payable on the joint insured bond shall be allocated
between the Joint Insureds pro rata based on gross assets in each
respective trust.
3. In the event recovery is received under the joint insured bond as a
result of a loss sustained by one or more of the Joint Insureds, the
registered management investment company, if any, sustaining the loss
shall receive an equitable and proportionate share of the recovery but
at least equal to the amount which it would have received had it
provided and maintained a
single insured bond with the minimum coverage required by Rule
17g-1(d)(1).
4. Each Joint Insured which is a registered management investment company
shall comply with the filing and notification requirements of Rule
17g-1(g) during the term of this Agreement.
5. This Agreement is effective as of the date first written above. Within
60 days prior to the anniversary date of any joint insured bond issued
in connection with this Agreement, any party hereto may, upon written
notice to the other parties, terminate its participation hereunder.
This Agreement shall terminate upon the mutual written consent of each
party hereto.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed
on their behalf as of the day and year first written above.
FIRSTHAND FUNDS
By: /s/ Xxxxx Xxxxxx
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Name: Xxxxx Xxxxxx
Title: President
BLACK PEARL FUNDS
By: /s/ Xxxxx Xxxxxx
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Name: Xxxxx Xxxxxx
Title: President
