MLIG VARIABLE INSURANCE TRUST
FIDELITY BOND SHARING AGREEMENT
THIS AGREEMENT made and entered into this 1st day of July 2002, by
and between MLIG Variable Insurance Trust ("Trust"), an open-end
management investment company, on behalf of each of its series
specified in Appendix A ("Portfolios") and Xxxxxx Advisors, LLC,
the investment manager for the Trust ("Manager").
WHEREAS, the Manager acts as investment manager to each of the
Portfolios and each Portfolio is advised by an investment
advisor; and
WHEREAS, pursuant to the requirement of Rule 17g-1 of the
Investment Company Act of 1940, as amended (the" 1940 Act"),
the Trust, on behalf of each Portfolio, and the Manager have
obtained fidelity bond coverage as named parties ("Insureds")
under a joint insured fidelity bond, as amended from time to
ime to reflect any additions to Appendix A ("Bond"); and
WHEREAS, the Insureds, in order to be covered by a single
fidelity bond, are required by Rule 17g-1 to be parties to an
agreement that establishes the criteria by which premiums and
recoveries under the Bond shall be allocated among the Insureds;
NOW, THEREFORE, it is agreed as follows:
1. Amount of Coverage Maintained. The amount of fidelity
coverage under the Bond shall at all times be at least equal
in the amount to the sum of (i) the total amount of coverage
which the Trust, on behalf of each Portfolio, would have been
required to provide and maintain individually pursuant to the
schedule set forth in paragraph (d) of Rule 17 g-l under the
1940 Act had the Trust not been a named insured under the Bond,
plus (ii) the amount of each bond which the Manager would have
been required to provide and maintain pursuant to federal
statutes or regulations had it not been a named insured under
the Bond. The amount of fidelity coverage under the Bond shall
be approved at least annually by the Board of Trustees of the
Trust, including a majority of those Trustees who are not
"interested persons" of the Trust as defined by Section
2(a)(19) of the 1940 Act.
2. Allocation of Recoveries. In the event an actual pecuniary
loss is suffered by any two or more of the Insureds under
circumstances covered by the terms of the Bond, any recovery
under the Bond shall be allocated among such Insureds as follows:
(a) If the total amount of coverage provided under
the Bond exceeds or is equal to the amount of the
combined total amount of loss suffered by the
Insureds suffering loss, then each such Insured
shall be entitled to recover the amount of its
actual loss.
(b) If the amount of loss suffered by each Insured
suffering loss exceeds its minimum coverage
requirement under Rule 17 g-l under the 1940 Act
and the amount of such Insureds' combined actual
losses exceeds the total amount of coverage provided
under the Bond, then each such Insured shall be
entitled to recover (i) its minimum coverage
requirement and (ii) to the extent there exists
any excess coverage, the proportion of such excess
coverage which its minimum coverage requirements
bears to the amount of the combined minimum coverage
requirements of the Insureds suffering actual loss:
provided, however, that if the actual loss of any
such Insureds is less than the sum of (i) and (ii)
above, then such difference shall be recoverable
by the other Insured or Insureds in proportion to
their relative minimum coverage requirements.
(c) If (i) the amount of actual loss suffered by any
Insured is less than or equal to its minimum coverage
requirement, (ii) the amount of actual loss of another
Insured or the other Insureds exceeds its or their
minimum coverage requirement or requirements, and (iii)
the amount of the combined actual losses of the Insureds
exceeds the total amount of coverage provided under the
Bond, then any Insured which has suffered an amount of
actual loss less than or equal to its minimum coverage
requirement shall be entitled to recover its actual
loss. If only one other Insured has suffered actual loss,
it shall be entitled to recover the remainder of the
amount of the coverage under the Bond. If more than
one other Insured has suffered actual loss in excess
of the remaining coverage, then they shall allocate
such remaining amount of coverage in accordance with
paragraph (b) of this Section 2.
3. Allocation of Premiums. No premium shall be paid under the Bond
unless the Board of Trustees of the Trust, including a majority of those
Trustees who are not "interested persons" of the Trust as defined by
Section 2(a)(19) of the 1940 Act, shall approve the portion of the
premium to be paid by the Trust, on behalf of each Portfolio. The premium
payable on the Bond shall be allocated between the Trust and the Manager
as determined by the Board of
Trustees of the Trust.
4. Amendment. Each party hereby consents to additional Portfolios
and investment companies advised or managed by Xxxxxx Advisors, LLC being
named as a joint insured under the Bond and this Agreement. Appendix A
shall be amended when necessary to reflect the addition of new Portfolios
and investment companies. Otherwise this Agreement may not be amended
or modified in any manner except by a written agreement executed by the
parties.
5. Filing with the Commission. A copy of this Agreement and any
amendment thereto shall be filed with the Securities and Exchange
Commission within 10 days after the execution thereof.
6. Applicable Law. This Agreement shall be construed and the
provisions thereof interpreted under and in accordance with the laws
of the State of New York.
7. Notices. All Notices and other communications hereunder
shall be in writing and shall be addressed to the appropriate
party at 0 Xxxxxx Xxxx, Xxxxxxxxx, XX 00000.
8. Limitations of Liability of Trustees and Shareholders. A copy
of the Declaration of Trust of the Trust, and any amendments thereto,
are on file with the Secretary of State of Delaware, and it is hereby
agreed that this Agreement is executed on behalf of the Trustees of
the Trust as Trustees and not individually and that the obligations
of this Agreement are not binding upon any of the Trustees, officers
or shareholders of the Trust individually but are binding only upon
the assets and property of the Trust.
IN WITNESS WHEREOF MLIG Variable Insurance Trust, on behalf of
each of its Portfolios, and Xxxxxx Advisors, LLC, have caused
this Agreement to be executed as of the day and year first written.
MLIG VARIABLE INSURANCE TRUST,
on behalf of each of its Portfolios
By: /s/ Xxxxxxx Xxxxxxxx
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Xxxxxxx X. Xxxxxxxx
President and Trustee
XXXXXX ADVISORS, LLC
By: /s/ Xxxx Xxxxxxx
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Xxxx Xxxxxxx
President
