BLANKET BOND INSURANCE AGREEMENT



         THIS AGREEMENT is made as of the 30th day of September, 2007, by and

among the investment companies listed in Appendix A (collectively referred to

herein as the "Funds" or the "Parties").



                                   WITNESSETH:



         WHEREAS, the Funds, each of which is advised by FIRST TRUST ADVISORS

L.P., an Illinois Limited Partnership ("Adviser"), have agreed to acquire a

joint insured policy (the "Policy") issued by ICI Mutual Insurance Company

containing broker's blanket bond coverage ("Blanket Bond Coverage") which shall

cover all Parties;



         WHEREAS, the total amount of the Blanket Bond Coverage under the Policy

will be $12,500,000 ("Bond Amount") based upon the determination of each insured

Party's Board of Trustees that such insured Parties should have an amount of

coverage, in the aggregate, of $11,250,000 ("Basic Bond Coverage") as provided

in Appendix B;



         WHEREAS, the Parties desire to provide herein for an allocation of the

premiums for the Blanket Bond Coverage and a manner of allocating any loss

proceeds received under the Policy.



         The Parties, therefore, agree that:



          1. Allocation of Blanket Bond Coverage Premium. Each Party shall pay a

proportionate share of the Blanket Bond Coverage annual premium based on assets

as set forth in Appendix C.



          2. Losses.



         (a) General. The Policy is a "claims made" insurance policy and a

Policy Year is the period from October 9th through the next succeeding October

9th (or any modification of that period as may be agreed by the Parties and the

insurer). The insured loss (including all related expenses) of a Party which

relates to a claim made by that Party relating to a particular Policy Year under

the Blanket Bond Coverage is hereinafter referred to as a "Blanket Bond Loss."

Party includes the trustees and officers of an insured Party and other insured

agents or employees of such a Party.



         (b) Blanket Bond Loss. If only one insured Party incurs a Blanket Bond

Loss relating to a Policy Year, the proceeds of the Blanket Bond Coverage for

that Policy Year will be allocated to that Party. If more than one insured Party

incurs a Blanket Bond Loss relating to a particular Policy Year, the proceeds of

the Blanket Bond Coverage for that Policy Year will first be allocated among

those insured Parties in proportion to their respective premiums paid under

Paragraph 1 hereof for Blanket Bond Coverage. If, for that particular Policy

Year, after initial allocation, there are remaining proceeds of the Blanket Bond

Coverage and there are then insured Parties whose Blanket Bond Losses have not

been paid in full, such proceeds shall be further allocated among such insured

Parties in proportion to their respective premiums paid for such Coverage





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(repeating this further allocation procedure as each of such insured Parties is

paid in full, until all proceeds have been allocated). If all Blanket Bond

Losses relating to a particular Policy Year are not paid at the same time, the

insured Parties who claim such Losses for that Policy Year shall make such

provisions as they deem suitable to the particular circumstances (taking into

account the size of any payment received, the size, nature and expected result

of any remaining claims, and all other relevant factors) to permit a later

re-allocation of amounts first paid. In no event shall any insured Party who

incurs a Blanket Bond Loss relating to a Policy Year which equals or exceeds its

Basic Bond Coverage be allocated proceeds of the Blanket Bond Coverage for that

particular Policy Year in an amount less than its Basic Bond Coverage.

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