JOINT INSURED AGREEMENT
AGREEMENT dated the 9th day of September, 2004, among the registered
investment companies advised by Third Avenue Management, LLC, ("the Adviser")
which are listed on Schedule A (collectively, the "Funds").
WHEREAS, each of the Funds listed in Schedules A and B are named as an
insured in a fidelity bond issued by Great American Insurance Company (the
"Fidelity Bond"), which Fidelity Bond is intended to be in full compliance with
Rule 17g-1 under the Investment Company Act of 1940 ("Rule 17g-1"); and
WHEREAS, the Funds desire to enter into an agreement in order to meet
the requirements of Rule 17g-1 and to assure that premiums on the Fidelity Bond
are allocated in a fair and equitable manner; and
WHEREAS, in the absence of any reasonable ability to quantify their
respective fidelity risks, it is policy of each of the Funds to maintain a
minimum amount of fidelity insurance at least equal to the amount required by
Rule 17g-1(d).
Now, THEREFORE, the Funds do hereby agree as follows:
1. In the event that the insured losses of two or more Funds are such
that the aggregate amount of all recoveries thereon is limited by the face
amount of the Fidelity Bond, the amount recoverable by each Fund shall be at
least equal to the amount of the "Minimum Insurance" allocated to such Fund
pursuant to the provision hereof and any remaining amount recoverable under the
Fidelity Bond in respect of such losses shall then be applied in proportion to
the remaining insureds by unsatisfied loss or losses of each of the Funds
affected by such limitation.
2. The pro forma allocation of Minimum Insurance to each of the Funds
is set forth in Schedule B hereto which will be amended and a copy thereof
furnished to each of the Funds whenever any of the Funds increase or decrease
the amount of its Minimum Insurance. In no event, however, shall the Minimum
Insurance allocated to any of the Funds be less than the amount required for its
asset size by Rule 17g-1.
3. Each Fund may, at any time, increase its allocation of Minimum
Insurance upon payment of the premium required for such additional insurance
provided that the face amount of the Fidelity Bond can increase accordingly or
be supplemented by a policy of excess insurance. Effective as of the annual
renewal of the Fidelity Bond, each of the Funds may also decrease the amount of
its Minimum Insurance to an amount which shall not, however, be less than that
required by the provision of this paragraph.
4. Any other registered investment company or additional series of such
an investment company for which the Adviser or its affiliates serve as
investment adviser (an "Additional Fund") may become a party to this Agreement
by (a) executing a copy of this Agreement (copy of which will be furnished to
each of the Funds) and/or being added to Schedules A and B hereto, and (b)
paying the premium for any required increase in the amount of the Fidelity Bond
if the underwriter of the Fidelity Bond is willing to add such Additional Fund
as an additional insured and increase the amount equal to the Minimum Insurance
required for such Additional Fund by the provisions hereof.
5. The total premium payable for the Fidelity Bond shall be allocated
to each of the Funds in relation to their respective amount of Minimum Insurance
carried by any of the Funds or for any Additional Fund will be prorated over the
remaining term of the Fidelity Bond.
6. The Agreement shall remain in effect for as long as two or more of
the Funds (including any Additional Fund) are insured under the terms of the
Fidelity Bond. Any fund shall, however, have the right to terminate, at any
time, its participation in the Fidelity Bond and in this Agreement provided the
losses incurred prior to such termination shall be governed by the provision of
this Agreement and the amount of any return premium to which such Fund shall be
entitled will be limited to the amount actually obtained from the underwriter in
respect of such termination.
IN WITNESS WHEREOF, the parties hereto have executed this
Joint Insured Agreement as of the date first written below.
THIRD AVENUE TRUST,
on behalf of each of its series set forth
on Schedule A hereto.
By: _____________________
Date: ____________________
THIRD AVENUE VARIABLE
SERIES TRUST, on behalf of each of its
series set forth on Schedule A hereto.
By: ____________________
Date: ___________________
SCHEDULE A
LIST OF REGISTERED INVESTMENT COMPANIES
THIRD AVENUE TRUST, on behalf of its series:
Third Avenue Value Fund
Third Avenue Small-Cap Value Fund
Third Avenue Real Estate Value Fund
Third Avenue International Value Fund
THIRD AVENUE VARIABLE SERIES TRUST, on behalf of its series:
Third Avenue Value Portfolio
Schedule B
Third Avenue Funds
Rule 17g-1 Fidelity Bond Coverage
As Revised on May 4, 2007
Gross Assets Required
(in millions) Minimum Annual
at April 4, 2007 Coverage Premium
---------------- ---------- -------
THIRD AVENUE TRUST
Third Avenue Value Fund $ 10,891 $2,500,000 $ 6,003.26
Third Avenue Small-Cap
Value Fund $ 2,430 $1,700,000 $ 1,332.54
Third Avenue Real Estate
Value Fund $ 3,450 $2,100,000 $ 1,871.70
Third Avenue International
Value Fund $ 2,317 $1,700,000 $ 1,247.98
TRUST TOTAL $ 19,088 $2,500,000 $10,455.48
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Third Avenue Variable
Series Trust
Third Avenue Value
Portfolio $ 563 $ 900,000 $ 308.52
TRUST TOTAL $ 563 $ 900,000 $ 308.52
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Grand Total $ 19,651 $3,400,000 $ 10,764
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CURRENT COVERAGE WITH GREAT AMERICAN AS OF MAY 4, 2007 THROUGH MAY 4, 2008
