EX-99.2 3 d60530bexv99w2.htm COPY OF JOINT INSURED BOND AGREEMENT exv99w2
         
AGREEMENT AMONG INSUREDS
with respect to the
JOINT INSURED FIDELITY BOND
ICI Mutual Insurance Company, File No. 04704108B (the “Fidelity Bond”)
     AGREEMENT, made as of July 31, 2008 among the undersigned registered management investment companies and business development company (each an “Insured” and together, the “Insureds”) pursuant to paragraph (f) of Rule 17g-1 promulgated under the Investment Company Act of 1940 (the “1940 Act”) relating to the Fidelity Bond.
     Each of the Insureds hereby agrees that in the event recovery is received under the Fidelity Bond as a result of a loss sustained by one or more of the Insureds that is a registered management investment company or a business development company, the registered management investment company or business development company shall receive an equitable and proportionate share of the recovery, but at least equal to the amount that it would have received had it provided and maintained a single insured bond with minimum coverage required by paragraph (d) of Rule 17g-1 promulgated under the 1940 Act (the “Rule”).
     The Fidelity Bond coverage is in the amount of $6,450,000, which represents adequate coverage as required under the Rule. The coverage is allocated based upon the gross assets of the Insureds as of the most recent fiscal quarter end as set forth below:
                                 
    Gross Assets   Required Coverage        
    as of   Under   Fidelity Bond   Allocation
Fund   06/30/2008   the Rule   Coverage   of Premium
 
 
                                
Highland Floating Rate Fund
     1,374,130,470       1,250,000       1,500,000       22.12 %
Highland Floating Rate Advantage Fund
     2,305,078,501       1,700,000       1,700,000       30.09 %
Highland Special Situations Fund
     97,936,874       450,000       525,000       7.96 %
Highland Credit Strategies Fund
     1,399,225,300       1,250,000       1,500,000       22.13 %
Highland Funds I
     47,770,252       350,000       400,000       6.19 %
Highland Capital Multi-Strategy Fund
     131,066       50,000       75,000       0.89 %
Highland Distressed Opportunities, Inc.
     245,598,133       600,000       750,000       10.62 %
 
                                
Totals
   $ 5,469,870,596     $ 5,650,000     $ 6,450,000       100.00 %
Highland Floating Rate Fund
Highland Floating Rate Advantage Fund
Highland Special Situations Fund
Highland Credit Strategies Fund
Highland Funds I
Highland Capital Multi-Strategy Fund
Highland Distressed Opportunities, Inc.
         
     
By:   /s/ M. Jason Blackburn      
  Name:   M. Jason Blackburn     
  Title:   Chief Financial Officer, Secretary and Treasurer (principal financial officer)