JOINT INSUREDS AGREEMENT
THIS AGREEMENT is made effective as of the 8th day of May, 2008, by and
between CLAYMORE EXCHANGE-TRADED FUND TRUST, a Delaware statutory trust, on
behalf of each of its series now or hereafter existing (the "ETF Trust") and
CLAYMORE EXCHANGE-TRADED FUND TRUST 2 (the "ETF2 Trust"), on behalf of each of
its series now or hereafter existing (the respective series of ETF Trust and
ETF2 Trust are collectively referred to herein as the "Funds" or singularly as a
"Fund" and the ETF Trust and the ETF2 Trust are collectively referred to herein
as the "Trusts" or singularly as a "Trust").
The Trusts have been named as insureds under a joint Investment Company
Blanket Bond issued by ICI Mutual Insurance Company (the "Bond") with a limit of
liability that may be changed from time to time ("Bond Amount"). The Trusts
desire to enter into this Agreement in accordance with the requirements of Rule
17g-1(f) to assure that the premium for the Bond and any proceeds received under
the Bond are allocated in an equitable and proportionate manner.
The Trusts, therefore, agree that:
1. Allocation of Premium. The portion of the premium paid by each
Trust shall be allocated among the Trusts based upon the minimum
amount of coverage required under Rule 17g-1 under the Investment
Company Act of 1940, as amended and then allocated among each of
the Funds in a Trust based on their respective assets under
management as of the date of the Allocation Event. The current
allocations are set forth in Exhibit A. From time to time
adjustments may be made to the portion of the premiums theretofore
paid by a Trust or Fund, based on a subsequent change or changes
in the net assets of one or more Trusts or the addition or
withdrawal of a Trust, Fund or Funds from the Bond.
2. Allocation Event. The allocation of the Bond premium shall be
determined as of the initial date of each Bond period, as of each
date when a Trust or Fund is added to this Agreement or when this
Agreement is terminated as to a Trust and when the premium amount
increases because of an increase in the Bond Amount during the
Bond period. For newly established Funds, Claymore Advisors, LLC,
the administrator for each Trust ("Administrator") shall make a
good faith estimate of the expected average net assets for that
Fund during the Bond period to be used as a part of this
calculation. When a Trust or Fund is added to the Bond, the
existing Funds shall receive a reimbursement for the decreased
amount of premium to be paid for the Bond period as a result of
the addition of the Trust or Fund unless the Administrator
determines that the cost of refunding the excess premium would
meet or exceed the amount of premium to be refunded. When Funds
are subtracted, there shall be no change in amounts owed by the
Funds.
3. Allocation of Coverage. In the event any recovery is received
under the Bond as a result of a loss sustained by any Trust and by
the other named insureds, each Trust shall receive an equitable
and proportionate share of the recovery but in no event less than
the amount it would have received had it provided and maintained a
single insured bond with the minimum coverage required by
paragraph (d)(1) of
Rule 17g-1. The remaining amount of any recovery, if any, shall
then be applied to the claims of the Funds based on the premiums
paid by the respective Funds.
4. Agent. The Administrator is hereby appointed as the agent for the
Parties for the purpose of making, adjusting, receiving and
enforcing payment of all claims under the Bond and otherwise
dealing with ICI Mutual Insurance Company with respect to the
Bond. Any expenses incurred by the Administrator in its capacity
as agent in connection with a claim shall be shared by the Funds
in proportion to the Bond proceeds received by the Funds for the
loss. All other expenses incurred by the Administrator in its
capacity as agent shall be shared by the Funds in the same portion
as their premium allocation.
5. Modification and Termination. This Agreement, including Exhibit A,
may be modified or amended from time to time by mutual written
agreement among the Parties. Additional registered investment
companies for which the Administrator serves as the administrator
may be made a party to this Agreement and upon the approval of the
Board of Trustees of each party to the Agreement, will be added to
the Agreement by the execution of a revised Exhibit A. The
addition of a party shall trigger an Allocation Event. This
Agreement may be terminated with respect to any one Trust by not
less than 75 days' written notice to the other Trusts. It shall
terminate as to any party as of the date that such party ceases to
be an insured under the Bond; provided that such termination shall
not affect such party's rights and obligations hereunder with
respect to any claims on behalf of such party which are paid under
the Bond by ICI Mutual Insurance Company after the date such party
ceases to be an insured under the Bond. The Agreement shall
continue as to the remaining parties, but shall trigger an
Allocation Event.
6. Further Assurances. Each party agrees to perform such further acts
and execute such further documents as are necessary to effectuate
the purposes hereof.
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed as of the date and year first above written.
CLAYMORE EXCHANGE-TRADED
FUND TRUST
By: /s/ Xxxxxx X. Xxxx
------------------------
Xxxxxx X. Xxxx
Chief Accounting Officer, Chief
Financial Officer and Treasurer
CLAYMORE EXCHANGE-TRADED FUND TRUST 2
By: /s/ Xxxxxx X. Xxxx
------------------------
Xxxxxx X. Xxxx
Chief Accounting Officer, Chief
Financial Officer and Treasurer
Dated: May 8, 2008
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EXHIBIT A
JOINT INSUREDS AGREEMENT
X. Xxxx Period: March 31, 2008 through March 31, 2009.
X. Xxxx Amount: $ 2,500,000
C. Premium Amount: $ 10,020
D. ALLOCATION OF PREMIUM
ETF TRUST:
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Claymore/BBD High Income Index ETF $ 27
Claymore/BNY BRIC ETF $ 4,509
Claymore/Clear Spin-off ETF $ 116
Claymore/Great Companies Large-Cap Growth Index ETF $ 32
Claymore/Morningstar Information Super Sector Index ETF $ 17
Claymore/Morningstar Manufacturing Super Sector Index ETF $ 19
Claymore/Morningstar Services Super Sector Index ETF $ 16
Claymore/Ocean Tomo Growth Index ETF $ 12
Claymore/Ocean Tomo Patent ETF $ 52
Claymore/Sabrient Defender ETF $ 96
Claymore/Sabrient Insider ETF $ 124
Claymore/Sabrient Stealth ETF $ 43
Claymore/Zacks Mid-Cap Core ETF $ 00
Xxxxxxxx/Xxxxx Xxxxxx Xxxxxxxx ETF $ 546
Claymore/Zacks Yield Hog ETF $ 264
Claymore/Zacks Dividend Rotation ETF $ 16
Claymore U.S. Capital Markets Bond ETF $ 25
Claymore U.S. - 1 - The Capital Markets Index ETF $ 50
A-1
Claymore U.S. Capital Markets Micro-Term Fixed Income ETF $ 25
ETF TRUST 2:
Claymore S&P Global Water Index ETF $ 2,793
Claymore/Clear Global Exchanges, Brokers & Asset
Managers Index ETF $ 135
Claymore/Clear Global Timber Index ETF $ 337
Claymore/Alphashares China Small Cap Index ETF $ 70
Claymore/Alphashares China Real Estate ETF $ 220
Claymore/Xxxx Report Global Luxury Index ETF $ 67
Claymore/Robeco Developed International Equity ETF $ 37
Claymore/SWM Canadian Energy Income Index ETF $ 205
Claymore/Zacks Country Rotation ETF $ 74
Claymore/Zacks International Yield Hog Index ETF $ 70
A-2
