EXPENSE REIMBURSEMENT AGREEMENT
EXPENSE REIMBURSEMENT AGREEMENT (the "Agreement"), dated as of August 16,
2006 and amended as of October 16, 2007, by and between Claymore Advisors, LLC,
a Delaware limited liability company (the "Advisor") and CLAYMORE
EXCHANGE-TRADED FUND TRUST (the "Trust").
WHEREAS, the Trust is a Delaware statutory trust, and is registered under
the Investment Company Act of 1940, as amended (the "1940 Act") as an open-end
management company of the series type;
WHEREAS, the Trust intends to offer its shares in one or more such series,
as listed in Exhibit A hereto, which may be amended from time to time to add or
remove a series (each, a "Fund");
WHEREAS, the Trust and the Advisor have entered into an Investment Advisory
Agreement dated August 16, 2006 ("Advisory Agreement"), pursuant to which the
Advisor provides investment management and advisory services to each Fund for
compensation based on the value of the average daily net assets of each Fund;
and
WHEREAS, the Trust and the Advisor have determined that it is appropriate
and in the best interests of each Fund and its shareholders to maintain the
expenses of each Fund at a level below the level to which such Fund may
otherwise be subject;
NOW THEREFORE, the parties hereto agree as follows:
1. EXPENSE LIMITATION.
1.1 Applicable Expense Limit. To the extent that the ordinary operating
expenses incurred by each Fund in any fiscal year, including but not limited to
investment advisory fees, but excluding interest expenses, all or a portion of a
Fund's licensing fees, offering costs (with respect to Fund commencing
operations after October 16, 2007, up to 0.25% of average net assets), brokerage
commissions and other trading expenses, taxes and extraordinary expenses such as
litigation and other expenses not incurred in the ordinary course of each Fund's
business ("Fund Operating Expenses"), exceed the Operating Expense Limit, as
defined in Section 1.2 below, with respect to such Fund, such excess amount (the
"Excess Amount") shall be the liability of the Advisor to the extent set forth
in this Agreement.
1.2 Operating Expense Limit. The Operating Expense Limit in any year with
respect to each Fund shall be the percentage of the average daily net assets of
each Fund as set forth in Exhibit A hereto.
1.3 Duration of Operating Expense Limit. The Operating Expense Limit with
respect to each Fund shall remain in effect during the term of this Agreement.
1.4 Method of Computation. To determine the Advisor's obligation with
respect to the Excess Amount, each day the Fund Operating Expenses for each Fund
shall be annualized. If the annualized Fund Operating Expenses for any day of
the Fund exceed the Operating Expense
Limit of a Fund, the Advisor shall waive or reduce its investment advisory fee
or absorb the other Fund expenses in an amount sufficient to pay that day's
Excess Amount. The Trust may offset amounts owed to each Fund pursuant to this
Agreement against the advisory fee payable to the Advisor. Furthermore, to the
extent that the Excess Amount exceeds such waived or reduced investment advisory
fees, the Advisor shall reimburse the applicable Fund for any operating
expenses.
2. REIMBURSEMENT OF FEE WAIVERS AND EXPENSE REIMBURSEMENTS.
If on any day during which the Advisory Agreement is in effect, the
estimated annualized Fund Operating Expenses of a Fund for that day are less
than the Operating Expense Limit, the Advisor shall be entitled to reimbursement
by such Fund of the investment advisory fees waived or reduced, and any other
expense reimbursements or similar payments remitted by the Adviser to the Fund
pursuant to Section 1 hereof (the "Reimbursement Amount") during any of the
first five years subsequent to such Fund's commencement of operations for a
period of up to three years from the date such amount was waived or reduced, to
the extent that such Fund's annualized Operating Expenses plus the amount so
reimbursed equals, for such day, the Operating Expense Limit, provided that such
amount paid to the Advisor will in no event exceed the total Reimbursement
Amount and will not include any amounts previously reimbursed. Such
Reimbursement Amount will be accrued daily and paid monthly in arrears.
3. TERM AND TERMINATION OF AGREEMENT.
This Agreement shall terminate upon the earlier of termination of the
Advisory Agreement or on December 31, 2010. The obligation of the Advisor under
Section 1 of this Agreement shall survive the termination of the Agreement
solely as to expenses and obligations incurred prior to the date of such
termination.
4. MISCELLANEOUS.
4.1 Captions. The captions in this Agreement are included for convenience
of reference only and in no other way define or delineate any of the provisions
hereof or otherwise affect their construction or effect.
4.2 Interpretation. Nothing herein contained shall be deemed to require the
Trust or each Fund to take any action contrary to the Trust's Agreement and
Declaration of Trust or By-Laws, or any applicable statutory or regulatory
requirement to which it is subject or by which it is bound, or to relieve or
deprive the Trust's Board of Trustees of its responsibility for and control of
the conduct of the affairs of the Trust or the Fund.
4.3 Definitions. Any question of interpretation of any term or provision of
this Agreement, including but not limited to the investment advisory fee, the
computations of net asset values, and the allocation of expenses, having a
counterpart in or otherwise derived from the terms and provisions of the
Advisory Agreement or the 1940 Act, shall have the same meaning as and be
resolved by reference to such Advisory Agreement or the 1940 Act.
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4.4 Amendments. This Agreement may be amended only by a written agreement
signed by each of the parties hereto.
4.5 Limitation of Liability. This Agreement is executed by or on behalf of
the Trust, and Advisor is hereby expressly put on notice of the limitation of
shareholder liability as set forth in the Agreement and Declaration of Trust of
the Trust and agrees that the obligations assumed by the Trust pursuant to this
Agreement shall be limited in all cases to the Trust and its assets, and Advisor
shall not seek satisfaction of any such obligations from the trustees, officers
or shareholders of the Trust.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by
their respective officers thereunto duly authorized and their respective
corporate seals to be hereunto affixed, as of the day and year first above
written.
CLAYMORE EXCHANGE-TRADED FUND
TRUST
By:
---------------------
Name: Xxxxxxxx Xxxxxxx
Title: Chief Executive Officer
CLAYMORE ADVISORS, LLC
By:
--------------------
Name: Xxxxxxxx Xxxxxxx
Title: Senior Managing Director
and General Counsel
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EXHIBIT A
CLAYMORE EXCHANGE-TRADED FUND TRUST
Operating Expense Limit
Name of Series (as a % of average daily net assets)
-------------- ------------------------------------
Claymore/BNY BRIC ETF 0.60%
Claymore/Zacks Sector Rotation ETF 0.60%
Claymore/Zacks Yield Hog ETF 0.60%
Claymore/Sabrient Insider ETF 0.60%
Claymore/Sabrient Stealth ETF 0.60%
Claymore/Clear Spin-Off ETF 0.60%
Claymore/Ocean Tomo Patent ETF 0.60%
Claymore/LGA Green ETF 0.60%
Claymore/Sabrient Defender ETF 0.60%
Claymore/BBD High Income Index ETF 0.60%
Claymore/BIR Leaders 50 ETF 0.60%
Claymore/BIR Leaders Mid-Cap Value ETF 0.60%
Claymore/BIR Leaders Small-Cap Core ETF 0.60%
Claymore/Clear Mid-Cap Growth Index ETF 0.60%
Claymore/Great Companies Large-Cap Growth Index ETF 0.60%
Claymore/IndexIQ Small-Cap Value ETF 0.60%
Claymore/KLD Sudan Free Large-Cap Core ETF 0.50%
Claymore/Ocean Tomo Growth Index ETF 0.60%
Claymore/Robeco Boston Partners Large Cap Value ETF 0.60%
Claymore/Sabrient CEF Balanced Opportunity ETF 0.60%
Claymore/Sabrient CEF Income Index ETF 0.60%
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Claymore/Zacks Growth & Income Index ETF 0.60%
Claymore/Zacks Mid-Cap Value ETF 0.60%
Claymore/Morningstar Information Super Sector Index ETF 0.40%
Claymore/Morningstar Services Super Sector Index ETF 0.40%
Claymore/Morningstar Manufacturing Super Sector Index ETF 0.40%
Claymore/Zacks Dividend Rotation ETF 0.60%
Claymore/Dorchester - The Capital Markets Bond Index ETF 0.27%
Claymore/Dorchester - The Capital Markets Liquidity Index ETF 0.27%
Claymore/Dorchester - The Capital Markets Equity Index ETF 0.27%
Claymore/Dorchester US-1 - The Capital Markets Index ETF 0.37%
Claymore/Global Insight Emerging Markets Rotation ETF 0.60%
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