EXHIBIT 99.2
JOINT FIDELITY BOND AGREEMENT
Agreement made as of the 15th day of July, 2004, by and among JNL Series
Trust ("Trust"), JNL Variable Fund LLC ("JNL Fund I"), JNL Variable Fund III LLC
("JNL Fund III"), JNL Variable Fund V LLC ("JNL Fund V"), JNLNY Variable Fund I
LLC ("JNLNY Fund I"), JNL Investors Series Trust ("Trust II"), (the Trust, JNL
Fund I, JNL Fund III, JNL Fund V, JNLNY Fund I and Trust II, collectively will
be referred to as the "Funds", with each referred to individually as a "Fund"),
Xxxxxxx National Asset Management, LLC ("JNAM") and Xxxxxxx Fund Services, a
division of JNAM, each of which are named insureds on a certain fidelity bond
policy covering certain acts relating to the Funds and JNAM ("Joint Fidelity
Bond").
WHEREAS, each Fund has registered under the Investment Company Act of 1940,
as amended ("1940 Act") as an open-end management investment company; and
WHEREAS, Rule 17g-1(f) under the 1940 Act requires that a registered
management investment company named as an insured on a joint fidelity bond enter
into an agreement with the other named insureds; and
WHEREAS, the series of each Fund will benefit from their respective
participation in the Joint Fidelity Bond in compliance with this Rule.
NOW THEREFORE, it is agreed as follows:
1. In the event any recovery under the Joint Fidelity Bond is received as a
result of a loss sustained by any series of a Fund and by one or more other
named insureds, (which includes the trustees, directors, officers and other
employees of an insured) then such series sustaining such loss shall receive an
equitable and proportionate share of the recovery, said proportion to be
established by the ratio that its claim bears to the total amount claimed by all
participants, but at least equal to the amount which each such series would have
received had the relevant fund purchased and maintained a single insured bond
with the minimum coverage required by Rule 17g-1(d)(1) under the 1940 Act.
If for any particular policy year , after the initial allocation there are
remaining proceeds of the bond and there are then named insureds whose losses
have not been paid in full, the remainder of the bond shall be further allocated
to named insureds having excess losses in proportion to their initial coverage,
with such allocation repeated until all such losses have been paid or coverage
of the bond has been exhausted.
If all losses relating to a particular policy year are not paid at the same
time, the named insureds who claim 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
reallocation of amounts first paid.
If only one named insured incurs a loss in a policy year, the proceeds of
the bond for that policy year are allocated to that insured.
2. The bond premium shall be paid by JNAM.
3. This agreement may be modified or amended from time to time by written
agreement of all named insureds or by not less than sixty days written notice by
one insured to each other insured. This agreement shall terminate as to any
insured as of the date that insured ceases to be an assured under the bond;
provided that such termination shall not affect the rights and obligations that
have attached under this agreement to a terminating party until such termination
becomes effective.
4. Each insured agrees to promptly give to the insurer all notices required
of it under the bond and to send a copy of each such notice to each other
insured.
JNL SERIES TRUST XXXXXXX NATIONAL
JNL VARIABLE FUND LLC ASSET MANAGEMENT, LLC
JNL VARIABLE FUND III LLC XXXXXXX FUND SERVICES,
JNL VARIABLE FUND V LLC DIVISION OF XXXXXXX NATIONAL
JNLNY VARIABLE FUND I LLC ASSET MANAGEMENT, LLC
JNL INVESTORS SERIES TRUST
By: /s/ Xxxxxx X. Xxxxxx By: /s/ Xxxxxx X. Xxxxxxx
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Xxxxxx X. Xxxxxx Xxxxxx X. Xxxxxxx
President President
