EXPENSE REIMBURSEMENT AGREEMENT
EXPENSE REIMBURSEMENT AGREEMENT (the "Agreement"), effective as of
___________________, 2005 by and between Claymore Advisors, L.L.C., a Delaware
limited liability company (the "Advisor") and Claymore Trust (the "Trust"), on
behalf of the Claymore Peroni Equity Opportunities Fund series of the Trust (the
"Fund").
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, and the Fund is a series of the
Trust;
WHEREAS, the Trust and the Advisor have entered into an Investment
Advisory Agreement dated ________, 2005 ("Advisory Agreement"), pursuant to
which the Advisor provides investment management services to the Fund for
compensation based on the value of the average daily net assets of the Fund; and
WHEREAS, the Trust and the Advisor have determined that it is
appropriate and in the best interests of the Fund and its shareholders to
maintain the expenses of the Fund at a level below the level to which the 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 the Fund in any fiscal year, including but
not limited to investment advisory fees of the Advisor, but excluding
interest, taxes, brokerage commissions, other investment-related costs and
extraordinary expenses, such as litigation and other expenses not incurred
in the ordinary course of the Fund's business ("Fund Operating Expenses"),
exceed the Operating Expense Limit, as defined in Section 1.2 below, 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 the Fund shall be 1.65% (annualized) of the average daily
net assets of the Fund for its Class A shares and 2.40% (annualized) for
its Class C shares.
1.3 Duration of Operating Expense Limit. The Operating Expense Limit
with respect to the 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 the
Fund shall be annualized. If the annualized Fund Operating Expenses for any
day of the Fund exceed the Operating Expense Limit of the 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 the 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 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 the Fund for that day are less
than the Operating Expense Limit, the Advisor shall be entitled to reimbursement
by the 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 three years subsequent to the Fund's commencement of operations, to the
extent that the 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.
3. TERM AND TERMINATION OF AGREEMENT.
This Agreement shall terminate upon the earlier of termination of the
Advisory Agreement or on [April 1, 2006]. 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 the 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.
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 TRUST
By:
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Name:
Title:
CLAYMORE ADVISORS, LLC
By:
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Name:
Title:
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