Frequently Asked Questions

  1. Who is Eligible to Participate?
  2. How Much Will My Payment Be?
  3. Do I Need to Hire an Attorney?
  4. How do I File a Claim Form?
  5. How do I Complete the Claim Form?
  6. Are there more details about the proposed Distribution Plan?





1. Who is Eligible to Participate?

An Eligible Investor is a person who owned one or more common shares of HCE during the period from August 19, 2008 through October 20, 2008 and suffered net losses attributable to the five derivative transactions. Excluded from the category of Eligible Investors are directors, officers, and employees of Fiduciary Asset Management, LLC, HCE, and Claymore, or any affiliates of those entities.

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2. How Much Will My Payment Be?

Claymore calculated the total loss to HCE from the five derivative transactions that were the subject of the SEC settlement as $45,396,878. Claymore has committed to reimburse successful claimants, as a group, up to that amount. An Eligible Investor will be entitled to a payment equal to 100% of his or her net loss attributable to those transactions, as measured by their effect on the net asset value of HCE for the period the Eligible Investor held his or her shares, subject to limitations in this Plan. An Eligible Investor’s net loss from holdings in HCE from each transaction will be calculated using the methodology described in the Plan. That methodology is also attached to this Notice as Appendix A. Members of the SEC staff have reviewed the Plan and the methodology determining an Eligible Investor’s loss. The Plan Administrator will apply the loss formula in and pay all Eligible Investors who make valid claims and sign Releases. In no event will more than a total of $45,396,878 be paid. If the Plan Administrator verifies and approves claims with a value of more than that amount, the payment per share will be reduced proportionately so that the total payment does not exceed $45,396,878.

An Eligible Investor will not be entitled to any interest, any amount for attorneys' fees or expenses, or any other payment or amount. A person submitting a claim for reimbursement will be referred to as a "Claimant" and the amount of a Claimant's loss will be referred to as a "Claim."

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3. Do I Need to Hire an Attorney?

A Claimant has the right to consult with an attorney of his or her choosing at his or her own expense before accepting a payment or signing a release of legal rights. If a Claimant is represented by an attorney, the Plan Administrator will communicate with that attorney rather than directly with the Claimant.

The Plan will not make any payments of legal fees, expenses, or costs. If a Claimant has an attorney for purposes of obtaining reimbursement through the Plan and agrees to pay the attorney part of the amount received through the Plan, which is generally known as a contingency fee arrangement, the portion payable to the attorney should not exceed 25% plus reasonable costs. The attorney must certify that his or her fees comply with this provision before the Plan Administrator shall make a disbursement to the Claimant.

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4. How do I File a Claim Form?

Any Eligible Investor who wishes to participate in the Plan must sign and return a completed Proof of Claim and Release Form (“Claim Form”). All Claim Forms must be submitted so that it is postmarked (if mailed) or received (if sent by any other means) by June 17, 2013. Your Claim Form must be addressed as follows:

HCE Distribution Plan
c/o GCG
PO Box 9950
Dublin, Ohio 43017-5950

Eligible Investors may also File a Claim Form Online or Download a Claim Form on this website. A Claim Form submitted via this website will require the electronic signature of the Claimant.

The deadline for filing a Proof of Claim form was June 17, 2013.

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5. How do I Complete the Claim Form?

    (a) If the Plan Administrator is able to obtain the necessary Plan Information for any Eligible Investor, it will be provided to the Eligible Investor. This information will be provided with the Claim Form. including a loss calculation, the Eligible Investor will have the option of signing and returning the Claim Form to the Plan Administrator accepting the Plan Administrator’s loss calculation and potential claim, along with an accompanying Release waiving any rights or claims the Claimant may have against Claymore and affiliates, employees, and other related parties, and any other person or entity, including but not limited to the Fiduciary Asset Management, LLC, for any loss from an investment in HCE (the “Released Parties”). Alternatively, the Eligible Investor may object to the Plan Administrator’s loss calculation. To do so, the Eligible Investor must submit provide additional Plan Information and satisfactory evidence to the Plan Administrator establishing the Eligible Investor’s Plan Information for the period August 18, 2008 through October 21, 2008 (see Section 5(b)) and an explanation as to why the Eligible Investor believes the loss calculation is not accurate. Objections to the loss calculation can be based only on disputes over the Plan Administrator’s record of the number of shares or the period those shares were held or on erroneous application of the loss calculation set forth in this Plan.

If the Claim Form does not include a loss calculation, the Eligible Investor will need to complete, sign, and return the Claim Form to the Plan Administrator. The Eligible Investor also must submit evidence satisfactory to the Plan Administrator establishing the Eligible Investor’s Plan Information for the period August 18, 2008 through October 21, 2008.

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6. Are there more details about the proposed Distribution Plan?

You may review and download the Notice which summarizes the proposed Distribution Plan. You may also contact the Plan Administrator with questions by calling 1 (855) 590-8694, or by mail at:

HCE Distribution Plan
c/o GCG
PO Box 9950
Dublin, Ohio 43017-5950

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