U.S. GLOBAL INVESTORS FUNDS
U.S. TREASURY SECURITIES CASH FUND
U.S. GOVERNMENT SECURITIES SAVINGS FUND
EXPENSE WAIVER AND REIMBURSEMENT AGREEMENT
AGREEMENT made as of June 30, 2004, by and among each of U.S. Global
Investors Funds, a Massachusetts business trust (the Trust), on behalf of its
portfolios, the U.S. Treasury Securities Cash Fund and the U.S. Government
Securities Savings Fund (each a Fund and, collectively, the Funds), and U.S.
Global Investors, Inc., a Texas corporation (USGI).
WHEREAS, USGI has entered into certain investment advisory, transfer agency
and other service agreements with the Trust, pursuant to which USGI provides
investment advisory services to each Fund, and for which it is compensated based
on the average daily net assets of each Fund; and
WHEREAS, USGI has entered into a transfer agency agreement with the Trust,
pursuant to which USGI provides transfer agency services to each Fund, and for
which it is compensated based on the number of accounts in each Fund; and
WHEREAS, USGI has entered into a distribution agreement with each Trust,
pursuant to which USGI provides distribution services to each Fund, and for
which it does not receive compensation; and
WHEREAS, USGI has previously and separately agreed to waive fees and/or
reimburse expenses as necessary to prevent the overall expense ratio of the U.S.
Government Securities Savings Fund from exceeding certain amounts through June
30, 2004, (the OER Limit); and
WHEREAS, USGI may reduce, or further reduce, as the case may be, all or a
portion of their fees and/or reimburse expenses of one or more Funds (to the
extent permitted by the Internal Revenue Code of 1986, as amended) to the extent
necessary to maintain a certain minimum net yield for each such Fund, as
determined by USGI with respect to that Fund (the Minimum Yield);
NOW THEREFORE, the parties hereto agree as follows:
1. Fund's Agreement to Reimburse Fees and Expenses. Each Fund hereby agrees to
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reimburse USGI for any fee waivers and/or expense reimbursements borne in
excess of waivers that are necessary to comply with any OER Limit in effect
at the time of such waivers, provided that: (a) a Fund is not obligated to
reimburse any such fee waivers and/or expense reimbursements more than
three years after the end of the fiscal year in which the fee waivers
and/or expense reimbursement were borne by USGI; and (b) a Fund will not
pay reimbursements to USGI to the extent such payments would cause the
Fund's net yield to fall below the Fund's previously determined Minimum
Yield. The Board of Trustees shall review quarterly any reimbursements paid
to USGI with respect to any Fund in such quarter to confirm compliance with
the conditions stated above.
2. Duration. This Agreement shall be effective through the first anniversary
of the date first above written, and shall be renewable at the end of that
one-year period for additional periods upon the written agreement of the
parties hereto. The expiration of this Agreement will not affect a Fund's
obligation to reimburse USGI for any fee waivers and/or expense
reimbursements made during the term of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
date first above written.
U.S. Global Investors, Inc.
/s/ Xxxxx X. XxXxx
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By: Xxxxx X. XxXxx
Title: President, General Counsel
U.S. Global Investors Funds
/s/ Xxxxx X. Xxxxxx
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By: Xxxxx X. Xxxxxx
Title: President
