Contract
Exhibit (m)2
U.S. Global Investors Funds
DISTRIBUTION AGREEMENT
DISTRIBUTION AGREEMENT
AGREEMENT made as of the 1st day of October, 2008, between U.S. Global Investors
Funds, a Delaware statutory trust (the “Trust”), having its principal place of business in San
Antonio, Texas and U.S. Global Brokerage, Inc. a corporation organized under the laws of the State
of Texas (the “Distributor”), having its principal place of business in San Antonio, Texas.
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dividend or split-up; and (iii) as otherwise may be provided in the then current registration
statement of the Trust.
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applicable laws and regulations, sales literature or other material as it may deem appropriate.
Distributor will furnish or cause to be furnished copies of such sales literature or other material
to the Trust. Distributor agrees to take appropriate action to cease using such sales literature or
other material to which the Trust reasonably objects as promptly as practicable after receipt of
the objection. Distributor further agrees that, in connection with the offer and sale of Shares,
Distributor shall comply with all applicable securities laws of the United States and each state
thereof in which Shares are offered and/or sold (including without limitation, the maintenance of
effective federal and state broker-dealer registrations, as required) and the rules and regulations
of the NASD.
(a) The Trust shall pay all fees and expenses (i) in connection with the preparation, setting
in type and filing of any registration statement, Prospectus and Statement of Additional
Information under the 1933 Act and amendments for the issue of its shares, (ii) in connection with
the registration and qualification of shares for sale in the various states in which the officers
of the Trust shall determine to be advisable (including registering the Trust as a broker or dealer
or any officers of the Trust as agent or salesperson in any state), (iii) of preparing, setting in
type, printing and mailing any report or other communication to shareholders of the Trust in their
capacity as such, and (iv) of preparing, setting in type, printing and mailing Prospectuses, SAIs
and any supplements thereto sent to existing shareholders.
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the termination of this Agreement. Subject to and calculated in accordance with the Rules of Fair
Practice of the NASD, if during any annual period the total of (i) the compensation payable to the
Distributor and (ii) amounts payable under the Trust’s Distribution Plan exceeds 0.25% of a Fund’s
average daily net assets, the Distributor will rebate that portion of its fee necessary to result
in the total of (i) and (ii) above not exceeding 0.25% of the Fund’s average daily net assets. The
payment of compensation is authorized pursuant to the Trust’s Distribution Plan adopted pursuant to
Rule 12b-1 under the 1940 Act and is contingent upon the continued effectiveness of the Trust’s
Distribution Plan.
(a) The Trust agrees to indemnify and hold harmless the Distributor and each of its directors
and officers and each person, if any, who controls the Distributor within the meaning of Section 15
of the 1933 Act against any loss, liability, claim, damage or expense (including the reasonable
cost of investigating or defending any alleged loss, liability, claim, damage or expense and
reasonable counsel fees incurred in connection therewith) arising out of or based upon: (i) any
violation of the Trust’s representations or covenants herein contained; (ii) any wrongful act of
the Trust or any of its representatives (other than the Distributor or any of its employees or
representatives (regardless of the capacity in which such employee or representative is acting) or
any other person for whose acts the Distributor is responsible or is alleged to be responsible
(including any selected dealer or person through whom sales are made pursuant to an agreement with
the Distributor)); or (iii) any untrue statement of a material fact contained in a registration
statement, Prospectus, SAI or shareholder reports or other information filed or made public by the
Trust (as from time to time amended) of any Fund or any omission to state a material fact required
to be stated therein or necessary in order to make the statements therein not misleading under the
1933 Act, or any other statute or common law, except to the extent the statement or omission was
made in reliance upon, and in conformity with, information furnished to the Trust by or on behalf
of the Distributor. In no case (i) is the indemnity by the Trust in favor of the Distributor or
any person indemnified to be deemed to protect the Distributor or any person against any liability
to the Trust or its security holders to which the Distributor or such person would otherwise be
subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its
duties or by reason of its reckless disregard of its obligations and duties under this agreement,
or (ii) is the Trust to be liable under its indemnity agreements contained in this paragraph with
respect to any claim made against the Distributor or any person indemnified unless the Distributor
or person, as the case may be, shall have notified the Trust in writing of the claim within a
reasonable time after the summons or other first written notification giving information of the
nature of the claim shall have been served upon the Distributor or any such person or after the
Distributor or such person shall have received notice of service on any designated agent. However,
failure to notify the Trust of any claim shall not relieve the Trust from any liability which it
may have to the Distributor or any person against
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whom such action is brought other than on account of its indemnity agreement contained in this
Paragraph 10(a). The Trust shall be entitled to participate at its own expense in the defense, or,
if it so elects, to assume the defense of any suit brought to enforce any claims, but if the Trust
elects to assume the defense, the defense shall be conducted by counsel chosen by it and
satisfactory to the Distributor, or person or persons, defendant or defendants in the suit. In the
event the Trust elects to assume the defense of any suit and retain counsel, the Distributor,
officers or directors or controlling person(s) or defendant(s) in the suit shall bear the fees and
expenses of any additional counsel retained by them. If the Trust does not elect to assume the
defense of any suit, it will reimburse the Distributor, officers or directors or controlling
person(s) or defendant(s) in the suit for the reasonable fees and expenses of any counsel retained
by them. The Trust agrees to notify the Distributor promptly of the commencement of any litigation
or proceedings against it or any of its officers or Trustees in connection with the issuance or
sale of any of the Shares.
(b) The Distributor agrees to indemnify and hold harmless the Trust and each of its Trustees
and officers and each person, if any, who controls the Trust within the meaning of Section 15 of
the 1933 Act, against any loss, liability, claim, damage or expense (including the reasonable cost
of investigating or defending any alleged loss, liability, claim, damage or expense and reasonable
counsel fees incurred in connection therewith) arising out of or based upon: (i) any violation of
the Distributor’s representations or covenants herein contained; (ii) any wrongful act of the
Distributor or any of its employees or representatives or any other person for whose acts the
Distributor is responsible or is alleged to be responsible (including any selected dealer or person
through whom sales are made pursuant to an agreement with the Distributor); or (iii) any untrue
statement of a material fact contained in a registration statement, Prospectus, SAI or shareholder
reports or other information filed or made public by the Trust (as from time to time amended) or
any omission to state a material fact required to be stated therein or necessary in order to make
the statements therein not misleading, but only if the statement or omission was made in reliance
upon, and in conformity with, information furnished to the Trust by or on behalf of the
Distributor. In no case (x) is the indemnity by the Distributor in favor of the Trust or any
person indemnified to be deemed to protect the Trust or any person against any liability to the
Distributor or its security holders to which the Trust or such person would otherwise be subject by
reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by
reason of its reckless disregard of its obligations and duties under this agreement, or (y) is the
Distributor to be liable under its indemnity agreements contained in this paragraph with respect to
any claim made against the Trust or any person indemnified unless the Trust or person, as the case
may be, shall have notified the Distributor in writing of the claim within a reasonable time after
the summons or other first written notification giving information of the nature of the claim shall
have been served upon the Trust or any such person or after the Trust or such person shall have
received notice of service on any designated agent. However, failure to notify the Distributor of
any claim shall not relieve the Distributor from any liability which it may have to the Trust or
any person against whom such action is brought other than on account of its indemnity agreement
contained in this Paragraph 10(b). The Distributor shall be entitled to participate at its own
expense in the defense, or, if it so elects, to assume the defense of any suit brought to enforce
any claims, but if the Distributor elects to assume the defense, the defense shall be conducted by
counsel chosen by it and satisfactory to the Trust, or person or persons, defendant or defendants
in the suit. In the event the Distributor elects to assume the defense of
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any suit and retain counsel, the Trust, officers or Trustees or controlling person(s) or
defendant(s) in the suit shall bear the fees and expenses of any additional counsel retained by
them. If the Distributor does not elect to assume the defense of any suit, it will reimburse the
Trust, officers or Trustees or controlling person(s) or defendant(s) in the suit for the reasonable
fees and expenses of any counsel retained by them. The Distributor agrees to notify the Trust
promptly of the commencement of any litigation or proceedings against it or any of its officers or
directors in connection with the issuance or sale of any of the Shares.
(c) The indemnification obligations of the parties in this Paragraph 10 shall survive the
termination of this Agreement.
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of Shares thereof by vote of a majority of the Trustees of the Trust who are not interested persons
of the Trust, or by vote of a majority of the outstanding voting securities of the Fund or class of
shares thereof, on not more than sixty (60) days’ written notice by the Trust. This Agreement may
be terminated by the Distributor upon not less than sixty (60) days’ prior written notice to the
Trust. As used in this Paragraph 13, the terms “vote of a majority of the outstanding voting
securities,” “assignment” and “interested person” shall have the respective meanings specified in
the 1940 Act and the rules enacted thereunder as now in effect or as hereafter amended.
16. GOVERNING LAW. This Agreement shall be construed in accordance with the laws of the State
of Delaware, without giving effect to the choice of laws provision thereof.
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Agreement are included for convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. This Agreement may be executed
in two counterparts, each of which taken together shall constitute one and the same instrument.
U.S. GLOBAL INVESTORS FUNDS U.S. GLOBAL BROKERAGE, INC.
By:
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/s/ Xxxxx X. Xxxxxx
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By: | /s/ Xxxxx X. Xxxxx
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President and Chief Executive | President | |||||||||
Officer |
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SCHEDULE A
U.S. Global Investors Funds
Funds
China Region Fund
All American Equity Fund
Gold and Precious Metals Fund
World Precious Minerals Fund
Global Resources Fund
Eastern European Fund
Global Emerging Markets Fund
Xxxxxx Growth Fund
Global MegaTrends Fund
Tax Free Fund
Near-Term Tax Free Fund
U.S. Government Securities Savings Fund
U.S. Treasury Securities Cash Fund
All American Equity Fund
Gold and Precious Metals Fund
World Precious Minerals Fund
Global Resources Fund
Eastern European Fund
Global Emerging Markets Fund
Xxxxxx Growth Fund
Global MegaTrends Fund
Tax Free Fund
Near-Term Tax Free Fund
U.S. Government Securities Savings Fund
U.S. Treasury Securities Cash Fund
Dated: October 1, 2008
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