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Exhibit (h)(26)
THE GALAXY FUND
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SHAREHOLDER SERVICES PLAN
FOR
INSTITUTIONAL MONEY MARKET FUNDS
CLASS II SHARES AND CLASS III SHARES
SECTION 1. Upon the recommendation of PFPC Inc. ("PFPC"), the
administrator of The Galaxy Fund (the "Trust"), any officer of the Trust is
authorized to execute and deliver, in the name and on behalf of the Trust,
written agreements in substantially the form attached hereto or in any other
form duly approved by the Board of Trustees ("Servicing Agreements") with
securities dealers, financial institutions and other industry professionals that
are shareholders or dealers of record or which have a servicing relationship
("Service Organizations") with the beneficial owners of the Class II Shares
and/or Class III Shares of the Institutional Money Market Fund and Institutional
Treasury Money Market Fund of the Trust (the "Funds"). Pursuant to said
Agreements, Service Organizations shall provide shareholder liaison and/or
administrative support services as set forth therein to their customers who
beneficially own Class II Shares and/or Class III Shares (as described in the
Trust's prospectuses) of the Funds in consideration of fees, computed and paid
in the manner set forth in the Servicing Agreements, at the annual rate of up to
.50% in the aggregate (comprised of up to .25% with respect to shareholder
liaison services and up to .25% with respect to administrative support services)
of the net asset value of the Class II Shares or Class III Shares beneficially
owned by such customers. Any bank, trust company, thrift institution or
broker-dealer is eligible to become a Service Organization and to receive fees
under this Plan, including FleetBoston Financial Corporation and its affiliates.
All expenses incurred by the Trust with respect to Class II Shares and/or Class
III Shares of a particular Fund in connection with Servicing Agreements and the
implementation of this Plan shall be borne entirely by the holders of the
applicable series of Shares of the Fund. Each Servicing Agreement will provide
for a fee waiver by a Service Organization to the extent that the net investment
income of a series of Shares of a particular Fund earned in the applicable
period is less than the fee due from such series for such period.
SECTION 2. PFPC shall monitor the arrangements pertaining to the
Trust's Servicing Agreements with Service Organizations in accordance with the
terms of the Administration Agreement between PFPC and the Trust. PFPC shall
not, however, be obliged by this Plan to recommend, and the Trust shall not be
obliged to execute, any Servicing Agreement with any qualifying Service
Organization.
SECTION 3. So long as this Plan is in effect, PFPC shall provide to the
Trust's Board of Trustees, and the trustees shall review, at least quarterly, a
written report of the amounts expended pursuant to this Plan and the purposes
for which such expenditures were made.
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SECTION 4. Unless sooner terminated, this Plan shall continue until
December 14, 2001 and thereafter shall continue automatically for successive
annual periods provided such continuance is approved at least annually by a
majority of the Board of Trustees, including a majority of the trustees who are
not "interested persons" of the Trust and who have no direct or indirect
financial interest in the operation of this Plan or in any Agreement related to
this Plan (the "Disinterested Trustees").
SECTION 5. This Plan may be amended at any time with respect to any
Fund by the Board of Trustees, provided that any material amendments of the
terms of this Plan shall become effective only upon the approvals set forth in
Section 4.
SECTION 6. This Plan is terminable at any time with respect to any Fund
by vote of a majority of the Disinterested Trustees.
SECTION 7. While this Plan is in effect, the selection and nomination
of the trustees of the Trust who are not "interested persons" (as defined in the
Act) of the Trust shall be committed to the discretion of the Trust's
Disinterested Trustees.
SECTION 8. This Plan has been adopted by the Trust as of December 14,
2000.
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