Exhibit (n)
MONARCH FUNDS
MULTICLASS (RULE 18F-3) PLAN
May 12, 1995, As Amended July 1, 2000
This Plan is adopted by Monarch Funds (the "Trust") pursuant to Rule
18f-3 under the Investment Company Act of 1940 (the "Act") in order to document
the separate arrangements and expense allocations of each class of shares of
beneficial interest (the "Classes") of each of the investment portfolios of the
Trust (the "Funds") and the related exchange privileges.
SECTION 1. CLASS DESIGNATIONS
The types of Classes of the Funds are: "Universal Shares,"
"Institutional Shares," and "Investor Shares," and "Service Shares." Each Class
has a different arrangement for shareholder services or distribution or both, as
follows:
(a) Universal Shares. Are offered with no sales charges or
distribution expenses. The investment minimum is $1,000,000, subject to
reduction by Forum Financial Services, Inc. ("Forum"), the Trust's manager.
(b) Institutional Shares. Are offered solely through banks, trust
companies and certain other financial institutions and their affiliates and
correspondents with no sales charges or distribution expenses but subject to a
shareholder services plan. The investment minimum for all purchases through a
single financial institution is $100,000, subject to reduction by Forum, and the
investment minimum for accounts held directly by the transfer agent is $50,000.
(c) Investor Shares. Are offered with no sales charges but subject to
a shareholder services plan and a distribution plan adopted in accordance with
Rule 12b-1 under the Act. The investment minimum is $5,000.
(d) Service Shares. Are offered with no sales charges but subject to a
shareholder services plan and a distribution plan adopted in accordance with
Rule 12b-1 under the Act. The investment minimum is $1,000.
SECTION 2. VOTING
Each Class shall have exclusive voting rights on any matter submitted
to a shareholder vote that relates solely to the Class' arrangement for
shareholder services or distribution and each Class shall have separate voting
rights with respect to any matter submitted to a shareholder vote in which the
interests of one Class differ from the interests of another Class.
SECTION 3. EXPENSES
(a) Distribution Expenses. All expenses incurred under a Class's
distribution plan adopted in accordance with Rule 12b-1 under the Act shall be
allocated to that Class.
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(b) Shareholder Service Expenses. All expenses incurred under a
Class's shareholder service plan shall be allocated to that Class.
(c) Other Class Expenses. The following expenses, which are incurred by
Classes in different amounts or reflect differences in the amount or kind of
services that different Classes receive (collectively with expenses under
Sections 3(a) and 3(b) "Class Expenses"), shall be allocated to the Class that
incurred the expenses to the extent practicable:
(i) Administration and transfer agent fees and expenses;
(ii) Litigation, legal and audit fees;
(iii) State and foreign securities registration fees;
(iv) Shareholder report expenses;
(v) Trustee fees and expenses;
(vi) Preparation, printing and related fees and expenses for proxy
statements and, with respect to current shareholders,
prospectuses and statements of additional information;
(vii) Expenses incurred in connection with shareholder meetings; and
(viii) Subject to approval by the Trustees, such other fees and
expenses as Forum, pursuant to Rule 18f-3, deems to be allocable
to specified Classes.
(d) Class Expense Allocations. Class Expenses are to be borne solely by
the Class to which they relate. Item (i) of Section 3(c) in its entirety is
incurred by the Funds on a Class by Class basis and, accordingly, is wholly
allocated to specific Classes. All fees of a Fund's investment adviser and
custodian [and manager] and all portfolio based fees of a Fund's fund accountant
are incurred by a Fund and not the individual Classes of the Fund. All other
items in Section 3(c) are allocated to a specific Class to the extent they are
attributable to the Classes in different amounts.
SECTION 4. OTHER ALLOCATIONS AND WAIVERS/REIMBURSEMENTS
(a) Expenses Applicable to More than One Fund. Expenses (other than
Class Expenses) incurred by the Trust on behalf of a Fund shall be allocated to
that Fund and expenses (other than Class Expenses) incurred by the Trust on
behalf of more than one Fund shall be allocated among the Funds that incurred
the expenses based on the net asset values of the Funds in relation to the net
asset value of all Funds to which the expense relates.
(b) Other Allocations. Income, realized and unrealized capital gains
and losses and expenses other than Class Expenses related to a Fund shall be
allocated to each class of the Fund based on the net asset value of the Class
(excluding the value of subscriptions receivable) in relation to the net asset
value of the Fund.
(c) Waivers and Reimbursements. Nothing in this Plan shall be construed
as limiting the ability of any person to waive any fee paid by a Fund or Class
to that person or to reimburse any or all expenses of a Fund or Class; provided,
however, that no waiver or reimbursement shall be made such that the waiver or
reimbursement is, in effect, a DE FACTO modification of the fees provided for in
the Fund's various service agreements.
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SECTION 5. EXCHANGES
Shareholders of a Class may exchange their shares for shares of the
same Class of any other Fund in accordance with Section 11(a) of the Act, the
rules thereunder and the requirements of the applicable prospectuses.
SECTION 6. AMENDMENTS AND BOARD REVIEW
(a) Non-Material Amendments. Non-material amendments to this Plan may
be made at any time by Forum.
(b) Material Amendments. Material amendments to this Plan may only be
made by a majority of the Trustees of the Trust, including a majority of the
Trustees who are not interested persons of the Trust as defined by the Act, upon
a finding that the amendment is in the best interests of the Classes affected by
the amendment and of the Fund and the Trust. Prior to any material amendment to
this Plan, the Board of Trustees (the "Board") shall request such information as
may be reasonably necessary to evaluate the Plan as proposed to be amended.
(c) Board Review. The Board, including a majority of those trustees who
are not interested persons of the Trust as defined in the Act, shall review
periodically (i) this Plan for its continuing appropriateness and (ii) any fee
waivers and expense reimbursements to determine that the Funds are in compliance
with Section 4(c).
