PLAN OF DISTRIBUTION AND SERVICE PURSUANT TO RULE 12b-1
FOR
REGENT EASTERN EUROPEAN FUND
Adopted February 28, 1997
Revised March 5, 1999
Revised August 25, 2000
RECITALS
1. U.S. Global Accolade Funds, an unincorporated business trust organized under
the laws of the Commonwealth of Massachusetts (the "Trust") is engaged in
business as an open-end management investment company and is registered as
such under the Investment Company Act of 1940, as amended (the "Act"). U.S.
Global Investors, Inc. serves as the Trust's investment adviser. U.S. Global
Brokerage, Inc. serves as the Trust's principal underwriter.
2. The Trust operates as a "series company" within the meaning of Rule 18f-2
under the Act and is authorized to issue shares of beneficial interest in
various series or sub-trusts (collectively the "Funds").
3. Funds of the Trust may utilize Fund assets to pay for, or reimburse payment
for, sales or promotional services or activities that have been or will be
provided in connection with distribution of shares of the Funds, reducing
redemptions of shares, or providing, maintaining or improving services
provided to shareholders by financial services firms or otherwise, if such
payments are made pursuant to a Plan adopted and continued in accordance
with Rule 12b-1 under the Act.
4. Regent Eastern European Fund, a series of the Trust (the "Fund") by virtue
of such arrangement may be deemed to act as a distributor of its shares as
provided in Rule 12b-1 under the Act and desires to adopt a Plan pursuant to
such Rule (the "Plan").
5. The Trustees as a whole, and the Trustees who are not interested persons of
the Trust (as defined in the Act) and who have no direct or indirect
financial interest in the operation of this Plan and any agreements relating
to it (the "Qualified Trustees"), having determined, in the exercise of
reasonable business judgment and in light of their fiduciary duties under
state law and under Section 36(a) and (b) of the Act, that there is a
reasonable likelihood that this Plan will benefit the Fund and its
shareholders, have approved the Plan by votes cast in person at a meeting
called for the purpose of voting on this Plan and agreements related
thereto.
6. Shareholder approval of the Plan was initially obtained on September 21,
1994.
PLAN PROVISIONS
SECTION 1. EXPENDITURES
A. PURPOSES. Fund assets may be utilized to pay for or reimburse expenditures
in connection with sales and promotional services related to the
distribution of Fund shares, including personal services provided to
prospective and existing Fund shareholders, which include the costs of:
printing and distribution of prospectuses and promotional materials; making
slides and charts for presentations; assisting shareholders and prospective
investors in understanding and dealing with the Fund; travel and
out-of-pocket expenses (for example, copy and long distance telephone
charges) related thereto; and fees paid to financial services firms related
to the distribution of Fund shares (including the advancement of commission
costs, and any related financing costs, to such firms).
Fund assets may also be utilized to pay financial services firms or others
for, among other things, furnishing personal services and maintaining
shareholder accounts, which services include, among other things, assisting
in establishing and maintaining customer accounts and records; assisting
with purchase and redemption requests; arranging for bank wires; monitoring
dividend payments from the Fund on behalf of customers; forwarding certain
shareholder communications from the Fund to customers; receiving and
answering correspondence; and aiding in maintaining the investment of their
respective customers in the Fund.
B. AMOUNTS. Fund assets may be utilized to pay for or reimburse expenditures
under this plan, provided the total amount expended pursuant to this Plan
does not exceed 0.25% of net assets on an annual basis.
SECTION 2. TERM AND TERMINATION
A. INITIAL TERM. This Plan shall become effective upon effective registration
of the Fund and shall continue in effect for a period of one year thereafter
unless terminated or otherwise continued or discontinued as provided in this
Plan.
B. CONTINUATION OF THE PLAN. The Plan and any related agreements shall continue
in effect for periods of one year thereafter for so long as such continuance
is specifically approved at least annually by votes of a majority of both
(a) the Trustees of the Trust and (b) the Qualified Trustees, cast in person
at a meeting called for the purpose of voting on this Plan and such related
agreements.
C. TERMINATION OF THE PLAN. This Plan may be terminated at any time by vote of
a majority of the Qualified Trustees, or by vote of a majority of the
outstanding voting securities of the Fund.
SECTION 3. AMENDMENTS
This Plan may not be amended to increase materially the amount of distribution
expenditures provided for in Section 1 hereof unless such amendment is approved
by a vote of the majority of the outstanding voting securities of the Fund, and
no material amendment to the Plan shall be made unless approved in the manner
provided for annual renewal in Section 2(b) hereof.
SECTION 4. INDEPENDENT TRUSTEES
While this Plan is in effect with respect to the Fund, the selection and
nomination of Trustees who are not interested persons of the Trust (as defined
in the Act) shall be committed to the discretion of the Trustees who are not
interested persons.
SECTION 5. QUARTERLY REPORTS
The Treasurer of the Trust shall provide to the Trustees and the Trustees shall
review, at least quarterly, a written report of the amounts accrued and the
amounts expended under this Plan for distribution, along with the purposes for
which such expenditures were made.
SECTION 6. RECORD KEEPING
The Trust shall preserve copies of this Plan and any related agreements and all
reports made pursuant to Section 5 hereof, for a period of not less than six
years from the date of this Plan, the agreements or such report, as the case may
be; the first two years in an easily accessible place.
SECTION 7. AGREEMENTS RELATED TO THIS PLAN
Agreements with persons providing distribution services to be paid for or
reimbursed under this Plan shall provide that:
a. The agreement will continue in effect for a period of one year and will
continue thereafter only if specifically approved by vote of a majority of
the Trustees of the Trust;
b. The agreement may be terminated at any time, without payment of any penalty,
by vote of a majority of (i) the Qualified Trustees or (ii) the outstanding
voting securities of the Fund, on not more than sixty (60) days= written
notice to any other party to the agreement;
c. The agreement will terminate automatically in the event of an assignment;
and
d. In the event the agreement is terminated or otherwise discontinued, no
further payments or reimbursements will be made by the Fund after the
effective date of such action.
