TRANS ADVISER FUNDS, INC.
SHAREHOLDER SERVICE PLAN
July 18, 1996
This Shareholder Service Plan (the "Plan") is adopted by Trans Adviser
Funds, Inc. (the "Corporation") with respect to shares of common stock of each
of the Funds identified in Appendix A (individually a "Fund" and collectively
the "Funds").
SECTION 1. ADMINISTRATOR
The Corporation has entered into an Administration Agreement (the
"Agreement") with Forum Financial Services, Inc. ("Forum") whereby Forum
provides certain administrative services for the Corporation and for each Fund.
SECTION 2. SERVICE AGREEMENTS; PAYMENTS
(a) Forum is authorized to enter into Shareholder Service Agreements
(the "Agreements"), the form of which shall be approved by the Board of
Directors of the Corporation (the "Board"), with financial institutions and
other persons, including Trans Financial Bank, N.A., and Xxxxxxxxxxxx &
Associates, the investment advisers to the Corporation, who provide services for
and maintain shareholder accounts ("Service Providers") as set forth in this
Plan.
(b) Pursuant to the Agreements, as compensation for the services
described in Section 4 below, Forum may pay each Service Provider, on behalf of
the Corporation, a fee at an annual rate of up to 0.25% of the average daily net
assets of each Fund represented by the shareholder accounts for which the
Service Provider maintains a service relationship; provided, however, that no
Fund shall directly or indirectly pay any amounts, whether Payments or
otherwise, that exceed any applicable limits imposed by law or the National
Association of Securities Dealers, Inc.
(c) Each Agreement shall contain a representation by the Service
Provider that any compensation payable to the Service Provider in connection
with an investment in any Fund of the assets of its customers will (i) be
disclosed by the Service Provider to its customers, (ii) be authorized by its
customers, and (iii) not result in an excessive fee to the Service Provider.
SECTION 3. SHAREHOLDER SERVICE FEE.
Pursuant to this Plan, the Corporation shall daily accrue and monthly
pay Forum a Shareholder Service Fee for each Fund equal to 0.25% of the average
daily net assets of each Fund. Such payments shall be accrued daily and paid
monthly or at such other interval as the Corporation and Forum shall agree.
SECTION 4. SERVICE ACTIVITIES
Service activities include (a) establishing and maintaining accounts and
records relating to clients of Service Provider; (b) answering shareholder
inquiries regarding the manner in which purchases, exchanges and redemptions of
shares of the Corporation may be effected and other matters pertaining to the
Corporation's services; (c) providing necessary personnel and facilities to
establish and maintain shareholder accounts and records; (d) assisting
shareholders in arranging for processing purchase, exchange and redemption
transactions; (e) arranging for the wiring of funds; (f) guaranteeing
shareholder signatures in connection with redemption orders and transfers and
changes in shareholder-designated accounts; (g) integrating periodic statements
with other shareholder transactions; and (h) providing such other related
services as the shareholder may request.
SECTION 5. AMENDMENT AND TERMINATION
(a) Any material amendment to the Plan shall be effective only upon
approval of the Board, including a majority of the Directors who are not
interested persons of the Corporation as defined in the Investment Company Act
of 1940 (the "Disinterested Directors"), pursuant to a vote cast in person at a
meeting called for the purpose of voting on the amendment to the Plan.
(b) The Plan may be terminated without penalty at any time by a vote of
a majority of the Disinterested Directors.
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TRANS ADVISER FUNDS, INC.
SHAREHOLDER SERVICE PLAN
Appendix A:
Funds to which Shareholder Service Plan Applies
July 18, 1995
Money Market Fund
Intermediate Bond Fund
Kentucky Tax-Free Fund
Tennessee Tax-Free Fund
Growth/Value Fund
Aggressive Growth Fund
