DIVIDEND REINVESTMENT PLAN

TERMS AND CONDITIONS OF THE
2005 DIVIDEND REINVESTMENT PLAN OF
GLOBAL INCOME FUND, INC.


1. Each shareholder (the "Shareholder") holding shares of common stock (the
"Shares") of Global Income Fund, Inc. (the "Fund") will automatically be a
participant in the Dividend Reinvestment Plan (the "Plan"), unless the
Shareholder specifically elects to receive all dividends and capital gains in
cash paid by check mailed directly to the Shareholder by American Stock Transfer
and Trust Company as agent under the Plan (the "Agent"). The Agent will open an
account for each Shareholder under the Plan in the same name in which such
Shareholder's shares of Common Stock are registered.

2. Whenever the Fund declares a capital gain distribution or an income dividend
payable in Shares or cash, participating Shareholders will take the distribution
or dividend entirely in Shares and the Agent will automatically receive the
Shares, including fractions, for the Shareholder's account in accordance with
the following:

Whenever the Market Price (as defined in Section 3 below) per Share is equal to
or exceeds the net asset value per Share at the time Shares are valued for the
purpose of determining the number of Shares equivalent to the cash dividend or
capital gain distribution (the "Valuation Date"), participants will be issued
additional Shares equal to the amount of such dividend divided by the Fund's net
asset value per Share. Whenever the Market Price per Share is less than such net
asset value on the Valuation Date, participants will be issued additional Shares
equal to the amount of such dividend divided by the Market Price. The Valuation
Date is the day before the dividend or distribution payment date or, if that day
is not an American Stock Exchange trading day, the next trading day. If the Fund
should declare a dividend or capital gain distribution payable only in cash, the
Agent will, as purchasing agent for the participating Shareholders, buy Shares
in the open market, on the American Stock Exchange (the "Exchange") or
elsewhere, for such Shareholders' accounts after the payment date, except that
the Agent will endeavor to terminate purchases in the open market and cause the
Fund to issue the remaining Shares if, following the commencement of the
purchases, the market value of the Shares exceeds the net asset value. These
remaining Shares will be issued by the Fund at a price equal to the Market
Price.

In a case where the Agent has terminated open market purchases and caused the
issuance of remaining Shares by the Fund, the number of Shares received by the
participant in respect of the cash dividend or distribution will be based on the
weighted average of prices paid for Shares purchased in the open market and the
price at which the Fund issues remaining Shares. To the extent that the Agent is
unable to terminate purchases in the open market before the Agent has completed
its purchases, or remaining Shares cannot be issued by the Fund because the Fund
declared a dividend or distribution payable only in cash, and the market price
exceeds the net asset value of the Shares, the average Share purchase price paid
by the Agent may exceed the net asset value of the Shares, resulting in the
acquisition of fewer Shares than if the dividend or capital gain distribution
had been paid in Shares issued by the Fund.




The Agent will apply all cash received as a dividend or capital gain
distribution to purchase shares of common stock on the open market as soon as
practicable after the payment date of the dividend or capital gain distribution,
but in no event later than 45 days after that date, except when necessary to
comply with applicable provisions of the federal securities laws.

3. For all purposes of the Plan: (a) the Market Price of the Shares on a
particular date shall be the average of the volume weighted average sales prices
or, if no sales occurred then the mean between the closing bid and asked
quotations, for the Shares on the Exchange on each of the five trading days the
Shares traded ex-dividend on the Exchange immediately prior to such date, and
(b) net asset value per share on a particular date shall be as determined by or
on behalf of the Fund.

4. The open-market purchases provided for herein may be made on any securities
exchange on which the Shares are traded, in the over-the-counter market or in
negotiated transactions, and may be on such terms as to price, delivery and
otherwise as the Agent shall determine. Funds held by the Agent uninvested will
not bear interest, and it is understood that, in any event, the Agent shall have
no liability in connection with any inability to purchase Shares within 45 days
after the initial date of such purchase as herein provided, or with the timing
of any purchases effected. The Agent shall have no responsibility as to the
value of the Shares acquired for the Shareholder's account.

5. The Agent will hold Shares acquired pursuant to the Plan in noncertificated
form in the Agent's name or that of its nominee. At no additional cost, a
Shareholder participating in the Plan may send to the Agent for deposit into its
Plan account those certificate shares of the Fund in its possession. These
Shares will be combined with those unissued full and fractional Shares acquired
under the Plan and held by the Agent. Shortly thereafter, such Shareholder will
receive a statement showing its combined holdings. The Agent will forward to the
Shareholder any proxy solicitation material and will vote any Shares so held for
the Shareholder only in accordance with the proxy returned by him or her to the
Fund. Upon the Shareholder's written request, the Agent will deliver to him or
her, without charge, a certificate or certificates for the full Shares.




6. The Agent will confirm to the Shareholder each acquisition for his or her
account as soon as practicable but not later than 60 days after the date
thereof. Although the Shareholder may from time to time have an individual
fractional interest (computed to three decimal places) in a Share, no
certificates for fractional Shares will be issued. However, dividends and
distributions on fractional Shares will be credited to Shareholders' accounts.
In the event of a termination of a Shareholder's account under the Plan, the
Agent will adjust for any such undivided fractional interest in cash at the
opening market value of the Shares at the time of termination.

7. Any stock dividends or split Shares distributed by the Fund on Shares held by
the Agent for the Shareholder will be credited to the Shareholder's account. In
the event that the Fund makes available to the Shareholder the right to purchase
additional Shares or other securities, the Shares held for a Shareholder under
the Plan will be added to other Shares held by the Shareholder in calculating
the number of rights to be issued by such Shareholder.

8. The Agent's service fee for handling capital gain distributions or income
dividends will be paid by the Fund. The Shareholder will be charged a pro rata
share of brokerage commissions on all open market purchases.

9. The Shareholder may terminate his or her account under the Plan by notifying
the Agent in writing. A termination will be effective immediately if notice is
received by the Agent at any time prior to any dividend or distribution record
date; otherwise such termination will be effective, with respect to any
subsequent dividend or distribution, on the first trading day after a dividend
paid for the record date has been credited to the Shareholder's account. Upon
any termination the Agent will cause a certificate or certificates for the full
Shares held for the Shareholder under the Plan and cash adjustment for any
fraction to be delivered to him or her.

10. These terms and conditions may be amended or supplemented by the Agent or
the Fund at any time or times but, except when necessary or appropriate to
comply with applicable law or the rules or policies of the Securities and
Exchange Commission or any other regulatory authority, only by mailing to the
Shareholder appropriate written notice at least 30 days prior to the effective
date thereof. The amendment or supplement shall be deemed to be accepted by the
Shareholder unless, prior to the effective date thereof, the Agent receives
written notice of the termination of such Shareholder's account under the Plan.
Any such amendment may include an appointment by the Fund of a successor agent
in its place and stead under these terms and conditions, with full power and
authority to perform all or any of the acts to be performed by the Agent. Upon
any such appointment of an Agent for the purpose of receiving dividends and
distributions, the Fund will be authorized to pay to such successor Agent all
dividends and distributions payable on Shares held in the Shareholder's name or
under the Plan for retention or application by such successor Agent as provided
in these terms and conditions.




11. In the case of Shareholders, such as banks, brokers or nominees, which hold
Shares for others who are the beneficial owners, the Agent will administer the
Plan on the basis of the number of Shares certified from time to time by the
Shareholders as representing the total amount registered in the Shareholder's
name and held for the account of beneficial owners who are to participate in the
Plan.

12. The Agent shall at all times act in good faith and agree to use its best
efforts within reasonable limits to insure the accuracy of all services
performed under this agreement and to comply with applicable law, but assumes no
responsibility and shall not be liable for loss or damage due to errors unless
the errors are caused by its negligence, bad faith or willful misconduct or tha