EXHIBIT (n)(4)
JUNDT MID-CAP GROWTH FUND
(A SERIES OF JUNDT FUNDS, INC.)
RULE 18f-3 PLAN
FOR MULTIPLE CLASS DISTRIBUTION SYSTEM
Jundt Funds, Inc. (the "Company"), an open-end management investment
company, on behalf of Jundt Mid-Cap Growth Fund (the "Fund"), a series of the
Company, hereby adopts this plan (the "Plan") pursuant to Rule 18f-3 under the
Investment Company Act of 1940.
1. The Fund shall issue four classes of Shares, consisting of Class A
Shares, Class B Shares, Class C Shares and Class I Shares. Except as otherwise
provided herein: each such Class shall be equal in all respects and have the
same rights and obligations as each other Class; and each share of any Class
will represent an identical interest in the investment portfolio of the Fund.
2. Contemporaneously with the adoption of this Plan, the Fund has
adopted separate distribution plans pursuant to Rule 12b-1 under the Investment
Company Act of 1940 with respect to the Class A Shares, Class B Shares and Class
C Shares. Each such Class of shares shall bear the expense of the separate Rule
12b-1 plan applicable to it, including the account maintenance fee and/or
distribution fee provided for therein.
3. Shareholder servicing costs attributable solely to a particular
Class, including the incremental transfer agency cost resulting from the
deferred sales charge arrangement relating to the Class B Shares and the Class C
Shares, will be allocated to such Class. Other incremental expenses that are
subsequently identified that are actually incurred in a different amount by any
Class may, subject to obtaining any necessary approvals that may be required by
law with respect to such allocation, be separately allocated to such Class.
4. Any expenses of the Fund not allocated to a particular Class
pursuant to this Plan shall be allocated to each Class on the basis of the net
asset value of such Class in relation to the net asset value of the Fund.
5. Expenses may be waived or reimbursed by the Fund's adviser,
distributor or any other provider of services to the Fund.
6. The separate Classes of Shares of the Fund shall have the following
characteristics:
<PAGE>
(a) Class A Shares. Class A Shares will be sold at net asset
value plus a front-end sales load as set forth below:
Amount of Sales Load As A Sales Load As A
Transaction Percentage Percentage of
at Offering Price of Offering Price Net Asset Value
----------------- ----------------- ---------------
Less than $25,000 5.25% 5.54%
$25,000 but less than $50,000 4.75% 4.99%
$50,000 but less than $100,000 4.00% 4.17%
$100,000 but less than $250,000 3.00% 3.09%
$250,000 bus less than $1,000,000 2.00% 2.04%
$1,000,000 and over 0.00% 0.00%
Investors in Class A Shares may qualify for reduced
initial sales charges through a right of accumulation taking into
account an investor's holdings in all Classes of Fund Shares. Investors
who purchase or accumulate at least $1 million in Fund shares qualify
to add to their investment in Class A Shares of the Fund without the
imposition of a front-end sales charge. Although such investors will
not be subject to front-end sales charge, they will be subject to a
contingent deferred sales charge of 1% (as a percentage of the lower of
original purchase price or redemption proceeds) during the first year
following purchase. Class A Shares will be subject to an account
maintenance fee at an annual rate of 0.25% of the average daily net
assets of the Fund attributable to the Class A Shares. In addition,
certain categories of investors (as specified from time to time in the
current prospectus of Class A Shares) may qualify to purchase Class A
shares at net asset value without the imposition of a front-end or
contingent deferred sales charge.
(b) Class B Shares. Class B Shares will be sold at net asset
value subject to a contingent deferred sales charge of 4.0% (as a
percentage of the lower of original purchase price or redemption
proceeds) during the first and second years following purchase, 3.0%
during the third and fourth years following purchase, 2.0% during the
fifth year following purchase, 1.0% during the sixth year following
purchase and 0% following the completion of the sixth year following
purchase. Class B Shares will be subject to an account maintenance fee
at an annual rate of 0.25% on the average daily net assets of the Fund
attributable to Class B Shares and a distribution fee at an annual rate
of 0.75% of such net assets. For purposes of conversion of Class B
Shares to Class A Shares, the 15th day of each month (or if such day is
not a business day, the next following business day)(1) shall be deemed
a "conversion date." On the conversion date next following the eighth
anniversary of the purchase of a Class B Share, such Share shall
automatically convert into Class A Shares, the conversion ratio being
determined by the relative net asset value of Class B and Class A
Shares on the conversion date; PROVIDED, HOWEVER, that if the
shareholders of Class A Shares approve any increase in expenses
allocated to Class A Shares, and the shareholders of Class B Shares do
not approve such increase, the Fund will establish a new Class of
Shares on the same terms as applied to the Class A Shares prior to such
increase, and following such increase the Class B Shares shall
automatically convert into Shares of the new Class (instead of Class A
Shares), the conversion ratio being determined by the relative net
asset value of Class B Shares and Shares of the new Class on the
conversion date.
-----------------------------
(1) For purposes hereof, a "business day" means any day other than a Saturday, a
Sunday or a day on which banking or trust institutions in the cities of
Minneapolis, Minnesota and New York, New York, are authorized or obligated by
law, executive order or governmental decree to be closed.
-2-
<PAGE>
(c) Class C Shares. Class C Shares will be sold at net asset
value subject to a contingent deferred sales charge of 1.0% (as a
percentage of the lower of original purchase price or redemption
proceeds) during the first year following purchase. Class C Shares are
subject to an account maintenance fee at an annual rate of 0.25% on the
average daily net assets of the Fund attributable to Class C Shares and
a distribution fee at an annual rate of 0.75% of such net assets.
(d) Class I Shares. Class I Shares will not be publicly
distributed by the Fund, but will be sold at their net asset value,
without a sales load, only to directors, officers, employees and
consultants of the Fund, the distributor or Jundt Associates, Inc. and
members of their immediate families, as well as accounts for the
benefit of any of the foregoing. Class I Shares will also be issued
upon reinvestment of dividends and distributions on outstanding Class I
Shares. Class I Shares will not be subject to a distribution fee or
account maintenance fee.
7. Each Class of Shares shall have exclusive voting rights on any
matter submitted to shareholders of the Fund that relates solely to such Class
or the arrangements contained herein relating to allocation of expenses to such
Class.
8. Each Class shall have separate voting rights on any matter submitted
to shareholders of the Fund in which the interest of one Class differs from the
interest of any other Class. Before this Plan is amended in any material
respect, a majority of the directors of the Company, and a majority of the
directors who are not interested persons of the Company, shall find that the
Plan, as proposed to be amended, including the expense allocation, is in the
best interests of each Class individually and the Fund as a whole. Before any
vote on any such amendment, the directors shall request and evaluate, and any
agreement relating to the arrangements contained in this Plan shall require the
parties thereto to furnish, such information as may be reasonably necessary to
evaluate the Plan and such amendment.
-3-
