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FLAG INVESTORS FUNDS, INC.
(FORMERLY DEUTSCHE FUNDS, INC.)
AMENDED AND RESTATED MULTIPLE CLASS PLAN
This Amended and Restated Multiple Class Plan ("Plan") is adopted as of
January 31, 2000, by FLAG INVESTORS FUNDS, INC. (the "Corporation"), a Maryland
corporation, with respect to the classes of shares ("Classes") of the portfolios
of the Corporation (the "Funds") set forth on exhibit(s) hereto.
1. PURPOSE
This Plan is adopted pursuant to Rule 18f-3 under the Investment Company
Act of 1940, as amended (the "Rule"), in connection with the issuance by the
Corporation of more than one class of shares of any or all of the Funds in
reliance on the Rule and to make payments as contemplated herein.
2. SEPARATE ARRANGEMENTS / CLASS DIFFERENCES
a. DESIGNATION OF CLASSES: The Funds, set forth on exhibit(s) hereto
offer up to three classes of shares: Class A Shares, Class B Shares and Class C
Shares.
b. CATEGORIES/TYPES OF INVESTORS ELIGIBLE TO PURCHASE EACH CLASS OF
SHARES:
Class A Shares, Class B Shares and Class C Shares of the fluctuating value
funds are sold to the same types of investors. The investor is able to choose
among a front-end sales load (Class A Shares), a contingent deferred sales
charge (Class B Shares), or a hybrid load (Class C Shares). Class A Shares of
Flag Investors US Money Market Fund are offered generally to investors. Class B
Shares of Flag Investors US Money Market Fund are designed primarily for
temporary investment as part of a special investment program in Class B Shares
of the fluctuating funds.
c. SALES LOADS: Class A Shares of Flag Investors US Money Market
Fund are offered without an initial sales charge. A maximum sales charge of 5.5%
of offering price is imposed on purchases of Class A Shares in the fluctuating
funds. Certain purchases of these Class A Shares are not subject to a sales
charge as described in the Corporation's registration statement. Class A Shares
purchased without an initial sale charge based on an initial investment of
$1,000,000 or more may be charged a contingent deferred sales charge of 1.00%
for redemptions made within one full year of purchase; and 0.50% for redemptions
made within the second full year of purchase.
Class B Shares and Class C Shares are sold without an initial sales charge,
but are subject to a maximum contingent deferred sales charge of 5.0% and 1.0%
respectively, as described in the Corporation's registration statement.
Flag Investors Funds, Inc. 1
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d. 12B-1 FEES AND SHAREHOLDER SERVICING FEES: Under the applicable Plan
adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, the
Funds are authorized to pay distribution fees of 0.25 % of the average daily net
assets of Class A Shares and 0.75% of the average daily net assets of Class B
Shares and Class C Shares. Under the applicable shareholder servicing
arrangements, the Funds are authorized to pay service fees of 0.25% of the
average daily net assets of Class B Shares and Class C Shares.
e. MINIMUM INVESTMENTS: The minimum initial purchase for all classes is
$2,000 and the minimum subsequent purchase is $100, except that IRA minimums for
initial and subsequent investments are $1000 and $100, respectively, and the
quarterly and monthly minimums for automatic reinvestment plans are $250 and
$100, respectively.
f. VOTING RIGHTS: Shareholders of each Class are entitled to one vote
for each share held and fractional votes for each fractional share held on the
record date for the election of Directors and any other matter requiring a
shareholder vote. Shareholders of the Corporation will vote in the aggregate and
not by Fund or Class except (i) as otherwise expressly required by law or when
the Directors determine that the matter to be voted upon affects only the
interests of the shareholders of a particular Fund or Class, and (ii) only
holders of a Class will be entitled to vote on matters submitted to shareholder
vote with respect to the Rule 12b-1 Plan applicable to such Class.
g. SPECIAL SERVICES OR FEATURES RELATED TO PURCHASING OR REDEEMING
SHARES: Shareholders who have redeemed their Class A Shares have the privilege
of reinstating their accounts by purchasing Class A Shares of the Funds, at net
asset value without a sales charge, up to the dollar amount redeemed. The
privilege must be exercised within 90 days of the date of the redemption
request.
h. EXCHANGE PRIVILEGES.
Holders of Class A Shares, Class B Shares or Class C Shares of the Funds
may exchange their Shares for the same class of other Funds or any other fund in
the Flag Investors Family of Funds, without a sales charge, with the exception
of Class A shares of a Flag Investors money market fund that were not acquired
through a prior exchange.
3. EXPENSE ALLOCATIONS.
12B-1 FEES AND SHAREHOLDER SERVICING FEES: Expenses incurred pursuant to
the Rule 12b-1 Plan or shareholder servicing arrangements will be borne solely
by the relevant Class of the relevant Fund.
4. CONVERSION FEATURES
Class B Shares will automatically convert into Class A Shares on or
about the fifteenth of the month seven full years after the purchase date.
Flag Investors Funds, Inc. 2
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5. MONITORING.
The Directors will monitor the Corporation for the existence of any
material conflicts between the interests of the various Classes and will take
such action as might be reasonably necessary to eliminate any such conflicts.
The Manager and the Distributor will be responsible for reporting any potential
or existing conflicts to the Directors and if a conflict arises the Manager at
its own expense will take appropriate action to remedy such conflict up to and
including the establishment of a new registered investment company.
6. EFFECTIVENESS.
This Plan shall become effective with respect to each Class, (i) to the
extent required by the Act, after approval by a majority vote of: (a) the
Corporation's Board of Directors; (b) the members of the Board of the
Corporation who are not interested persons of the Corporation and have no direct
or indirect financial interest in the operation of the Corporation's Plan , and
(ii) upon execution of an exhibit adopting this Plan with respect to such Class.
7. AMENDMENT.
Any material amendment to this Plan will be effective after approval by
a majority vote of: (a) the Corporation's Board of Directors; and (b) the
members of the Board of the Corporation who are not interested persons of the
Corporation and have no direct or indirect financial interest in the operation
of the Corporation's Plan.
Flag Investors Funds, Inc. 3
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EXHIBIT A
to the
Amended & Restated Multiple Class Plan
FLAG INVESTORS FUNDS, INC.
(formerly Deutsche Funds, Inc.)
Flag Investors European Mid-Cap Fund (formerly Deutsche European Mid-Cap Fund)
- Class A, Class B and Class C Shares
Flag Investors Japanese Equity Fund (formerly Deutsche Japanese Equity Fund) -
Class A and Class B Shares
Flag Investors Top 50 Asia (formerly Deutsche Top 50 Asia) -
Class A and Class B Shares
Flag Investors Top 50 Europe (formerly Deutsche Top 50 Europe) -
Class A, Class B and Class C Shares Flag
Investors Top 50 US (formerly Deutsche Top 50 US) -
Class A, Class B and Class C Shares
Flag Investors Top 50 World (formerly Deutsche Top 50 World) -
Class A and Class B Shares
Flag Investors US Money Market Fund (formerly Deutsche U.S. Money Market Fund)-
Class A and Class B Shares
This Amended and Restated Multiple Class Plan is adopted as of January
31, 2000, by Flag Investors Funds, Inc. with respect to the Classes of Shares of
the Fund of the Corporation set forth above.
Witness the due execution hereof this 31st day of January, 2000.
FLAG INVESTORS FUNDS, INC.
By: /s/ Daniel O. Hirsch
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Name: Daniel O. Hirsch
Title: Assistant Secretary
Flag Investors Funds, Inc. 4
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EXHIBIT B
to the
Amended & Restated Multiple Class Plan
FLAG INVESTORS FUNDS, INC.
(formerly Deutsche Funds, Inc.)
Flag Investors Japanese Equity Fund (formerly Deutsche Japanese Equity Fund) -
Class C Shares
Flag Investors Top 50 Asia (formerly Deutsche Top 50 Asia) -
Class C Shares
Flag Investors Top 50 World (formerly Deutsche Top 50 World) -
Class C Shares
Flag Investors US Money Market Fund (formerly Deutsche U.S. Money Market Fund)-
Class C Shares
This Amended and Restated Multiple Class Plan is adopted as of January
31, 2000, by Flag Investors Funds, Inc. with respect to the Classes of Shares of
the Fund of the Corporation set forth above.
Witness the due execution hereof this 31st day of January, 2000.
FLAG INVESTORS FUNDS, INC.
By: /s/ Daniel O. Hirsch
----------------------------
Name: Daniel O. Hirsch
Title: Assistant Secretary
Flag Investors Funds, Inc. 5
