BAIRD FUNDS, INC.
RULE 18F-3
MULTIPLE CLASS PLAN
AS AMENDED, DECEMBER 29, 2000
Baird Funds, Inc. (the "Company"), a registered investment company
currently consisting of the Baird Aggregate Bond Fund, the Baird Short-Term Bond
Fund, the Baird Intermediate Bond Fund, the Baird Core Bond Fund, the Baird
Intermediate Municipal Bond Fund, the Baird Horizon Growth Fund and the Baird
MidCap Fund (each, a "Fund"), has elected to rely on Rule 18f-3 under the
Investment Company Act of 1940, as amended (the "1940 Act"), in offering
multiple classes of shares of each Fund. A majority of the Board of Directors of
the Company, including a majority of the directors who are not interested
persons of the Company, has determined in accordance with Rule 18f-3(d) that the
following plan (the "Plan") is in the best interests of each class individually
and the Company as a whole:
1. CLASS DESIGNATION. Fund shares will be designated either Investor Class or
Institutional Class.
2. CLASS CHARACTERISTICS. Each class of shares will represent interests in
the same portfolio of investments and will be identical in all respects to
the other class, except as set forth below:
Investor Class: Investor Class shares will be offered for sale at net asset
value per share without the imposition of a sales charge.
Investor Class shares will be subject to a distribution plan
adopted pursuant to Rule 12b-1 under the 1940 Act which
provides for an annual distribution fee of 0.25% of the
average daily net assets of the Fund attributable to
Investor Class shares, computed on an annual basis. The
distribution plan fees for the Investor Class shares
will be used to pay: (i) each Fund's distributor a
distribution and shareholder servicing fee of 0.25% for
promoting and distributing Investor Class shares or for
providing shareholder services; and (ii) others who render
assistance in distributing, promoting or providing
shareholder services to shareholders of Investor Class
shares.
Institutional Class: Institutional Class shares will be offered for sale
at net asset value per share without the imposition of a
sales charge. Institutional Class shares will not be subject
to a distribution plan pursuant to Rule 12b-1 under the
1940 Act.
3. EXPENSE ALLOCATIONS. The following expenses for each Fund will be allocated
on a class-by-class basis, to the extent applicable and practicable: (i) fees
under the distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act;
(ii) accounting, auditor, litigation or other legal expenses relating solely to
a particular class; and (iii) expenses incurred in connection with shareholder
meetings as a result of issues relating to a particular class. Income, realized
and unrealized capital gains and losses, and expenses of a Fund not allocated to
a particular class will be allocated on the basis of the net asset value of each
class in relation to the net asset value of the Fund. Notwithstanding the
foregoing, a service provider for a Fund may waive or reimburse the expenses of
a specific class or classes to the extent permitted under Rule 18f-3 of the 1940
Act.
4. EXCHANGES. Investor Class or Institutional Class shares in one Fund may be
exchanged at their relative net asset values for Investor Class or Institutional
Class shares, respectively, in another Fund. Investor Class shares may be
exchanged at net asset value for Institutional Class shares only if the
requirements for investment in Institutional Class shares as to the type of
investor and minimum initial or subsequent investment are met. Institutional
Class shares may be exchanged at net asset value for Investor Class shares.
5. CONVERSIONS. There are no conversion features associated with the Investor
Class or Institutional Class shares.
6. GENERAL. Each class will have exclusive voting rights with respect to any
matter related solely to such class's Rule 18f-3 arrangements. Each class will
have separate voting rights with respect to any matter submitted to shareholders
in which the interests of one class differ from the interests of the other
class. Each class will have in all other respects the same rights and
obligations as each other class. On an ongoing basis, the Board of Directors
will monitor the Plan for any material conflicts between the interests of the
classes of shares. The Board of Directors will take such action as is reasonably
necessary to eliminate any conflict that develops. Each Fund's investment
adviser and distributor will be responsible for alerting the Board of Directors
to any material conflicts that may arise. Any material amendment to this Plan
must be approved by a majority of the Board of Directors, including a majority
of the directors who are not interested persons of the Company, as defined in
the 1940 Act. This Plan is qualified by and subject to the then current
prospectus for the applicable class, which contains additional information about
that class.
