SAFECO TAXABLE BOND TRUST
00000 Xxxxxxx Xxxx XX
Redmond, WA 98052
May 1, 1999
SAFECO Asset Management Company
Two Union Square
Sixth Avenue and Union Street
Seattle, WA 98101
Dear Ladies and Gentlemen:
SAFECO Taxable Bond Trust, a Delaware business trust ("Trust") offers
for public sale distinct series of shares of beneficial interest of all such
existing series and additional series now or hereinafter listed on Exhibit A,
being referred to individually as a "Series," each Series corresponding to a
distinct portfolio.
You hereby agree during the period from May 1, 1999 through April 30,
2009 ("Limitation Period"), to pay the Series aggregate operating expenses
("Operating Expenses") which exceed, in any given month, the rate of .40% per
annum of the Fund's average daily net assets ("Expense Limitation"). For
purposes of this Agreement, Operating Expenses shall not include the Fund's
advisory fee, Rule 12b-1 fee, brokerage commissions, taxes, interest, or
extraordinary expenses. To the extent that the aggregate amount you paid or
assumed in any prior months in a given year during the Limitation Period exceed
the Expense Limitation, you may offset such amounts against the Expense
Limitation for the current month.
You understand that you shall look only to the assets of the Series for
performance of this Agreement and for payment of any claim you may have
hereunder, and neither any other series of the Trust, nor any of the Trust's
trustees, officers, employees, agents, or shareholders, whether past, present or
future, shall be personally liable therefor.
This Agreement is made and to be performed principally in the State of
Washington. Except insofar as the Investment Company Act of 1940 or other
federal laws and regulations may be controlling, this Agreement shall be
governed by, and construed in accordance with, the laws of the State of
Washington. Any amendment to this Agreement must be approved by a majority of
the Trust's Board of Trustees and must be in writing signed by the parties
hereto.
If you are in agreement with the foregoing, please sign the form below
and return the same to us.
Very truly yours,
SAFECO TAXABLE BOND TRUST
(On behalf of each Series)
By: /s/ XXXXX X. XXXX
-----------------
Xxxxx X. Xxxx
President
The foregoing agreement is hereby
accepted as of May 1, 1999
SAFECO ASSET MANAGEMENT COMPANY
By: /s/XXXXXXX X. XXXXX
Xxxxxxx X. Xxxxx
President
EXHIBIT A
LIST OF SERIES
The following is a list of Series referred to in the first paragraph of
the Agreement. Terms used herein as defined terms unless otherwise defined shall
have the meanings ascribed to them in the Agreement.
SAFECO Intermediate-Term U.S. Treasury Fund
SAFECO High-Yield Bond Fund
SAFECO GNMA Fund
