January 6, 2009

January 6, 2009

U.S. Bank, National Association

U.S. Bancorp Fund Services, LLC

000 Xxxx Xxxxxxxx Xxxxxx

Milwaukee, WI 53202

Attn:  Xxx Xxxxxxx

Re:  Baird Funds, Inc.

Dear Xxx:

The following Agreements with U.S. Bank National Association/U.S. Bancorp Fund Services, LLC (as extended by letter dated March 13, 2008) are due to expire August 31, 2009:

Custody Agreement

Fund Accounting Servicing Agreement

Fund Administration Servicing Agreement

Prospect Servicing Agreement

Transfer Agent Servicing Agreement

Baird Funds, Inc. proposes, and this letter serves as our intent, to extend the term of these agreements under the same terms and conditions through August 31, 2010.  If this meets with your approval, please sign the acknowledgment and return to me at your earliest convenience.  Please feel free to contact me at 000-0000 if you have any questions or wish to discuss the matter.

Sincerely,

/s/ Xxxx Xxxxx Xxxxxx

Xxxx Xxxxx Xxxxxx

Xxxxx Funds, Inc.

President

ACKNOWLEDGMENT

U.S. Bank, N.A. and U.S. Bancorp Fund Services, LLC hereby agrees to extend the term of the above referenced agreements through August 31, 2010.

By:     /s/ Xxx Xxxxxxx	Date:  January 9, 2009
Title:    Executive Vice President and President