EXPENSE LIMITATION & FEE REIMBURSEMENT AGREEMENT
THIS AGREEMENT is effective as of the 28th day of October 2009, between FAF
Advisors, Inc., as investment advisor (the "Advisor"), and First American
Investment Funds, Inc. ("FAIF").
WHEREAS, FAIF includes the investment portfolios set forth in Exhibit A
hereto (each a "Fund" and, collectively, the "Funds"), each of which offers one
or more classes of shares; and
WHEREAS, the Advisor wishes to contractually limit total annual fund
operating expenses for each share class of each Fund and to reimburse certain
Funds for the Rule 12b-1 fees paid to the Funds' distributor on Class A shares
of such certain Funds through October 31, 2010; and
WHEREAS, it is in the interests of both the Advisor and the shareholders of
the Funds to limit Fund expenses and, where applicable, to reimburse 12b-1 fees
as set forth herein.
NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree
that the Advisor will limit its fees and/or reimburse Fund expenses to the
extent necessary to limit the annual operating expenses of the Funds to the
amounts set forth in Exhibit A (which limits are set forth for each Fund on a
class-by-class basis). The parties hereto further agree that the Advisor will
reimburse certain Funds, in the amounts identified in Exhibit A, for the Rule
12b-1 fees paid to the Funds' distributor on the respective Fund's Class A
shares. The Advisor agrees that it may not be reimbursed by FAIF for the fees
waived or reimbursements made by the Advisor under the terms of this agreement.
The Advisor agrees to continue the foregoing expense limits and fee
reimbursements through October 31, 2010. Thereafter, any expense limit or fee
reimbursement may be changed upon prior notice to FAIF's Board of Directors.
IN WITNESS WHEREOF, the parties have signed this agreement as of the day
and year first above written.
FAF ADVISORS, INC. FIRST AMERICAN INVESTMENT FUNDS, INC.
By: By:
--------------------------------- ------------------------------
Name: Xxxxxx X. Xxxxx III Name: Xxxxxxx X. Xxxxxxxxx, Xx.
Title: Chief Financial Officer Title: Treasurer
EXHIBIT A
ANNUAL OPERATING EXPENSE LIMITATION
AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS CLASS A SHARE
----------------------------------------------- 12B-1 FEE
CLASS A CLASS B CLASS C CLASS R CLASS Y REIMBURSEMENT
------- ------- ------- ------- ------- -------------
INCOME FUNDS
Core Bond 0.95% 1.70% 1.70% 1.20% 0.70% N/A
High Income Bond 1.10% 1.85% 1.85% 1.35% 0.85% N/A
Inflation Protected Securities 0.85% N/A 1.60% 1.10% 0.60% N/A
Intermediate Government Bond 0.75% N/A 1.60% 1.10% 0.60% N/A
Intermediate Term Bond 0.85% N/A N/A N/A 0.70% N/A
Short Term Bond 0.75% N/A 1.60% N/A 0.60% N/A
Total Return Bond 1.00% 1.75% 1.75% 1.25% 0.75% N/A
U.S. Government Mortgage 0.95% 1.70% 1.70% 1.20% 0.70% N/A
TAX FREE INCOME FUNDS
Arizona Tax Free 0.75% N/A 1.15% N/A 0.50% N/A
California Tax Free 0.65% N/A 1.15% N/A 0.50% 0.10%
Colorado Tax Free 0.75% N/A 1.15% N/A 0.50% N/A
Minnesota Tax Free 0.85% N/A 1.35% N/A 0.70% 0.10%
Missouri Tax Free 0.85% N/A 1.35% N/A 0.70% 0.10%
Nebraska Tax Free 0.75% N/A 1.15% N/A 0.50% N/A
Ohio Tax Free 0.75% N/A 1.15% N/A 0.50% N/A
Tax Free 0.75% N/A 1.35% N/A 0.70% 0.20%
SHORT & INTERMEDIATE
TAX FREE INCOME FUNDS
Intermediate Tax Free 0.75% N/A 1.35% N/A 0.70% 0.10%
Minnesota Intermediate Tax Free 0.75% N/A 1.35% N/A 0.70% 0.10%
Oregon Intermediate Tax Free 0.85% N/A N/A N/A 0.70% N/A
Short Tax Free 0.75% N/A N/A N/A 0.60% N/A
