EXPENSE CAP/REIMBURSEMENT AGREEMENT
This
Agreement is entered into as of the 1st day of January, 2007 between Xxxxxx
X.
Xxxxx & Co. Incorporated (the “Advisor”) and Baird Funds, Inc. (the
“Corporation”), on behalf of the Baird LargeCap Fund (the “LargeCap Fund”),
Xxxxx MidCap Fund (the “MidCap Fund”) and the Baird SmallCap Fund (the “SmallCap
Fund”; the LargeCap Fund, MidCap Fund and SmallCap Fund are hereinafter referred
to collectively as the “Funds” and individually as a “Fund”).
WHEREAS,
the Advisor desires to contractually agree to waive a portion of its advisory
fee or reimburse the Funds’ operating expenses to ensure that the Funds’ total
operating expenses do not exceed the levels described below.
NOW
THEREFORE, the parties agree as follows:
The
Advisor agrees that, for the term of this Agreement, it will reduce its
compensation as provided for in the Investment Advisor Agreement between
the
Corporation on behalf of the Funds and the Advisor and/or assume expenses
for
the Fund to the extent necessary to ensure that each Fund’s total operating
expenses, excluding taxes, brokerage commissions and extraordinary expenses,
do
not exceed the following annual percentages of the average daily net assets
attributable to the Fund’s Institutional Class and Investor Class
shares:
Institutional
Class Investor
Class
LargeCap
Fund
0.75% 1.00%
MidCap
Fund
0.85% 1.10%
SmallCap
Fund
0.95% 1.20%
The
Advisor shall be entitled to recoup such amounts from a Fund for a period
of up
to three (3) years from the date the Advisor reduced its compensation and/or
assumed expenses for that Fund, provided that the expense ratios in those
future
years are less than the limits specified herein and less than the limits
in
effect in those future years.
This
Agreement shall continue in effect until April 30, 2008. Thereafter this
Agreement shall automatically continue thereafter for successive renewal
terms
of one year each, unless either party notifies the other party of its desire
to
terminate this Agreement prior to such renewal.
XXXXXX
X.
XXXXX & CO. INCORPORATED
By:_______________________________________
Its:_______________________________________
BAIRD
FUNDS, INC. (on behalf of Baird LargeCap Fund,
Xxxxx
MidCap Fund, Baird SmallCap Fund)
By:_______________________________________
Its:_______________________________________
