EXPENSE LIMITATION AGREEMENT
THIS AGREEMENT is effective as of the 31st day of May, 2006, between
FAF Advisors, Inc., as investment advisor (the "Advisor"), and First American
Strategy Funds, Inc. ("FASF").
WHEREAS, Income Builder Fund (the "Fund") is an investment portfolio of
FASF and offers one or more classes of shares; and
WHEREAS, the Advisor wishes to contractually commit to limiting fees
and reimbursing expenses for the Fund through June 30, 2007; and
WHEREAS, it is in the interests of both the Advisor and the
shareholders of the Fund to limit Fund expenses 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 Fund to the
amounts set forth in Exhibit A hereto (which limits are set forth for the Fund
on a class-by-class basis). The Advisor agrees that it may not be reimbursed by
FASF for the fees waived by the Advisor under the terms of the agreement. The
Advisor agrees to continue the foregoing expense limits through June 30, 2007.
Thereafter, any expense limit may be changed upon prior notice to FASF'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 STRATEGY FUNDS, INC.
By: /s/ Xxxxxx X. Xxxxxxxx, Xx. By: /s/ Xxxxxxx X. Xxxxxxxxx, Xx.
-------------------------------- ----------------------------------
Name: Xxxxxx X. Xxxxxxxx, Xx. Name: Xxxxxxx X. Xxxxxxxxx, Xx.
Title: Chief Executive Officer Title: Treasurer
Exhibit A
Annual Operating Expense
Limitation as a Percentage Of
Income Builder Fund Average Daily Net Assets
Class A 0.3500%
Class B 1.1000%
Class C 1.1000%
Class Y 0.1000%
