Preview | Administration Agreement |

BlackRock Funds^SM, a Massachusetts business trust (the ?Company?), BlackRock Advisors, LLC., a Delaware limited liability company(?BlackRock?) and STATE STREET BANK AND TRUST COMPANY Inc., a Massachusetts trust company (?STATE STREET BANK AND TRUST COMPANY?, and collectively with BlackRock, the ?Administrators?), wish to enter into this agreement (?The Agreement?) as of June 1, 2007.

WHEREAS, the Company is registered with the Securities and Exchange Commission (the ?Commission?) as an open-end, management investment company under the Investment Company Act of 1940, as amended (the ?1940 Act?); and

WHEREAS, the Company desires to separately retain the Administrators to provide certain administration services as set forth herein and to retain STATE STREET BANK AND TRUST COMPANY to provide certain accounting services as set forth herein for each class of units of beneficial interest (?shares?) in each of the Company?s investment portfolios (individually, a ?Fund,? and collectively, the ?Funds?) as listed on Appendix A hereto (as such Appendix may, from time to time, be supplemented (or amended)), and the Administrators are willing to furnish such administration services, and STATE STREET BANK AND TRUST COMPANY is willing to furnish such accounting services; and

WHEREAS, certain of the services to be provided under this Agreement relate to particular classes of shares of a Fund and the holders thereof, while other services to be provided hereunder relate to all share classes of a Fund as set forth herein; and

WHEREAS, pursuant to Rule 18f-3 under the 1940 Act the Board of Trustees of the Company, including a majority of its ?non-interested? members as defined in the 1940 Act, has found that it is in the best interests of each Fund and its individual share classes that those administrative expenses that relate to a particular class of shares be charged to the share class for which such expenses are incurred;

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, it is agreed among the parties hereto as follows:

1. Appointment of Administrators. The Company hereby appoints BlackRock to provide the administration services as specified below that have been designated to it, STATE STREET BANK AND TRUST COMPANY to provide the administration services as specified below that have been designated to it, and STATE STREET BANK AND TRUST COMPANY to provide the accounting services as specified below that have been designated to it, for the particular class(es) of shares as specified below in each of the Company?s Funds, on the terms and for the periods set forth in this Agreement. Each of BlackRock and STATE STREET BANK AND TRUST COMPANY accepts such respective appointments and agrees to perform the services and duties set forth in Section 4 below that have been designated to it in return for the compensation provided for in Section 6 below.

In the event that the Company establishes an additional class of shares or investment portfolio other than the classes and investment portfolios listed on Appendix A with respect to which it desires to retain BlackRock and STATE STREET BANK AND TRUST COMPANY to provide the respective administration services specified below and STATE STREET BANK AND TRUST COMPANY to provide the accounting services specified below, the Company shall notify BlackRock and STATE STREET BANK AND TRUST COMPANY, whereupon with the consent of BlackRock and STATE STREET BANK AND TRUST COMPANY such Appendix A shall be supplemented (or amended) and such class or portfolio shall be subject to the provisions of this Agreement to the same extent as the classes and investment portfolios currently listed on Appendix A (except to the extent that said provisions, including the compensation payable on behalf of such new class or investment portfolio, may be modified in writing by the Company and the Administrators at the time).

2. Instructions. Each Administrator shall be entitled to rely upon any Oral Instruction or Written Instruction it receives pursuant to this Agreement. For purposes of this Agreement: (1) ?Authorized Persons? means any officer of the Company and any other person duly authorized by the Company to provide oral or written instructions on behalf of the Company; (2) ?Oral Instructions? means oral instructions received by the Administrator to whom the instruction is addressed from an Authorized Person or a person reasonably believed by such Administrator to be an Authorized Person (an Administrator may, in its sole discretion in each separate instance, consider and rely upon instructions it receives from an Authorized Person (or a person reasonably believed by such Administrator to be an Authorized Person) via electronic mail as Oral Instructions); and (3) ?Written Instructions? means (i) written instructions received by the Administrator to whom the instruction is addressed and signed by an Authorized Person or a person reasonably believed by such Administrator to be an Authorized Person or (ii) trade instructions received by the Administrator to whom the trade instruction is addressed if the trade instruction was transmitted by means of an electronic transaction reporting system which requires the use of a password or other authorized identifier in order to gain access. Written Instructions may be delivered electronically (provided that instructions delivered via electronic mail shall be treated as set forth under the definition of ?Oral Instructions? above) or by hand, mail or facsimile sending device. The Company agrees to forward to an Administrator to whom it sends an Oral Instruction a confirming Written Instruction so that such Administrator receives the confirming Written Instruction by the close of business on the same day that such Oral Instruction is received; the fact that such confirming Written Instruction is not received by such Administrator or differs from the Oral Instruction shall in no way invalidate the transactions or enforceability of the transactions authorized by the Oral Instruction or such Administrator?s ability to rely upon such Oral Instruction.

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