Exhibit (l)(xvi)

                               PURCHASE AGREEMENT

The Charles Schwab Family of Funds, a Massachusetts business trust (the
"Trust"), and Charles Schwab & Co., Inc., a California corporation ("Schwab"),
hereby agree as follows:

      1. The Trust hereby offers and Schwab hereby purchases 1 unit of
beneficial interest of the Value Advantage Shares of the series of shares known
as the Schwab California AMT Tax-Free Money Fund (such 1 unit of beneficial
interest being hereafter collectively known as the "Share") at a price of $1 per
Share. Schwab hereby acknowledges purchase of the Share and the Trust hereby
acknowledges receipt from Schwab of funds in the amount of $1 for the Share of
the Trust in full payment for the Share. It is further agreed that no
certificates for the Share will be issued by the Trust.

      2. Schwab represents and warrants to the Trust that the Shares are being
acquired for investment purposes and not with a view of the distribution
thereof.

      3. The names "The Charles Schwab Family of Funds" and "Trustees of The
Charles Schwab Family of Funds" refer, respectively, to the Trust created and
the Trustees as Trustees but not individually or personally, acting from time to
time under an Agreement and Declaration of Trust dated as of October 20, 1989,
as amended and restated on May 9, 1995, to which reference is hereby made and a
copy of which is on file at the Office of the Secretary of State of the
Commonwealth of Massachusetts and elsewhere as required by law, and to any and
all amendments thereto so filed or hereafter filed. The obligations of "The
Charles Schwab Family of Funds" entered into in the name or on behalf thereof by
any of the Trustees, representatives or agents are not made individually, but
only in such capacities, and are not binding upon any of the Trustees,
Shareholders or representatives of the Trust personally, but bind only the
assets of the Trust, and all persons dealing with any series of shares of the
Trust must look solely to the assets of the Trust belonging to such series for
the enforcement of any claims against the Trust.

      IN WITNESS WHEREOF, the parties hereto have executed the Agreement as of
the 16th day of November, 2007.

Attest:                                THE CHARLES SCHWAB FAMILY OF FUNDS

/s/ Jody Stuart                         By:  /s/ Kimon Daifotis
---------------                              -------------------
Jody Stuart                             Kimon Daifotis,
                                        Senior Vice President and
                                        Chief Investment Officer -- Fixed Income

Attest:                                 CHARLES SCHWAB & CO., INC.

/s/ Jody Stuart                         By:  /s/ Fred Potts
------------------------                     -------------------
Jody Stuart                             Fred Potts,
                                        Senior Vice President
                                        Mutual Fund Client Services