EXHIBIT 8(b)
FIRST AMERICAN INVESTMENT FUNDS, INC.
COMPENSATION AGREEMENT DATED AS OF JULY 23, 1998
PURSUANT TO CUSTODIAN AGREEMENT
WHEREAS, First American Investment Funds, Inc., a Maryland
corporation (hereinafter called the "Fund"), and First Trust National
Association, a national banking association organized and existing under the
laws of the United States of America, previously entered into that Custodian
Agreement dated September 20, 1993 (the "Custodian Agreement"); and
WHEREAS, First Trust National Association, with the consent of the
Fund, assigned its rights and obligations under the Custodian Agreement to U.S.
Bank National Association, a national banking association organized and existing
under the laws of the United States of America (the "Custodian") by an
Assignment and Assumption Agreement dated as of May 1, 1998; and
WHEREAS, Article 12 of the Custodian Agreement provides that the
Custodian shall be paid compensation at such rates and at such times as may from
time to time be agreed on in writing by the parties thereto; and
WHEREAS, the Fund and the Custodian previously entered into that
Compensation Agreement dated as of January 31, 1998, for such purpose with
respect to the then-existing series of the Fund; and
WHEREAS, the Fund and the Custodian wish to amend such compensation
agreement in order to add provisions thereto relating to certain new funds.
NOW, THEREFORE, the Fund and the Custodian agree as follows:
1. The compensation payable to the Custodian pursuant to the
Custodian Agreement with respect to the respective series of the Fund shall be
payable monthly at the following annual rates as percentages of the respective
series' average daily net assets: Large Cap Value Fund, Equity Index Fund,
Balanced Fund, Regional Equity Fund, Mid Cap Value Fund, Limited Term Income
Fund, Intermediate Term Income Fund, Fixed Income Fund, Intermediate Government
Bond Fund, Health Sciences Fund, Real Estate Securities Fund, Equity Income
Fund, Large Cap Growth Fund, Small Cap Growth Fund, Technology Fund,
Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Colorado
Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, California
Intermediate Tax Free Fund, Micro Cap Value Fund, Small Cap Value Fund,
Adjustable Rate Mortgage Securities Fund, Tax Free Fund, Minnesota Tax Free
Fund, Mid Cap Growth Fund, and Strategic Income Fund, .03%; and International
Fund, International Index Fund, and Emerging Markets Fund, 0.10%. The Custodian
shall pay sub-custodian fees with respect to those funds which are authorized to
utilize foreign sub-custodians out of the compensation payable to the Custodian
with respect to such
funds as set forth above. The Fund shall reimburse the Custodian for all other
out-of-pocket expenses incurred by the Custodian in connection with the
performance of the Custodian's services under the Custodian Agreement.
2. This Compensation Agreement restates and supersedes all prior
compensation agreements pursuant to Article 12 of the Custodian Agreement.
IN WITNESS WHEREOF, the Fund and the Custodian have caused this
instrument to be executed in duplicate as of the date first above written by
their duly authorized officers.
FIRST AMERICAN INVESTMENT
FUNDS, INC.
By /s/ Xxxxxxx X. Xxxxxxx
-------------------------------
Its Vice President
-------------------------------
U.S. BANK NATIONAL ASSOCIATION
By /s/ Xxxxxxx X. Xxxxxx
-------------------------------
Its Vice President
-------------------------------
