<PAGE>
Exhibit h(8)
Citi Tax Free Reserves
21 Milk Street
Boston, Massachusetts 02109
August 24, 2000
Citi Fiduciary Trust Company
388 Greenwich Street
New York, New York 10013
Re: CitiFunds Tax Free Reserves - Transfer Agency and Service Agreement
Ladies and Gentlemen:
This letter serves as notice that CitiFunds Tax Free Reserves (the "Fund")
is added to the list of investment companies to which Citi Fiduciary Trust
Company ("Citi Fiduciary") renders services as transfer agent pursuant to the
terms of the Transfer Agency and Service Agreement dated as of October 1, 1999
(the "Agreement") between each of the investment companies listed on Schedule A
thereto and Citi Fiduciary (formerly known as, "Smith Barney Private Trust
Company").
Please sign below to acknowledge your receipt of this notice adding the
Fund as beneficiary under the Agreement.
CITI TAX FREE RESERVES
By: Philip Coolidge
--------------------------
Title: President
--------------------------
Acknowledgment:
CITI FIDUCIARY TRUST COMPANY
By: [signature illegible]
-----------------------------------
Title: Director Transfer Agency Operations
-----------------------------------