FIRST AMENDMENT TO THE
PRINCIPAL SPECIAL MARKETS FUND, INC.
INVESTMENT SERVICE AGREEMENT
The Investment Service Agreement ("Agreement") by and between Principal Special
Markets Fund, Inc., an open-end investment company formed under the laws of
Maryland, Princor Management Corporation, an Iowa corporation, and Principal
Mutual Life Insurance Company, a specially chartered Iowa life insurance
company, was executed on the 22nd day of April, 1993.
WHEREAS, The Agreement contemplates the addition of Portfolios
("Portfolios") to the Fund, and
WHEREAS, The Board of Directors of the Fund has adopted Resolutions to add
Portfolios to the Fund, and
WHEREAS, Principal Special Markets Fund, Inc., Princor Management
Corporation and Principal Mutual Life Insurance Company wish the provisions of
the Agreement to extend to the additional Portfolios:
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:
1. The Agreement shall be effective with respect to the International
Emerging Markets Portfolio as of the _1st_ day of __November_____,
1997.
2. The Agreement shall be effective with respect to the International
SmallCap Portfolio as of the _1st_ day of __November_______, 1997.
Executed this ___1st__ day of ___November_____, 1997
Principal Special Markets Fund, Inc.
by:____/s/ A. S. Filean_____________
Princor Management Corporation
by:___/s/ S. L. Jones_______________
Principal Mutual Life Insurance Company
by:__/s/ Ronald E. Keller___________
