EXHIBIT ITEM (h)

                       TRANSFER AGENT SERVICING AGREEMENT

     THIS AGREEMENT is made and entered into as of this 1st day of June, 1999,
by and between Mairs and Power Balanced Fund, Inc., a corporation organized
under the laws of the State of Minnesota (hereinafter referred to as "Fund") and
Firstar Mutual Fund Services, LLC, a limited liability company organized under
the laws of the State of Wisconsin (hereinafter referred to as the "FMFS").

     WHEREAS, the Fund is an open-ended management investment company which is
registered under the Investment Company Act of 1940; and

     WHEREAS, FMFS is in the business of providing, among other things, transfer
agent and dividend disbursing agent services to investment companies;

     NOW, THEREFORE, in consideration of the mutual agreements herein made, the
Fund and FMFS agree as follows:


1.   APPOINTMENT OF TRANSFER AGENT

     The Fund hereby appoints FMFS as Transfer Agent of the Fund on the terms
and conditions set forth in this Agreement, and FMFS hereby accepts such
appointment and agrees to perform the services and duties set forth in this
Agreement in consideration of the compensation provided for herein.

2.   DUTIES AND RESPONSIBILITIES OF FMFS

     FMFS shall perform all of the customary services of a transfer agent and
dividend disbursing agent, and as relevant, agent in connection with
accumulation, open account or similar plans (including without limitation any
periodic investment plan or periodic withdrawal program), including but not
limited to:

     A.   Receive orders for the purchase of shares;

     B.       Process purchase orders with prompt delivery, where appropriate,
          of payment and supporting documentation to the Fund's custodian, and
          issue the appropriate number of uncertificated shares with such
          uncertificated shares being held in the appropriate shareholder
          account;

     C.   Arrange for issuance of Shares obtained through transfers of funds
          from Shareholders' accounts at financial institutions and arrange for
          the exchange of Shares for shares of other eligible investment
          companies, when permitted by Prospectus.



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     D.   Process redemption requests received in good order and, where
          relevant, deliver appropriate documentation to the Fund's custodian;

     E.   Pay monies upon receipt from the Fund's custodian, where relevant, in
          accordance with the instructions of redeeming shareholders;

     F.   Process transfers of shares in accordance with the shareholder's
          instructions;

     G.   Process exchanges between Funds and/or classes of shares of funds.

     H.   Prepare and transmit payments for dividends and distributions declared
          by the Fund, after deducting any amount required to be withheld by any
          applicable laws, rules and regulations and in accordance with
          shareholder instructions;

     I.   Make changes to shareholder records, including, but not limited to,
          address changes in plans (i.e., systematic withdrawal, automatic
          investment, dividend reinvestment, etc.);

     J.   Record the issuance of shares of the Fund and maintain, pursuant to
          Rule 17ad-10(e) promulgated under the Securities Exchange Act of 1934,
          as amended (the "Exchange Act"), a record of the total number of
          shares of the Fund which are authorized, issued and outstanding;

     K.   Prepare shareholder meeting lists and, if applicable, mail, receive
          and tabulate proxies;

     L.   Mail shareholder reports and prospectuses to current shareholders;

     M.   Prepare and file U.S. Treasury Department Forms 1099 and other
          appropriate information returns required with respect to dividends and
          distributions for all shareholders;

     N.   Provide shareholder account information upon request and prepare and
          mail confirmations and statements of account to shareholders for all
          purchases, redemption's and other confirmable transactions as agreed
          upon with the Fund;

     O.   Mail requests for shareholders' certifications under penalties of
          perjury and pay on a timely basis to the appropriate Federal
          authorities any taxes to be withheld on dividends and distributions
          paid by the Fund, all as required by applicable Federal tax laws and
          regulations;

     P.   Provide a Blue Sky System, which will enable the Fund to monitor the
          total number of shares of the Fund, sold in each state. In addition,
          the Fund or its agent, including FMFS, shall identify to FMFS in
          writing those transactions and assets to be treated as exempt from the
          Blue Sky reporting for each state. The responsibility of FMFS for



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          the Fund's Blue Sky state registration status is solely limited to the
          initial compliance by the Fund and the reporting of such transactions
          to the Fund or its agent;

     Q.   Answer correspondence from shareholders, securities brokers and others
          relating to FMFS's duties hereunder and such other correspondence as
          may from time to time be mutually agreed upon between FMFS and the
          Fund.

     Reimburse the Fund each month for all material losses resulting from "as
of" processing errors for which FMFS is responsible in accordance with the "as
of" processing guidelines set forth in the attached exhibit B.

3.   COMPENSATION

     The Fund agrees to pay FMFS for performance of duties listed in this
Agreement; the fees and out-of-pocket expenses include, but are not limited to
the following: printing, postage, forms, stationery, record retention, mailing,
insertion, programming, labels, shareholder lists and proxies. The Fund agrees
to pay all fees and reimbursable expenses within ten (10) business days
following the receipt of the billing notice.

4.   REPRESENTATIONS OF FMFS

     FMFS represents and warrants to the Fund that:

     A.   It is a corporation duly organized, existing and in good standing
          under the laws of Wisconsin;

     B.   It is a registered transfer agent under the Exchange Act.

     C.   It is duly qualified to carry on its business in the State of
          Wisconsin;

     D.   It is empowered under applicable laws and by its charter and bylaws to
          enter into and perform this Agreement;

     E.   All requisite corporate proceedings have been taken to authorize it to
          enter and perform this Agreement;

     F.   It has and will continue to have access to the necessary facilities,
          equipment and personnel to perform its duties and obligations under
          this Agreement; and

     G.   It will comply with all applicable requirements of the Securities Act
          of 1933, as amended, and the Exchange Act, the 1940 Act, and any laws,
          rules, and regulations of governmental authorities having
          jurisdiction.

5.   REPRESENTATIONS OF THE FUND



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     The Fund represents and warrants to FMFS that:

     A.   The Fund is an open-end investment company under the 1940 Act;

     B.   The Fund is organized, existing, and in good standing under the laws
          of Minnesota;

     C.   The Fund is empowered under applicable laws and by its Articles of
          Incorporation and Bylaws to enter into and perform this Agreement;

     D.   All necessary proceedings required by the Articles of Incorporation
          have been taken to authorize it to enter into and perform this
          Agreement;

     E.   The Fund will comply with all applicable requirements of the
          Securities Act, the Exchange Act, the 1940 Act, and any laws, rules
          and regulations of governmental authorities having jurisdiction; and

     F.   A registration statement under the Securities Act will be made
          effective and will remain effective, and appropriate state
          securities law filings have been made and will continue to be made,
          with respect to all shares of the Company being offered for sale.


6.   PERFORMANCE OF SERVICE; LIMITATION OF LIABILITY

     FMFS shall exercise reasonable care in the performance of its duties under
this Agreement. FMFS shall not be liable for any error of judgment or mistake of
law or for any loss suffered by the Fund in connection with matters to which
this Agreement relates, including losses resulting from mechanical breakdowns or
the failure of communication or power supplies beyond FMFS's control, except a
loss arising out of or relating to the Agent's refusal or failure to comply with
the terms of this Agreement or from bad faith, negligence, or willful misconduct
on its part in the performance of its duties under this Agreement.
Notwithstanding any other provision of this Agreement, if FMFS has exercised
reasonable care in the performance of its duties under this Agreement, the
Fund shall indemnify and hold harmless FMFS from and against any and all
claims, demands, losses, expenses, and liabilities (whether with or without
basis in fact or law) of any and every nature (including reasonable
attorneys' fees) which FMFS may sustain or incur or which may be asserted
against FMFS by any person arising out of any action taken or omitted to be
taken by it in performing the services hereunder, except for any and all
claims, demands, losses expenses, and liabilities arising out of or relating
to FMFS's refusal or failure to comply with the terms of this Agreement or
from bad faith, negligence or from willful misconduct on its part in
performance of its duties under this Agreement, (i) in accordance with the
foregoing standards, or (ii) in reliance upon any written or oral instruction
provided to FMFS by any duly authorized officer of the Fund, such duly
authorized officer to be included in a list of authorized officers furnished
to FMFS and as amended from time to time in writing by resolution of the
Board of Directors of the Fund.

      The Fund will indemnify and hold FMFS harmless against any and all losses,
claims, damages, liabilities or expenses (including reasonable counsel fees and
expenses) resulting from



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any claim, demand, action, or suit as a result of the negligence of the Fund or
the principal underwriter (unless contributed to by the FMFS's breach of this
Agreement or other Agreements between the Fund and the FMFS, or the Agent's own
negligence or bad faith); or as a result of the FMFS acting upon telephone
instructions relating to the exchange or redemption of shares received by the
FMFS and reasonably believed by the FMFS under a standard of care customarily
used in the industry to have originated from the record owner of the subject
shares; or as a result of acting in reliance upon any genuine instrument or
stock certificate signed, countersigned, or executed by any person or persons
authorized to sign, countersign, or execute the same.

     FMFS shall indemnify and hold the Fund harmless from and against any and
all claims, demands, losses, expenses, and liabilities (whether with or without
basis in fact or law) of any and every nature (including reasonable attorneys'
fees) which the Fund may sustain or incur or which may be asserted against the
Fund by any person arising out of any action taken or omitted to be taken by
FMFS as a result of FMFS's refusal or failure to comply with the terms of this
Agreement, its bad faith, negligence, or willful misconduct.

     In the event of a mechanical breakdown or failure of communication or power
supplies beyond its control, FMFS shall take all reasonable steps to minimize
service interruptions for any period that such interruption continues beyond
FMFS's control. FMFS will make every reasonable effort to restore any lost or
damaged data and correct any errors resulting from such a breakdown at the
expense of FMFS. FMFS agrees that it shall, at all times, have reasonable
contingency plans with appropriate parties, making reasonable provision for
emergency use of electrical data processing equipment to the extent appropriate
equipment is available. Representatives of the Fund shall be entitled to inspect
FMFS's premises and operating capabilities at any time during regular business
hours of FMFS, upon reasonable notice to FMFS.

     Regardless of the above, FMFS reserves the right to reprocess and correct
administrative errors at its own expense.

     In order that the indemnification provisions contained in this section
shall apply, it is understood that if in any case the indemnitor may be asked to
indemnify or hold the indemnitee harmless, the indemnitor shall be fully and
promptly advised of all pertinent facts concerning the situation in question,
and it is further understood that the indemnitee will use all reasonable care to
notify the indemnitor promptly concerning any situation which presents or
appears likely to present the probability of a claim for indemnification. The
indemnitor shall have the option to defend the indemnitee against any claim,
which may be the subject of this indemnification. In the event that the
indemnitor so elects, it will so notify the indemnitee and thereupon the
indemnitor shall take over complete defense of the claim, and the indemnitee
shall in such situation initiate no further legal or other expenses for which
it shall seek indemnification under this section. The indemnitee shall in no
case confess any claim or make any compromise in any case in which the
indemnitor will be asked to indemnify the indemnitee except with the
indemnitor's prior written consent.

7.    PROPRIETARY AND CONFIDENTIAL INFORMATION



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     FMFS agrees on behalf of itself and its directors, officers, and employees
to treat confidentially and as proprietary information of the Company all
records and other information relative to the Fund and prior, present, or
potential shareholders (and clients of said shareholders) and not to use such
records and information for any purpose other than the performance of its
responsibilities and duties hereunder, except after prior notification to and
approval in writing by the Fund, which approval shall not be unreasonably
withheld and may not be withheld where FMFS may be exposed to civil or criminal
contempt proceedings for failure to comply after being requested to divulge such
information by duly constituted authorities, or when so requested by the Fund.

8.   TERM OF AGREEMENT

     This Agreement shall become effective as of the date hereof and, unless
sooner terminated as provided herein, shall continue automatically in effect for
successive annual periods. The Agreement may be terminated by either party upon
giving ninety (90) days prior written notice to the other party or such shorter
period as is mutually agreed upon by the parties. However, this Agreement may be
amended by mutual written consent of the parties.

9.   RECORDS

     The Agent shall keep records relating to the services to be performed
hereunder, in the form and manner, and for such period as it may deem advisable
and is agreeable to the Fund but not inconsistent with the rules and regulations
of appropriate government authorities, in particular, Section 31 of The
Investment Company Act of 1940 as amended (the "Investment Company Act"), and
the rules thereunder. The Agent agrees that all such records prepared or
maintained by The Agent relating to the services to be performed by the Agent
hereunder are the property of the Fund and will be preserved, maintained, and
made available with such section and rules of the Investment Company Act and
will be promptly surrendered to the Fund on and in accordance with its request.

10.  GOVERNING LAW

     This Agreement shall be construed and the provisions thereof interpreted
under and in accordance with the laws of the State of Wisconsin. However,
nothing herein shall be construed in a manner inconsistent with the 1940 Act or
any rule or regulation promulgated by the Securities and Exchange Commission
thereunder.

11.  DUTIES IN THE EVENT OF TERMINATION

     In the event that, in connection with termination, a successor to any of
FMFS's duties or responsibilities hereunder is designated by the Fund by written
notice to FMFS, FMFS will promptly, upon such termination and at the expense of
the Fund, transfer to such successor all relevant books, records,
correspondence, and other data established or maintained by FMFS under this
Agreement is a form reasonably acceptable to the Fund (if such form differs from
the form in which FMFS has maintained, the Fund shall pay any expenses
associated with transferring



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the data to such form), and will cooperate in the transfer of such duties and
responsibilities, including provision for assistance from FMFS's personnel in
the establishment of books, records, and other data by such successor.

12.   NOTICES

     Notices of any kind to be given by either party to the other party shall be
in writing and shall be duly given if mailed or delivered as follows: Notice to
FMFS shall be sent to:

     Firstar Mutual Fund Services, LLC
     615 East Michigan Street
     Milwaukee, WI 53202

and notice to the Company shall be sent to:

     Ms. Lisa J. Hartzell
     Mairs & Power, Inc.
     W-1420 First National Bank Building
     332 Minnesota St.
     St. Paul, Minnesota, 55101



IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by a duly authorized officer or one or more counterparts as of the day and year
first written above.


MAIRS AND POWER BALANCED FUND          FIRSTAR MUTUAL FUND SERVICES, LLC


By:  /s/ William B. Frels              By:  /s/ Andrea McVoy
   ---------------------------            -------------------------------
          President                           Assist. Vice President

Attest:  /s/ Lisa J. Hartzell          Attest:   /s/ James C. Tyler
       -----------------------                ---------------------------