FORM OF
                                  AMENDMENT TO
                          FUND ADMINISTRATION AGREEMENT

     This Amendment  dated as of January 1, 2001, is to the Fund  Administration
Agreement  made as of October 1, 1996,  and  subsequently  amended  and  retated
December  31,  1996 and  February  21,  1997 (the  "Agreement")  by and  between
Franklin  Templeton  Services,  Inc., a U.S.  registered  investment adviser and
Florida corporation (the  "Administrator")  and Templeton  Institutional  Funds,
Inc. (the "Compnay").

                                   WITNESSETH:

     WHEREAS, both Administrator and the Company wish to amend the Agreement;

     WHEREAS, the Administrator merged into FRANKLIN TEMPLETON SERVICES,  LLC, a
Delaware limited liability company, a successor entity, on January 1, 2001;

     NOW,  THEREFORE,  in consideration of the foregoing  premises,  the parties
hereto agree as follows:

     1.  Administrator's  name is henceforth to be known as "Franklin  Templeton
Services, LLC."

     2. All references to the Administrator being a "Florida corporation" in the
Agreement are hereby changed to a "Delaware limited liability company."

     IN WITNESS  WHEREOF,  this  Amendment  has been  executed on behalf of each
party as of the date set forth above.


                                    FRANKLIN TEMPLETON SERVICES, LLC


                                    By:_______________________________________
                                            Jimmy D. Gambill
                                            President

                                    TEMPLETON INSTITUTIONAL FUNDS, INC.


                                    By:_______________________________________
                                            Donald F. Reed
                                            President