EXHIBIT 5(f)
AMENDMENT TO ADMINISTRATION AGREEMENT
AGREEMENT made as of the 1st day of May, 1997, between USAA INVESTMENT
MANAGEMENT COMPANY, a corporation organized under the laws of the state of
Delaware and having a place of business in San Antonio, Texas (the
"Administrator"), and USAA MUTUAL FUND, INC., a corporation organized under the
laws of the state of Maryland and having a place of business in San Antonio,
Texas (the "Company").
WHEREAS, the Administrator and the Company are parties to an
Administration Agreement dated May 1, 1996 (the "Administration Agreement")
governing the terms and conditions under which the Administrator renders
administrative services to the USAA S&P 500 Index Fund ("Fund"), a series of the
Company; and
WHEREAS, the Company's Board of Directors has determined that the fees
charged by the Administrator in providing administrative services to the Fund
are fair and reasonable in light of the fees charged by others for services of
the same nature and quality;
NOW, THEREFORE, in consideration of the premises and covenants contained
herein, the Administrator and the Company hereby amend the Administration
Agreement by replacing paragraph 4(a) with the following:
(a) For the services and facilities to be provided by the Administrator as
provided in paragraph 2 hereof, the Fund shall pay to the Administrator a
monthly fee computed as a percentage of aggregate average net assets of the
Fund, which on an annual basis is equal to the lesser of (1) six hundredths of
one percent (.06%) of the Monthly Average Net Assets (defined below) of the Fund
for such calendar month, or (2) the amount that brings the Expense Ratio up to
eighteen hundredths of one percent (.18%). For purposes of this paragraph, the
term "Expense Ratio" means the sum of (i) the total Fund annual operating
expenses as a percentage of the Fund's average net assets and (ii) the total
annual operating expenses of any other Fund in which the Fund invests all of its
investable assets as a percentage of such Fund's aggregate average net assets.
IN WITNESS WHEREOF, the parties hereto have caused the Amendment to
Administration Agreement to be executed as of the date first set forth above.
USAA MUTUAL FUND, INC. USAA INVESTMENT MANAGEMENT COMPANY
By: /s/ Xxxxxxx X.X. Xxxx By: /s/ Xxxx X. Xxxxxxxx, Xx.
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XXXXXXX X.X. XXXX XXXX X. XXXXXXXX, XX.
President Senior Vice President
ATTEST: ATTEST:
/s/ Xxxxxxx X. Xxxxxx /s/ Xxxx X. Xxxxxxx
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XXXXXXX X. XXXXXX XXXX X. XXXXXXX
Secretary Assistant Secretary
