Supplemental Terms and Conditions to
the Administrative Services Agreement between the
American AAdvantage Funds
and
AMR Investment Services, Inc.
with respect to the
American AAdvantage Intermediate Bond Fund
The following terms and conditions hereby are incorporated
into the Administrative Services Agreement ("Agreement") dated
November 1, 1995 between the American AAdvantage Funds ("Trust")
and AMR Investment Services, Inc. ("Manager") as they relate to
the American AAdvantage Intermediate Bond Fund. To the extent
that there is any conflict between the terms and conditions of
the Agreement and these Supplemental Terms and conditions
("Supplement"), this Supplement shall govern.
1. Paragraph 3 of the Agreement is hereby amended to read,
in its entirety, as follows:
3. Fees for Administrative Services. As compensation
for its administrative services pursuant to Section 2
of this Agreement, the Trust shall pay AMR an
annualized fee equal to (1) 0.05% of the net assets of
the AMR Class and 0.30% of the net assets of all other
classes of the Balanced Fund, the Growth and Income
Fund, the International Equity Fund, the Intermediate
Bond Fund, and the Limited-Term Income Fund; (2) 0.05%
of the net assets of the Money Market Fund, the
Municipal Money Market Fund and the U.S. Government
Money Market Fund and (3) such percentage of any other
class or Fund encompassed by this Agreement as
specified by one or more schedules attached hereto. To
the extent that a Fund invests all of its investable
assets (i.e., securities and cash) in another
registered investment company, however, the Trust shall
pay AMR an annualized fee equal to (1) 0.00% of the net
assets of the AMR Class and 0.25% of the net assets of
all other classes of the Balanced Fund, the Growth and
Income Fund, the International Equity Fund, the
Intermediate Bond Fund, and the Limited-Term Income
Fund; (2) 0.05% of the net assets of the Money Market
Fund, the Municipal Money Market Fund and the U.S.
Government Money Market Fund and (3) such percentage of
any other class or Fund encompassed by this Agreement
as specified by one or more schedules attached hereto.
The above-described compensation shall be calculated
and accrued daily and be payable quarterly. The Trust
acknowledges that none of the compensation paid
pursuant to this Agreement is compensation for
portfolio allocation or investment advisory functions
performed by AMR pursuant to its separate Management
Agreement with the Trust; rather, AMR is compensated
for those services pursuant to a separate Management
Agreement between the Trust and AMR.
2. Notice is hereby given that the Agreement and this
Supplement are executed on behalf of the Trustees of the Trust
and not individually and that the obligations of the Agreement
and the Supplement are not binding upon any of the Trustees,
officers, or shareholders of the Trust, but are binding only upon
the assets and property of the Fund to which the Agreement and
this Supplement relate.
Dated: July 25, 1997
AMERICAN AADVANTAGE FUNDS
By: /s/ Xxxxx X. Xxxxxxxxx
Xxxxx X. Xxxxxxxxx
Vice President and
Assistant Secretary
AMR INVESTMENT SERVICES, INC.
By: /s/ Xxxxxxx X. Xxxxx
Xxxxxxx X. Xxxxx
President
