EXHIBIT e(7)(b) AMENDMENT NO. 1 MASTER DISTRIBUTION AGREEMENT (CLASS B SHARES) The Master Distribution Agreement (the "Agreement"), dated February 28, 1997, by and between AIM Funds Group, a Delaware business trust, and A I M Distributors, Inc., a...

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                                                                EXHIBIT e(7)(b)

                                AMENDMENT NO. 1
                         MASTER DISTRIBUTION AGREEMENT
                                (CLASS B SHARES)

         The Master Distribution Agreement (the "Agreement"), dated February
28, 1997, by and between AIM Funds Group, a Delaware business trust, and A I M
Distributors, Inc., a Delaware corporation, is hereby amended as follows:

         Schedule A of the Agreement is hereby deleted in its entirety and
replaced with the following:

                                  "SCHEDULE A
                                       TO
                         MASTER DISTRIBUTION AGREEMENT
                                       OF
                                AIM FUNDS GROUP


CLASS B SHARES

AIM Balanced Fund 
AIM Global Utilities Fund 
AIM Select Growth Fund 
AIM High Yield Fund 
AIM Income Fund 
AIM Intermediate Government Fund 
AIM Money Market Fund 
AIM Municipal Bond Fund 
AIM Value Fund"

         All other terms and provisions of the Agreement not amended herein
shall remain in full force and effect.


Dated: May 1, 1998


                                            AIM FUNDS GROUP


Attest: /s/ XXXXXX X. XXXXX                 By: /s/ XXXXXX X. XXXXXX
       ----------------------------------      --------------------------------
       Assistant Secretary                     President


(SEAL)
                                            A I M DISTRIBUTORS, INC.


Attest: /s/ XXXXXX X. XXXXX                 By: /s/ XXXXXXX X. XXXX
       ----------------------------------      --------------------------------
       Assistant Secretary                     President


(SEAL)