1
Exhibit 99.b.5.e
SUPPLEMENTAL TERMS AND CONDITIONS TO
THE ADMINISTRATIVE SERVICES AGREEMENT BETWEEN THE
AMERICAN AADVANTAGE FUNDS
AND
AMR INVESTMENT SERVICES, INC.
WITH RESPECT TO THE
S&P 500 INDEX 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 S&P 500 Index 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 as follows:
a. If a Fund manages its assets directly or invests all of its
investable assets (i.e., securities and cash) in another registered
investment company where AMR does not act as Manager and Administrator,
the Trust shall pay AMR an annualized fee equal to: (1) 0.05% of the
net assets of the AMR Class of the Balanced Fund, the Growth and Income
Fund, the International Equity Fund, the Limited-Term Income Fund, and
the S&P 500 Index Fund and 0.30% of the net assets of all other classes
of the Balanced Fund, the Growth and Income Fund, the International
Equity 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.
b. If a Fund invests all of its investable assets (i.e.,
securities and cash) in another registered investment company for
which AMR acts as Manager and Administrator, 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, 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
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: January 1, 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
