AMENDMENT OF SHAREHOLDER SERVICES AGREEMENT
This Amendment to the Shareholder Services Agreement (the "Agreement") by and
between American Funds Service Company (hereinafter "AFS") and American
Balanced Fund, Inc. (hereinafter called "the Fund") is dated as of the first
day of January 1998.
WHEREAS, AFS and the Fund entered into the Agreement with regard to certain
shareholder services to be performed by AFS; and
WHEREAS, AFS and the Fund desire to amend said Agreement in the manner
hereinafter set forth;
NOW THEREFORE, pursuant to Section 9 of the Agreement, AFS and the Fund hereby
amend the Agreement in the following form:
1. Section 6 is amended to read as follows:
AFS will provide to the participating investment companies the shareholder
services referred to herein in return for the following fees:
ANNUAL ACCOUNT MAINTENANCE FEE (PAID MONTHLY):
$0.45 per month for each open account on AFS books or in Level 2 or 4
Networking ($5.40 per year).
$0.06 per month for each open account maintained in Street Name or
Level 1 or 3 Networking ($0.72 per year).
No annual fee will be charged for a participant account underlying a 401(k)
or other defined contribution plan where the plan maintains a single
account on AFS books and responds to all participant inquiries.
TRANSACTION FEES:
$2.70 per non-automated transaction
$0.20 per automated transaction
For this purpose, "transactions" shall include all types of transactions
included in an "activity index" as reported to the Review and Advisory
Committee at least annually. AFS will xxxx the Fund monthly, on or shortly
after the first of each calendar month, and the Fund will pay AFS within five
business days of such billing.
Any revision of the schedule of charges set forth herein shall require the
affirmative vote of a majority of the members of the board of directors of the
Fund.
IN WITNESS THEREOF, AFS and the Fund have caused this Amendment to be executed
by their duly authorized officers effective as of the date first written above.
AMERICAN BALANCED AMERICAN FUNDS
FUND, INC. SERVICE COMPANY
BY: /s/ Xxxxxxx X. Xxxx BY: /s/ Xxxxxxx X. Xxxxxxxxxx
Name: Xxxxxxx X. Xxxx Name: Xxxxxxx X. Xxxxxxxxxx
Title: Secretary Title: Secretary
Date: January 2, 1998 Date: January 2, 1998
