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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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SIGNATURE PATRICK F. QUAN
TITLE SECRETARY
AMENDMENT OF SHAREHOLDER SERVICES AGREEMENT
This Amendment to the Shareholder Services Agreement
(the "Agreement") by and between American Funds Service
Company (hereinafter "AFS") and The Growth Fund of America,
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 bill 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.
<PAGE>
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.
THE GROWTH FUND OF AMERICAN FUNDS
AMERICA, INC. SERVICE COMPANY
BY: /s/ Patrick F. Quan BY: Kenneth R. Gorvetzian
Name: Patrick F. Quan Name:Kenneth R. Gorvetzian
Title: Secretary Title: Secretary
Date: January 2, 1998 Date: January 2,1998
AMENDED
INVESTMENT ADVISORY AND SERVICE AGREEMENT
THIS AGREEMENT, dated and effective as of the 1st day of
November, 1997, is made and entered into by and between THE GROWTH
FUND OF AMERICA, INC., a Maryland corporation (hereinafter called the
"Fund"), and CAPITAL RESEARCH AND MANAGEMENT COMPANY, a Delaware
corporation (hereinafter called the "Adviser"). The parties agree as
follows:
1. The Fund hereby employs the Adviser to determine what
securities shall be purchased or sold by the Fund with respect to the
investment and reinvestment of the assets of the Fund. The Adviser
hereby accepts such employment and agrees to render the services and
to assume the obligation to the extent herein set forth, for the
compensation herein provided. The Adviser shall, for all purposes
herein, be deemed an independent contractor and not an agent of the
Fund.
2. The Adviser agrees to provide supervision of the portfolio
of the Fund and to determine what securities or other property shall
be purchased or sold by the Fund, giving due consideration to the
policies of the Fund as expressed in the Fund's Articles of
Incorporation, By-Laws, Registration Statement under the Investment
Company Act of 1940 (the "1940 Act"), Registration Statement under the
Securities Act of 1933 (the "1933 Act"), and prospectus as in use from
time to time, as well as to the factors affecting the Fund's status
as a regulated investment company under the Internal Revenue Code.
The Adviser shall provide adequate facilities and qualified
personnel for the placement of orders for the purchase, or other
acquisition, and sale, or other disposition, of portfolio securities
for the Fund. With respect to such transactions, the Adviser, subject
to such directions as may be furnished from time to time by the Board
of Directors of the Fund, shall endeavor as the primary objective to
obtain the most favorable prices and executions of orders. Subject
to such primary objective, the Adviser may place orders with brokerage
firms which have sold shares of the Fund or which furnish statistical
and other information to the Adviser, taking into account the value
and quality of the brokerage services of such broker-dealers,
including the availability and quality of such statistical and other
information. Receipt by the Adviser of any such statistical and other
information and services shall not be deemed to give rise to any
requirement for abatement of the advisory fee payable pursuant to
Section 5 hereof.
3. The Adviser shall furnish the services of persons to perform
the executive, administrative, clerical, and bookkeeping functions of
the Fund, including the daily determination of net asset value and
offering price per share. The Adviser shall pay the compensation and
travel expenses of all such persons, and they shall serve without
additional compensation from the Fund. The Adviser shall also, at its
expense, provide the Fund with suitable office space (which may be in
the offices of the Adviser); all necessary small office equipment and
utilities; and general purpose accounting forms, supplies, and postage
used at the offices of the Fund.
4. The Fund shall pay all its expenses not assumed by the
Adviser as provided herein. Such expenses shall include, but shall
not be limited to, custodian, stock transfer and dividend disbursing
fees and expenses; costs of the designing, printing and mailing of
reports, prospectuses, proxy statements, and notices to its
shareholders; taxes; expenses of the issuance and redemption of shares
of the Fund (including stock certificates, registration and
qualification fees and expenses); legal and auditing expenses;
compensation, fees, and expenses paid to directors; association dues;
costs of stationery and forms prepared exclusively for the Fund; and
costs of assembling and storing shareholder account data.
5. The Fund shall pay to the Investment Adviser on or before
the tenth (10th) day of each month, as compensation for the services
rendered by the Investment Adviser during the preceding month, an
amount to be computed by applying to the total net asset value of the
Fund the applicable annual rates set forth below:
On the Portion of Daily
Total Net Asset Value Annual Rate
Not exceeding $1 billion 0.50%
In excess of $1 billion but not exceeding $2 billion 0.40%
In excess of $2 billion but not exceeding $3 billion 0.37%
In excess of $3 billion but not exceeding $5 billion 0.35%
In excess of $5 billion but not exceeding $8 billion 0.33%
In excess of $8 billion but not exceeding $13 billion 0.315%
In excess of $13 billion but not exceeding $21 billion 0.30%
Over $21 billion 0.29%
Such fee shall be computed and accrued daily at one
three-hundred-sixty-fifth (1/365th) of the applicable rates set forth
above. The net asset value of the Fund shall be determined in the
manner set forth in the Articles of Incorporation and prospectus of
the Fund. In the event of termination other than at the end of a
calendar month, the monthly fee shall be prorated for the portion of
the month prior to termination and paid on or before the tenth (10th)
day subsequent to termination.
6. The Adviser agrees to reduce the fee payable to it under
this Agreement by the amount by which the ordinary operating expenses
of the Fund for any fiscal year of the Fund, excluding interest, taxes
and extraordinary expenses, shall exceed one and one-half percent
(1-1/2%) of the first $30 million of average net assets of the Fund
determined pursuant to Section 5, plus one percent (1%) of such
average net assets in excess thereof. Costs incurred in connection
with the purchase or sale of portfolio securities, including brokerage
fees and commissions, which are capitalized in accordance with
generally accepted accounting principles applicable to investment
companies, shall be accounted for as capital items and not as
expenses. Proper accruals shall be made by the Fund for any projected
reduction hereunder and corresponding amounts shall be withheld from
the fees paid by the Fund to the Adviser. Any additional reduction
computed at the end of the fiscal year shall be deducted from the fee
for the last month of such fiscal year, and any excess shall be paid
to the Fund immediately after the fiscal year end, and in any event
prior to publication of the Fund's annual report, as a reduction of
the fees previously paid during the fiscal year.
7. Nothing contained in this Agreement shall be construed to
prohibit the Adviser from performing investment advisory, management,
or distribution services for other investment companies and other
persons or companies, or to prohibit affiliates of the Adviser from
engaging in such businesses or in other related or unrelated
businesses.
8. The Adviser shall have no liability to the Fund, or its
shareholders, for any error of judgment, mistake of law, or for any
loss arising out of any investment, or for any other act or omission
in the performance of its obligations to the Fund not involving
willful misfeasance, bad faith, gross negligence or reckless disregard
of its obligations and duties hereunder.
9. This Agreement shall continue in effect until the close of
business on November 30, 1997. It may thereafter be renewed from year
to year by mutual consent, provided that such renewal shall be
specifically approved at least annually by either (i) the Board of
Directors of the Fund, or by the vote of a majority (as defined in the
1940 Act) of the outstanding voting securities of the Fund, and (ii)
a majority of those directors who are not parties to this Agreement
or interested persons (as defined in the 1940 Act) of any such party
cast in person at a meeting called for the purpose of voting on such
approval. Such mutual consent to renewal shall not be deemed to have
been given unless evidenced by a writing signed by both parties
hereto.
10. This Agreement may be terminated at any time, without
payment of any penalty, by the Board of Directors of the Fund or by
the vote of a majority (as defined in the 1940 Act) of the outstanding
voting securities of the Fund, on sixty (60) days' written notice to
the Adviser, or by the Adviser on like notice to the Fund. This
Agreement shall automatically terminate in the event of its assignment
(as defined in the 1940 Act).
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed in duplicate originals by their officers thereunto duly
authorized as of the day and year first above written.
THE GROWTH FUND OF AMERICA,
INC.<PAGE>
By /s/ Walter P. Stern
Walter P. Stern, Chairman
By /s/ Patrick F. Quan
Patrick F. Quan, Secretary<PAGE>
CAPITAL RESEARCH AND MANAGEMENT
COMPANY
By /s/ James F. Rothenberg
James F. Rothenberg,
President
By /s/ Michael J. Downer
Michael J. Downer,
Secretary
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-START> SEP-1-1997
<PERIOD-END> FEB-28-1998
<INVESTMENTS-AT-COST> 8,247,891
<INVESTMENTS-AT-VALUE> 13,309,353
<RECEIVABLES> 104,263
<ASSETS-OTHER> 62
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 13,413,678
<PAYABLE-FOR-SECURITIES> 99,782
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 27,133
<TOTAL-LIABILITIES> 126,915
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,988,734
<SHARES-COMMON-STOCK> 656,197,144
<SHARES-COMMON-PRIOR> 578,153,047
<ACCUMULATED-NII-CURRENT> 10,419
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 160,535
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,061,455
<NET-ASSETS> 13,286,763
<DIVIDEND-INCOME> 29,893
<INTEREST-INCOME> 47,357
<OTHER-INCOME> 0
<EXPENSES-NET> 42,491
<NET-INVESTMENT-INCOME> 34,759
<REALIZED-GAINS-CURRENT> 378,439
<APPREC-INCREASE-CURRENT> 1,054,191
<NET-CHANGE-FROM-OPS> 1,467,389
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 75,837
<DISTRIBUTIONS-OF-GAINS> 1,201,719
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 52,464,146
<NUMBER-OF-SHARES-REDEEMED> 41,150,791
<SHARES-REINVESTED> 66,730,742
<NET-CHANGE-IN-ASSETS> 1,640,410
<ACCUMULATED-NII-PRIOR> 51,497
<ACCUMULATED-GAINS-PRIOR> 983,815
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 21,313
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 42,491
<AVERAGE-NET-ASSETS> 12,275,749
<PER-SHARE-NAV-BEGIN> 20.14
<PER-SHARE-NII> 0.06
<PER-SHARE-GAIN-APPREC> 2.24
<PER-SHARE-DIVIDEND> 0.13
<PER-SHARE-DISTRIBUTIONS> 2.06
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.25
<EXPENSE-RATIO> .004
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
