Form of PLAN OF DISTRIBUTION OF [Name of Fund]
Form
of
PLAN
OF
DISTRIBUTION
OF
[Name
of
Fund]
WHEREAS,
[Name of
Fund] (the "Fund") is a Massachusetts business trust which offers shares of
beneficial interest and may offer shares of additional series in the
future;
WHEREAS,
American
Funds Distributors, Inc. ("AFD") will serve as distributor of the shares of
beneficial interest of the Fund, and the Fund and AFD are parties to a principal
underwriting agreement (the "Agreement");
WHEREAS,
the
purpose of this Plan of Distribution (the "Plan") is to authorize the Fund
to
bear expenses of distribution of its shares, including reimbursement of AFD
for
its expenses in the promotion of the sale of shares of the Fund, pursuant to
the
Agreement;
WHEREAS,
the Board
of Trustees of the Fund has determined that there is a reasonable likelihood
that this Plan will benefit the Fund and its shareholders:
NOW,
THEREFORE, the
Fund adopts this Plan as follows:
1. The
Fund may expend pursuant to this Plan amounts not to exceed 0.15 of 1% of the
average daily net assets of the Fund per annum.
2. Subject
to the limit in paragraph 1, the Fund shall pay, or reimburse AFD for, amounts
to finance any activity which is primarily intended to result in the sale of
shares of the Fund including, but not limited to, commissions or other payments
to dealers, and salaries and other expenses relating to selling or servicing
efforts; provided, (i) that the Board of Trustees of the Fund shall have
approved categories of expenses for which payment or reimbursement shall be
made
pursuant to this paragraph 2, and (ii) that reimbursement shall be made in
accordance with the terms of the Agreement.
3. This
Plan shall not take effect until it has been approved by vote of a majority
of
the outstanding voting securities of the Fund (as defined in the Investment
Company Act of 1940 (the "1940 Act")) and by the Board of Trustees as provided
in paragraph 4.
4. This
Plan shall not take effect until it has been approved, together with any related
agreement, by votes of the majority of both (i) the Board of Trustees of the
Fund and (ii) those Trustees of the Fund who are not "interested persons" of
the
Fund (as defined in the 1940 Act) and have no direct or indirect financial
interest in the operation of this Plan or any agreement related to it (the
"Independent Trustees"), cast in person at a meeting called for the purpose
of
voting on this Plan and/or such agreement.
5. At
least quarterly, the Board of Trustees shall be provided by any person
authorized to direct the disposition of monies paid or payable by the Fund
pursuant to this Plan or any related agreement, and the Board shall review
a
written report of the amounts expended pursuant to the Plan and the purposes
for
which such expenditures were made.
6. This
Plan may be terminated as to the Fund at any time by vote of a majority of
the
Independent Trustees, or by vote of a majority of the outstanding voting
securities (as defined in the 1940 Act) of the Fund. Unless sooner
terminated in accordance with this provision, this Plan shall continue in effect
until [date]. It may thereafter be renewed from year to year in the
manner provided for in paragraph 4 hereof.
7. Any
agreement related to this Plan shall be in writing, and shall
provide:
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A.
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that
such
agreement may be terminated as to the Fund at any time, without payment
of
any penalty, by vote of a majority of the Independent Trustees or
by a
vote of a majority of the outstanding voting securities (as defined
in the
1940 Act) of the Fund, on not more than sixty (60) days' written
notice to
any other party to the agreement;
and
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B.
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that
such
agreement shall terminate automatically in the event of its
assignment.
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8. This
Plan may not be amended to increase materially the maximum amount of fee or
other distribution expenses provided for in paragraph 1 hereof with respect
to
the Fund unless such amendment is approved by the voting securities of the
Fund
in the manner provided in paragraph 3 hereof, and no material amendment to
this
Plan shall be made unless approved in the manner provided for in paragraph
4
hereof.
9. While
this Plan is in effect, the selection and nomination of Trustees of the Fund
who
are not "interested persons" of the Fund (as defined in the 1940 Act) shall
be
committed to the discretion of the Trustees who are not interested
persons.
10.
If the Fund shall at any time issue shares in more than one series, this Plan
may be adopted, amended, continued or renewed with respect to a series as
provided herein notwithstanding such adoption, amendment, continuance or renewal
has not been effected with respect to any one or more other series of the
Fund.
11. The
obligations of the Fund under this Agreement are not binding upon any of the
Trustees, officers, employees, agents or shareholders of the Fund individually,
but bind only the Fund's estate. Persons entitled to receive payments
from the Fund under the Plan shall look solely to the assets of the Fund for
any
payment by the Fund under this Plan and will not seek recourse against such
Trustees, officers, employees, agents or shareholders, or any of them or any
of
their personal assets for such payments.
12. The
Fund shall preserve copies of this Plan and any related agreement and all
reports made pursuant to paragraph 5 hereof for a period of not less than six
(6) years from the date of this Plan, or such agreement or reports, as the
case
may be, the first two (2) years of which such records shall be stored in an
easily accessible place.
IN
WITNESS WHEREOF,
the Fund has caused this Plan to be executed by its officers thereunto duly
authorized, as of [date].
[Name
of
Fund]
By_________________
By_________________
