SHORT-TERM BOND FUND OF AMERICA, INC. PRINCIPAL UNDERWRITING AGREEMENT
SHORT-TERM
BOND
FUND OF AMERICA, INC.
THIS
PRINCIPAL UNDERWRITING AGREEMENT, is between SHORT- TERM BOND FUND OF AMERICA,
INC., a Maryland corporation (the “Fund”), and AMERICAN FUNDS DISTRIBUTORS,
INC., a California corporation (the “Distributor”).
W
I
T N E S S E T H:
WHEREAS,
the Fund is registered under the Investment Company Act of 1940, as amended
(the
“1940 Act”), as an open-end diversified investment company which offers fourteen
classes of shares of beneficial interest, designated as Class A shares, Class
B
shares, Class C shares, Class F shares, Class 529-A shares, Class 529-B shares,
Class 529-C shares, Class 529-E shares, Class 529-F shares, Class R-1 shares,
Class R-2 shares, Class R-3 shares, Class R-4 shares, and Class R-5 shares,
and
it is a part of the business of the Fund, and affirmatively in the interest
of
the Fund, to offer shares of the Fund either from time to time or continuously
as determined by the Fund’s officers subject to authorization by its Board of
Directors; and
WHEREAS,
the Distributor is engaged in the business of promoting the distribution
of
shares of investment companies through securities broker-dealers;
and
WHEREAS,
the Fund and the Distributor wish to enter into an agreement with each other
to
promote the distribution of the shares of the Fund and of all series or classes
of the Fund which may be established in the future;
NOW,
THEREFORE, the parties agree as follows:
1.
(a) The
Distributor shall be the exclusive principal underwriter for the sale of
the
shares of the Fund and of each series or class of the Fund which may be
established in the future, except as otherwise provided pursuant to the
following subsection (b). The terms “shares of Fund” or “shares” as used herein
shall mean shares of beneficial interest of the Fund and each series or class
which may be established in the future and become covered by this Agreement
in
accordance with Section 30 of this Agreement.
(b) The
Fund may, upon 60 days’ written notice to the Distributor, from time to time
designate other principal underwriters of its shares with respect to areas
other
than the North American continent, Hawaii, Puerto Rico, and such countries
or
other jurisdictions as to which the Fund may have expressly waived in writing
its right to make such designation. In the event of such designation, the
right
of the Distributor under this Agreement to sell shares in the areas so
designated shall terminate, but this Agreement shall remain otherwise in
full
force and effect until terminated in accordance with the other provisions
hereof.
2. In
the sale of shares of the Fund, the Distributor shall act as agent of the
Fund
except in any transaction in which the Distributor sells such shares as a
dealer
to the public, in which event the Distributor shall act as principal for
its own
account.
3. The
Fund shall sell shares only through the Distributor, except that the Fund
may,
to the extent permitted by the 1940 Act and the rules and regulations
promulgated thereunder or pursuant thereto, at any time:
(a)
issue shares to any corporation, association, trust, partnership or other
organization, or its, or their, security holders, beneficiaries or members,
in
connection with a merger, consolidation or reorganization to which the Fund
is a
party, or in connection with the acquisition of all or substantially all
the
property and assets of such corporation, association, trust, partnership
or
other organization;
(b)
issue shares at net asset value to the holders of shares of capital stock
or
beneficial interest of other investment companies served as investment adviser
by any affiliated company or companies of The Capital Group Companies, Inc.,
to
the extent of all or any portion of amounts received by such shareholders
upon
redemption or repurchase of their shares by the other investment
companies;
(c)
issue shares at net asset value to its shareholders in connection with the
reinvestment of dividends paid and other distributions made by the
Fund;
(d)
issue shares at net asset value to persons entitled to purchase shares at
net
asset value without sales charge or contingent deferred sales charge as
described in the Fund's current Registration Statement in effect under the
Securities Act of 1933, as amended, for each series issued by the Fund at
the
time of such offer or sale.
4. The
Distributor shall devote its best efforts to the sale of shares of the Fund
and
shares of any other mutual funds served as investment adviser by affiliated
companies of The Capital Group Companies, Inc., and insurance contracts funded
by shares of such mutual funds, for which the Distributor has been authorized
to
act as a principal underwriter for the sale of shares. The Distributor shall
maintain a sales organization suited to the sale of shares of the Fund and
shall
use its best efforts to effect such sales in jurisdictions as to which the
Fund
shall have expressly waived in writing its right to designate another principal
underwriter pursuant to subsection 1(b) hereof, and shall effect and maintain
appropriate qualification to do so in all those jurisdictions in which it
sells
or offers shares for sale and in which qualification is required.
5. Within
the United States of America, all dealers to whom the Distributor shall offer
and sell shares must be duly licensed and qualified to sell shares of the
Fund.
Shares sold to dealers shall be for resale by such dealers only at the public
offering price set forth in the current Prospectus of the Fund’s Registration
Statement in effect under the Securities Act of 1933, as amended (“Prospectus”).
The Distributor shall not, without the consent of the Fund, sell or offer
for
sale any shares of a series or class issued by the Fund other than as principal
underwriter pursuant to this Agreement.
6. In
its sales to dealers, it shall be the responsibility of the Distributor to
ensure that such dealers are appropriately qualified to transact business
in the
shares under applicable laws, rules and regulations promulgated by such
national, state, local or other governmental or quasi-governmental authorities
as may in a particular instance have jurisdiction.
7. The
applicable public offering price of shares shall be the price which is equal
to
the net asset value per share, as shall be determined by the Fund in the
manner
and at the time or times set forth in and subject to the provisions of the
Prospectus of the Fund.
8. All
orders for shares received by the Distributor shall, unless rejected by the
Distributor or the Fund, be accepted by the Distributor immediately upon
receipt
and confirmed at an offering price determined in accordance with the provisions
of the Prospectus and the 1940 Act, and applicable rules in effect thereunder.
The Distributor shall not hold orders subject to acceptance nor otherwise
delay
their execution. The provisions of this Section shall not be construed to
restrict the right of the Fund to withhold shares from sale under Section
25
hereof.
9. The
Fund or its transfer agent shall be promptly advised of all orders received,
and
shall cause shares to be issued upon payment therefor in New York or Los
Angeles
Clearing House Funds.
10. The
Distributor shall adopt and follow procedures as approved by the officers
of the
Fund for the confirmation of sales to dealers, the collection of amounts
payable
by dealers on such sales, and the cancellation of unsettled transactions,
as may
be necessary to comply with the requirements of the Securities and Exchange
Commission or the National Association of Securities Dealers, Inc. (“NASD”), as
such requirements may from time to time exist.
11.
The Distributor, as a principal underwriter under this Agreement for Class
A
shares, shall receive (i) that part of the sales charge which is retained
by the
Distributor after allowance of discounts to dealers, unless waived by the
Distributor for certain qualified fee-based programs, as set forth in the
Prospectus of the Fund, and (ii) amounts payable to the Distributor
pursuant to the Fund's Plan of Distribution under Rule 12b-1 under the 1940
Act
relating to its Class A shares.
12.
The Distributor, as principal underwriter under this agreement for Class
B
shares shall receive (i) distribution fees as commissions for the sale of
Class
B shares and contingent deferred sales charges (“CDSC”) (as defined below), as
set forth in the Fund’s Prospectus, and (ii) shareholder service fees at
the rate of 0.25% per annum of the average net asset value of Class B
shares pursuant to the Fund’s Plan of Distribution under Rule 12b-1 under the
1940 Act relating to its Class B shares (the “ Class B Plan”).
(a)
In accordance with the Class B Plan, and subject to the limit on asset-based
sales charges set forth in NASD Conduct Rule 2830 (and any successor provision
thereto), the Fund shall pay to the Distributor or, at the Distributor’s
direction, to a third-party, monthly in arrears on or prior to the
10th
business day of the following calendar month, the Distributor’s Allocable
Portion (as defined below) of a fee (the “Distribution Fee”) which shall accrue
daily in an amount equal to the product of (A) the daily equivalent of 0.75%
per
annum multiplied by (B) the net asset value of the Class B shares of the
Fund
outstanding on such day. The Fund agrees to withhold from redemption proceeds
of
the Class B shares, the Distributor’s Allocable Portion of any CDSCs
payable with respect to the Class B shares, as provided in the Fund’s
Prospectus, and to pay the same over to the Distributor or, at the Distributor’s
direction to a third-party, at the time the redemption proceeds are payable
to
the holder of such shares redeemed. Payment of these CDSC amounts to the
Distributor is not contingent upon the adoption or continuation of any Class
B
Plan.
(b)
For purposes of this Agreement, the term “Allocable Portion” of Distribution
Fees and CDSCs payable with respect to Class B shares shall mean the portion
of
such Distribution Fees and CDSC allocated to the Distributor in accordance
with
the Allocation Schedule attached hereto as Schedule A.
(c)
The Distributor shall be considered to have completely earned the right to
the
payment of its Allocable Portion of the Distribution Fees and the right to
payment of its Allocable Portion of the CDSCs with respect to each “Commission
Share” (as defined in the Allocation Schedule attached hereto as Schedule A)
upon the settlement date of such Commission Share taken into account in
determining the Distributor’s Allocable Portion of Distribution
Fees.
(d)
The provisions set forth in Section 1 of the Class B Plan (in effect on the
date
hereof) relating to Class B shares, together with the related definitions
are
hereby incorporated into this Section 12 by reference with the same force
and
effect as if set forth herein in their entirety.
13.
The Distributor, as principal underwriter under this agreement for Class
C
shares shall receive (i) distribution fees as commissions for the sale of
Class
C shares and CDSCs, as set forth in the Fund’s Prospectus, and (ii) shareholder
service fees at the rate of 0.25% per annum of the average net asset value
of
Class C shares pursuant to the Fund's Plan of Distribution under Rule 12b-1
under the 1940 Act relating to its Class C shares (the “Class C
Plan”).
(a)
In accordance with the Class C Plan, and subject to the limit on asset-based
sales charges set forth in NASD Conduct Rule 2830 (and any successor provision
thereto), the Fund shall pay to the Distributor, no more frequently than
monthly
in arrears within 30 days of receipt of an invoice for payment, the
Distributor’s Allocable Portion (as defined below) of a fee (the “Distribution
Fee”) which shall accrue daily in an amount equal to the daily equivalent of
0.75% per annum of the net asset value of the Class C shares outstanding
on such
day. The Fund agrees to withhold from redemption proceeds of the Class C
shares,
the Distributor’s Allocable Portion of any CDSCs payable with respect to the
Class C shares, as provided in the Fund’s Prospectus and to pay the same over to
the Distributor, or, at the Distributor’s direction to a third party, at the
time the redemption proceeds are payable to the holder of such shares redeemed.
Payment of these CDSC amounts to the Distributor is not contingent upon the
adoption or continuation of any Class C Plan.
(b)
For purposes of this Agreement, the term “Allocable Portion” of Distribution
Fees and CDSCs payable with respect to Class C shares shall mean the portion
of
such Distribution Fees and CDSC allocated to the Distributor in accordance
with
the Allocation Schedule attached hereto as Schedule B.
(c)
The Distributor shall be considered to have completely earned the right to
the
payment of its Allocable Portion of the Distribution Fees and the right to
payment of its Allocable Portion of the CDSCs with respect to each “Commission
Share” (as defined in the Allocation Schedule attached hereto as Schedule B)
upon the settlement date of such Commission Share taken into account in
determining the Distributor’s Allocable Portion of Distribution
Fees.
(d)
The provisions set forth in Section 1 of the Class C Plan (in effect on the
date
hereof) relating to Class C shares, together with the related definitions
are
hereby incorporated into this Section 13 by reference with the same force
and
effect as if set forth herein in their entirety.
14. The
Distributor, as principal underwriter under this agreement for Class F shares,
shall receive shareholder service fees at the rate of 0.25% per annum of
the
average net asset value of Class F shares pursuant to the Fund's Plan of
Distribution under Rule 12b-1 under the 1940 Act relating to its Class F
shares
(the “Class F Plan”).
15.
The Distributor, as a principal underwriter under this Agreement for Class
529-A
shares, shall receive (i) that part of the sales charge which is retained
by the
Distributor after allowance of discounts to dealers, unless waived by the
Distributor for certain qualified fee-based programs, as set forth in the
Prospectus of the Fund, and (ii) amounts payable to the Distributor pursuant
to
the Fund’s Plan of Distribution under Rule 12b-1 under the 1940 Act relating to
its Class 529-A shares.
16.
The Distributor, as principal underwriter under this agreement for Class
529-B
shares shall receive (i) distribution fees as compensation for the sale of
Class
529-B shares and CDSCs, as set forth in the Fund’s Prospectus, and (ii)
shareholder service fees at the rate of 0.25% per annum of the average net
asset
value of Class 529-B shares pursuant to the Fund’s Plan of Distribution under
Rule 12b-1 under the 1940 Act relating to its Class 529-B shares (the “Class
529-B Plan”).
(a)
In accordance with the Class 529-B Plan, and subject to the limit on asset-based
sales charges set forth in NASD Conduct Rule 2830 (and any successor provision
thereto), the Fund shall pay to the Distributor or, at the Distributor’s
direction, to a third-party, monthly in arrears on or prior to the
10th
business day of the following calendar month, the Distributor’s Allocable
Portion (as defined below) of a fee (the “Distribution Fee”) which shall accrue
daily in an amount equal to the product of (A) the daily equivalent of 0.75%
per
annum multiplied by (B) the net asset value of the Class 529-B shares of
the
Fund outstanding on such day. The Fund agrees to withhold from redemption
proceeds of the Class 529-B shares, the Distributor’s Allocable Portion of any
CDSCs payable with respect to the Class 529-B shares, as provided in the
Fund’s
Prospectus, and to pay the same over to the Distributor or, at the Distributor’s
direction to a third party, at the time the redemption proceeds are payable
to
the holder of such shares redeemed. Payment of these CDSC amounts to the
Distributor is not contingent upon the adoption or continuation of any Class
529-B Plan.
(b)
For purposes of this Agreement, the term “Allocable Portion” of Distribution
Fees and CDSCs payable with respect to Class 529-B shares shall mean the
portion
of such Distribution Fees and CDSC allocated to the Distributor in accordance
with the Allocation Schedule attached hereto as Schedule C.
(c)
The Distributor shall be considered to have completely earned the right to
the
payment of its Allocable Portion of the Distribution Fees and the right to
payment of its Allocable Portion of the CDSCs with respect to each “Commission
Share” (as defined in the Allocation Schedule attached hereto as Schedule C)
upon the settlement date of such Commission Share taken into account in
determining the Distributor’s Allocable Portion of Distribution
Fees.
(d)
The provisions set forth in Section 1 of the Class 529-B Plan (in effect
on the
date hereof) relating to Class 529-B shares, together with the related
definitions are hereby incorporated into this Section 16 by reference with
the
same force and effect as if set forth herein in their entirety.
17.
The Distributor, as principal underwriter under this agreement for Class
529-C
shares shall receive (i) distribution fees as compensation for the sale of
Class
529-C shares and CDSCs, as set forth in the Fund’s Prospectus, and (ii)
shareholder service fees at the rate of 0.25% per annum of the average net
asset
value of Class 529-C shares pursuant to the Fund’s Plan of Distribution under
Rule 12b-1 under the 1940 Act relating to its Class 529-C shares (the “Class
529-C Plan”).
(a)
In accordance with the Class 529-C Plan, and subject to the limit on asset-based
sales charges set forth in NASD Conduct Rule 2830 (and any successor provision
thereto), the Fund shall pay to the Distributor, no more frequently than
monthly
in arrears within 30 days of receipt of an invoice for payment, the
Distributor’s Allocable Portion (as defined below) of a fee (the “Distribution
Fee”) which shall accrue daily in an amount equal to the product of (A) the
daily equivalent of 0.75% per annum multiplied by (B) the net asset value
of the
Class 529-C shares of the Fund outstanding on such day. The Fund agrees to
withhold from redemption proceeds of the Class 529-C shares, the Distributor’s
Allocable Portion of any CDSCs payable with respect to the Class 529-C shares,
as provided in the Fund’s Prospectus, and to pay the same over to the
Distributor or, at the Distributor’s direction to a third party, at the time the
redemption proceeds are payable to the holder of such shares redeemed. Payment
of these CDSC amounts to the Distributor is not contingent upon the adoption
or
continuation of any Class 529-C Plan.
(b)
For purposes of this Agreement, the term “Allocable Portion” of Distribution
Fees and CDSCs payable with respect to Class 529-C shares shall mean the
portion
of such Distribution Fees and CDSC allocated to the Distributor in accordance
with the Allocation Schedule attached hereto as Schedule D.
(c)
The Distributor shall be considered to have completely earned the right to
the
payment of its Allocable Portion of the Distribution Fees and the right to
payment of its Allocable Portion of the CDSCs with respect to each “Commission
Share” (as defined in the Allocation Schedule attached hereto as Schedule D)
upon the settlement date of such Commission Share taken into account in
determining the Distributor’s Allocable Portion of Distribution
Fees.
(d)
The provisions set forth in Section 1 of the Class 529-C Plan (in effect
on the
date hereof)
relating to Class 529-C shares, together with the related definitions are
hereby
incorporated into this Section 17 by reference with the same force and effect
as
if set forth herein in their entirety.
18.
The Distributor, as principal underwriter under this agreement for Class
529-E
shares shall receive (i) distribution fees at the rate of 0.25% per annum
of the
average net asset value of Class 529-E shares as compensation for the sale
of
Class 529-E shares as set forth in the Fund’s Prospectus, and (ii) shareholder
service fees at the rate of 0.25% per annum of the average net asset value
of
Class 529-E shares. The payment of distribution and service fees is pursuant
to
the Fund’s Plan of Distribution under Rule 12b-1 under the 1940 Act relating to
its Class 529-E shares (the “Class 529-E Plan”).
19.
The Distributor, as principal underwriter under this agreement for Class
529-F
shares, shall receive shareholder service fees at the rate of 0.25% per annum
of
the average net asset value of Class 529-F shares pursuant to the Fund’s Plan of
Distribution under Rule 12b-1 under the 1940 Act relating to its Class 529F
shares (the “Class 529-F Plan”).
20.
The Distributor, as principal underwriter under this agreement for each of
the
Class R shares shall receive (i) distribution fees as compensation for the
sale
of Class X-0, X-0, X-0, X-0 and R-5 shares (collectively, “Class R shares”), and
(ii) shareholder service fees as set forth below. The payment of distribution
and service fees is pursuant to the Fund’s various Plans of Distribution under
Rule 12b-1 under the 1940 Act relating to each of the Class R shares (the
“Class
R Plans”). For purposes of the following chart the fee rates represent annual
fees as a percentage of average net assets of the respective share class.
Fees
shall accrue daily and be paid monthly.
Share
Class Distribution
Fee Service
Fee
Class
R-1 0.75% 0.25%
Class
R-2 0.50% 0.25%
Class
R-3 0.25% 0.25%
Class
R-4 0.00% 0.25%
Class
R-5 0.00% 0.00%
21. The
Fund agrees to use its best efforts to maintain its registration as a
diversified open-end management investment company under the 0000
Xxx.
22. The
Fund agrees to use its best efforts to maintain an effective Prospectus under
the Securities Act of 1933, as amended, and warrants that such Prospectus
will
contain all statements required by and will conform with the requirements
of
such Securities Act of 1933 and the rules and regulations thereunder, and
that
no part of any such Prospectus, at the time the Registration Statement of
which
it is a part becomes effective, will contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein, or
necessary to make the statements therein not misleading (excluding any
information provided by the Distributor in writing for inclusion in the
Prospectus). The Distributor agrees and warrants that it will not in the
sale of
shares use any Prospectus, advertising or sales literature not approved by
the
Fund or its officers nor make any untrue statement of a material fact nor
omit
the stating of a material fact necessary in order to make the statements
made,
in the light of the circumstances under which they are made, not misleading.
The
Distributor agrees to indemnify and hold the Fund harmless from any and all
loss, expense, damage and liability resulting from a breach of the agreements
and warranties contained in this Section, or from the use of any sales
literature, information, statistics or other aid or device employed in
connection with the sale of shares.
23. The
expense of each printing of each Prospectus and each revision thereof or
addition thereto deemed necessary by the Fund's officers to meet the
requirements of applicable laws shall be divided between the Fund, the
Distributor and any other principal underwriter of the shares of the Fund
as
follows:
(a)
the Fund shall pay the typesetting and make-ready charges;
(b)
the printing charges shall be prorated between the Fund, the Distributor,
and
any other principal underwriter(s) in accordance with the number of copies
each
receives; and
(c)
expenses incurred in connection with the foregoing, other than to meet the
requirements of the Securities Act of 1933, as amended, or other applicable
laws, shall be borne by the Distributor, except in the event such incremental
expenses are incurred at the request of any other principal underwriter(s),
in
which case such incremental expenses shall be borne by the principal
underwriter(s) making the request.
24. The
Fund agrees to use its best efforts to qualify and maintain the qualification
of
an appropriate number of the shares of each series or class it offers for
sale
under the securities laws of such states as the Distributor and the Fund
may
approve. Any such qualification for any series or class may be withheld,
terminated or withdrawn by the Fund at any time in its discretion. The expense
of qualification and maintenance of qualification shall be borne by the Fund,
but the Distributor shall furnish such information and other material relating
to its affairs and activities as may be required by the Fund or its counsel
in
connection with such qualifications.
25. The
Fund may withhold shares of any series or class from sale to any person or
persons or in any jurisdiction temporarily or permanently if, in the opinion
of
its counsel, such offer or sale would be contrary to law or if the Directors
or
the President or any Vice President of the Fund determines that such offer
or
sale is not in the best interest of the Fund. The Fund will give prompt notice
to the Distributor of any withholding and will indemnify it against any loss
suffered by the Distributor as a result of such withholding by reason of
nondelivery of shares of any series or class after a good faith confirmation
by
the Distributor of sales thereof prior to receipt of notice of such
withholding.
26. (a)
This
Agreement may be terminated at any time, without payment of any penalty,
as to
the Fund or any series on sixty (60) days’ written notice by the Distributor to
the Fund.
(b) This
Agreement may be terminated as to the Fund or any series or class by either
party upon five (5) days’ written notice to the other party in the event that
the Securities and Exchange Commission has issued an order or obtained an
injunction or other court order suspending effectiveness of the Registration
Statement covering the shares of the Fund or such series or class.
(c) This
Agreement may be terminated as to the Fund or any series or class by the
Fund
upon five (5) days’ written notice to the Distributor provided either of the
following events has occurred:
(i)
the NASD has expelled the Distributor or suspended its membership in that
organization; or
(ii)
the qualification, registration, license or right of the Distributor to sell
shares of any series in a particular state has been suspended or canceled
by the
State of California or any other state in which sales of the shares of the
Fund
or such series during the most recent 12-month period exceeded 10% of all
shares
of such series sold by the Distributor during such period.
(d) This
Agreement may be terminated as to the Fund or any series or class at any
time on
sixty (60) days’ written notice to the Distributor without the payment of any
penalty, by vote of a majority of the Independent Directors or by vote of
a
majority of the outstanding voting securities (as defined in the 0000 Xxx)
of
the Fund or such series or class.
27. This
Agreement shall not be assignable by either party hereto and in the event
of
assignment shall automatically terminate forthwith. The term “assignment” shall
have the meaning set forth in the 1940 Act. Notwithstanding this Section,
this
Agreement, with respect to the Fund’s Class B and Class 529-B shares, has been
approved in accordance with Section 30 in anticipation of the Distributor’s
transfer of its Allocable Portion of Distribution Fees and CDSCs (but not
its
obligations under this Agreement) to a third-party pursuant to a “Purchase and
Sale Agreement” in order to raise funds to cover distribution expenditures, and
such transfer will not cause a termination of this Agreement. If Distributor
determines to transfer its Allocable Portion of Distribution Fees and CDSCs
in
respect of Class C or Class 529-C shares to a third party, such transfer
shall
not cause a termination of this Agreement.
28. No
provision of this Agreement shall protect or purport to protect the Distributor
against any liability to the Fund or holders of its shares for which the
Distributor would otherwise be liable by reason of willful misfeasance, bad
faith, or gross negligence.
29. This
Agreement shall become effective on October 1, 2006. Unless sooner terminated
in
accordance with the other provisions hereof, this Agreement shall continue
in
effect until October 31, 2006, and shall continue in effect from year to
year
thereafter but only so long as such continuance is specifically approved
at
least annually by (i) the vote of a majority of the Independent Directors
of the
Fund cast in person at a meeting called for the purpose of voting on such
approval, and (ii) the vote of either a majority of the entire Board of
Directors of the Fund or a majority (within the meaning of the 0000 Xxx)
of the
outstanding voting securities of the Fund.
30. If
the Fund shall at any time issue shares in more than one series or class,
this
Agreement shall take effect with respect to such series or class of the Fund
which may be established in the future at such time as it has been approved
as
to such series or class by vote of the Board of Directors and the Independent
Directors in accordance with Section 27. The Agreement as approved with respect
to any series or class shall specify the compensation payable to the Distributor
pursuant to Sections 11 through 20, as well as any provisions which may differ
from those herein with respect to such series, subject to approval in writing
by
the Distributor.
This
Agreement may be approved, amended, continued or renewed with respect to
a
series or class as provided herein notwithstanding such approval, amendment,
continuance or renewal has not been effected with respect to any one or more
other series or class of the Fund.
This
Agreement shall be construed under and shall be governed by the laws of the
State of California, and the parties hereto agree that proper venue of any
action with respect hereto shall be Los Angeles County, California.
IN
WITNESS WHEREOF, the parties hereto have caused this instrument to be executed
in duplicate original by their officers thereunto duly authorized, as of
October
1, 2006.
AMERICAN
FUNDS DISTRIBUTORS,
INC.
By:
Xxxxx
X. Xxxxxxxx
President
By:
Xxxxx X. Xxxx
President
SHORT-TERM
BOND
FUNDOF AMERICA,
INC.
By:
Xxxxx
X. Xxxxxx
Secretary
By:
Xxxxxxxx
Xxxxxxx
Secretary
SCHEDULE
A
to
the
ALLOCATION
SCHEDULE
The
following relates solely to Class B shares.
The
Distributor's Allocable Portion of Distribution Fees and CDSCs in respect
of
Class B shares shall be 100% until such time as the Distributor shall cease
to
serve as exclusive distributor of Class B shares; thereafter, collections
that
constitute CDSCs and Distribution Fees relating to Class B shares shall be
allocated among the Distributor and any successor distributor ("Successor
Distributor")
in accordance with this Schedule.
Defined
terms used in this Schedule and not otherwise defined herein shall have the
meanings assigned to them in the Principal Underwriting Agreement (the
“Distribution Agreement”), of which this Schedule is a part. As used herein the
following terms shall have the meanings indicated:
"Commission
Share"
means each B share issued under circumstances which would normally give rise
to
an obligation of the holder of such share to pay a CDSC upon redemption of
such
share (including, without limitation, any B share issued in connection with
a
permitted free exchange), and any such share shall continue to be a Commission
Share of the applicable Fund prior to the redemption (including a redemption
in
connection with a permitted free exchange) or conversion of such share, even
though the obligation to pay the CDSC may have expired or conditions for
waivers
thereof may exist.
"Date
of Original Issuance"
means in respect of any Commission Share, the date with reference to which
the
amount of the CDSC payable on redemption thereof, if any, is
computed.
"Free
Share"
means, in respect of a Fund, each B share of the Fund, other than a Commission
Share (including, without limitation, any B share issued in connection with
the
reinvestment of dividends or capital gains).
"Inception
Date"
means in respect of a Fund, the first date on which the Fund issued
shares.
"Net
Asset Value"
means the net asset value determined as set forth in the Prospectus of each
Fund.
"Omnibus
Share"
means, in respect of a Fund, a Commission Share or Free Share sold by one
of the
selling agents maintaining shares in an omnibus account (“Omnibus
Selling Agents”).
If, subsequent to the Successor Distributor becoming exclusive distributor
of
the Class B shares, the Distributor reasonably determines that the transfer
agent is able to track all Commission Shares and Free Shares sold by any
of the
Omnibus Selling Agents in the same manner as Non-Omnibus Commission Shares
and
Free Shares (defined below) are currently tracked, then Omnibus Shares of
such
Omnibus Selling Agent shall be treated as Commission Shares and Free
Shares.
PART
I: ATTRIBUTION OF CLASS B SHARES
Class
B shares that are outstanding from time to time, shall be attributed to the
Distributor and each Successor Distributor in accordance with the following
rules;
(1) Commission
Shares other than Omnibus Shares:
(a) Commission
Shares that are not Omnibus Shares (“Non-Omnibus Commission Shares”) attributed
to the Distributor shall be those Non-Omnibus Commission Shares the Date
of
Original Issuance of which occurred on or after the Inception Date of the
applicable Fund and on or prior to the date the Distributor ceased to be
exclusive distributor of Class B shares of the Fund.
(b) Non-Omnibus
Commission Shares attributable to each Successor Distributor shall be those
Non-Omnibus Commission Shares the Date of Original Issuance of which occurs
after the date such Successor Distributor became the exclusive distributor
of
Class B shares of the Fund and on or prior to the date such Successor
Distributor ceased to be the exclusive distributor of Class B shares of the
Fund.
(c) A
Non-Omnibus Commission Share of a Fund issued in consideration of the investment
of proceeds of the redemption of a Non-Omnibus Commission Share of another
fund
(the "Redeeming
Fund")
in connection with a permitted free exchange, is deemed to have a Date of
Original Issuance identical to the Date of Original Issuance of the Non-Omnibus
Commission Share of the Redeeming Fund, and any such Commission Share will
be
attributed to the Distributor or Successor Distributor based upon such Date
of
Original Issuance in accordance with rules (a) and (b) above.
(2)
Free
Shares:
Free
Shares that are not Omnibus Shares (“Non-Omnibus Free Shares”) of a Fund
outstanding on any date shall be attributed to the Distributor or a Successor
Distributor, as the case may be, in the same proportion that the Non-Omnibus
Commission Shares of a Fund outstanding on such date are attributed to each
on
such date; provided
that if the Distributor and its transferees reasonably determines that the
transfer agent is able to produce monthly reports that track the Date of
Original Issuance for such Non-Omnibus Free Shares, then such Free Shares
shall
be allocated pursuant to clause 1(a), (b) and (c) above.
(3) Omnibus
Shares:
Omnibus
Shares of a Fund outstanding on any date shall be attributed to the Distributor
or a Successor Distributor, as the case may be, in the same proportion that
the
Non-Omnibus Commission Shares of the applicable Fund outstanding on such
date
are attributed to it on such date; provided
that if the Distributor reasonably determines that the transfer agent is
able to
produce monthly reports that track the Date of Original Issuance for the
Omnibus
Shares, then the Omnibus Shares shall be allocated pursuant to clause 1(a),
(b)
and (c) above.
PART
II: ALLOCATION OF CDSCs
(1) CDSCs
Related to the Redemption of Non-Omnibus Commission Shares:
CDSCs
in respect of the redemption of Non-Omnibus Commission Shares shall be allocated
to the Distributor or a Successor Distributor depending upon whether the
related
redeemed Commission Share is attributable to the Distributor or such Successor
Distributor, as the case may be, in accordance with Part I above.
(2) CDSCs
Related to the Redemption of Omnibus Shares:
CDSCs
in respect of the redemption of Omnibus Shares shall be allocated to the
Distributor or a Successor Distributor in the same proportion that CDSCs
related
to the redemption of Non-Omnibus Commission Shares are allocated to each
thereof; provided,
that if the Distributor reasonably determines that the transfer agent is
able to
produce monthly reports which track the Date of Original Issuance for the
Omnibus Shares, then the CDSCs in respect of the redemption of Omnibus Shares
shall be allocated among the Distributor and any Successor Distributor depending
on whether the related redeemed Omnibus Share is attributable to the Distributor
or a Successor Distributor, as the case may be, in accordance with Part I
above.
PART
III: ALLOCATION OF DISTRIBUTION FEE
Assuming
that the Distribution Fee remains constant over time so that Part IV hereof
does
not become operative:
(1) The
portion of the aggregate Distribution Fee accrued in respect of all Class
B
shares of a Fund during any calendar month allocable to the Distributor or
a
Successor Distributor is determined by multiplying the total of such
Distribution Fee by the following fraction:
(A
+ C)/2
(B
+ D)/2
where:
A=
|
The
aggregate Net Asset Value of all Class B shares of a Fund attributed
to
the Distributor or such Successor Distributor, as the case may
be, and
outstanding at the beginning of such calendar
month
|
B=
|
The
aggregate Net Asset Value of all Class B shares of a Fund at the
beginning
of such calendar month
|
C=
|
The
aggregate Net Asset Value of all Class B shares of a Fund attributed
to
the Distributor or such Successor Distributor, as the case may
be, and
outstanding at the end of such calendar
month
|
D=
|
The
aggregate Net Asset Value of all Class B shares of a Fund at the
end of
such calendar month
|
(2) If
the Distributor reasonably determines that the transfer agent is able to
produce
automated monthly reports that allocate the average Net Asset Value of the
Commission Shares (or all Class B shares if available) of a Fund among the
Distributor and any Successor Distributor in a manner consistent with the
methodology detailed in Part I and Part III(1) above, the portion of the
Distribution Fee accrued in respect of all such Class B shares of a Fund
during
a particular calendar month will be allocated to the Distributor or a Successor
Distributor by multiplying the total of such Distribution Fee by the following
fraction:
(A)/(B)
where:
A=
|
Average
Net Asset Value of all such Class B shares of a Fund for such calendar
month attributed to the Distributor or a Successor Distributor,
as the
case may be
|
B=
|
Total
average Net Asset Value of all such Class B shares of a Fund for
such
calendar month
|
PART
IV: ADJUSTMENT OF THE DISTRIBUTOR’S ALLOCABLE PORTION AND EACH SUCCESSOR
DISTRIBUTOR’S ALLOCABLE PORTION
The
parties to the Distribution Agreement recognize that, if the terms of any
distributor's contract, any distribution plan, any prospectus, the Conduct
Rules
of the NASD or any other applicable law change so as to disproportionately
reduce, in a manner inconsistent with the intent of this Distribution Agreement,
the amount of the Distributor's Allocable Portion or any Successor Distributor's
Allocable Portion had no such change occurred, the definitions of the
Distributor's Allocable Portion and/or the Successor Distributor's Allocable
Portion in respect of the Class B shares relating to a Fund shall be adjusted
by
agreement among the relevant parties; provided,
however,
if the Distributor, the Successor Distributor and the Fund cannot agree within
thirty (30) days after the date of any such change in applicable laws or
in any
distributor's contract, distribution plan, prospectus or the Conduct Rules
of
the NASD, they shall submit the question to arbitration in accordance with
the
commercial arbitration rules of the American Arbitration Association and
the
decision reached by the arbitrator shall be final and binding on each of
them.
SCHEDULE
B
to
the
ALLOCATION
SCHEDULE
The
following relates solely to Class C shares.
The
Distributor's Allocable Portion of Distribution Fees and CDSCs in respect
of
Class C shares shall be 100% until such time as the Distributor shall cease
to
serve as exclusive distributor of Class C shares; thereafter, collections
that
constitute CDSCs and Distribution Fees relating to Class C shares shall be
allocated among the Distributor and any successor distributor ("Successor
Distributor")
in accordance with this Schedule. At such time as the Distributor’s Allocable
Portion of the Distribution Fees equals zero, the Successor Distributor shall
become the Distributor for purposes of this Allocation Schedule.
Defined
terms used in this Schedule and not otherwise defined herein shall have the
meanings assigned to them in the Principal Underwriting Agreement (the
“Distribution Agreement”), of which this Schedule is a part. As used herein the
following terms shall have the meanings indicated:
"Commission
Share"
means each C share issued under circumstances which would normally give rise
to
an obligation of the holder of such share to pay a CDSC upon redemption of
such
share (including, without limitation, any C share issued in connection with
a
permitted free exchange), and any such share shall continue to be a Commission
Share of the applicable Fund prior to the redemption (including a redemption
in
connection with a permitted free exchange) or conversion of such share, even
though the obligation to pay the CDSC may have expired or conditions for
waivers
thereof may exist.
"Date
of Original Issuance"
means in respect of any Commission Share, the date with reference to which
the
amount of the CDSC payable on redemption thereof, if any, is
computed.
"Free
Share"
means, in respect of a Fund, each C share of the Fund, other than a Commission
Share (including, without limitation, any C share issued in connection with
the
reinvestment of dividends or capital gains).
"Inception
Date"
means in respect of a Fund, the first date on which the Fund issued
shares.
"Net
Asset Value"
means the net asset value determined as set forth in the Prospectus of each
Fund.
"Omnibus
Share"
means, in respect of a Fund, a Commission Share or Free Share sold by one
of the
selling agents maintaining shares in an omnibus account (“Omnibus
Selling Agents”).
If, subsequent to the Successor Distributor becoming exclusive distributor
of
the Class C shares, the Distributor reasonably determines that the transfer
agent is able to track all Commission Shares and Free Shares sold by any
of the
Omnibus Selling Agents in the same manner as Non-Omnibus Commission Shares
and
Free Shares (defined below) are currently tracked, then Omnibus Shares of
such
Omnibus Selling Agent shall be treated as Commission Shares and Free
Shares.
PART
I: ATTRIBUTION OF CLASS C SHARES
Class
C shares that
are outstanding from time to time, shall be attributed to the Distributor
and
each Successor Distributor in accordance with the following rules;
(1) Commission
Shares other than Omnibus Shares:
(a)
Commission
Shares that are not Omnibus Shares (“Non-Omnibus Commission
Shares”)
attributed to the Distributor shall be those Non-Omnibus Commission
Shares
(i) the Date of Original Issuance of which occurred on or after
the Inception
Date of the applicable Fund and on or prior to the date the Distributor
ceased
to be exclusive distributor of Class C shares of the Fund and (ii)
that are
subject to a CDSC (without regard to any conditions for
waivers thereof).
(b)
Non-Omnibus
Commission Shares attributable to each Successor Distributor
shall
be those Non-Omnibus Commission Shares (i) the Date of Original
Issuance
of which occurs after the date such Successor Distributor became
the
exclusive distributor of Class C shares of the Fund and on or prior
to the
date such
Successor Distributor ceased to be the exclusive distributor of
Class C
shares of the
Fund and (ii) that are subject to a CDSC (without regard to any conditions
for
waivers thereof).
(c)
A Non-Omnibus
Commission Share of a Fund issued in consideration of
the investment
of proceeds of the redemption of a Non-Omnibus Commission Share
of another
fund (the "Redeeming
Fund")
in connection
with a permitted free
exchange, is
deemed to have a Date of Original Issuance identical to the Date of
Original Issuance
of the Non-Omnibus Commission Share of the Redeeming Fund,
and any such
Commission Share will be attributed to the Distributor or Successor
Distributor based upon such Date of Original Issuance in
accordance with
rules (a) and
(b) above.
(2)
Free
Shares:
Free
Shares that
are not Omnibus Shares (“Non-Omnibus Free Shares”) of a Fund outstanding on any
date shall be attributed to the Distributor or a Successor Distributor, as
the
case may be, in the same proportion that the Non-Omnibus Commission Shares
of a
Fund outstanding on such date are attributed to each on such date; provided
that if the
Distributor and its transferees reasonably determines that the transfer agent
is
able to produce monthly reports that track the Date of Original Issuance
for
such Non-Omnibus Free Shares, then such Free Shares shall be allocated pursuant
to clause 1(a), (b) and (c) above.
(3) Omnibus
Shares:
Omnibus
Shares of a
Fund outstanding on any date shall be attributed to the Distributor or a
Successor Distributor, as the case may be, in the same proportion that the
Non-Omnibus Commission Shares of the applicable Fund outstanding on such
date
are attributed to it on such date; provided
that if the
Distributor reasonably determines that the transfer agent is able to produce
monthly reports that track the Date of Original Issuance for the Omnibus
Shares,
then the Omnibus Shares shall be allocated pursuant to clause 1(a), (b) and
(c)
above.
PART
II:
ALLOCATION OF CDSCs
(1) CDSCs
Related to
the Redemption of Non-Omnibus Commission Shares:CDSCs
in respect
of the redemption of Non-Omnibus Commission Shares shall be allocated to
the
Distributor or a Successor Distributor depending upon whether the related
redeemed Commission Share is attributable to the Distributor or such Successor
Distributor, as the case may be, in accordance with Part I above.
(2) CDSCs
Related to
the Redemption of Omnibus Shares:
CDSCs
in respect of
the redemption of Omnibus Shares shall be allocated to the Distributor or
a
Successor Distributor in the same proportion that CDSCs related to the
redemption of Non-Omnibus Commission Shares are allocated to each thereof;
provided,
that if the
Distributor reasonably determines that the transfer agent is able to produce
monthly reports which track the Date of Original Issuance for the Omnibus
Shares, then the CDSCs in respect of the redemption of Omnibus Shares shall
be
allocated among the Distributor and any Successor Distributor depending on
whether the related redeemed Omnibus Share is attributable to the Distributor
or
a Successor Distributor, as the case may be, in accordance with Part I
above.
PART
III:
ALLOCATION OF DISTRIBUTION FEE
Assuming
that the
Distribution Fee remains constant over time so that Part IV hereof does not
become operative:
(1) The
portion of the
aggregate Distribution Fee accrued in respect of all Class C shares of a
Fund
during any calendar month allocable to the Distributor or a Successor
Distributor is determined by multiplying the total of such Distribution Fee
by
the following fraction:
(A
+ C)/2
(B
+
D)/2
where:
A= The
aggregate Net
Asset Value of all Class C shares of a Fund attributed to the Distributor
or
such Successor Distributor, as the case may be, and outstanding at the beginning
of such calendar month
B= The
aggregate Net Asset Value of all Class C shares of a Fund at the beginning
of
such calendar month
C= The
aggregate Net Asset Value of all Class C shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and outstanding
at the end of such calendar month
D= The
aggregate Net Asset Value of all Class C shares of a Fund at the end of such
calendar month
(2) If
the Distributor reasonably determines that the transfer agent is able to
produce
automated monthly reports that allocate the average Net Asset Value of the
Commission Shares (or all Class C shares if available) of a Fund among the
Distributor and any Successor Distributor in a manner consistent with the
methodology detailed in Part I and Part III(1) above, the portion of the
Distribution Fee accrued in respect of all such Class C shares of a Fund
during
a particular calendar month will be allocated to the Distributor or a Successor
Distributor by multiplying the total of such Distribution Fee by the following
fraction:
(A)/(B)
where:
A= Average
Net Asset Value of all such Class C shares of a Fund for such calendar month
attributed to the Distributor or a Successor Distributor, as the case may
be
B= Total
average Net Asset Value of all such Class C shares of a Fund for such calendar
month
PART
IV: ADJUSTMENT OF THE DISTRIBUTOR'S ALLOCABLE PORTION AND EACH SUCCESSOR
DISTRIBUTOR'S ALLOCABLE PORTION
The
parties to the Distribution Agreement recognize that, if the terms of any
distributor's contract, any distribution plan, any prospectus, the Conduct
Rules
of the NASD or any other applicable law change so as to disproportionately
reduce, in a manner inconsistent with the intent of this Distribution Agreement,
the amount of the Distributor's Allocable Portion or any Successor Distributor's
Allocable Portion had no such change occurred, the definitions of the
Distributor's Allocable Portion and/or the Successor Distributor's Allocable
Portion in respect of the Class C shares relating to a Fund shall be adjusted
by
agreement among the relevant parties; provided,
however, if the Distributor, the Successor Distributor and the Fund cannot
agree
within thirty (30) days after the date of any such change in applicable laws
or
in any distributor's contract, distribution plan, prospectus or the Conduct
Rules of the NASD, they shall submit the question to arbitration in accordance
with the commercial arbitration rules of the American Arbitration Association
and the decision reached by the arbitrator shall be final and binding on
each of
them.
SCHEDULE
C
to
the
ALLOCATION
SCHEDULE
The
following relates solely to Class 529-B shares. The
Distributor's Allocable Portion of Distribution Fees and CDSCs in respect
of
Class 529-B shares shall be 100% until such time as the Distributor shall
cease
to serve as exclusive distributor of Class 529-B shares; thereafter, collections
that constitute CDSCs and Distribution Fees relating to Class 529-B shares
shall
be allocated among the Distributor and any successor distributor ("Successor
Distributor")
in accordance with this Schedule.
Defined
terms used in this Schedule and not otherwise defined herein shall have the
meanings assigned to them in the Amended and Restated Principal Underwriting
Agreement (the “Distribution Agreement”), of which this Schedule is a part. As
used herein the following terms shall have the meanings indicated:
"Commission
Share"
means each 529-B share issued under circumstances which would normally give
rise
to an obligation of the holder of such share to pay a CDSC upon redemption
of
such share (including, without limitation, any 529-B share issued in connection
with a permitted free exchange), and any such share shall continue to be
a
Commission Share of the applicable Fund prior to the redemption (including
a
redemption in connection with a permitted free exchange) or conversion of
such
share, even though the obligation to pay the CDSC may have expired or conditions
for waivers thereof may exist.
"Date
of Original Issuance"
means in respect of any Commission Share, the date with reference to which
the
amount of the CDSC payable on redemption thereof, if any, is
computed.
"Free
Share"
means, in respect of a Fund, each 529-B share of the Fund, other than a
Commission Share (including, without limitation, any 529-B share issued in
connection with the reinvestment of dividends or capital gains).
"Inception
Date"
means in respect of a Fund, the first date on which the Fund issued
shares.
"Net
Asset Value"
means the net asset value determined as set forth in the Prospectus of each
Fund.
"Omnibus
Share"
means,
in respect of a Fund, a Commission Share or Free Share sold by one of the
selling agents maintaining shares in an omnibus account (“Omnibus Selling
Agents”). If, subsequent to the Successor Distributor becoming exclusive
distributor of the Class 529-B shares, the Distributor reasonably determines
that the transfer agent is able to track all Commission Shares and Free Shares
sold by any of the Omnibus Selling Agents in the same manner as Non-Omnibus
Commission Shares and Free Shares (defined below) are currently tracked,
then
Omnibus Shares of such Omnibus Selling Agent shall be treated as Commission
Shares and Free Shares.
PART
I: ATTRIBUTION OF CLASS 529-B SHARES
Class
529-B shares that are outstanding from time to time, shall be attributed
to the
Distributor and each Successor Distributor in accordance with the following
rules;
(1) Commission
Shares other than Omnibus Shares:
(a) Commission
Shares that are not Omnibus Shares (“Non-Omnibus Commission
Shares”) attributed to the Distributor shall be those
Non-Omnibus Commission
Shares the Date of Original Issuance of which occurred on or
after the
Inception Date of the applicable Fund and on or prior to the date
the Distributor
ceased to be exclusive distributor of Class 529-B shares of the
Fund.
(b) Non-Omnibus
Commission Shares attributable to each Successor Distributor
shall be those Non-Omnibus Commission Shares the Date of
Original Issuance
of which occurs after the date such Successor Distributor became
the exclusive
distributor of Class 529-B shares of the Fund and on or prior to the
date such
Successor Distributor ceased to be the exclusive distributor of Class
529-B shares
of the Fund.
(c) A
Non-Omnibus Commission Share of a Fund issued in consideration
of the investment of proceeds of the redemption of a
Non-Omnibus Commission
Share of another fund (the "Redeeming
Fund")
in connection with a permitted
free exchange, is deemed to have a Date of Original Issuance
identical to
the Date of Original Issuance of the Non-Omnibus Commission Share of
the Redeeming
Fund, and any such Commission Share will be attributed to the Distributor
or Successor Distributor based upon such Date of Original Issuance
in accordance
with rules (a) and (b) above.
(2)
Free
Shares:
Free
Shares that are not Omnibus Shares (“Non-Omnibus Free Shares”) of a Fund
outstanding on any date shall be attributed to the Distributor or a Successor
Distributor, as the case may be, in the same proportion that the Non-Omnibus
Commission Shares of a Fund outstanding on such date are attributed to each
on
such date; provided
that if the Distributor and its transferees reasonably determines that the
transfer agent is able to produce monthly reports that track the Date of
Original Issuance for such Non-Omnibus Free Shares, then such Free Shares
shall
be allocated pursuant to clause 1(a), (b) and (c) above.
(3) Omnibus
Shares:
Omnibus
Shares of a Fund outstanding on any date shall be attributed to the Distributor
or a Successor Distributor, as the case may be, in the same proportion that
the
Non-Omnibus Commission Shares of the applicable Fund outstanding on such
date
are attributed to it on such date; provided
that if the Distributor reasonably determines that the transfer agent is
able to
produce monthly reports that track the Date of Original Issuance for the
Omnibus
Shares, then the Omnibus Shares shall be allocated pursuant to clause 1(a),
(b)
and (c) above.
PART
II: ALLOCATION OF CDSCs
(1) CDSCs
Related to the Redemption of Non-Omnibus Commission Shares:
CDSCs
in respect of the redemption of Non-Omnibus Commission Shares shall be allocated
to the Distributor or a Successor Distributor depending upon whether the
related
redeemed Commission Share is attributable to the Distributor or such Successor
Distributor, as the case may be, in accordance with Part I above.
(2) CDSCs
Related to the Redemption of Omnibus Shares:
CDSCs
in respect of the redemption of Omnibus Shares shall be allocated to the
Distributor or a Successor Distributor in the same proportion that CDSCs
related
to the redemption of Non-Omnibus Commission Shares are allocated to each
thereof; provided,
that if the Distributor reasonably determines that the transfer agent is
able to
produce monthly reports which track the Date of Original Issuance for the
Omnibus Shares, then the CDSCs in respect of the redemption of Omnibus Shares
shall be allocated among the Distributor and any Successor Distributor depending
on whether the related redeemed Omnibus Share is attributable to the Distributor
or a Successor Distributor, as the case may be, in accordance with Part I
above.
PART
III: ALLOCATION OF DISTRIBUTION FEE
Assuming
that the Distribution Fee remains constant over time so that Part IV hereof
does
not become operative:
(1) The
portion of the aggregate Distribution Fee accrued in respect of all Class
529-B
shares of a Fund during any calendar month allocable to the Distributor or
a
Successor Distributor is determined by multiplying the total of such
Distribution Fee by the following fraction:
(A
+ C)/2
(B
+ D)/2
where:
A= The
aggregate Net Asset Value of all Class 529-B shares of a Fund attributed
to the
Distributor or such Successor Distributor, as the case may be, and outstanding
at the beginning of such calendar month
B= The
aggregate Net Asset Value of all Class 529-B shares of a Fund at the beginning
of such calendar month
C= The
aggregate Net Asset Value of all Class 529-B shares of a Fund attributed
to the
Distributor or such Successor Distributor, as the case may be, and outstanding
at the end of such calendar month
D= The
aggregate Net Asset Value of all Class 529-B shares of a Fund at the end
of such
calendar month
(2) If
the Distributor reasonably determines that the transfer agent is able to
produce
automated monthly reports that allocate the average Net Asset Value of the
Commission Shares (or all Class 529-B shares if available) of a Fund among
the
Distributor and any Successor Distributor in a manner consistent with the
methodology detailed in Part I and Part III(1) above, the portion of the
Distribution Fee accrued in respect of all such Class 529-B shares of a Fund
during a particular calendar month will be allocated to the Distributor or
a
Successor Distributor by multiplying the total of such Distribution Fee by
the
following fraction:
(A)/(B)
where:
A= Average
Net Asset Value of all such Class 529-B shares of a Fund for such calendar
month
attributed to the Distributor or a Successor Distributor, as the case may
be
B= Total
average Net Asset Value of all such Class 529-B shares of a Fund for such
calendar month
PART
IV: ADJUSTMENT OF THE DISTRIBUTOR’S ALLOCABLE PORTION AND EACH SUCCESSOR
DISTRIBUTOR’S ALLOCABLE PORTION
The
parties to the Distribution Agreement recognize that, if the terms of any
distributor's contract, any distribution plan, any prospectus, the Conduct
Rules
of the NASD or any other applicable law change so as to disproportionately
reduce, in a manner inconsistent with the intent of this Distribution Agreement,
the amount of the Distributor's Allocable Portion or any Successor Distributor's
Allocable Portion had no such change occurred, the definitions of the
Distributor's Allocable Portion and/or the Successor Distributor's Allocable
Portion in respect of the Class 529-B shares relating to a Fund shall be
adjusted by agreement among the relevant parties; provided,
however,
if the Distributor, the Successor Distributor and the Fund cannot agree within
thirty (30) days after the date of any such change in applicable laws or
in any
distributor's contract, distribution plan, prospectus or the Conduct Rules
of
the NASD, they shall submit the question to arbitration in accordance with
the
commercial arbitration rules of the American Arbitration Association and
the
decision reached by the arbitrator shall be final and binding on each of
them.
SCHEDULE
D
to
the
ALLOCATION
SCHEDULE
The
following
relates solely to Class 529-C shares.
The
Distributor's
Allocable Portion of Distribution Fees and CDSCs in respect of Class 529-C
shares shall be 100% until such time as the Distributor shall cease to serve
as
exclusive distributor of Class 529-C shares; thereafter, collections that
constitute CDSCs and Distribution Fees relating to Class 529-C shares shall
be
allocated among the Distributor and any successor distributor ("Successor
Distributor")
in accordance
with this Schedule. At such time as the Distributor’s Allocable Portion of the
Distribution Fees equals zero, the Successor Distributor shall become the
Distributor for purposes of this Allocation Schedule.
Defined
terms used
in this Schedule and not otherwise defined herein shall have the meanings
assigned to them in the Principal Underwriting Agreement (the “Distribution
Agreement”), of which this Schedule is a part. As used herein the following
terms shall have the meanings indicated:
"Commission
Share"
means each 529-C
share issued under circumstances which would normally give rise to an obligation
of the holder of such share to pay a CDSC upon redemption of such share
(including, without limitation, any 529-C share issued in connection with
a
permitted free exchange), and any such share shall continue to be a Commission
Share of the applicable Fund prior to the redemption (including a redemption
in
connection with a permitted free exchange) or conversion of such share, even
though the obligation to pay the CDSC may have expired or conditions for
waivers
thereof may exist.
"Date
of Original
Issuance"
means in respect
of any Commission Share, the date with reference to which the amount of the
CDSC
payable on redemption thereof, if any, is computed.
"Free
Share"
means, in respect
of a Fund, each 529-C share of the Fund, other than a Commission Share
(including, without limitation, any 529-C share issued in connection with
the
reinvestment of dividends or capital gains).
"Inception
Date"
means in respect
of a Fund, the first date on which the Fund issued shares.
"Net
Asset
Value"
means the net
asset value determined as set forth in the Prospectus of each Fund.
"Omnibus
Share"
means, in respect
of a Fund, a Commission Share or Free Share sold by one of the selling agents
maintaining shares in an omnibus account (“Omnibus Selling Agents”). If,
subsequent to the Successor Distributor becoming exclusive distributor of
the
Class 529-C shares, the Distributor reasonably determines that the transfer
agent is able to track all Commission Shares and Free Shares sold by any
of the
Omnibus Selling Agents in the same manner as Non-Omnibus Commission Shares
and
Free Shares (defined below) are currently tracked, then Omnibus Shares of
such
Omnibus Selling Agent shall be treated as Commission Shares and Free
Shares.
PART
I: ATTRIBUTION
OF CLASS 529-C SHARES
Class
529-C shares that are outstanding from time to time, shall be attributed
to the
Distributor and each Successor Distributor in accordance with the following
rules;
(1) Commission
Shares other than Omnibus Shares:
(a) Commission
Shares that are not Omnibus Shares (“Non-Omnibus Commission Shares”) attributed
to the Distributor shall be those Non-Omnibus Commission Shares (i) the Date
of
Original Issuance of which occurred on or after the Inception Date of the
applicable Fund and on or prior to the date the Distributor ceased to be
exclusive distributor of Class 529-C shares of the Fund and (ii) that are
subject to a CDSC (without regard to any conditions for waivers
thereof).
(b)
Non-Omnibus Commission Shares attributable to each Successor Distributor
shall
be those Non-Omnibus Commission Shares (i) the Date of Original Issuance
of
which occurs after the date such Successor Distributor became the exclusive
distributor of Class 529-C shares of the Fund and on or prior to the date
such
Successor Distributor ceased to be the exclusive distributor of Class 529-C
shares of the Fund and (ii) that are subject to a CDSC (without regard to
any
conditions for waivers thereof).
(c) A
Non-Omnibus Commission Share of a Fund issued in consideration of the investment
of proceeds of the redemption of a Non-Omnibus Commission Share of another
fund
(the "Redeeming
Fund")
in connection with a permitted free exchange, is deemed to have a Date of
Original Issuance identical to the Date of Original Issuance of the Non-Omnibus
Commission Share of the Redeeming Fund, and any such Commission Share will
be
attributed to the Distributor or Successor Distributor based upon such Date
of
Original Issuance in accordance with rules (a) and (b) above.
(2)
Free
Shares:
Free
Shares that are not Omnibus Shares (“Non-Omnibus Free Shares”) of a Fund
outstanding on any date shall be attributed to the Distributor or a Successor
Distributor, as the case may be, in the same proportion that the Non-Omnibus
Commission Shares of a Fund outstanding on such date are attributed to each
on
such date; provided
that if the Distributor and its transferees reasonably determines that the
transfer agent is able to produce monthly reports that track the Date of
Original Issuance for such Non-Omnibus Free Shares, then such Free Shares
shall
be allocated pursuant to clause 1(a), (b) and (c) above.
(3) Omnibus
Shares:
Omnibus
Shares of a Fund outstanding on any date shall be attributed to the Distributor
or a Successor Distributor, as the case may be, in the same proportion that
the
Non-Omnibus Commission Shares of the applicable Fund outstanding on such
date
are attributed to it on such date; provided
that if the Distributor reasonably determines that the transfer agent is
able to
produce monthly reports that track the Date of Original Issuance for the
Omnibus
Shares, then the Omnibus Shares shall be allocated pursuant to clause 1(a),
(b)
and (c) above.
PART
II: ALLOCATION OF CDSCs
(1) CDSCs
Related to the Redemption of Non-Omnibus Commission Shares:
CDSCs
in respect of the redemption of Non-Omnibus Commission Shares shall be allocated
to the Distributor or a Successor Distributor depending upon whether the
related
redeemed Commission Share is attributable to the Distributor or such Successor
Distributor, as the case may be, in accordance with Part I above.
(2) CDSCs
Related to the Redemption of Omnibus Shares:
CDSCs
in respect of the redemption of Omnibus Shares shall be allocated to the
Distributor or a Successor Distributor in the same proportion that CDSCs
related
to the redemption of Non-Omnibus Commission Shares are allocated to each
thereof; provided,
that if the Distributor reasonably determines that the transfer agent is
able to
produce monthly reports which track the Date of Original Issuance for the
Omnibus Shares, then the CDSCs in respect of the redemption of Omnibus Shares
shall be allocated among the Distributor and any Successor Distributor depending
on whether the related redeemed Omnibus Share is attributable to the Distributor
or a Successor Distributor, as the case may be, in accordance with Part I
above.
PART
III: ALLOCATION OF DISTRIBUTION FEE
Assuming
that the Distribution Fee remains constant over time so that Part IV hereof
does
not become operative:
(1) The
portion of the aggregate Distribution Fee accrued in respect of all Class
529-C
shares of a Fund during any calendar month allocable to the Distributor or
a
Successor Distributor is determined by multiplying the total of such
Distribution Fee by the following fraction:
(A
+ C)/2
(B
+ D)/2
where:
A=
|
The
aggregate Net Asset Value of all Class 529-C shares of a Fund attributed
to the Distributor or such Successor Distributor, as the case may
be, and
outstanding at the beginning of such calendar
month
|
B=
|
The
aggregate Net Asset Value of all Class 529-C shares of a Fund at
the
beginning of such calendar month
|
C=
|
The
aggregate Net Asset Value of all Class 529-C shares of a Fund attributed
to the Distributor or such Successor Distributor, as the case may
be, and
outstanding at the end of such calendar
month
|
D=
|
The
aggregate Net Asset Value of all Class 529-C shares of a Fund at
the end
of such calendar month
|
(2) If
the Distributor reasonably determines that the transfer agent is able to
produce
automated monthly reports that allocate the average Net Asset Value of the
Commission Shares (or all Class 529-C shares if available) of a Fund among
the
Distributor and any Successor Distributor in a manner consistent with the
methodology detailed in Part I and Part III(1) above, the portion of the
Distribution Fee accrued in respect of all such Class 529-C shares of a Fund
during a particular calendar month will be allocated to the Distributor or
a
Successor Distributor by multiplying the total of such Distribution Fee by
the
following fraction:
(A)/(B)
where:
A=
|
Average
Net Asset Value of all such Class 529-C shares of a Fund for such
calendar
month attributed to the Distributor or a Successor Distributor,
as the
case may be
|
B= Total
average Net Asset Value of all such Class 529-C shares of a Fund for such
calendar month
PART
IV: ADJUSTMENT OF THE DISTRIBUTOR'S ALLOCABLE PORTION AND EACH SUCCESSOR
DISTRIBUTOR'S ALLOCABLE PORTION
The
parties to the Distribution Agreement recognize that, if the terms of any
distributor's contract, any distribution plan, any prospectus, the Conduct
Rules
of the NASD or any other applicable law change so as to disproportionately
reduce, in a manner inconsistent with the intent of this Distribution Agreement,
the amount of the Distributor's Allocable Portion or any Successor Distributor's
Allocable Portion had no such change occurred, the definitions of the
Distributor's Allocable Portion and/or the Successor Distributor's Allocable
Portion in respect of the Class 529-C shares relating to a Fund shall be
adjusted by agreement among the relevant parties; provided,
however, if the Distributor, the Successor Distributor and the Fund cannot
agree
within thirty (30) days after the date of any such change in applicable laws
or
in any distributor's contract, distribution plan, prospectus or the Conduct
Rules of the NASD, they shall submit the question to arbitration in accordance
with the commercial arbitration rules of the American Arbitration Association
and the decision reached by the arbitrator shall be final and binding on
each of
them.
[logo
-
American Funds ®]
American
Funds Distributors, Inc.
000
Xxxxx Xxxx
Xxxxxx
Xxx
Xxxxxxx,
Xxxxxxxxxx 00000
Telephone
800/000-0000, ext. 59
Selling
group
agreement
Ladies
and
Gentlemen:
We
have entered into a principal underwriting agreement with each Fund in The
American Funds Group (Funds) under which we are appointed exclusive agent
for
the sale of shares. As such agent we offer to sell to you as a member of
a
Selling Group, shares of the Funds as are qualified for sale in your state,
on
the terms set forth below. We are acting as an underwriter within the meaning
of
the applicable rules of the National Association of Securities Dealers, Inc.
(NASD). In addition, we are the distributor of CollegeAmerica (Program),
a
college savings program as described in Section 529 of the Internal Revenue
Code.
1. Authorization
to Sell
You
are to offer
and sell shares only at the regular public price currently determined by
the
respective Funds in the manner described in their offering Prospectuses.
This
Agreement on your part runs to us and to the respective Funds and is for
the
benefit of and enforceable by each. The offering Prospectuses and this Agreement
set forth the terms applicable to members
of
the Selling Group and all other representations or documents are subordinate.
You understand that Class 529 shares of the Funds are available only as
underlying investments through the Program.
2. Compensation
on Sales of Class A Shares and Class 529-A Shares
a.
|
On
sales of
Class A shares and Class 529-A shares of Funds listed in Category
1 on the
attached Schedule A that are accepted by us and for which you are
responsible, you will be paid dealer concessions as
follows:
|
Concession
as
|
Sales
Charge
|
|
Percentage
of
|
as
Percentage
|
|
Purchases
|
Offering
Price
|
of
Offering Price
|
Less
than
$25,000
|
5.00%
|
5.75%
|
$25,000
but
less than $50,000
|
4.25%
|
5.00%
|
$50,000
but
less than $100,000
|
3.75%
|
4.50%
|
$100,000
but
less than $250,000
|
2.75%
|
3.50%
|
$250,000
but
less than $500,000
|
2.00%
|
2.50%
|
$500,000
but
less than $750,000
|
1.60%
|
2.00%
|
$750,000
but
less than $1,000,000
|
1.20%
|
1.50%
|
$1,000,000
or
more
|
See
below
|
None
|
b. |
On
sales of
Class A shares and Class 529-A shares of Funds listed in Category
2 on the
attached Schedule A that are accepted by us and for which you are
responsible, you will be paid the same dealer concessions indicated
above
except as follows:
|
Concession
as
|
Sales
Charge
|
|
Percentage
of
|
as
Percentage
|
|
Purchases
|
Offering
Price
|
of
Offering Price
|
Less
than
$100,000
|
3.00%
|
3.75%
|
c.
|
If
you
initiate and are responsible for sales of Class A shares and Class
529-A
shares, a) amounting to $1 million or more,
|
b)
made to employer-sponsored defined contribution-type retirement plans that
qualify to invest at net asset value under the terms of the Fund Prospectuses,
or c) made at net asset value to endowments and foundations with assets of
$50
million or more, you will be paid a dealer concession of 1.00% on sales to
$4
million, plus 0.50% on amounts over $4 million up to $10 million, plus 0.25%
on
amounts over $10 million. No dealer concessions are paid on any other sales
of
shares at net asset value, except that concessions may be paid to dealers
on
their sales of fund shares to accounts managed by affiliates of The Capital
Group Companies, Inc. as set forth in this Agreement. Sales of shares of
Washington Mutual Investors Fund below $1 million made in connection with
certain accounts established before September 1, 1969 are subject to reduced
concessions and sales charges as described in the Washington Mutual Investors
Fund Prospectus. With respect to sales of shares of any tax-exempt fund,
the
concession schedule for sales of shares to endowments and foundations or
retirement plans of organizations with assets of $50 million or more is
inapplicable. The schedules of sales charges above apply to single purchases,
concurrent purchases of two or more of the Funds (except those listed in
Category 3 on the attached Schedule A), and purchases made under a statement
of
intention and pursuant to the right of accumulation, both of which are described
in the Prospectuses.
d.
|
On
sales of
Class A shares and Class 529-A shares of Funds listed in Category
3 on the
attached Schedule A, no dealer concessions will be
paid.
|
3. Compensation
on Sales of Class B Shares and Class 529-B Shares
a.
|
On
sales of
Class B shares and Class 529-B shares of Funds listed in Category
1 and
Category 2 on the attached
|
Schedule
A that are
accepted by us and for which you are responsible, you will be paid:
•
a
dealer concession of 3.75% of the amount invested, plus
•
an
immediate service fee of 0.25% of the amount invested.
b.
|
On
sales of
Class B shares and Class 529-B shares of Funds listed in Category
3 on the
attached Schedule A, no dealer concessions will be
paid.
|
4. Ongoing
Service Fees for Class A, Class 529-A, Class B and Class 529-B
Shares
We
are also authorized to pay you continuing service fees each quarter with
respect
to the Class A, Class 529-A, Class B and Class 529-B shares of all the Funds
to
promote selling efforts and to compensate you for providing certain services
to
your clients, subject to your compliance with the following terms, which
may be
revised by us from time to time. Your eligibility to continue receiving this
compensation will be evaluated periodically, and your failure to comply with
the
terms below may result in our discontinuing service fee payments to you.
Initial
qualification does not assure continued participation, and this service fee
program may be amended or terminated by us at any time as indicated below.
a.
|
You
agree to
cooperate as requested with programs that we provide to enhance
shareholder service. You also agree
|
to
assume an active role in providing shareholder services such as processing
purchase and redemption transactions, establishing shareholder accounts,
and
providing certain information and assistance with respect to the Funds.
Redemption levels of shareholder accounts assigned to you will be considered
in
evaluating your continued participation in this service fee
program.
b.
|
You
agree to
support our marketing efforts by granting reasonable requests for
visits
to your offices by our wholesalers and, to the extent applicable,
by
including all Funds covered by this Agreement on your “approved”
list.
|
c.
|
You
agree to
assign an individual to each shareholder account on your books
and to
reassign the account should
|
that
individual no
longer be assigned to the account. You agree to instruct each such individual
to
regularly contact shareholders having accounts so assigned.
d.
|
You
agree to
pass through either directly or indirectly to the individual(s)
assigned
to such accounts a share of the service fees paid to you pursuant
to this
Agreement. You recognize that the service fee is intended to compensate
the individual for providing, and encourage the individual to continue
to
provide, service to the account
holder.
|
e.
|
You
acknowledge that (i) all service fee payments are subject to the
limitations contained in each Fund’s Plan of Distribution and may be
varied or discontinued at any time, (ii) in order to receive a
service fee
for a particular quarter,
|
the
fee must amount
to at least $100, and (iii) no service fees will be paid on shares purchased
under the net asset
value
purchase
privilege as described in the Funds’ statements of additional
information.
f.
|
On
Class A,
Class 529-A, Class B and Class 529-B shares of Funds listed in
Category 1
and Category 2 on the attached Schedule A, we will pay you a quarterly
service fee at the following annual rates, based on the average
daily net
asset value of Class A, Class 529-A, Class B and Class 529-B shares,
respectively, that have been invested for 12 months and are held
in an
account assigned to you at the end of the quarter for which payment
is
made:
|
Annual
Service Fee Rate
|
|
Shares
with a
first anniversary of purchase before 7-1-88*
|
0.15%
|
Shares
with a
first anniversary of purchase on or after 7-1-88
|
0.25%
|
Shares
of
state-specific tax-exempt funds
|
0.25%
|
g.
|
On
Class A,
Class 529-A, Class B and Class 529-B shares of Funds listed in
Category 3
on the attached Schedule A, we will pay you a quarterly service
fee at the
following annual rates, based on the average daily net asset value
of
Class A, Class 529-A, Class B and Class 529-B shares, respectively,
that
have been invested for 12 months and are held in an account assigned
to
you at the end of the quarter for which payment is
made:
|
Annual
Service Fee Rate
|
|
All
Shares
|
0.15%
|
5. Compensation
on Sales of Class C Shares and Class 529-C Shares
a.
|
On
sales of
Class C shares and Class 529-C shares of Funds listed in Category
1 and
Category 2 on the attached
|
Schedule
A that are
accepted by us and for which you are responsible, we will pay you:
•
a dealer concession of 0.75% of the amount invested, plus
•
an immediate service fee of 0.25% of the amount invested.
b.
|
In
addition,
we will pay you ongoing compensation on a quarterly basis at the
annual
rate of 1.00% of the average daily net asset value of Class C shares
and
Class 529-C shares of Funds listed in Category 1, Category 2 and
Category
3 on the attached Schedule A that have been invested for 12 months
and are
held in an account assigned to you at the end of the quarter for
which
payment is made. The payment of this ongoing compensation is subject
to
the limitations contained in each Fund’s Plan of Distribution and may be
varied or discontinued at any time.
|
6. Compensation
on Sales of Class 529-E Shares
We
will pay you ongoing compensation on a quarterly basis at the annual rate
of
0.50% of the average daily net asset value of Class 529-E shares of Funds
listed
in Category 1, Category 2 and Category 3 on the attached Schedule A that
are
held in an account assigned to you at the end of the quarter for which payment
is made. The payment of this ongoing compensation is subject to the limitations
contained in each Fund’s Plan of Distribution and may be varied or discontinued
at any time.
7. Retirement
Plan Share Classes (R shares) and Account Options (for retirement plans
only)
a.
|
We
will pay
you ongoing compensation on a quarterly basis, at the applicable
annual
rate set forth below, of the average daily net asset value of R
shares of
Funds listed in Category 1, Category 2 and Category 3 on the attached
Schedule A that are held in a retirement plan (Plan) account assigned
to
you at the end of the quarter for which payment is made. The payment
of
this ongoing compensation is subject to the limitations contained
in each
Fund’s Plan of Distribution and may be varied or discontinued at any
time.
We expect that you will maintain one account for each of your Plan
customers on the books of the
Funds.
|
R
Share Class
|
Annual
Compensation Rate
|
Class
R-1
|
1.00%
|
Class
R-2
|
0.75%
|
Class
R-3
|
0.50%
|
Class
R-4
|
0.25%
|
Class
R-5
|
No
compensation paid
|
b.
|
If
you hold
Plan accounts in an omnibus account (i.e.,
multiple
Plans in one account on the books of the Funds), Plans that are
added to
the omnibus account after May 15, 2002 may invest only in R shares,
and
you must execute an Omnibus Addendum to the Selling Group Agreement,
which
you can obtain by calling our Home Office Service Team at 800/421-5475,
extension 59.
|
8. Order
Processing
Any
order by you
for the purchase of shares of the respective Funds through us shall be accepted
at the time when it is received by us (or any clearinghouse agency that we
may
designate from time to time), and at the offering and sale price next
determined, unless rejected by us or the respective Funds. In addition to
the
right to reject any order, the Funds have reserved the right to withhold
shares
from sale temporarily or permanently. We will not accept any order from you
that
is placed on a conditional basis or subject to any delay or contingency prior
to
execution. The procedure relating to the handling of orders shall be subject
to
instructions that we shall forward from time to time to all members of the
Selling Group. The shares purchased will be issued
by
the respective Funds only against receipt of the purchase price, in collected
New York or Los Angeles Clearing House funds subject to deduction of all
concessions on such sale (reallowance of any concessions to which you are
entitled on purchases at net asset value will be paid through our direct
purchase concession system). If payment for the shares purchased is not received
within three days after the date of confirmation the sale may be cancelled
forthwith, by us or by the respective Funds, without any responsibility or
liability on our part or on the part of the Funds, and we and/or the respective
Funds may hold you responsible for any loss, expense, liability or damage,
including loss of profit suffered by us and/or the respective Funds, resulting
from your delay or failure to make payment as aforesaid.
9. Timeliness
of Submitting Orders
You
are obliged to
date and indicate the time of receipt of all orders you receive from your
customers and to transmit promptly
all
orders to us in
time to provide for processing at the price next determined after receipt
by
you, in accordance with the Prospectuses. You are not to withhold placing
with
us orders received from any customers for the purchase of shares. You shall
not
purchase shares through us except for the purpose of covering purchase orders
already received by you, or for your bona fide investment.
10. Repurchase
of Shares
If
any share is repurchased by any of the Funds or is tendered thereto for
redemption within seven business days after confirmation by us of the original
purchase order from you for such security, you shall forthwith refund to
us the
full concessions paid to you on the original sale.
11. Processing
Redemption Requests
You
shall not
purchase any share of any of the Funds from a record holder at a price lower
than the net asset value next determined by or for the Funds’ shares. You shall,
however, be permitted to sell any shares for the account of a shareholder
of
the Funds at the net asset value currently quoted by or for the Funds’ shares,
and may charge a fair service fee for handling the transaction provided you
disclose the fee to the record owner.
12. Prospectuses
and Marketing Materials
We
shall furnish you without charge reasonable quantities of offering Prospectuses
(including any supplements currently in effect), current shareholder reports
of
the Funds, and sales materials issued by us from time to time. In the purchase
of shares through us, you are entitled to rely only on the information contained
in the offering Prospectus(es). You may not publish any advertisement or
distribute sales literature or other written material to the public that
makes
reference to us or any of the Funds (except material that we furnished to
you)
without our prior written approval.
13. Effect
of
Prospectus
This
Agreement is
in all respects subject to statements regarding the sale and repurchase or
redemption of shares made in offering Prospectuses of the Funds, and to the
applicable Rules of the NASD, which shall control and override any provision
to
the contrary in this Agreement.
14. Relationship
of Parties
You
shall make
available shares of the Funds only through us. In no transaction (whether
of
purchase or sale) shall you have any authority to act as agent for, partner
of,
or participant in a joint venture with us or with the Funds or any other
entity
having either a Selling Group Agreement or other Agreement with us.
15. State
Securities Qualification
We
act solely as agent for the Funds and are not responsible for qualifying
the
Funds or their shares for sale in any jurisdiction. Upon written request
we will
provide you with a list of the jurisdictions in which the Funds or their
shares
are qualified for sale.
We
also are not responsible for the issuance, form, validity, enforceability
or
value of Fund shares.
16. Representations
a.
|
You
represent
that (a) you are a properly registered or licensed broker or dealer
under
applicable federal and state securities laws and regulations and
are
complying with and will continue to comply with all applicable
federal and
state laws, rules and regulations, (b) you are a member of the
NASD, (c)
your membership with the NASD is not currently suspended or terminated
and
(d) to the extent you offer any Class 529 shares, you are properly
registered to offer such shares. You agree
|
to
notify us immediately in writing if any of the foregoing representations
ceases
to be true to a material extent.
b.
|
We
represent
that (a) we are acting as an underwriter within the meaning of
the
applicable rules of the NASD and are complying with and will continue
to
comply with all applicable federal and state laws, rules and regulations,
(b) we are a member of the NASD and (c) our membership with the
NASD is
not currently suspended or terminated. We agree to notify you immediately
in writing if any of the foregoing representations ceases to be
true to a
material extent.
|
17. Confidentiality
Each
party to this
Agreement agrees to maintain all information received from the other party
pursuant to this Agreement in confidence, and each party agrees not to use
any
such information for any purpose, or disclose any such information to any
person, except as permitted by applicable laws, rules and regulations. This
provision shall survive the termination of this Agreement.
18. Termination
Either
of us may
cancel this Agreement at any time by written notice to the other.
19. Notices
All
communications
to us should be sent to the above address. Any notice to you shall be duly
given
if mailed or sent by overnight courier to you at the address specified by
you
below.
* * * * *
*
Except U.S.
Government Securities Fund, which pays service fees at the 0.25% rate
on all
shares held at least 12 months.
Execute
this
Agreement in duplicate and return one of the duplicate originals to us for
our
file. This Agreement (i) may be amended by notification from us and orders
received following such notification shall be deemed to be an acceptance
of any
such amendment and (ii) shall be construed in accordance with the laws of
the
State of California.
Very
truly
yours,
American
Funds
Distributors, Inc.
By
Xxxxx
X.
Xxxxxxxx
President
Accepted
Firm
By
Officer
or
Partner
Print
Name
Title
Address:
Date:
Schedule
A
May
15,
2002
(supersedes
Schedule A dated January 1, 2002)
A
|
B
|
C
|
529-A
|
529-B
|
529-C
|
529-E
|
R-1
|
R-2
|
R-3
|
R-4
|
R-5
|
|
Category
1
|
||||||||||||
AMCAP
Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
American
Balanced Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
American
Mutual Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Capital
Income Builder
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Capital
World
Growth and Income Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
EuroPacific
Growth Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Fundamental
Investors
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Growth
Fund
of America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Income
Fund
of America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Investment
Company of America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
New
Economy
Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
New
Perspective Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
New
World
Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
SMALLCAP
World Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Washington
Mutual Investors Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Category
2
|
||||||||||||
American
High-Income Trust
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
American
High-Income Municipal Bond Fund
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
Bond
Fund of
America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Capital
World
Bond Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Intermediate
Bond Fund of America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Limited
Term
Tax-Exempt Bond Fund of America
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
Tax-Exempt
Bond Fund of America
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
Tax-Exempt
Fund of California
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
Tax-Exempt
Fund of Maryland
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
Tax-Exempt
Fund of Virginia
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
U.S.
Government Securities Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Category
3
|
||||||||||||
Cash
Management Trust of America
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
Tax-Exempt
Money Fund of America
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
U.S.
Treasury
Money Fund of America
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
l
|
l
|
l
|
l
|
l
|
Notes
and
symbols
Class
F and
Class 529-F shares are available pursuant to a separate
agreement.
l
|
Share
class is available.
|
e
|
Share
class is available for exchanges only.
|
na
|
Share
class is not
available.
|
[logo
- American
Funds ®]
American
Funds Distributors, Inc.
000
Xxxxx Xxxx
Xxxxxx
Xxx
Xxxxxxx,
Xxxxxxxxxx 00000
Telephone
800/000-0000, ext. 4
October
2006
To
Our Dealer Friends,
As
you may know, shares of our newest fund in the American Funds family, Short-Term
Bond Fund of America, will be available for sale to the public beginning
November 1, 2006. Short-Term Bond Fund of America is designed to provide
current
income and capital preservation by investing in high-quality short-term bonds.
The purpose of this notice is to amend your selling
group agreement
(the “Agreement”)
with American Funds Distributors to reflect this new fund as well as certain
other changes.
As
compared to other American Funds bond funds, Short-Term Bond Fund of America
will have a new concession schedule for Class A (including 529-A) shares
that
provides a maximum dealer concession of 2.00% on investments. Beginning Nov.
1,
2006, this new Class A concession schedule will also apply to Intermediate
Bond
Fund of America and Limited Term Tax-Exempt Bond Fund of America. However,
please note that for these three funds, ongoing service fees for Class A
shares
and compensation on all other share classes will remain unchanged. Also
beginning Nov. 1, 2006, Class B, C, 529-B and 529-C shares of all three funds
will be available through exchanges only.
As
a result of the new Class A concession schedule discussed above, we are creating
a new category of compensation for purposes of the Agreement. Funds currently
assigned to Category 3 in the Agreement, including all current references
to
“Category 3,” will now be relabeled as “Category 4.” Short-Term Bond Fund of
America, Intermediate Bond Fund of America and Limited Term Tax-Exempt Bond
Fund
of America will now comprise new Category 3. These changes are detailed in
the
Agreement amendment set forth below.
In
consideration of the foregoing, the Agreement is amended as follows effective
November 1, 2006:
1. Each
instance of
“Category 3” in the body of the Agreement is replaced by “Category 4.”
2. The
existing
Schedule A to the Agreement is replaced in its entirety by the new Schedule
A
attached hereto.
3. A
concession
schedule for the new Category 3 Funds is added to the Agreement as
follows:
On
sales of Class A shares and Class 529-A shares of Funds listed in Category
3 on
the attached Schedule A that are accepted by us and for which you are
responsible, you will be paid dealer concessions as follows:
Concession
as
|
Sales
Charge
|
|
Percentage
of
|
as
Percentage
|
|
Purchases
|
Offering
Price
|
of
Offering Price
|
Less
than
$500,000
|
2.00%
|
2.50%
|
$500,000
but
less than $750,000
|
1.60%
|
2.00%
|
$750,000
but
less than $1 million
|
1.20%
|
1.50%
|
$1
million or
more
|
See
Agreement
|
None
|
4. Ongoing
service
fees for Class A and Class 529-A shares and compensation on all other share
classes as currently stated in the Agreement for Category 2 Funds, shall
also
apply to the new Category 3 Funds.
* * * * *
The
Agreement
remains unchanged in all other respects. Any order for Fund shares received
by
us beginning November 1, 2006 shall be deemed an acceptance of this amendment
to
your Agreement.
Very
truly
yours,
/s/
Xxxxx X.
Xxxxxxxx
Xxxxx
X.
Xxxxxxxx
Schedule
A
November
1,
2006
(supersedes
all previous versions of Schedule A - last version dated May 15,
2002)
A
|
B
|
C
|
529-A
|
529-B
|
529-C
|
529-E
|
R-1
|
R-2
|
R-3
|
R-4
|
R-5
|
|
Category
1
|
||||||||||||
AMCAP
Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
American
Balanced Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
American
Mutual Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Capital
Income Builder
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Capital
World
Growth and Income Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
EuroPacific
Growth Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Fundamental
Investors
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
The
Growth
Fund of America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
The
Income
Fund of America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
The
Investment Company of America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
The
New
Economy Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
New
Perspective Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
New
World
Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
SMALLCAP
World Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Washington
Mutual Investors Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Category
2
|
||||||||||||
American
High-Income Trust
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
American
High-Income Municipal Bond Fund
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
The
Bond Fund
of America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Capital
World
Bond Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
The
Tax-Exempt Bond Fund of America
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
The
Tax-Exempt Fund of California
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
The
Tax-Exempt Fund of Maryland
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
The
Tax-Exempt Fund of Virginia
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
U.S.
Government Securities Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
Category
3
|
||||||||||||
Intermediate
Bond Fund of America
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
Limited
Term
Tax-Exempt Bond Fund of America
|
l
|
e
|
e
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Category
4
|
||||||||||||
The
Cash
Management Trust of America
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
The
Tax-Exempt Money Fund of America
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
The
U.S.
Treasury Money Fund of America
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
l
|
l
|
l
|
l
|
l
|
Notes
and
symbols
Class
F and
Class 529-F shares are available pursuant to a separate
agreement.
l
|
Share
class is available
|
|
e
|
Share
class is available for exchanges only
|
|
na
|
Share
class is not available
|
[logo
-
American Funds ®]
American
Funds Distributors, Inc.
000
Xxxxx Xxxx
Xxxxxx
Xxx
Xxxxxxx,
Xxxxxxxxxx 00000
Telephone
800/000-0000, ext. 59
Omnibus
addendum to the
Selling
group agreement
(for
retirement plan share classes (R shares) only)
Ladies
and
Gentlemen:
This
Omnibus
Addendum (Addendum) to the Selling Group Agreement (Agreement1)
into which we
previously entered is made by and between you and American Funds Distributors,
Inc. as of the date indicated below. This Addendum constitutes the agreement
between you and us in respect of your holding retirement plan (Plan) accounts
in
an omnibus account on the books of the Funds. All terms of the Agreement
and of
addenda to the Agreement dated on or prior to the date of this Addendum continue
in full force and effect. If any provision of the Agreement or any addenda
to
the Agreement is inconsistent with this Addendum, this Addendum shall supersede
such other provisions.
Requirements
to Maintain Retirement Plan Omnibus Accounts
a.
|
In
order for
you to hold Plan accounts in an omnibus account on the books of
the Funds,
you agree to provide us, for each Plan account in the omnibus account,
with the following information current as of the end of each calendar
month, within fifteen (15) calendar days following the end of such
month,
and in a file layout conforming to the attached Exhibit A, which
may be
modified by us from time to time:
|
1. |
Plan’s
name
|
2. |
Selling
representative’s name
|
3.Selling
representative’s number
4.Selling
representative’s street address, city, state and zip code
5. |
Selling
representative’s branch number
|
6. |
Name
of the
firm assigned to the Plan’s account
|
7. |
The
American
Funds-designated number identifying the firm assigned to the Plan’s
account
|
8.For
each share
class of a Fund held by the Plan—
(i)the
share class’
CUSIP number
(ii)the
dollar amount
of investments to the Fund during the month (Include investments from mapped
takeover assets, participant contributions and employer contributions. Do
not
include participant-initiated transactions that result in (A) asset movement
between the Fund and other American Funds or (B) investments to the Fund
from
other mutual fund families.)
(iii)the
dollar amount
of redemptions from the Fund during the month (Include redemptions or
distributions due to a participant’s separation of service or the removal of the
Fund as an investment option within the Plan. Do not include
participant-initiated transactions that result in (A) asset movement between
the
Fund and other American Funds or (B) asset movement from the Fund to other
mutual fund families.)
Please
note that if
you are an institution that conducts retirement plan business through only
one
branch and has no representatives (such as a bank), then you are required
to
provide only the information listed in items 1, 6, 7 & 8 above.
b.
|
If
we find a
significant discrepancy between the information contained in files
you
send us and the information contained in our own records, you agree
to
cooperate with us to resolve the
discrepancy.
|
c.
|
If
you
provide third parties with trading or clearing services, you may
not give
such third parties access to the Funds without our written consent.
|
Should
you hold
Plan accounts in an omnibus account, failure to comply with the requirements
set
forth above will constitute a breach of the Agreement, thereby giving us
the
right to terminate the Agreement.
1
Agreement means the Selling Group Agreement, Bank Selling Group Agreement,
or
Institutional Selling Group Agreement, as the case may be, into which we
previously entered.
* * * * *
Execute
this
Addendum in duplicate and return one of the duplicate originals to us for
our
file. This Addendum (i) may be amended by notification from us and orders
received following such notification shall be deemed to be an acceptance
of any
such amendment and (ii) shall be construed in accordance with the laws of
the
State of California.
Very
truly
yours,
American
Funds
Distributors,
By
Xxxxx
X.
Xxxxxxxx
President
Accepted
Firm
By
Officer
or
Partner
Print
Name
Print
Title
Address:
Date:
EXHIBIT
A
Header
Record: This
is the first record in the file.
Field
Name
|
Format
|
Length
|
Required?
|
|
1.
|
‘H’
(Header
Record Identifier)
|
Alpha
|
1
|
Y
|
2.
|
Dealer
Number
(Format:
right justified, zero filled)
|
Numeric
|
7
|
Y
|
3.
|
Sales
Month
Date
(Format:
YYYYMM)
|
Numeric
|
6
|
Y
|
Detail
Record -
Settled trades only
Field
Name
|
Format
|
Length
|
Required?
|
|
4.
|
‘D’
(Detail
Record Identifier)
|
Alpha
|
1
|
Y
|
5.
|
Unique
Record
ID
(Unique
identifier for each detail record; sequence number)
(Format:
right justified, zero filled)
|
Alphanumeric
|
9
|
Y
|
6.
|
Omnibus
Account Number (from daily trades)
(Format:
right justified, zero filled)
|
Numeric
|
11
|
Y
|
7.
|
Fund
Cusip
Number
(Format:
right justified, zero filled)
|
Alphanumeric
|
9
|
Y
|
8.
|
Financial
Institution’s Name
(Firm
the Rep
works for)
(Format:
left
justified, followed by spaces)
|
Alphanumeric
|
70
|
Y
|
9.
|
Financial
Institution’s Number
(Format:
right justified, zero filled)
|
Numeric
|
7
|
Y
|
10.
|
Financial
Adviser’s Office Number
(Format:
left
justified, followed by spaces)
|
Alphanumeric
|
9
|
Y
|
11.
|
Financial
Adviser’s ID
(Format:
left
justified, followed by spaces)
|
Alphanumeric
|
9
|
Y
|
12.
|
Investment
Amount - New Money to AF
Investments
from mapped takeover assets, participant contributions and employer
contributions. Include transactions that result in asset movement
into the
Fund from other fund families, i.e., new money to AF. Do not include
participant-initiated transactions that result in asset movement
into the
Fund from other American Funds.
(Format
note:
Enter as a positive number, right justified, zero filled, implied
2
decimal positions.
For
example:
000000123456789 if the amount is $1,234,567.89
Reversals/corrections
that go into this bucket should be negative amounts)
|
Numeric
|
13.2
|
Y
|
13.
|
Non-Commissionable
Investment Amount
Include
loan repayments. Do not include participant-initiated transactions
that
result in (A) asset movement between the Fund and other American
Funds or
(B) asset movement into the Fund from other fund
families.
(See
format
note on Investment Amount.
Reversals/corrections
that go into this bucket should be negative amounts)
|
Numeric
|
13.2
|
|
14.
|
Exchange
Purchase Amount - From Money Market
Exchange
purchases that result in asset movement to the Fund from an AF
money
market.
(See
format
note on Investment Amount.
Reversals/corrections
that go into this bucket should be negative amounts)
|
Numeric
|
13.2
|
Detail
Record
(continued)
Field
Name
|
Format
|
Length
|
Required?
|
|
15.
|
Exchange
Purchase Amount - Old Money
Exchange
purchases that result in asset movement to the Fund from other
non money
market American Funds.
(See
format
note on Investment Amount.
Reversals/corrections
that go into this bucket should be negative amounts)
|
Numeric
|
13.2
|
|
16.
|
Redemption
Amount
Redemptions
or distributions due to a participant’s separation of service. Include
loan withdrawals. Do not include participant-initiated transactions
that
result in (A) asset movement between the Fund and other American
Funds or
(B) asset movement from the Fund to other mutual fund
families.
(See
format
note on Investment Amount.)
|
Numeric
|
13.2
|
Y
|
17.
|
Exchange
Redemption Amount - Out of AF
Exchange
redemptions that result in asset movement from the Fund to other
mutual
fund families.
(See
format
note on Investment Amount.)
|
Numeric
|
13.2
|
|
18.
|
Exchange
Redemption Amount - Within AF
Exchange
redemptions that result in asset movement between the Fund and
other
American Funds.
(See
format
note on Investment Amount.)
|
Numeric
|
13.2
|
|
19.
|
Line
of
Business Code*
|
Alpha
|
4
|
|
20.
|
Plan
Number
Unique
identifier for the plan
(Also
may be
known as omnibus trader’s internal
plan account number)
|
Alphanumeric
|
20
|
|
21.
|
Plan
Name
|
Alphanumeric
|
70
|
|
22.
|
Financial
Adviser’s First Name
|
Xxxxx
|
00
|
|
00.
|
Financial
Adviser’s Middle Initial
|
Alpha
|
1
|
|
24.
|
Financial
Adviser’s Last Name
|
Xxxxx
|
00
|
|
00.
|
Financial
Adviser’s Suffix
Sr.,
Jr.,
III, etc.
|
Xxxxx
|
00
|
|
00.
|
Financial
Adviser’s Street Address 1
(Items
26 -
30 are the Address, City, State and Zip where the Rep
works.)
|
Alphanumeric
|
35
|
|
27.
|
Financial
Adviser’s Street Address 2
|
Alphanumeric
|
35
|
|
28.
|
Financial
Adviser’s City
|
Alpha
|
35
|
Y
|
29.
|
Financial
Adviser’s State
|
Alpha
|
2
|
Y
|
30.
|
Financial
Adviser’s Zip
|
Alphanumeric
|
10
|
Y
|
31.
|
Month-end
Assets
(See
format
note on Investment Amount.)
|
Numeric
|
15.2
|
|
32.
|
Month-end
Share Balance
|
Numeric
|
11.4
|
|
33.
|
Filler
|
Alphanumeric
|
40
|
Record
Length
for Detail Records = 569
Trailer
Record:
This is the last record in the file.
Field
Name
|
Format
|
Length
|
Required?
|
|
34.
|
‘T’
(Trailer
Record Identifier)
|
Alpha
|
1
|
Y
|
35.
|
Dealer
Number
|
Numeric
|
7
|
Y
|
36.
|
Number
of
Detail Records
(Format:
right justified, zero filled)
|
Numeric
|
9
|
Y
|
37.
|
Total
Investment Amount
Calculation:
total of fields 12, 13, 14, and 15
(See
format
note on Detail Record Investment Amount)
|
Numeric
|
15.2
|
Y
|
38.
|
Total
Redemption Amount
Calculation:
total of fields 16, 17, and 18
(See
format
note on Detail Record Investment Amount)
|
Numeric
|
15.2
|
Y
|
Record
Length
for Trailer Record = 51
*
Codes to use for line of business:
Social
Code
|
Description
|
0056
|
457
Deferred
Compensation (Non-CBT)
|
0059
|
Deferred
Compensation/Rabbi Trust (Non-CBT)
|
0076
|
Retirement
Plans/Other (Non-CBT)
|
0078
|
403B
ER &
EE (Non-CBT)
|
0081
|
401K
(Non-CBT)
|
0083
|
Simple
401K
(Non-CBT)
|
0250
|
RecordKeeper
Connect 401(K)
|
0251
|
RecordKeeper
Connect Money Purchase
|
0252
|
RecordKeeper
Connect Profit Sharing
|
0253
|
RecordKeeper
Connect 403(B)
|
0254
|
RecordKeeper
Connect 457
|
0255
|
RecordKeeper
Connect Non-Qualified
|
0256
|
RecordKeeper
Connect Defined Benefit
|
ER
= Employer
sponsored
EE
= Employee
sponsored
CBT
= Capital
Bank & Trust
Bank/Trust
Company Participation Agreement
For
Class F
Shares
Ladies
and
Gentlemen:
We
have entered into a principal underwriting agreement with each Fund in
The
American Funds Group (Funds) under which we are appointed exclusive agent
for
the sale of Class F shares (Shares) of the Funds. You have represented
that you
maintain fee-based program(s) (Program) under which you and your clients
(Clients) may purchase shares of participating open-end investment companies
at
net asset value and you charge those Clients an asset-based fee or other
fees
tied to the value of their holdings. You have indicated that you wish to
act as
agent for your customers in connection with the purchase and redemption
of
Shares of the Funds as are qualified for sale in your state for purchase
by
Clients through the Program(s), subject to the terms set forth below and
in the
Fund Prospectuses.
1. Authorization
a. |
You
may offer
to non-retirement plan Clients that are participating in the Program
Class
F shares of the Funds only at the regular public price currently
determined by the respective Funds in the manner described in their
offering Prospectuses. The offering Prospectuses and this Agreement
set
forth the terms applicable to sales of shares of the Funds through
you and
all other representations or documents are subordinate. In placing
orders
for the purchase and sale of shares of the Funds, you will be acting
as
agent for your customers. We shall execute transactions for each
of your
customers only upon your authorization. If you will be making the
Funds
available to retirement plan Clients, you may not use the Class
F shares,
but rather only the Class R shares may be used. The terms of your
American
Funds Bank/Trust Company Selling Group Agreement will control that
arrangement.
|
b. |
If
your firm
is providing trading and custodial services to other banks and
the Client
purchasing Shares is a client of another bank, you may not facilitate
those transactions unless you (i) disclose the identity of the
underlying
bank representing that client, and (ii) have verified with us that
the
introducing bank has executed an agreement with us. You shall also
disclose the identity of any introducing intermediary (for example,
broker, consultant, or registered investment adviser) involved
in any
transaction that you facilitate. The required disclosures shall
be made in
such format as we mutually agree.
|
2. Compensation
for Sales of Fund Shares
In
consideration of your making Shares of the Funds available through the
Program,
we will pay you compensation from the Funds’ 12b-1 Plans on a quarterly basis at
the annual rate of 0.25% of the average daily net asset value of Shares
of Funds
listed on Schedule A that are held in an account assigned to you. The payment
of
this compensation is subject to the limitations contained in each Fund’s Plan of
Distribution and may be varied or discontinued at any time. You represent
that
you have received a legal opinion that your receipt of 12b-1 distribution
fees
will not violate any applicable federal or state laws or
regulations.
3. |
Compensation
for Administrative Services
|
You
may be eligible
to receive compensation for providing certain administrative services in
respect
of Shares of the Funds if you meet the requirements of and enter into a
Class F
Share Administrative Services Agreement with Capital Research and Management
Company.
4. Order
Processing
Any
order by you
for the purchase of shares of the respective Funds through us shall be
accepted
at the time when it is received by us (or any clearinghouse agency that
we may
designate from time to time), and at the offering and sale price next
determined, unless rejected by us or the respective Funds. In addition
to the
right to reject any order, the Funds have reserved the right to withhold
shares
from sale temporarily or permanently. We will not accept any order from
you that
is placed on a conditional basis or subject to any delay or contingency
prior to
execution. The procedure relating to the handling of orders shall be subject
to
the rules of the National Securities Clearing Corporation (NSCC) and any
instructions that we shall forward from time to time to all members of
the
Selling Group. The shares purchased will be issued by the respective Funds
only
against receipt of the purchase price, in collected New York or Los Angeles
Clearing House funds subject to deduction of all compensation on such sale
(reallowance of any compensation to which you are entitled on purchases
at net
asset value will be paid through our direct purchase compensation system).
If
payment for the shares purchased is not received within the time limits
set
forth by the NSCC, the sale may be cancelled forthwith, by us or by the
respective Funds, without any responsibility or liability on our part or
on the
part of the Funds, and we and/or the respective Funds may hold you responsible
for any loss, expense, liability or damage, including loss of profit suffered
by
us and/or the respective Funds resulting from your delay or failure to
make
payment as aforesaid.
5. Timeliness
of Submitting Orders
You
are obliged to
date and indicate the time of receipt of all orders you receive from your
customers and to transmit promptly
all
orders to us in
time to provide for processing at the price next determined after receipt
by
you, in accordance with the Prospectuses. You are not to withhold placing
with
us orders received from any customers for the purchase of shares. You
shall
not purchase
shares through us except for the purpose of covering purchase orders already
received by you, or for your
bona
fide
investment.
6. Repurchase
of Shares
If
any share is repurchased by any of the Funds or is tendered thereto for
redemption within seven business days after confirmation by us of the original
purchase order from you for such security, you shall forthwith refund to
us the
full compensation paid to you on the original sale.
7. Processing
Redemption Requests
You
shall not
purchase any share of any of the Funds from a record holder at a price
lower
than the net asset value next determined by or for the Funds’ shares. You shall,
however, be permitted to sell any shares for the account of a shareholder
of the
Funds at the net asset value currently quoted by or for the Funds’ shares, and
may charge a fair service fee for handling the transaction provided you
disclose
the fee to the record owner.
8. Prospectuses
and Marketing Materials
We
shall furnish you without charge reasonable quantities of offering Prospectuses
(including any supplements currently in effect) current shareholder reports
of
the Funds, and sales materials issued by us from time to time. In the purchase
of shares through us, you are entitled to rely only on the information
contained
in the offering Prospectus(es). You may not publish any advertisement or
distribute sales literature or other written material to the public that
makes
reference to us or any of the Funds (except material that we furnished
to you)
without our prior written approval.
9. Effect
of
Prospectus
This
Agreement is
in all respects subject to statements regarding the sale and repurchase
or
redemption of shares made in offering Prospectuses of the Funds, which
shall
control and override any provision to the contrary in this Agreement.
Notwithstanding any contrary provision in this Agreement, you shall comply
with
the terms of the Prospectuses of the Funds.
10. Relationship
of Parties
You
shall make
available shares of the Funds only through us. In no transaction (whether
of
purchase or sale) shall you have any authority to act as agent for, partner
of,
or participant in a joint venture with us or with the Funds or any other
entity
having either a Bank Selling Group Agreement or other Agreement with
us.
11. State
Securities Qualification
We
act solely as agent for the Funds and are not responsible for qualifying
the
Funds or their shares for sale in any jurisdiction. Upon written request
we will
provide you with a list of the jurisdictions in which the Funds or their
shares
are qualified for sale. We also are not responsible for the issuance, form,
validity, enforceability or value of Fund shares.
12. Representations
You
represent that
(1) you are (a) a properly registered or licensed broker or dealer under
applicable federal and state securities laws and regulations, a member
of the
National Association of Securities Dealers, Inc. (NASD), and your membership
with the NASD is not currently suspended or terminated or (b) a "bank"
as
defined in Section 3(a)(6) of the Securities Exchange Act of 1934 (or other
financial institution) and not otherwise required to register as a broker
or
dealer under such Act or any state laws; and (2) to the extent you offer
any
Class 529 shares, you are permitted by applicable law to offer such shares.
You
agree to notify us immediately in writing if this representation ceases
to be
true. You also agree that, if you are a bank or other financial institution
as
set forth above, you will comply with the applicable rules of the NASD,
that you
will maintain adequate records with respect to your customers and their
transactions, and that such transactions will be without recourse against
you by
your customers. We recognize that, in addition to applicable provisions
of state
and federal securities laws, you may be subject to the provisions of other
laws
governing, among other things, the conduct of activities by federal and
state-chartered and supervised financial institutions and their affiliated
organizations. Because you will be the only entity having a direct relationship
with the customer in connection with securities purchases hereunder, you
will be
responsible in that relationship for insuring compliance with all applicable
federal and state laws and regulations relating to securities purchases
hereunder.
13. Confidentiality
Each
party to this
Agreement agrees to maintain all information received from the other party
pursuant to this Agreement in confidence, and each party agrees not to
use any
such information for any purpose, or disclose any such information to any
person, except as permitted by applicable laws, rules and regulations.
This
provision shall survive the termination of this Agreement.
14. Termination
Either
of us may
cancel this Agreement at any time by written notice to the other.
15. Notices
All
communications
to us should be sent to the above address. Any notice to you shall be duly
given
if mailed or sent by overnight courier to you at the address specified
by you
below.
* * * * *
Execute
this
Agreement in duplicate and return one of the duplicate originals to us
for our
file. This Agreement (i) may be amended by notification from us and orders
received following such notification shall be deemed to be an acceptance
of any
such amendment and (ii) shall be construed in accordance with the laws
of the
State of California.
Very
truly
yours,
American
Funds
Distributors, Inc.
By/s/
Xxxxx X.
Xxxxxxxx
Xxxxx
X.
Xxxxxxxx
President
Accepted
Firm
By
Officer
or
Partner
Address:
Date:
Schedule
A
January
1,
2002
(supersedes
Schedule A dated January 15, 2001)
LIST
OF
FUNDS
AMCAP
Fund
American
Balanced
Fund
American
High-Income Municipal Bond Fund
American
High-Income Trust
American
Mutual
Fund
Bond
Fund of
America
Capital
Income
Builder
Capital
World
Growth and Income Fund
Capital
World Bond
Fund
Cash
Management
Trust of America
EuroPacific
Growth
Fund
Fundamental
Investors
Growth
Fund of
America
Income
Fund of
America
Investment
Company
of America
Intermediate
Bond
Fund of America
Limited
Term
Tax-Exempt Bond Fund of America
New
Economy
Fund
New
Perspective
Fund
New
World
Fund
SMALLCAP
World
Fund
Tax-Exempt
Bond
Fund of America
Tax-Exempt
Fund of
California
Tax-Exempt
Fund of
Maryland
Tax-Exempt
Fund of
Virginia
U.S.
Government
Securities Fund
Washington
Mutual
Investors Fund
The
Capital
Group Companies
Capital
International
|
Capital
Guardian
|
Capital
Research and Management
|
Capital
Bank
and Trust
|
American
Funds
|
[logo
- American
Funds ®]
American
Funds Distributors, Inc.
000
Xxxxx Xxxx
Xxxxxx
Xxx
Xxxxxxx,
Xxxxxxxxxx 00000
Telephone
800/000-0000, ext. 59
Institutional
selling group agreement
Ladies
and
Gentlemen:
We
have entered into a principal underwriting agreement with each Fund in
The
American Funds Group (Funds) under which we are appointed exclusive agent
for
the sale of shares. You have indicated that you wish to act as agent
for your
customers in connection with the purchase, sale and redemption of shares
of the
Funds as are qualified for sale in your state. We agree to honor your
request,
subject to the terms of this Selling Group Agreement (Agreement) set
forth
below.
Authorization
As
a member of a group of firms authorized to make shares of the Funds available
to
institutional customers (Selling Group), you will make shares of the
Funds
available only to retirement plans of entities that have retirement plan
assets
of at least $50 million (Plans). In placing orders for the purchase and
sale of
shares of the Funds, you will be acting as agent for your customers.
We shall
execute transactions for each of your customers only upon your authorization,
at
the regular public price currently determined by the respective Funds
in the
manner described in their offering prospectuses (Prospectuses). This
Agreement
on your part runs to us and to the respective Funds and is for the benefit
of
and enforceable by each. The offering Prospectuses and this Agreement
set forth
the terms applicable to sales of shares of the Funds through you and
all other
representations or documents are subordinate.
Compensation
on Class A Shares
In
consideration of your acting as agent for your customers in connection
with the
purchase and redemption of Fund shares and to compensate you for providing
certain services to your customers, we will pay you compensation as described
below, subject to your compliance with the following terms. Your eligibility
to
continue receiving this compensation will be evaluated periodically,
and your
failure to comply with the terms below may result in our discontinuing
ongoing
payments to you. Initial qualification does not assure continued participation,
and the payment of this compensation is subject to the limitations contained
in
each Fund’s Plan of Distribution and may be varied or discontinued by us at any
time.
a. |
You
agree to
cooperate as requested with programs that we provide to enhance
shareholder service. You also agree to assume an active role
in providing
shareholder services such as processing purchase and redemption
transactions, establishing shareholder accounts, and providing
certain
information and assistance with respect to the
Funds.
|
b. |
You
agree to
support our marketing efforts by granting reasonable requests
for visits
to your offices by our wholesalers and, to the extent applicable,
by
including all Funds covered by this Agreement on your “approved”
list.
|
c. |
You
agree to
assign an individual to each Plan account on your books and to
reassign
the account should that individual no longer be assigned to the
account.
You agree to instruct each such individual to regularly contact
shareholders having accounts so assigned.
|
d. |
You
agree to
pass through either directly or indirectly to the individual(s)
assigned
to such accounts a share of the compensation paid to you pursuant
to this
Agreement. You recognize that payments under this Agreement are
intended
to compensate the individual for providing, and encourage the
individual
to continue to provide, service to the account
holder.
|
e. |
You
acknowledge that (i) all compensation is subject to the limitations
contained in each Fund’s Plan of Distribution and may be varied or
discontinued at any time, (ii) in order to receive a payment
for a
particular month, the payment must amount to at least $100, and
(iii) no
compensation will be paid on shares purchased under the net asset
value
purchase privilege as described in the Funds’ statements of additional
information.
|
f. |
On
each new
order for Class A shares of Funds listed in Category 1 and Category
2 on
the attached Schedule A that is accepted by us, you will be paid
compensation of 0.25%. No compensation is paid on orders for
shares of
Funds listed in Category 3. In addition, we will pay you a quarterly
service fee at the annual rate of 0.25% of the average daily
net asset
value of Class A shares that have been invested for 12 months
and are held
in an account assigned to you at the end of the quarter for which
payment
is made (the annual rate is 0.15% of assets for Funds in Category
3).
|
Retirement
Plan Share Classes (R shares) and Account Options (for retirement plans
only)
a.
|
We
will pay
you ongoing compensation on a quarterly basis, at the applicable
annual
rate set forth below, of the
average
daily net asset value of R shares of Funds listed in Category
1, Category
2 and Category 3 on the attached Schedule A that are held in
a Plan
account assigned to you at the end of the quarter for which
payment is
made. The payment of this ongoing compensation is subject to
the
limitations contained in each Fund’s Plan of Distribution and may be
varied or discontinued at any time. We expect that you will
maintain one
account for each of your Plan customers on the books of the
Funds.
|
R
Share Class
|
Annual
Compensation Rate
|
|
Class
R-1
|
1.00%
|
|
Class
R-2
|
0.75%
|
|
Class
R-3
|
0.50%
|
|
Class
R-4
|
0.25%
|
|
Class
R-5
|
No
compensation
paid
|
b.
|
If
you hold
Plan accounts in an omnibus account (i.e.,
multiple
Plans in one account on the books of the Funds), Plans that
are added to
the omnibus account after May 15, 2002 may invest only in R
shares, and
you must execute an Omnibus Addendum to the Selling Group Agreement,
which
you can obtain by calling our Home Office Service Team at 800/421-5475,
extension 59.
|
Order
Processing
Any
order by you
for the purchase of shares of the respective Funds through us shall be
accepted
at the time when it is received by us (or any clearinghouse agency that
we may
designate from time to time), and at the offering and sale price next
determined, unless rejected by us or the respective Funds. In addition
to the
right to reject any order, the Funds have reserved the right to withhold
shares
from sale temporarily or permanently. We will not accept any order from
you that
is placed on a conditional basis or subject to any delay or contingency
prior to
execution. The procedure relating to the handling of orders shall be
subject to
instructions that we shall forward from time to time to all members of
the
Selling Group. The shares purchased will be issued by the respective
Funds only
against receipt of the purchase price, in collected New York or Los Angeles
Clearing House funds. If payment for the shares purchased is not received
within
three days after the date of confirmation the sale may be cancelled forthwith,
by us or by the respective Funds, without any responsibility or liability
on our
part or on the part of the Funds, and we and/or the respective Funds
may hold
you responsible for any loss, expense, liability or damage, including
loss of
profit suffered by us and/or the respective Funds, resulting from your
delay or
failure to make payment as aforesaid. If this section conflicts with
provisions
of any operational agreement you have with any of our affiliates, such
operational agreement shall control.
Timeliness
of Submitting Orders
You
are obliged to
date and indicate the time of receipt of all orders you receive from
your
customers and to transmit promptly all orders to us in time to provide
for
processing at the price next determined after receipt by you, in accordance
with
the Prospectuses. You are not to withhold placing with us orders received
from
any customers for the purchase of shares. You shall not purchase shares
through
us except for the purpose of covering purchase orders already received
by you,
or for your bona fide investment.
Repurchase
of Shares
If
any share is repurchased by any of the Funds or is tendered thereto for
redemption within seven business days after confirmation by us of the
original
purchase order from you for such security, you shall forthwith refund
to us the
full compensation paid to you on the original sale.
Processing
Redemption Requests
You
shall not
purchase any share of any of the Funds from a record holder at a price
lower
than the net asset value next determined by or for the Funds’ shares. You shall,
however, be permitted to sell any shares for the account of a shareholder
of the
Funds at the net asset value currently quoted by or for the Funds’ shares, and
may charge a fair service fee for handling the transaction provided you
disclose
the fee to the record owner.
Prospectuses
and Marketing Materials
|
We
shall furnish you without charge reasonable quantities of offering Prospectuses
(including any supplements currently in effect), current shareholder
reports of
the Funds, and sales materials issued by us from time to time. In the
purchase
of shares through us, you are entitled to rely only on the information
contained
in the offering Prospectus(es). You may not publish any advertisement
or
distribute sales literature or other written material to the public that
makes
reference to us or any of the Funds (except material that we furnished
to you)
without our prior written approval.
Effect
of
Prospectus
This
Agreement is
in all respects subject to statements regarding the sale and repurchase
or
redemption of shares made in offering Prospectuses of the Funds, which
shall
control and override any provision to the contrary in this
Agreement.
Relationship
of Parties
You
shall make
available shares of the Funds only through us. In no transaction (whether
of
purchase or sale) shall you have any authority to act as agent for, partner
of,
or participant in a joint venture with us or with the Funds or any other
entity
having either a Selling Group Agreement or other agreement with
us.
State
Securities Qualification
We
act solely as agent for the Funds and are not responsible for qualifying
the
Funds or their shares for sale in any jurisdiction. Upon written request
we will
provide you with a list of the jurisdictions in which the Funds or their
shares
are qualified for sale. We also are not responsible for the issuance,
form,
validity, enforceability or value of Fund shares.
Representations
a. |
You
represent
that you are (a) a properly registered or licensed broker or
dealer under
applicable federal and state securities laws and regulations
and are
complying with and will continue to comply with all applicable
federal and
state laws, rules and regulations; a member of the National Association
of
Securities Dealers, Inc. (NASD); and your membership with the
NASD is not
currently suspended or terminated; or (b) a "bank" as defined
in Section
3(a)(6) of the Securities
Exchange Act
of 1934 (or other financial institution) and not otherwise required
to
register as a broker or dealer under such Act or any state laws.
You agree
to notify us immediately in writing if any of the foregoing
representations ceases to be true to a material extent. You also
agree
that, if you are a bank or other financial institution as set
forth above,
you will comply with the applicable rules of the NASD, that you
will
maintain adequate records with respect to your customers and
their
transactions, and that such transactions will be without recourse
against
you by your customers. We recognize that, in addition to applicable
provisions of state and federal securities laws, you may be subject
to the
provisions of other laws governing, among other things, the conduct
of
activities by federal- and state-chartered and supervised financial
institutions and their affiliated organizations. Because you
will be the
only entity having a direct relationship with the customer in
connection
with securities purchases hereunder, you will be responsible
in that
relationship for ensuring compliance with all applicable federal
and state
laws, rules and regulations relating to securities purchases
hereunder.
|
b. |
We
represent
that (a) we are acting as an underwriter within the meaning of
the
applicable rules of the NASD and are complying
with and
will continue to comply with all applicable federal and state
laws, rules
and regulations, (b) we are a member of the NASD and (c) our
membership
with the NASD is not currently suspended or terminated. We agree
to notify
you immediately in writing if any of the foregoing representations
ceases
to be true to a material extent.
|
Confidentiality
Each
party to this
Agreement agrees to maintain all information received from the other
party
pursuant to this Agreement in confidence, and each party agrees not to
use any
such information for any purpose, or disclose any such information to
any
person, except as permitted by applicable laws, rules and regulations.
This
provision shall survive the termination of this Agreement.
Termination
Either
of us may
cancel this Agreement at any time by written notice to the
other.
Notices
All
communications
to us should be sent to the above address. Any notice to you shall be
duly given
if mailed or sent by overnight courier to you at the address specified
by you
below.
* * * * *
Execute
this
Agreement in duplicate and return one of the duplicate originals to us
for our
file. This Agreement (i) may be amended by notification from us and orders
received following such notification shall be deemed to be an acceptance
of any
such amendment and (ii) shall be construed in accordance with the laws
of the
State of California.
Very
truly
yours,
American
Funds
Distributors, Inc.
By
Xxxxx
X.
Xxxxxxxx
President
Accepted
Firm
By
Officer
or
Partner
Print
Name
Title
Address:
Date:
Schedule
A
January
15,
2001
(supersedes
Schedule A dated May 3, 1999)
Category
1
|
Category
2
|
AMCAP
Fund
|
American
High-Income Trust
|
American
Balanced Fund
|
Bond
Fund of
America
|
American
Mutual Fund
|
Capital
World
Bond Fund
|
Capital
Income Builder
|
Intermediate
Bond Fund of America
|
Capital
World
Growth and Income Fund
|
U.S.
Government Securities Fund
|
EuroPacific
Growth Fund
|
|
Fundamental
Investors
|
|
Growth
Fund
of America
|
Category
3
|
Income
Fund
of America
|
|
Investment
Company of America
|
Cash
Management Trust of America
|
New
Economy
Fund
|
U.S.
Treasury
Money Fund of America
|
New
Perspective Fund
|
|
New
World
Fund
|
|
SMALLCAP
World Fund
|
|
Washington
Mutual Investors Fund
|
[logo
- American
Funds ®]
American
Funds Distributors, Inc.
000
Xxxxx Xxxx
Xxxxxx
Xxx
Xxxxxxx,
Xxxxxxxxxx 00000
Telephone
800/000-0000, ext. 4
October
2006
To
Our Dealer Friends,
As
you may know, shares of our newest fund in the American Funds family,
Short-Term
Bond Fund of America, will be available for sale to the public beginning
November 1, 2006. Short-Term Bond Fund of America is designed to provide
current
income and capital preservation by investing in high-quality short-term
bonds.
The purpose of this notice is to amend your institutional
selling group agreement
(the “Agreement”)
with American Funds Distributors to reflect this new fund.
In
consideration of the foregoing, the schedule of Funds in the Agreement
is
amended in its entirety as follows effective November 1, 2006:
Schedule
A
November
1,
2006
(supersedes
all
previous versions of Schedule A)
Category
1
AMCAP
Fund
American
Balanced Fund
American
Mutual Fund
Capital
Income Builder
Capital
World
Growth and Income Fund
EuroPacific
Growth Fund
Fundamental
Investors
The
Growth
Fund of America
The
Income
Fund of America
The
Investment Company of America
The
New
Economy Fund
New
Perspective Fund
New
World
Fund
SMALLCAP
World Fund
Washington
Mutual Investors Fund
|
Category
2
American
High-Income Trust
The
Bond Fund
of America
Capital
World
Bond Fund
Intermediate
Bond Fund of America
U.S.
Government Securities Fund
Category
3
The
Cash
Management Trust of America
U.S.
Treasury
Money Fund of America
|
* * * * *
The
Agreement
remains unchanged in all other respects. Any order for Fund shares received
by
us beginning November 1, 2006 shall be deemed an acceptance of this amendment
to
your Agreement.
Very
truly
yours,
/s/
Xxxxx X.
Xxxxxxxx
Xxxxx
X.
Xxxxxxxx