PLAN OF DISTRIBUTION
OF
AMERICAN HIGH-INCOME TRUST
WHEREAS, American High-Income Trust (the "Fund") is a Massachusetts
business trust which offers shares of beneficial interest and may offer shares
of additional series in the future;
WHEREAS, American Funds Distributors, Inc. ("AFD") will serve as
distributor of the shares of beneficial interest of the Fund, and the Fund and
AFD are parties to a principal underwriting agreement (the "Agreement");
WHEREAS, the purpose of this Plan of Distribution (the "Plan") is to
authorize the Fund to bear expenses of distribution of its shares, including
reimbursement of AFD for its expenses in the promotion of the sale of shares of
the Fund, pursuant to the Principal Underwriting Agreement;
WHEREAS, the Board of Trustees of the Fund has determined that there is a
reasonable likelihood that this Plan will benefit the Fund and its
shareholders:
NOW, THEREFORE, the Fund adopts this Plan as follows:
1. The Fund may expend pursuant to this Plan amounts not to exceed .30 of
1% of the average daily net assets of the Fund per annum.
2. Subject to the limit in paragraph 1, the Fund shall pay or reimburse
AFD for amounts expended by AFD to finance any activity which is primarily
intended to result in the sale of shares of the Fund including, but not limited
to, payments to dealers, advertising, salaries and other expenses of AFD
relating to selling or servicing efforts, expenses of organizing and conducting
sales seminars, printing of prospectuses and reports for other than existing
shareholders and preparation and distribution of advertising material and sales
literature; provided, (i) that the Board of Trustees of the Fund shall have
approved categories of expenses for which payment or reimbursement shall be
made pursuant to this paragraph 2, (ii) that reimbursement shall be made in
accordance with the terms of the Agreement, and (iii) that there shall be no
reimbursement for any amounts which were expended by AFD in a prior fiscal year
of the Fund but were not reimbursed in such year due to the limitations in
paragraph 1.
3. This Plan shall not take effect until it has been approved by vote of
a majority of the outstanding voting securities of the Fund (as defined in the
Investment Company Act of 1940 (the "1940 Act")) and shall take effect with
respect to any series of the Fund which may be established in the future upon
approval by vote of a majority of the outstanding voting securities (as defined
in the 1940 Act) of such series as provided in this paragraph 3 and by the
Board of Trustees as provided in paragraph 4. The Plan as adopted with respect
to any additional series shall specify the expense limit applicable to such
series pursuant to Section 1 hereof and the expenses payable by or with respect
to such series pursuant to paragraph 2 hereof.
4. This Plan shall not take effect until it has been approved, together
with any related agreement, by votes of the majority of both (i) the Board of
Trustees of the Fund and (ii) those Trustees of the Fund who are not
"interested persons" of the Fund (as defined in the 1940 Act) and have no
direct or indirect financial interest in the operation of this Plan or any
agreement related to it (the "Qualified Trustees"), cast in person at a meeting
called for the purpose of voting on this Plan and/or such agreement.
5. At least quarterly, the Board of Trustees shall be provided by any
person authorized to direct the disposition of monies paid or payable by the
Fund pursuant to this Plan or any related agreement, and the Board shall review
a written report of the amounts expended pursuant to the Plan and the purposes
for which such expenditures were made.
6. This Plan may be terminated as to the Fund or any series of the Fund
at any time by vote of a majority of the Qualified Trustees, or by vote of a
majority of the outstanding voting securities (as defined in the 1940 Act) of
the Fund or such series. Unless sooner terminated in accordance with this
provision, this Plan shall continue in effect until October 31, 1990. It may
thereafter be renewed from year to year in the manner provided for in paragraph
4 hereof.
7. Any agreement related to this Plan shall be in writing, and shall
provide:
A. that such agreement may be terminated as to the Fund or any
series thereof at any time, without payment of any penalty, by vote of a
majority of the Qualified Trustees or by a vote of a majority of the
outstanding voting securities (as defined in the 1940 Act) of the Fund or such
series, on not more than sixty (60) days' written notice to any other party to
the agreement; and
B. that such agreement shall terminate automatically in the event of
its assignment.
8. This Plan may not be amended to increase materially the maximum amount
of fee or other distribution expenses provided for in paragraph 1 hereof with
respect to the Fund or a series unless such amendment is approved by the voting
securities of the Fund or that series in the manner provided in paragraph 3
hereof, and no material amendment to this Plan shall be made unless approved in
the manner provided for in paragraph 4 hereof.
9. While this Plan is in effect, the selection and nomination of Trustees
of the Fund who are not "interested persons" of the Fund (as defined in the
1940 Act) shall be committed to the discretion of the Trustees who are not
interested persons.
10. This Plan may be adopted, amended, continued or renewed with respect
to a series as provided herein notwithstanding such adoption, amendment,
continuance or renewal has not been effected with respect to any one or more
other series of the Fund.
11. The obligations of the Fund under this Agreement are not binding upon
any of the Trustees, officers, employees, agents or shareholders of the Fund
individually, but bind only the Fund's estate. Persons entitled to receive
payments from the Fund under the Plan shall look solely to the assets of the
Fund for any payment by the Fund under this Plan and will not seek recourse
against such Trustees, officers, employees, agents or shareholders, or any of
them or any of their personal assets for such payments.
12. The Fund shall preserve copies of this Plan and any related agreement
and all reports made pursuant to paragraph 5 hereof for a period of not less
than six (6) years from the date of this Plan, or such agreement or reports, as
the case may be, the first two (2) years of which such records shall be stored
in an easily accessible place.
IN WITNESS WHEREOF, the Fund has caused this Plan to be executed by its
officers thereunto duly authorized, as of November 1, 1989.
AMERICAN HIGH-INCOME TRUST
By /s/ Xxxxx X. Xxxxxxxx
Xxxxx X. Xxxxxxxx, Chairman
By /s/ Xxxxx X. Xxxxxxxx
Xxxxx X. Xxxxxxxx, Secretary
