**“Form      of”**

**DEFERRED      COMPENSATION PLAN**

**TABLE      OF      CONTENTS**

| Paragraph                Title                     |                                                                                           | Page                Number |
|----------------------------------------------------|------------------------------------------------------------------------------------------------|----------------------------|
| 1.                                                 | Definitions                                                                                    | 1                          |
| 2.                                                 | Introduction                                                                                   | 4                          |
|                                               |                                                                                           |                       |
| 3.                                                 | Plan                Oversight; Administration and Amendment                                    | 4                          |
|                                               | 3.1. Plan                Oversight and Operation                                          | 4                          |
|                                               | 3.2. Plan                Interpretation and Administration                                | 4                          |
|                                               | 3.3. Plan                Amendment or Termination                                         | 4                          |
|                                               |                                                                                           |                       |
| 4.                                                 | Election                to                Defer Payments                                       | 4                          |
|                                               | 4.1. Election                to                Defer                                      | 4                          |
|                                               | 4.2. Current                Independent Board Members                                     | 5                          |
|                                               | 4.2.a. Newly                Elected                or Appointed Independent Board Members | 5                          |
|                                               | 4.3. Modification                or Revocation of Election to Defer                       | 5                          |
|                                               |                                                                                           |                       |
| 5.                                                 | Beneficiary                Designation                                                         | 5                          |
|                                               |                                                                                           |                       |
| 6.                                                 | Deferred                Payment Account                                                        | 5                          |
|                                               | 6.1. Crediting                Amounts                                                     | 5                          |
|                                               | 6.2. Change                of                Investment Designation                       | 6                          |
|                                               | 6.3. Exchange                Requests                                                     | 6                          |
|                                               | 6.4. Plan                Participants Serving on Money Market Fund Boards                 | 6                          |
|                                               |                                                                                           |                       |
| 7.                                                 | Timing                and                Manner of Payments                                    | 6                          |
|                                               | 7.1. Timing                of                Payments                                     | 6                          |
|                                               | 7.2. Manner                of                Payment - Lump Sum                           | 6                          |
|                                               | 7.3. Alternative                Payment Methods                                           | 7                          |
|                                               | 7.4. Death                of Plan                Participant                              | 7                          |
|                                               | 7.5. Disability                of                Plan Participant                         | 7                          |
|                                               | 7.6. Unforeseeable                Emergency                                               | 7                          |
|                                               | 7.7. Modification                or Revocation for Post-2004 Deferrals                    | 8                          |
|                                               | 7.7.a. Special                Transition Rule                                             | 8                          |
|                                               | 7.8. Modification                or Revocation for Pre-2005 Deferrals                     | 8                          |
|                                               |                                                                                           |                       |
| 8.                                                 | Miscellaneous                                                                                  | 8                          |
|                                               |                                                                                           |                       |
| Signature                Pages                     |                                                                                           |
| Exhibits                A                through D |                                                                                           |

| **1.  ** | **DEFINITIONS** |
|--------------------|-----------------|

| (i)   | With                respect                to a retainer deferred by a Plan Participant, the Date of Crediting                is the                first day of the period to which the retainer relates. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | With                respect                to a meeting fee deferred by a Plan Participant, the Date of Crediting                is                the date of the meeting. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | If                any Date                of Crediting falls on a Saturday, Sunday or federal holiday, the                Date of                Crediting will be the first business day following such Saturday,                Sunday                or federal holiday. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | The                date                specified in Exhibit B by the Plan Participant that is objectively                determinable at the time compensation is deferred under the Plan                and                is at                least twenty-four months past the date of the first deferral election                made                by the Plan Participant;                or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | The                date on                which the Plan Participant is no longer an Independent Board Member                of any                Fund; or |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | The                date the                Plan Participant dies; or |
|-------------------|----------------------------------------------------------------------|

| (iv)   | The                date the                Administrator receives notification that the Plan Participant is                Disabled;                or |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | The                date the                Committee determines that the Plan Participant has an Unforeseeable                Emergency; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | For                pre-2005                deferrals only, a distribution event permissible under the terms                of the                Plan in effect on January 1, 2004. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.  ** | **INTRODUCTION** |
|--------------------|------------------|

| **3.  ** | **PLAN                OVERSIGHT; INTERPRETATION AND                AMENDMENT** |
|--------------------|--------------------------------------------------------------------------------|

| **4.  ** | **ELECTION                TO DEFER PAYMENTS** |
|--------------------|-----------------------------------------------|

| **5.  ** | **BENEFICIARY                DESIGNATION** |
|--------------------|--------------------------------------------|

| **6.  ** | **DEFERRED                PAYMENT ACCOUNT** |
|--------------------|---------------------------------------------|

| **7.  ** | **TIMING                AND MANNER OF PAYMENTS** |
|--------------------|--------------------------------------------------|

| **8.  ** | **MISCELLANEOUS** |
|--------------------|-------------------|

| **AMCAP                Fund, Inc.:**                                                                                    |
|-------------------------------------------------------------------------------------------------------------------------|
| Claudia                P.                Huntington, President & Principal Executive Officer                        |
| Vincent                P.                Corti, Secretary                                                               |
|                                                                                                                    |
| **American                Balanced Fund, Inc.:**                                                                        |
| Robert                G.                O’Donnell, Vice Chairman & Principal Executive                Officer |
| Patrick                F.                Quan, Secretary                                                                |
|                                                                                                                    |
| **The                American Funds Income Series:**                                                                    |
| John                H. Smet,                President & Principal Executive Officer                                 |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |
| **American                Funds Insurance Series**:                                                                     |
| James                K.                Dunton, Vice Chairman & Principal Executive Officer                          |
| Chad                L.                Norton, Secretary                                                                 |
|                                                                                                                    |
| **The                American Funds Tax-Exempt Series II**:                                                             |
| Abner                D.                Goldstine, President & Principal Executive Officer                           |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |
| **American                High-Income Municipal Bond Fund, Inc.:**                                                      |
| Mark                R.                Macdonald, President & Principal Executive Officer                            |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |
| **American                High-Income Trust:**                                                                          |
| David                C.                Barclay, President & Principal Executive Officer                             |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |
| **American                Mutual Fund, Inc.:**                                                                          |
| James                K.                Dunton, Vice Chairman & Principal Executive Officer                          |
| Vince                P.                Corti, Secretary                                                                 |
|                                                                                                                    |
| **The                Bond Fund of America, Inc.:**                                                                      |
| Abner                D.                Goldstine, President & Principal Executive Officer                           |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |
| **Capital                Income Builder, Inc.:**                                                                        |
| James                B.                Lovelace, Vice Chairman & Principal Executive                Officer         |
| Vincent                P.                Corti, Secretary                                                               |
|                                                                                                                    |
| **Capital                World Bond Fund, Inc.:**                                                                       |
| Mark                H.                Dalzell, President & Principal Executive Officer                              |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |
| **Capital                World Growth and Income Fund, Inc.:**                                                          |
| Stephen                E.                Bepler, President & Principal Executive Officer                            |
| Vincent                P.                Corti, Secretary                                                               |
|                                                                                                                    |
| **The                Cash Management Trust of America:**                                                                |
| Abner                D.                Goldstine, President & Principal Executive Officer                           |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |
| **EuroPacific                Growth Fund:**                                                                             |
| Mark                E.                Denning, President & Principal Executive Officer                              |
| Vincent                P.                Corti, Secretary                                                               |
|                                                                                                                    |
|                                                                                                                    |
| **Fundamental                Investors, Inc.:**                                                                         |
| James                F.                Rothenberg, Vice Chairman & Principal Executive                Officer       |
| Patrick                F.                Quan, Secretary                                                                |
|                                                                                                                    |
| **The                Growth Fund of America, Inc.:**                                                                    |
| James                F.                Rothenberg, Vice Chairman & Principal Executive                Officer       |
| Patrick                F.                Quan, Secretary                                                                |
|                                                                                                                    |
| **The                Income Fund of America, Inc.:**                                                                    |
| Hilda                L.                Appplbaum, Chairman & Principal Executive Officer                            |
| Patrick                F.                Quan, Secretary                                                                |
|                                                                                                                    |
| **Intermediate                Bond Fund of America:**                                                                   |
| John                H. Smet,                President & Principal Executive Officer                                 |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |
| **The                Investment Company of America:**                                                                   |
| R.                Michael                Shanahan, Chairman & Chief Executive Officer                               |
| Vincent                P.                Corti, Secretary                                                               |
|                                                                                                                    |
| **Limited                Term Tax-Exempt Bond Fund of America:**                                                        |
| Brenda                S.                Ellerin, President & Principal Executive Officer                            |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |
| **The                New Economy Fund:**                                                                                |
| Timothy                D.                Armour, President & Principal Executive Officer                            |
| Chad                L.                Norton, Secretary                                                                 |
|                                                                                                                    |
| **New                Perspective Fund, Inc.:**                                                                          |
| Robert                W.                Lovelace, President & Principal Executive Officer                           |
| Vincent                P.                Corti, Secretary                                                               |
|                                                                                                                    |
| **New                World Fund, Inc.:**                                                                                |
| Robert                W.                Lovelace, President & Principal Executive Officer                           |
| Vincent                P.                Corti, Secretary                                                               |
|                                                                                                                    |
| **Short-Term                Bond Fund of America, Inc.**                                                                |
| David                A.                Hoag, President & Principal Executive Officer                                |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |
| **SMALLCAP                World Fund, Inc.:**                                                                           |
| Gordon                Crawford, Vice Chairman & Principal Executive                Officer                          |
| Chad                L.                Norton, Secretary                                                                 |
|                                                                                                                    |
| **The                Tax-Exempt Bond Fund of America, Inc.:**                                                           |
| Neil                L.                Langberg, President & Principal Executive Officer                             |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |
| **The                Tax-Exempt Money Fund of America, Inc.**:                                                          |
| Abner                D.                Goldstine, President & Principal Executive Officer                           |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |
| **The                U.S. Treasury Money Fund of America:**                                                             |
| Abner                D.                Goldstine, President & Principal Executive Officer                           |
| Kimberly                S.                Verdick, Secretary                                                            |
|                                                                                                                    |

**EXHIBIT      A**

| **LIST                OF PARTICIPATING FUNDS**                             | **ABBREVIATION** |
|----------------------------------------------------------------------------|------------------|
| AMCAP                Fund,                Inc.                             | AMCAP            |
| American                Balanced Fund, Inc.                                | AMBAL            |
| American                Funds Insurance Series                             | VI               |
| American                High-Income Municipal Bond Fund, Inc.              | AHIM             |
| American                High-Income Trust                                  | AHIT             |
| American                Mutual Fund, Inc.                                  | AMF              |
| The                Bond Fund                of America, Inc.               | BFA              |
| Capital                Income Builder, Inc.                                | CIB              |
| Capital                World                Bond Fund, Inc.                | WBF              |
| Capital                World                Growth and Income Fund, Inc.   | WGI              |
| The                Cash                Management Trust of America         | CMTA             |
| EuroPacific                Growth Fund                                     | EUPAC            |
| Fundamental                Investors, Inc.                                 | FI               |
| The                Growth                Fund of America, Inc.             | GFA              |
| The                Income                Fund of America, Inc.             | IFA              |
| Intermediate                Bond Fund of America                           | IBFA             |
| The                Investment Company of America                           | ICA              |
| Limited                Term                Tax-Exempt Bond Fund of America | LTEX             |
| The                New                Economy Fund                         | NEF              |
| New                Perspective Fund, Inc.                                  | NPF              |
| New                World                Fund, Inc.                         | NWF              |
| SMALLCAP                World Fund, Inc.                                   | SCWF             |
| Short-Term                Bond Fund of America, Inc.                       | STBF             |
| The                Tax-Exempt Bond Fund of America, Inc.                   | TEBF             |
| The                Tax-Exempt Fund of California                           | TEFCA            |
| The                Tax-Exempt Money Fund of America, Inc.                  | CTEX             |
| The                U.S.                Treasury Money Fund of America      | CTRS             |
| U.S.                Government Securities Fund                             | GVT              |

**EXHIBIT      B**

**1**

**Deferral      Election Form**

**I      am a      participant in the Deferred Compensation Plan for Independent Board Members      of      the mutual funds managed by CRMC and I wish my compensation from Board service      to [all funds][the following funds ______________________________________]      deferred as follows:**

|  **I                elect to defer the following portion of my compensation from the                funds                managed by CRMC and designated above:****1** ** **                                                                                                                                                                   |  ·  Annual                retainer as an Independent Board Member:  % ·  Board                and                Committee meeting fees as an Independent Board Member:% I                understand                that, to be effective, this election must be filed with the Administrator                of the Plan prior to the first day of the first calendar year to                which it                applies, except as provided in Section 4.2.a. of the Plan. Once effective,                this election will continue until revoked or modified in accordance                with                the terms of the Plan.                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  **I                hereby specify that I shall be entitled to payment of my deferred                compensation upon the occurrence of either Permissible Payment Event                indicated in the corresponding box (check one), or any other Permissible                Payment Event:**                                                       |  q  The                date on                which I am no longer an Independent Board Member of any fund managed                by                CRMC; or q  The                following                date which is objectively determinable at the time my compensation                is                deferred and is at least twenty four months past the date of the                first                deferral election made by me (cannot be an “event”):                                                                                                                                                                                                                                                              |
|  **I                hereby specify that payments from my Deferred Payment Account(s)                for the                fund(s) listed above be made beginning within thirty (30) days of                the                close of the calendar quarter containing the Permissible Payment                Event                (outlined above):** |  q  **In                a                single lump sum payment**; OR q  **In                annual**q**In                quarterly** *variable                dollar installment payments over a period of* q  **5                years**q**10                years**q**15                years**q** ****years (not to exceed 30);** OR q **In                annual**  q **In                quarterly** *fixed                dollar payments of***$**  *each;                however, in no event shall any installment payment exceed the balance                credited to my Deferred Payment Account on the date immediately preceding                the date of payment.*  |

----

**EXHIBIT      C**

**Beneficiary      Designation Form**

**I      hereby      designate the following beneficiary(ies) to receive any death benefit payable      on      account of my participation in the Deferred Compensation Plan for Independent      Board Members of **

**the      mutual      funds managed by CRMC.**

|  **Primary                Beneficiary(ies):**    |  1.  Name:%                Share:Address:          Relationship:         Date                of                Birth:    Social                Security #:   Trust                Name                and Date (if beneficiary is a trust):     Trustee                of                Trust:          2.  Name:%                Share:Address:          Relationship:         Date                of                Birth:    Social                Security #:   Trust                Name                and Date (if beneficiary is a trust):     Trustee                of                Trust:          |
|-------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  **Contingent                Beneficiary(ies):** |  1.  Name:%                Share:Address:          Relationship:         Date                of                Birth:    Social                Security #:   Trust                Name                and Date (if beneficiary is a trust):     Trustee                of                Trust:          2.  Name:%                Share:Address:          Relationship:         Date                of                Birth:    Social                Security #:   Trust                Name                and Date (if beneficiary is a trust):     Trustee                of                Trust:          |

**EXHIBIT      D**

**3 **

**    Rate      of      Return Election Form **

**I      am a      participant in the Deferred Compensation Plan for Independent Board Members      of**

**the      mutual      funds managed by CRMC and I wish my compensation from Board service to [all      funds] [the following funds      ________________________________________________________________] invested      as      follows:**

|                                                    |                                                                            |                              |
|---------------------------------------------------------|---------------------------------------------------------------------------------|-----------------------------------|
|                                                    | **FUNDS**                                                                       | **%                  ALLOCATION** |
|                                                    |                                                                            |                              |
| **With                  respect to**                    | AMCAP                  Fund,                  Inc.                              | **%**                             |
| **future                  earnings, I**                 | American                  Balanced Fund, Inc.                                   | **%**                             |
| **hereby                  elect to have**               | American                  High-Income Municipal Bond Fund, Inc.            | **%**                             |
| **amounts                  credited to**                | American                  High-Income Trust                                     | **%**                             |
| **my                  Deferred**                        | American                  Mutual Fund, Inc.                                     | **%**                             |
| **Payment                  Account(s)**                 | The                  Bond Fund                  of America, Inc.                | **%**                             |
| **for                  the fund(s) listed**             | Capital                  Income Builder, Inc.                                   | **%**                             |
| **above                  invested in**                  | Capital                  World                  Bond Fund, Inc.                 | **%**                             |
| **Class                  A shares of**                  | Capital                  World                  Growth and Income Fund, Inc.    | **%**                             |
| **the                  specified funds:**               | The                  Cash                  Management Trust of America*         | **%**                             |
|                                                    | EuroPacific                  Growth Fund                                        | **%**                             |
|                                                    | Fundamental                  Investors, Inc.                                    | **%**                             |
| ***I                  understand that if I**            | The                  Growth                  Fund of America, Inc.              | **%**                             |
| **serve                  on the Board**                 | The                  Income                  Fund of America, Inc.              | **%**                             |
| **of                  a                  Money Market** | Intermediate                  Bond Fund of America                              | **%**                             |
| **Fund,                  I may only**                   | The                  Investment Company of America                              | **%**                             |
| **have                  amounts**                       | Limited                  Term                  Tax-Exempt Bond Fund of America  | **%**                             |
| **credited                  to my**                     | The                  New                  Economy Fund                          | **%**                             |
| **Deferred                  Payment**                   | New                  Perspective Fund, Inc.                                     | **%**                             |
| **Account                  for that**                   | New                  World                  Fund, Inc.                          | **%**                             |
| **Money                  Market Fund**                  | SMALLCAP                  World Fund, Inc.                                      | **%**                             |
| **with                  respect to future**             | Short-Term                  Bond Fund of America, Inc. (available January 2007) | **%**                             |
| **earnings                  invested in**               | The                  Tax-Exempt Bond Fund of America, Inc.                      | **%**                             |
| **Class                  A shares of**                  | The                  Tax-Exempt Fund of California                              | **%**                             |
| **that                  particular Money**              | The                  Tax-Exempt Fund of Maryland                                | **%**                             |
| **Market                  Fund.**                       | The                  Tax-Exempt Fund of Virginia                                | **%**                             |
|                                                    | The                  Tax-Exempt Money Fund of America, Inc.*                    | **%**                             |
|                                                    | The                  U.S.                  Treasury Money Fund of America*      | **%**                             |
|                                                    | U.S.                  Government Securities Fund                                | **%**                             |
|                                                    | Washington                  Mutual Investors Fund, Inc.                         | **%**                             |