**DEFERRED        COMPENSATION PLAN**

**TABLE        OF        CONTENTS**

| Paragraph                  Title      |                                                                  |                                                                         | Page                No                                                                 |    |
|----------------------------------------------------------------|-----------------------------------------------------------------------|------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|---------|
| 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                                         | 5                                                                                      |    |
|                                                           | 3.4.                                                                  | Plan                  Termination                                            |                                                                                   | 5       |   |
|                                                           |                                                                  |                                                                         |                                                                                   |    |   |
| 4.                                                             | Election                  to                  Defer Payments          |                                                                         | 5                                                                                      |    |
|                                                           | 4.1.                                                                  | Election                  to                  Defer                          |                                                                                   | 5       |   |
|                                                           | 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                              |                                                                         | 6                                                                                      |    |
|                                                           |                                                                  |                                                                         |                                                                                   |    |   |
| 6.                                                             | Deferred                  Payment Account                             |                                                                         | 6                                                                                      |    |
|                                                           | 6.1.                                                                  | Crediting                  Amounts                                      | 6                                                                                      |    |
|                                                           | 6.2.                                                                  | Change                  of                  Investment Designation      | 6                                                                                      |    |
|                                                           | 6.3.                                                                  | Exchange                  Requests                                      | 6                                                                                      |    |
|                                                           | 6.4.                                                                  | Plan                  Participants Serving on Money Market Fund Boards  | 7                                                                                      |    |
|                                                           |                                                                  |                                                                         |                                                                                   |    |   |
| 7.                                                             | Timing                  and                  Manner of Payments  |                                                                         | 7                                                                                      |    |
|                                                           | 7.1.                                                                  | Timing                  of                  Payments                    | 7                                                                                      |    |
|                                                           | 7.2.                                                                  | Manner                  of                  Payment – Lump Sum    | 7                                                                                      |    |
|                                                           | 7.3.                                                                  | Alternative                  Payment Methods                            | 7                                                                                      |    |
|                                                           | 7.4.                                                                  | Death                  of Plan                  Participant             | 8                                                                                      |    |
|                                                           | 7.5.                                                                  | Disability                  of                  Plan Participant        | 8                                                                                      |    |
|                                                           | 7.6.                                                                  | Unforeseeable                  Emergency                                | 8                                                                                      |    |
|                                                           | 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      | 9                                                                                      |    |
|                                                           |                                                                  |                                                                         |                                                                                   |    |   |
| 8.                                                             | Miscellaneous                                                         |                                                                         |                                                                                   | 9       |   |

**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. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**INTRODUCTION**

**PLAN          OVERSIGHT; INTERPRETATION AND          AMENDMENT**

**ELECTION          TO DEFER PAYMENTS**

**BENEFICIARY          DESIGNATION**

**DEFERRED          PAYMENT ACCOUNT**

**TIMING          AND MANNER OF PAYMENTS**

**MISCELLANEOUS**

**AMCAP        Fund,        Inc.:**

**American        Balanced        Fund, Inc.:**

**The        American Funds Income Series:**

**American        Funds Insurance Series:**

**The        American Funds Tax-Exempt Series II:**

**American        High-Income Municipal Bond Fund, Inc.:**

**American        High-Income Trust:**

**American        Mutual Fund, Inc.:**

**The        Bond        Fund of America, Inc.:**

**Capital        Income Builder, Inc.:**

**Capital        World Bond Fund, Inc.:**

**Capital        World Growth and Income Fund, Inc.:**

**The        Cash        Management Trust of America:**

**EuroPacific        Growth Fund:**

**Fundamental        Investors, Inc.:**

**The        Growth        Fund of America, Inc.:**

**The        Income        Fund of America, Inc.:**

**Intermediate        Bond Fund of America:**

**The        Investment Company of America:**

**Limited        Term Tax-Exempt Bond Fund of America:**

**The        New        Economy Fund:**

**New        Perspective Fund, Inc.:**

**New        World        Fund, Inc.:**

**The        Short-Term Bond Fund of America, Inc.**

**SMALLCAP        World Fund, Inc.:**

**The        Tax-Exempt Bond Fund of America, Inc.:**

**The        Tax-Exempt Money Fund of America, Inc.:**

**The        U.S.        Treasury Money Fund of America:**

**EXHIBIT        A**

| LIST                    OF                    PARTICIPATING FUNDS                  | ABBREVIATION |
|------------------------------------------------------------------------------------|--------------|
|                                                                               |         |
| AMCAP                    Fund,                    Inc.                             | AMCAP        |
| American                    Balanced Fund, Inc.                                    | AMBAL        |
| American                    Funds Insurance Series                                 | AFIS         |
| American                    Funds Target Date Retirement Series                    | AFTD         |
| 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         |
| The                    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          |

**[logo          -          American Funds ®]**

**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**;ORq  **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.*                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

  

**[logo          -          American Funds ®]**

** 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: |
|                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

**[logo        -        American Funds ®]**

**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.                             | **%**                             |
|                                                    |  American                Funds 2050 Target Date Retirement Fund                |  **%**                       |
|                                                    |  American                Funds 2045 Target Date Retirement                Fund |  **%**                       |
|                                                    |  American                Funds 2040 Target Date Retirement                Fund |  **%**                       |
|                                                    |  American                Funds 2035 Target Date Retirement                Fund |  **%**                       |
|                                                    |  American                Funds 2030 Target Date Retirement                Fund |  **%**                       |
|                                                    |  American                Funds 2025 Target Date Retirement                Fund |  **%**                       |
|                                                    |  American                Funds 2020 Target Date Retirement                Fund |  **%**                       |
|                                                    |  American                Funds 2015 Target Date Retirement                Fund |  **%**                       |
|                                                    |  American                Funds 2010 Target Date Retirement                Fund |  **%**                       |