Form of
AMENDED AND RESTATED ADMINISTRATIVE SERVICES AGREEMENT
WHEREAS, [Name of Fund] (the "Fund"), is a Maryland corporation registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end diversified investment company that offers Class C shares; Class F
shares; Class R-1 shares, Class R-2 shares, Class R-3 shares, Class R-4 shares
and Class R-5 shares (collectively, the "Class R shares"); and Class 529-A
shares, Class 529-B shares, Class 529-C shares, Class 529-E shares, and Class
529-F shares (collectively, the "Class 529 shares"); and
WHEREAS, Capital Research and Management Company (the "Investment
Adviser"), is a Delaware corporation registered under the Investment Advisers
Act of 1940, as amended, and is engaged in the business of providing investment
advisory and related services to the Fund and to other investment companies; and
WHEREAS, the Fund wishes to have the Investment Adviser arrange for and
coordinate and monitor the provision of transfer agent and shareholder services
("transfer agent services") and certain other administrative services (other
than those provided pursuant to any other agreement with the Fund), including
but not limited to recordkeeping, transactional services, tax information
returns and reports, fund communication and shareholder communication
(collectively "administrative services") for the Fund's Class C shares, Class F
shares, Class R shares and Class 529 shares; and
WHEREAS, the Investment Adviser is willing to perform or to cause to be
performed such transfer agent services and administrative services for the
Fund's Class C shares, Class F shares, Class R shares and Class 529 shares on
the terms and conditions set forth herein; and
WHEREAS, the Fund and the Investment Adviser wish to enter into an
Administrative Services Agreement ("Agreement") whereby the Investment Adviser
would perform or cause to be performed such transfer agent services and
administrative services for the Fund's Class C shares, Class F shares, Class R
shares and Class 529 shares;
NOW, THEREFORE, the parties agree as follows:
1. Services. During the term of this Agreement, the Investment Adviser
shall perform or cause to be performed the transfer agent services and
administrative services set forth in Exhibit A hereto, as such exhibit may be
amended from time to time by mutual consent of the parties. The Fund and
Investment Adviser acknowledge that the Investment Adviser will contract with
third parties, including American Funds Service Company ("AFS"), to perform such
transfer agent services and administrative services. In selecting third parties
to perform transfer agent and administrative services, the Investment Adviser
shall select only those third parties that the Investment Adviser reasonably
believes have adequate facilities and personnel to diligently perform such
services. The Investment Adviser shall monitor, coordinate and oversee the
activities of the third parties with which it or AFS contracts to ensure
shareholders receive high-quality service. In doing so the Investment Adviser
shall establish procedures to monitor the activities of such third parties.
These procedures may, but need not, include monitoring: (i) telephone queue wait
times;
(ii) telephone abandon rates; (iii) website and voice response unit downtimes;
(iv) downtime of the third party's shareholder account recordkeeping system; (v)
the accuracy and timeliness of financial and non-financial transactions; (vi) to
ensure compliance with the Fund prospectus; and (vii) with respect to Class 529
shares, compliance with the CollegeAmerica program description.
2. Fees.
(a) Transfer Agent Fees. In consideration of transfer agent services
performed or caused to be performed by the Investment Adviser for the
Fund's Class C shares, Class F shares and Class R shares, the Fund shall
pay the Investment Adviser transfer agent fees according to the fee
schedule contained in the Shareholder Services Agreement, as amended from
time to time, between the Fund and AFS. No Transfer Agent Fees shall be
paid in respect of accounts that are held in other than street name or a
networked environment. No fees shall be paid under this paragraph 2(a) for
services provided by third parties other than AFS. All fund-specific
charges from third parties-including DST charges, postage, NSCC transaction
charges and similar out-of-pocket expenses-will be passed through directly
to the Fund. Transfer agent fees shall be paid within 30 days after receipt
of an invoice for transfer agent services performed the preceding month.
(b) Administrative Services Fees. In consideration of administrative
services performed or caused to be performed by the Investment Adviser for
the Fund's Class C shares, Class F shares, Class R shares and Class 529
shares, the Fund shall pay the Investment Adviser an administrative
services fee ("administrative fee"). For the Fund's Class C shares, Class F
shares, Class R-1 shares, Class R-2 shares, Class R-3 shares, Class R-4
shares and Class 529 shares, the administrative fee shall accrue daily and
shall be calculated at the annual rate of 0.15% of the average net assets
of those shares. For the Fund's Class R-5 shares, the administrative fee
shall accrue daily and shall be calculated at the annual rate of 0.10% of
the average net assets of the Class R-5 shares. The administrative fee
shall be paid within 30 days after receipt of an invoice for administrative
services performed in the preceding month.
3. Effective Date and Termination of Agreement. This Agreement shall become
effective on [date], and unless terminated sooner it shall continue in effect
until [date]. It may thereafter be continued from year to year only with the
approval of a majority of those Directors of the Fund who are not "interested
persons" of the Fund (as defined in the ▇▇▇▇ ▇▇▇) and have no direct or indirect
financial interest in the operation of this Agreement or any agreement related
to it (the "Independent Directors"). This Agreement may be terminated as to the
Fund as a whole or any class of shares individually at any time by vote of a
majority of the Independent Directors. The Investment Adviser may terminate this
agreement upon sixty (60) days' prior written notice to the Fund.
4. Amendment. This Agreement may not be amended to increase materially the
fees payable under this Agreement unless such amendment is approved by the vote
of a majority of the Independent Directors.
5. Assignment. This Agreement shall not be assignable by either party
hereto and in the event of assignment shall automatically terminate forthwith.
The term "assignment" shall have the meaning set forth in the 1940 Act.
Notwithstanding the foregoing, the Investment Adviser is specifically authorized
to contract with third parties for the provision of transfer agent, shareholder
services, and administrative services on behalf of the Fund.
6. Issuance of Series of Shares. If the Fund shall at any time issue shares
in more than one series, this Agreement may be adopted, amended, continued or
renewed with respect to a series as provided herein, notwithstanding that such
adoption, amendment, continuance or renewal has not been effected with respect
to any one or more other series of the Fund.
7. Choice of Law. This Agreement shall be construed under and shall be
governed by the laws of the State of California, and the parties hereto agree
that proper venue of any action with respect hereto shall be Los Angeles County,
California.
8. Limitation on Fees. Notwithstanding the foregoing, the portion of the
administrative fees payable under this Agreement retained by the Investment
Adviser (after all permissible payments to AFS and third party service
providers) will be limited to no more than 0.05% of average net assets per share
class.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate original by its officers thereunto duly authorized, as of
[date].
CAPITAL RESEARCH AND [Name of Fund]
MANAGEMENT COMPANY
By: By:
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By: By:
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EXHIBIT A
to the
Administrative Services Agreement
Transfer Agent Services
The Investment Adviser or any third party with whom it may contract,
including American Funds Service Company (the Investment Adviser and any such
third-party are collectively referred to as "Service Provider") shall act, as
necessary, as stock transfer agent, dividend disbursing agent and redemption
agent for the Fund's Class C shares, Class F shares, Class R shares and Class
529 shares, and shall provide such additional related services as the Fund's
Class C shares, Class F shares, Class R shares and Class 529 shares may from
time to time require, all of which services are sometimes referred to herein as
"shareholder services."
Administrative Services
1. Record Maintenance
The Service Provider shall maintain, and require any third parties with
which it contracts to maintain with respect to each Fund shareholder holding the
Fund's Class C shares, Class F shares, Class R shares and/or Class 529 shares in
a Service Provider account ("Customers") the following records:
a. Number of Shares;
b. Date, price and amount of purchases and redemptions (including
dividend reinvestments) and dates and amounts of dividends paid for at
least the current year to date;
c. Name and address of the Customer, including zip codes and social
security numbers or taxpayer identification numbers;
d. Records of distributions and dividend payments; and
e. Any transfers of shares.
2. Shareholder Communications
Service Provider shall:
a. Provide to a shareholder mailing agent for the purpose of
delivering certain Fund-related materials the names and addresses of all
Customers. The Fund-related materials shall consist of updated prospectuses
and any supplements and amendments thereto, annual and other periodic
reports, proxy or information statements and other appropriate shareholder
communications. In the alternative, the Service Provider may distribute the
Fund-related materials to its Customers.
b. Deliver current Fund prospectuses and statements of additional
information and annual and other periodic reports upon Customer request,
and, as applicable, with confirmation statements;
c. Deliver statements to Customers on no less frequently than a
quarterly basis showing, among other things, the number of Class C shares,
Class F shares, Class R shares and/or Class 529 shares of the Fund owned by
such Customer and the net asset value of the Class C shares, Class F
shares, Class R shares and/or Class 529 shares of the Fund as of a recent
date;
d. Produce and deliver to Customers confirmation statements reflecting
purchases and redemptions of Class C shares, Class F shares, Class R shares
and/or Class 529 shares of the Fund;
e. Respond to Customer inquiries regarding, among other things, share
prices, account balances, dividend amounts and dividend payment dates;
f. With respect to Class C and/or Class F shares of the Fund purchased
by Customers after the effective date of this Agreement, provide average
cost basis reporting to Customers to assist them in preparation of their
income tax returns; and
g. If the Service Provider accepts transactions in the Fund's Class C
shares, Class F shares and Class R shares from any brokers or banks in an
omnibus relationship, require each such broker or bank to provide such
shareholder communications as set forth in 2(a) through 2(f) to its own
Customers.
3. Transactional Services
The Service Provider shall communicate to its Customers, as to Class C
shares, Class F shares, Class R shares and Class 529 shares of the Fund,
purchase, redemption and exchange orders reflecting the orders it receives from
its Customers or from any brokers and banks for their Customers. The Service
Provider shall also communicate to beneficial owners holding through it, and to
any brokers or banks for beneficial owners holding through them, as to shares of
Class C shares, Class F shares, Class R shares and Class 529 shares of the Fund,
mergers, splits and other reorganization activities, and require any broker or
bank to communicate such information to its Customers.
4. Tax Information Returns and Reports
The Service Provider shall prepare and file, and require to be prepared and
filed by any brokers or banks as to their Customers, with the appropriate
governmental agencies, such information, returns and reports as are required to
be so filed for reporting: (i) dividends and other distributions made; (ii)
amounts withheld on dividends and other distributions and payments under
applicable federal and state laws, rules and regulations; and (iii) gross
proceeds of sales transactions as required.
5. Fund Communications
The Service Provider shall, upon request by the Fund, on each business day,
report the number of Class C shares, Class F shares, Class R shares and Class
529 shares on which the administrative fee is to be paid pursuant to this
Agreement. The Service Provider shall also provide the Fund with a monthly
invoice.
6. Monitoring of Service Providers
The Investment Adviser shall coordinate and monitor the activities of the
Service Providers with which it contracts to ensure that the shareholders of the
Fund's Class C shares, Class F shares, Class R shares and Class 529 shares
receive high-quality service. The Investment Adviser shall also ensure that
Service Providers deliver to Customers account statements and all Fund-related
materials, including prospectuses, shareholder reports, and proxies.