July 1, 2025 The Putnam Funds Boston, Massachusetts 02110 Ladies and Gentlemen:
July 1, 2025
The ▇▇▇▇▇▇ Funds
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
Boston, Massachusetts 02110
Ladies and Gentlemen:
▇▇▇▇▇▇ Investment Management, LLC (“PIM”) and Franklin Advisers, Inc. (“FAV”), as applicable, hereby contractually agree, as of the date hereof, with respect to the funds specified below or in Schedule A, Schedule B, or Schedule C, to waive fees and reimburse certain expenses in the manner provided below:
| 1. | Other expenses. |
| a. | PIM or FAV, as applicable, agrees to waive fees and/or reimburse expenses of each open-end fund listed on Schedule A and each variable trust fund listed on Schedule B to the extent necessary to limit the cumulative expenses of the fund, exclusive of brokerage, interest, taxes, investment-related expenses (including borrowing costs, i.e., short selling and lines of credit costs), extraordinary expenses, acquired fund fees and expenses, and payments under the fund’s investor servicing contract, the fund’s investment management contract (including any applicable performance-based upward or downward adjustment to a fund’s base management fee), and the fund’s distribution plans, to an annual (measured on a fiscal year basis) rate of 0.20% of the fund’s average net assets. This contractual waiver will remain in effect for a fund through the expiration of one year following the effective date of the next annual update of the fund’s registration statement. |
| b. | FAV agrees to waive fees and/or reimburse expenses of ▇▇▇▇▇▇ Dynamic Asset Allocation Equity Fund to the extent necessary to limit the cumulative expenses of the fund, exclusive of brokerage, interest, taxes, investment-related expenses (including borrowing costs, i.e., short selling and lines of credit costs), extraordinary expenses, acquired fund fees and expenses, and payments under the fund’s investor servicing contract, the fund’s investment management contract, and the fund’s distribution plans, to an annual (measured on a fiscal year basis) rate of 0.02% of the fund’s average net assets. This contractual waiver will remain in effect through the expiration of the one-year period following the effective date of the next annual update of the fund’s registration statement. |
| 2. | Fund-specific expense limitations. |
| a. | As set forth in the table below, PIM or FAV, as applicable, agrees to waive fees and/or reimburse expenses of each fund set forth below to the extent that the total annual fund operating expenses for the fund — exclusive of payments under the fund’s distribution plans, any applicable performance-based upward or downward adjustment to the fund’s base management fee, brokerage, interest, taxes, investment-related expenses (including |
| borrowing costs, i.e., short selling and lines of credit costs), extraordinary expenses, and acquired fund fees and expenses – would exceed the specified rate through the specified date, which is the expiration of the one-year period following the effective date of the next annual update of each fund’s registration statement: |
| Fund |
Proposed Contractual Limitation on Total Fund Operating Expenses |
Expiration | ||||||
| ▇▇▇▇▇▇ VT Emerging Markets Equity Fund |
1.09 | % | April 30, 2027 | |||||
| ▇▇▇▇▇▇ VT Mortgage Securities Fund |
0.50 | % | April 30, 2027 | |||||
| b. | As set forth in the table below, PIM or FAV, as applicable, agrees to waive fees and/or reimburse expenses of each fund set forth below to the extent that the total annual fund operating expenses for the fund – exclusive of payments under the fund’s distribution plans, payments under the fund’s investor servicing contract, any applicable performance-based upward or downward adjustment to the fund’s base management fee, brokerage, interest, taxes, investment-related expenses (including borrowing costs, i.e., short selling and lines of credit costs), extraordinary expenses, and acquired fund fees and expenses – would exceed the specified rate through the specified date, which is the expiration of the one-year period (three-year period in the case of ▇▇▇▇▇▇ Ultra Short MAC Series) following the effective date of the next post-effective amendment of each fund’s registration statement: |
| Fund |
Proposed Contractual Limitation on Total Fund Operating Expenses |
Expiration | ||||||
| ▇▇▇▇▇▇ Emerging Markets Equity Fund |
0.78 | % | December 30, 2026 | |||||
| ▇▇▇▇▇▇ Global Income Trust |
0.43 | % | February 28, 2027 | |||||
| ▇▇▇▇▇▇ Income Fund |
0.33 | % | Feb. 28, 2027 | |||||
| ▇▇▇▇▇▇ Multi-Asset Income Fund |
0.40 | % | Dec. 30, 2026 | |||||
| ▇▇▇▇▇▇ Intermediate-Term Municipal Income Fund |
0.52 | % | |
March 30, 2027 (fund expected to liquidate on or about July 18, 2025) |
| |||
| ▇▇▇▇▇▇ International Value Fund |
0.59 | % | October 30, 2026 | |||||
| ▇▇▇▇▇▇ Ultra Short MAC Series |
0.00 | % | November 30, 2028 | |||||
| ▇▇▇▇▇▇ Mortgage Opportunities Fund |
0.46 | % | September 30, 2026 | |||||
| ▇▇▇▇▇▇ Ultra Short Duration Income Fund |
0.24 | % | Nov. 30, 2026 | |||||
| ▇▇▇▇▇▇ Short-Term Municipal Income Fund |
0.28 | % | March 30, 2027 | |||||
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| c. | As set forth in the table below, PIM agrees to waive fees and/or reimburse expenses of each fund set forth below to the extent that the total annual fund operating expenses for the fund – exclusive of payments under the fund’s distribution plans, payments under the fund’s investor servicing contract, brokerage, interest, taxes, investment-related expenses (including borrowing costs, i.e., short selling and lines of credit costs), extraordinary expenses, and acquired fund fees and expenses – would exceed the specified rate through the specified date, which is the expiration of the one-year period following the effective date of the next post-effective amendment of each fund’s registration statement: |
| ▇▇▇▇▇▇ Research Fund (to be renamed ▇▇▇▇▇▇ U.S. Research Fund on or around September 30, 2025) |
0.49 | % | November 30, 2026 | |||||
| ▇▇▇▇▇▇ International Capital Opportunities Fund (to be renamed ▇▇▇▇▇▇ International Small Cap Fund on or around September 30, 2025) |
1.05 | % | December 30, 2026 |
| 3. | ▇▇▇▇▇▇ Short Term Investment Fund. FAV agrees to waive the contractual management fee of 0.25% for ▇▇▇▇▇▇ Short Term Investment Fund through November 30, 2026, the expiration of the one-year period following the effective date of the next update of the fund’s registration statement. |
| 4. | ▇▇▇▇▇▇ VT Focused International Equity Fund. ▇▇▇ agrees to waive 5 basis points of the contractual management fee payable by ▇▇▇▇▇▇ VT Focused International Equity Fund through April 30, 2027, the expiration of the one-year period following the effective date of the next annual update of the fund’s registration statement. |
| 5. | Target Date Funds. |
| a. | Sustainable Retirement Funds: FAV agrees to (1) waive fees and/or reimburse expenses of each ▇▇▇▇▇▇ Sustainable Retirement Fund, in an amount equal to the fund’s “acquired fund fees and expenses” and (2) waive fees and/or reimburse expenses of each class of shares specified below of each ▇▇▇▇▇▇ Sustainable Retirement Fund in an amount sufficient to result in total annual fund operating expenses for each share class of the fund – exclusive of payments under the fund’s distribution plan, brokerage, interest, taxes, investment-related expenses (including borrowing costs, i.e., short selling and lines of credit costs), acquired fund fees and expenses, and extraordinary expenses – that equal the amount specified in the table below of the fund’s average net assets attributable to each such class. Each of these contractual waivers will remain in effect through the date that is three years (one year, in the case of ▇▇▇▇▇▇ Sustainable Retirement 2070 Fund) after the effective date of the next amendment filed pursuant to Rule 485(b) under the Securities Act of 1933, as amended, of each fund’s registration statement (except for ▇▇▇▇▇▇ Sustainable Retirement 2060 Fund, which will remain in effect through the date that is ten years after the effective date of the next amendment filed pursuant to Rule 485(b) under the Securities Act of 1933, as amended, of the fund’s registration statement). |
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| Share Class |
Net Total Expense Ratio Cap |
|||
| Class A |
0.60 | % | ||
| Class C |
0.60 | % | ||
| Class R |
0.75 | % | ||
| Class R3 |
0.75 | % | ||
| Class R4 |
0.75 | % | ||
| Class R5 |
0.60 | % | ||
| Class R6 |
0.50 | % | ||
| Class Y |
0.60 | % | ||
| b. | Retirement Advantage Funds: FAV agrees to (1) waive fees and/or reimburse expenses of each ▇▇▇▇▇▇ Retirement Advantage Fund in an amount equal to each fund’s “acquired fund fees and expenses” and (2) waive fees and/or reimburse expenses of each class of shares specified below of each ▇▇▇▇▇▇ Retirement Advantage Fund in an amount sufficient to result in total annual fund operating expenses for each class of each fund – exclusive of payments under the fund’s distribution plan, brokerage, interest, taxes, investment-related expenses (including borrowing costs, i.e., short selling and lines of credit costs), acquired fund fees and expenses, and extraordinary expenses – that equal the amount specified in the table below of the fund’s average net assets attributable to each such class. Each of these contractual waivers will remain in effect through the date that is three years (one year, in the case of ▇▇▇▇▇▇ Retirement Advantage 2070 Fund) after the effective date of the next annual update of each fund’s registration statement. |
| Share Class |
Net Total Expense Ratio Cap |
|||
| Class A |
0.55 | % | ||
| Class C |
0.55 | % | ||
| Class R |
0.70 | % | ||
| Class R3 |
0.70 | % | ||
| Class R4 |
0.70 | % | ||
| Class R5 |
0.55 | % | ||
| Class R6 |
0.45 | % | ||
| Class Y |
0.55 | % | ||
Effective July 1, 2025, this contractual undertaking supersedes any prior contractual expense limitation provisions between PIM or FAV and the funds. This undertaking shall be binding upon any successors and assignees of PIM or FAV, as applicable.
A copy of the Declaration of Trust (including any amendments thereto) of each of The ▇▇▇▇▇▇ Funds is on file with the Secretary of The Commonwealth of Massachusetts, and notice is hereby given that this instrument is executed on behalf of the Trustees of each ▇▇▇▇▇▇ Fund as trustees and not individually and that the obligations of or arising out of this instrument are not binding upon any of the Trustees or officers or shareholders individually, but binding only upon the assets and property of each ▇▇▇▇▇▇ Fund with respect to its obligations under this instrument. Furthermore, notice is given that the assets and liabilities of each series of each ▇▇▇▇▇▇ Fund that is a series company are separate and distinct and that the obligations of or arising out of this instrument are several and not joint or joint and several and are binding only on the assets of each series with respect to its obligations under this instrument. Each fund is acting on its own behalf separately from all of the other investment companies and not jointly or jointly and severally with any of the other investment companies.
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| Very truly yours, | ||
| ▇▇▇▇▇▇ INVESTMENT MANAGEMENT, LLC | ||
| By: |
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ | |
| ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Chief Legal Officer | ||
| ▇▇▇▇▇▇▇▇ ADVISERS, INC. | ||
| By: |
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ | |
| ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Chief Legal Officer | ||
| Agreed and accepted by each ▇▇▇▇▇▇ fund listed on Schedule A, Schedule B and Schedule C | ||
| By: |
/s/ ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ | |
| ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ | ||
| Executive Vice President, Principal | ||
| Executive Officer, and Compliance Liaison | ||
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Schedule A
▇▇▇▇▇▇ California Tax Exempt Income Fund
▇▇▇▇▇▇ Convertible Securities Fund
▇▇▇▇▇▇ Diversified Income Trust
▇▇▇▇▇▇ Asset Allocation Funds
- ▇▇▇▇▇▇ Dynamic Asset Allocation Balanced Fund
- ▇▇▇▇▇▇ Dynamic Asset Allocation Conservative Fund
- ▇▇▇▇▇▇ Dynamic Asset Allocation Growth Fund
- ▇▇▇▇▇▇ Multi-Asset Income Fund
▇▇▇▇▇▇ Focused International Equity Fund
▇▇▇▇▇▇ Funds Trust
- ▇▇▇▇▇▇ Emerging Markets Equity Fund
- ▇▇▇▇▇▇ Floating Rate Income Fund
- ▇▇▇▇▇▇ Focused Equity Fund
- ▇▇▇▇▇▇ Global Technology Fund
- ▇▇▇▇▇▇ Intermediate-Term Municipal Income Fund
- ▇▇▇▇▇▇ International Value Fund
- ▇▇▇▇▇▇ Mortgage Opportunities Fund
- ▇▇▇▇▇▇ Core Equity Fund
- ▇▇▇▇▇▇ Short-Term Municipal Income Fund
- ▇▇▇▇▇▇ Small Cap Growth Fund
- ▇▇▇▇▇▇ Ultra Short Duration Income Fund
▇▇▇▇▇▇ ▇▇▇▇▇▇ Balanced Fund
▇▇▇▇▇▇ Global Health Care Fund
▇▇▇▇▇▇ Global Income Trust
▇▇▇▇▇▇ High Yield Fund
▇▇▇▇▇▇ Income Fund
▇▇▇▇▇▇ International Equity Fund
▇▇▇▇▇▇ Investment Funds
-▇▇▇▇▇▇ Government Money Market Fund
-▇▇▇▇▇▇ International Capital Opportunities Fund
-▇▇▇▇▇▇ Large Cap Growth Fund
-▇▇▇▇▇▇ Research Fund
-▇▇▇▇▇▇ Small Cap Value Fund
-▇▇▇▇▇▇ Sustainable Future Fund
▇▇▇▇▇▇ Large Cap Value Fund
▇▇▇▇▇▇ Massachusetts Tax Exempt Income Fund
▇▇▇▇▇▇ Minnesota Tax Exempt Income Fund
▇▇▇▇▇▇ Money Market Fund
▇▇▇▇▇▇ Mortgage Securities Fund
▇▇▇▇▇▇ New Jersey Tax Exempt Income Fund
▇▇▇▇▇▇ New York Tax Exempt Income Fund
▇▇▇▇▇▇ Ohio Tax Exempt Income Fund
▇▇▇▇▇▇ Pennsylvania Tax Exempt Income Fund
▇▇▇▇▇▇ Sustainable Leaders Fund
▇▇▇▇▇▇ Tax Exempt Income Fund
▇▇▇▇▇▇ Tax-Free Income Trust
-▇▇▇▇▇▇ Strategic Intermediate Municipal Fund
-▇▇▇▇▇▇ Tax-Free High Yield Fund
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Schedule B
▇▇▇▇▇▇ Variable Trust
- ▇▇▇▇▇▇ VT Core Equity Fund
- ▇▇▇▇▇▇ VT Diversified Income Fund
- ▇▇▇▇▇▇ VT Emerging Markets Equity Fund
- ▇▇▇▇▇▇ VT Focused International Equity Fund
- ▇▇▇▇▇▇ VT ▇▇▇▇▇▇ ▇▇▇▇▇▇ Balanced Fund
- ▇▇▇▇▇▇ VT Global Asset Allocation Fund
- ▇▇▇▇▇▇ VT Global Health Care Fund
- ▇▇▇▇▇▇ VT Government Money Market Fund
- ▇▇▇▇▇▇ VT High Yield Fund
- ▇▇▇▇▇▇ VT Income Fund
- ▇▇▇▇▇▇ VT International Equity Fund
- ▇▇▇▇▇▇ VT International Value Fund
- ▇▇▇▇▇▇ VT Large Cap Growth Fund
- ▇▇▇▇▇▇ VT Large Cap Value Fund
- ▇▇▇▇▇▇ VT Mortgage Securities Fund
- ▇▇▇▇▇▇ VT Research Fund
- ▇▇▇▇▇▇ VT Small Cap Growth Fund
- ▇▇▇▇▇▇ VT Small Cap Value Fund
- ▇▇▇▇▇▇ VT Sustainable Future Fund
- ▇▇▇▇▇▇ VT Sustainable Leaders Fund
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Schedule C
Other Funds Subject to Expense Limitations
▇▇▇▇▇▇ Funds Trust
- ▇▇▇▇▇▇ Dynamic Asset Allocation Equity Fund
- ▇▇▇▇▇▇ Short Term Investment Fund
▇▇▇▇▇▇ Target Date Funds
- ▇▇▇▇▇▇ Sustainable Retirement Maturity Fund
- ▇▇▇▇▇▇ Sustainable Retirement 2070 Fund
- ▇▇▇▇▇▇ Sustainable Retirement 2065 Fund
- ▇▇▇▇▇▇ Sustainable Retirement 2060 Fund
- ▇▇▇▇▇▇ Sustainable Retirement 2055 Fund
- ▇▇▇▇▇▇ Sustainable Retirement 2050 Fund
- ▇▇▇▇▇▇ Sustainable Retirement2045 Fund
- ▇▇▇▇▇▇ Sustainable Retirement2040 Fund
- ▇▇▇▇▇▇ Sustainable Retirement2035 Fund
- ▇▇▇▇▇▇ Sustainable Retirement2030 Fund
- ▇▇▇▇▇▇ Sustainable Retirement2025 Fund
- ▇▇▇▇▇▇ Retirement Advantage Maturity Fund
- ▇▇▇▇▇▇ Retirement Advantage 2070 Fund
- ▇▇▇▇▇▇ Retirement Advantage 2065 Fund
- ▇▇▇▇▇▇ Retirement Advantage 2060 Fund
- ▇▇▇▇▇▇ Retirement Advantage 2055 Fund
- ▇▇▇▇▇▇ Retirement Advantage 2050 Fund
- ▇▇▇▇▇▇ Retirement Advantage 2045 Fund
- ▇▇▇▇▇▇ Retirement Advantage 2040 Fund
- ▇▇▇▇▇▇ Retirement Advantage 2035 Fund
- ▇▇▇▇▇▇ Retirement Advantage 2030 Fund
- ▇▇▇▇▇▇ Retirement Advantage 2025 Fund
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