0001379491-11-000056 Sample Contracts

MASTER CUSTODY AGREEMENT
Master Custody Agreement • January 27th, 2011 • Franklin Strategic Mortgage Portfolio

The following is a list of the Investment Companies and their respective Series for which the Custodian shall serve under the Master Custody Agreement dated as of February 16, 1996.

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Selling Agreement May 1, 2010
Selling Agreement • January 27th, 2011 • Franklin Strategic Mortgage Portfolio • California

Franklin Templeton Distributors, Inc. (“we” or “us”) invites you to participate in the distribution of shares of the Franklin Templeton investment companies (the “Funds”) for which we now or in the future serve as principal underwriter, subject to the terms of this Agreement. We will notify you from time to time of the Funds that are eligible for distribution and the terms of compensation under this Agreement. This Agreement supersedes any prior dealer or selling agreements between us, as stated in Section 21, below.

Franklin Strategic Mortgage Portfolio One Franklin Parkway San Mateo, California 94403-1906
Distribution Agreement • January 27th, 2011 • Franklin Strategic Mortgage Portfolio • California

We, Franklin Strategic Mortgage Portfolio, (the “Fund”), are a Delaware statutory trust operating as an open-end management investment company or “mutual fund”, which is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and whose shares are registered under the Securities Act of 1933, as amended (the “1933 Act”). We desire to issue one or more series or classes of our authorized but unissued shares of capital stock or beneficial interest (the “Shares”) to authorized persons in accordance with applicable Federal and State securities laws. The Fund’s Shares may be made available in one or more separate series, each of which may have one or more classes.

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