EX-99 7 exnnm7.txt EX-99.M FINANCIAL INSTITUTION SERVICE AGREEMENT FINANCIAL INSTITUTION SERVICE AGREEMENT Between: [ ] and PUTNAM RETAIL MANAGEMENT General Distributor of The Putnam Family of Mutual Funds One Post Office Square Boston, MA 02109 We are pleased to inform you that, pursuant to the terms of this Financial Institution Service Agreement, we are authorized to pay you service fees in connection with the accounts of your customers that hold shares of certain Putnam funds listed in Schedule 1 that have adopted distribution plans pursuant to Rule 12b-1 (the "12b-1 Funds"). Payment of the service fees is subject to your initial and continuing satisfaction of the following terms and conditions which may be revised by us from time to time: 1. Qualification Requirements (a) You have entered into a Financial Institution Sales Contract with us with respect to the Putnam Family of Mutual Funds (the "Putnam Funds"), whose shares you have agreed to make available to your customers on an agency basis. (b) You are the financial institution of record for accounts in Putnam Funds having an aggregate average net asset value of at least the minimum amount set forth in Schedule 2 (Financial Institution Requirements) during the period for which a service fee is to be paid. Putnam Fund accounts are accounts in any open-end Putnam Fund but excluding any accounts for your organization's own retirement plans. (c) One or more of your current employees must be the designated registered representative(s) in the case of a bank affiliated dealer, or agent representative(s) in the case of a bank (both referred to as "representatives"), on accounts in Putnam Funds having an aggregate average net asset value of at least the minimum amount set forth in Schedule 2 (Representative Requirements) during the period for which a service fee is to be paid. (d) You will provide the following information and agree that we will be entitled to rely on the accuracy of such information in updating our records for determining the levels of service fees payable to you under the terms of this Agreement. You understand that such payments will be based solely on Putnam's records: For each Putnam Fund account registered in the name of one of your customers, you will advise us, preferably by electronic means, before the end of the second month in each calendar quarter, of the representative's name, identification number, branch number, and telephone number. 2. Service Fees (a) If you meet the qualification requirements set forth above in Paragraph 1, you will be paid, at the end of each calendar quarter, a service fee on assets of your customers in the 12b-1 Funds for which you are the financial institution of record and which are serviced by a representative of your organization meeting the Representative Requirements, if any at the annual rates specified (excluding any accounts for your organization's own retirement plans), provided that you have evaluated such service fees and have concluded that it is consistent with applicable laws, rules, regulations and regulatory interpretations for you to receive such service fees. (b) You understand and agree that: (i) all service fee payments are subject to the limitations contained in each 12b-1 Fund's Distribution Plan, which may be varied or discontinued at any time; (ii) you shall waive the right to receive service fee payments to the extent any 12b-1 Fund fails to make payments to us under its distribution plan with us; (iii) your failure to provide the services described in Paragraph 4 below as may be amended by us from time to time, or otherwise comply with the terms of this Agreement, will render you ineligible to receive service fees; and (iv) failure of an assigned representative to provide services required by this Agreement will render that representative's accounts ineligible as accounts on which service fees are paid. 3. Payments and Communications to Representatives (a) Where consistent with applicable laws, rules, regulations and regulatory interpretations, you will pass through to your representatives a significant share of the service fees paid to you pursuant to this Agreement, or you will otherwise use the payments of service fees to advance the objective of providing and improving service to shareholders of the Putnam Funds in a manner specifically approved by Putnam Mutual Funds (for example, via training courses for representatives or shareholder seminars). (b) You will assist us in distributing to your representatives periodic statements which we will have prepared showing the aggregate average net asset value of shares in Putnam Funds with which they are credited on our records. 4. Required Services (a) You will assign one of your representatives to each Putnam Fund account on your records and reassign the Putnam Fund account should that representative leave your organization. (b) You and your representatives will assist us and our affiliates in providing the following services to shareholders of the Putnam Funds: (i) Maintain regular contact with shareholders in assigned accounts and assist in answering inquiries concerning the Putnam Funds. (ii) Assist in distributing sales and service literature provided by us, particularly to the beneficial owners of accounts registered in your name (nominee name accounts). (iii) Assist us and our affiliates in the establishment and maintenance of shareholder accounts and records. (iv) Assist shareholders in effecting administrative changes, such as changing dividend options, account designations, address, automatic investment programs or systematic investment plans. (v) Assist in processing purchase and redemption transactions. (vi) Provide any other information or services as the customer or we may reasonably request. (c) You will grant reasonable requests for visits to your offices by our wholesalers and include all Putnam Funds on your menu or list of investments made available by you to your customers. (d) Your compliance with the service requirements set forth in this Agreement will be evaluated by us from time to time by surveying shareholder satisfaction with service, by monitoring redemption levels of shareholder accounts assigned to you and by such other methods as we deem appropriate. (e) The provisions of this Paragraph 4 may be amended by us from time to time upon notice to you. 5. Amendment This Agreement, including any Schedule hereto, shall be deemed amended as provided in any written notice delivered by us to you. 6. Effective Period and Termination The provisions of this Agreement shall remain in effect for one year from the date of its execution or adoption and thereafter for successive annual periods only so long as such continuance is specifically approved at least annually by the Trustees of each of the 12b-1 Funds in conformity with Rule 12b-1 under the Investment Company Act of 1940 (the "1940 Act"). This Agreement shall automatically terminate in the event of its assignment (as defined by the 1940 Act). In addition, this Agreement may be terminated at any time, without the payment of any penalty, by either party upon written notice to the other party, or, as provided in Rule 12b-1 under the 1940 Act, by the Trustees of any 12b-1 Fund or by the vote of the holders of the outstanding voting securities of any 12b-1 Fund. 7. Written Reports Putnam Retail Management shall provide the Trustees of each of the 12b-1 Funds, and such Trustees shall review at least quarterly, a written report of the amounts paid to you under this Agreement and the purposes for which such expenditures were made. 8. Compliance with Laws With respect to the receipt of service fees under the terms of this Agreement, you will comply with all applicable federal and state laws and rules, and all applicable regulations and interpretations of regulatory agencies or authorities, which may affect your business practices, including any requirement of written authorization or consent by your customers to your receipt of service fees, and any requirement to provide disclosure to your customers of such service fees. 9. Miscellaneous (a) All communications mailed to us should be sent to the address listed below. Any notice to you shall be duly given if mailed or delivered to you at the address specified by you below. (b) The provisions of this Agreement shall be governed by and construed in accordance with the laws of The Commonwealth of Massachusetts. Very truly yours, PUTNAM RETAIL MANAGEMENT LIMITED PARTNERSHIP By: ----------------------------- Richard A. Monaghan President We accept and agree to the foregoing Agreement as of the date set forth below. Financial Institution: ----------------------------- By: ----------------------------- Authorized Signature, Title ----------------------------- ----------------------------- Address Dated: ----------------------------- Please return the signed Putnam copy of this Agreement to Putnam Retail Management, P.O. Box 41203, Providence, RI 02940-1203 Schedule 1: The 12b-1 Funds Service fees will be paid on the following Putnam Funds at the rates set forth in the Prospectus of that Fund: Putnam American Government Income Fund Putnam Arizona Tax Exempt Income Fund Putnam Asset Allocation Funds -Balanced Portfolio -Conservative Portfolio -Growth Portfolio Putnam California Investment Grade Municipal Trust Putnam California Tax Exempt Income Fund Putnam Capital Appreciation Fund Putnam Classic Equity Fund Putnam Convertible Income-Growth Trust Putnam Discovery Growth Fund Putnam Diversified Income Trust Putnam Equity Income Fund Putnam Europe Equity Fund Putnam Florida Tax Exempt Income Fund Putnam Funds Trust -Putnam Floating Rate Income Fund (launch pending) -Putnam Growth Fund -Putnam International Fund 2000 -Putnam International Growth and Income Fund -Putnam Prime Money Market Fund -Putnam Small Cap Growth Fund The George Putnam Fund of Boston Putnam Global Equity Fund Putnam Global Income Trust Putnam Global Natural Resources Fund The Putnam Fund for Growth and Income Putnam Health Sciences Trust Putnam High Income Bond Fund Putnam High Income Opportunities Trust Putnam High Yield Advantage Fund Putnam High Yield Municipal Trust Putnam High Yield Trust Putnam Income Fund Putnam Intermediate U.S. Government Income Fund Putnam International Equity Fund Putnam Investment Funds -Putnam Capital Opportunities Fund -Putnam Growth Opportunities Fund -Putnam International Blend Fund -Putnam International New Opportunities Fund -Putnam International Capital Opportunities Fund -Putnam Mid Cap Value Fund -Putnam New Value Fund -Putnam Research Fund -Putnam Small Cap Value Fund Putnam Investment Grade Municipal Trust Putnam Investors Fund Putnam Managed High Yield Trust Putnam Managed Municipal Income Trust Putnam Massachusetts Tax Exempt Income Fund Putnam Master Income Trust Putnam Master Intermediate Income Trust Putnam Michigan Tax Exempt Income Fund Putnam Minnesota Tax Exempt Income Fund Putnam Money Market Fund Putnam Municipal Bond Fund Putnam Municipal Income Fund Putnam Municipal Opportunities Trust Putnam New Jersey Tax Exempt Income Fund Putnam New Opportunities Fund Putnam New York Investment Grade Municipal Trust Putnam New York Tax Exempt Income Fund Putnam Ohio Tax Exempt Income Fund Putnam OTC & Emerging Growth Fund Putnam Pennsylvania Tax Exempt Income Fund Putnam Premier Income Trust Putnam Tax Exempt Income Fund Putnam Tax Exempt Money Market Fund Putnam Tax-Free Health Care Fund Putnam Tax-Free Income Trust -Putnam Tax-Free High Yield Fund -Putnam Tax-Free Insured Fund Putnam Tax Smart Funds Trust -Putnam Tax Smart Equity Fund Putnam U.S. Government Income Trust Putnam Utilities Growth and Income Fund Putnam Variable Trust -Putnam VT American Government Income Fund -Putnam VT Capital Appreciation Fund -Putnam VT Capital Opportunities Fund -Putnam VT Discovery Growth Fund -Putnam VT Diversified Income Fund -Putnam VT Equity Income Fund -Putnam VT The George Putnam Fund of Boston -Putnam VT Global Asset Allocation Fund -Putnam VT Global Equity Fund -Putnam VT Growth and Income Fund -Putnam VT Growth Opportunities Fund -Putnam VT Health Sciences Fund -Putnam VT High Yield Fund -Putnam VT Income Fund -Putnam VT International Equity Fund -Putnam VT International Growth and Income Fund -Putnam VT International New Opportunities Fund -Putnam VT Investors Fund -Putnam VT Mid Cap Value Fund -Putnam VT Money Market Fund -Putnam VT New Opportunities Fund -Putnam VT New Value Fund -Putnam VT OTC & Emerging Growth Fund -Putnam VT Research Fund -Putnam VT Small Cap Value Fund -Putnam VT Utilities Growth and Income Fund -Putnam VT Vista Fund -Putnam VT Voyager Fund Putnam Vista Fund Putnam Voyager Fund Schedule 2: Minimum Assets Financial Institution Requirements. The minimum aggregate average net asset value of all accounts in Putnam Funds specified by Paragraph 1(b) is $250,000. We will review this requirement prior to the start of each year and inform you of any changes. Representative Requirements. With respect to Paragraph 1(c), there is no minimum asset qualification requirement in the Putnam Funds applicable to each of your representatives. We will review this requirement prior to the start of each year and inform you of any changes. We reserve the right to set a minimum at any time.