PRE 14A 1 a_afproxy.htm ALL PUTNAM FUNDS a_afproxy.htm
  SCHEDULE 14A INFORMATION 
 
  Proxy Statement Pursuant to Section 14(A) 
  of the Securities Exchange Act of 1934 
 
  Filed by the Registrant / X / 
 
  Filed by a Party other than the Registrant /    / 
 
Check the appropriate box: 
 
/ X /   Preliminary Proxy Statement. 
/    /  Confidential, for use of the Commission Only (as permitted by Rule 14a-6(e) (2)). 
/    /  Definitive Proxy Statement. 
/    /  Definitive Additional Materials. 
/    /  Soliciting Material Pursuant to § 240.14a-12. 
 
  PUTNAM AMERICAN GOVERNMENT INCOME FUND 
  PUTNAM ARIZONA TAX EXEMPT INCOME FUND 
  PUTNAM ASSET ALLOCATION FUNDS 
  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 
  THE PUTNAM FUND FOR GROWTH AND INCOME 
  PUTNAM FUNDS TRUST 
  THE GEORGE PUTNAM FUND OF BOSTON 
  PUTNAM GLOBAL EQUITY FUND 
  PUTNAM GLOBAL INCOME TRUST 
  PUTNAM GLOBAL NATURAL RESOURCES FUND 
  PUTNAM HEALTH SCIENCES TRUST 
  PUTNAM HIGH INCOME SECURITIES FUND 
  PUTNAM HIGH YIELD ADVANTAGE FUND 
  PUTNAM HIGH YIELD MUNICIPAL TRUST 
  PUTNAM HIGH YIELD TRUST 
  PUTNAM INCOME FUND 
  PUTNAM INTERNATIONAL EQUITY FUND 
  PUTNAM INVESTMENT FUNDS 
  PUTNAM INVESTMENT GRADE MUNICIPAL TRUST 
  PUTNAM INVESTORS FUND 
  PUTNAM LIMITED DURATION GOVERNMENT INCOME FUND 

    PUTNAM MANAGED MUNICIPAL INCOME TRUST 
    PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND 
    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 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 RETIREMENTREADY® FUNDS 
    PUTNAM TAX EXEMPT INCOME FUND 
    PUTNAM TAX EXEMPT MONEY MARKET FUND 
    PUTNAM TAX-FREE HEALTH CARE FUND 
    PUTNAM TAX-FREE INCOME TRUST 
    PUTNAM TAX SMART FUNDS TRUST 
    PUTNAM U.S. GOVERNMENT INCOME TRUST 
    PUTNAM UTILITIES GROWTH AND INCOME FUND 
    PUTNAM VARIABLE TRUST 
    PUTNAM VISTA FUND 
    PUTNAM VOYAGER FUND 
 
    (Name of Registrant as Specified in its Charter) 
 
    (Name of Person(s) Filing Proxy Statement, 
    if Other Than the Registrant) 
 
 
Payment of Filing Fee (Check the appropriate box): 
 
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/   /  Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. 
  (1)  Title of each class of securities to which transaction applies: 
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    computed pursuant to Exchange Act Rule 0-11 (set forth the 
    amount on which the filing fee is calculated and state how it 
    was determined): 
  (4)  Proposed maximum aggregate value of transaction: 

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/   /  Check box if any part of the fee is offset as provided by Exchange Act Rule 
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The proxy statement

This proxy statement can help you decide how you want to vote on important issues relating to your Putnam fund. When you complete and sign your proxy ballot, the Trustees of the fund will vote on your behalf exactly as you have indicated. If you simply sign the proxy ballot, it will be voted in accordance with the Trustees’ recommendation on page 5 of the proxy statement.

Please take a few moments and decide how you want to vote. When shareholders don’t return their proxies in sufficient numbers, follow-up solicitations are required, and consideration of matters important to your fund’s operations may be delayed.

You can vote by returning your proxy ballots in the envelope provided. Or you can call our toll-free number, or go to the Internet. See your proxy ballot for the phone number and Internet address. If you have proxy-related questions, please call 1-800-225-1581 or contact your financial representative.

[[PUTNAM INVESTMENTS LOGO]]

Table of contents   
 
A Message from the Chairman  1
 
Notice of a Special Meeting of Shareholders  2
 
Trustees’ Recommendations  5
 
The Proposal    6
  
Further Information About Voting and the   
Special Meeting  20
  
Fund Information  27
 
Appendix A  –  Number of Shares Outstanding   
    as of the Record Date  A-1
Appendix B  –  Form of New Management Contract  B-1
 
Appendix C  –  Comparison of Terms of   
    Management Contracts  C-1
 
Appendix D  –  Management Contracts:   
    Dates and Approvals  D-1
 
Appendix E  –  Management Contracts: Fees  E-1
 
Appendix F  –  Current Sub-Management Contract   
    and Sub-Advisory Contract  F-1
 
Appendix G  –  Description of Contract     
    Approval Process  G-1
 
Appendix H  –  Other Similar Funds Advised   
    by Putnam Management  H-1
 
Appendix I  –  Payments to Putnam Management   
    and its Affiliates  I-1
 
Appendix J  –  5% Beneficial Ownership  J-1
 
Appendix K   – Security Ownership    K-1

PROXY CARD ENCLOSED

If you have any questions, please contact us at 1-800-225-1581 or call your financial representative.

A Message from the Chairman

Dear Fellow Shareholder:

[[photo of John A. Hill]]

I am writing to ask you, as a shareholder of your Putnam fund, to vote on an important matter that will be considered at a special meeting of shareholders called for May 15, 2007. While you are as shareholders, of course, welcome to join us at your fund’s meeting, most shareholders cast their vote by filling out, signing, and returning the enclosed proxy card(s), by telephone or by voting via the Internet. Instructions for voting by automated telephone and via the Internet appear at the top of your ballot.

As you may know, Great-West Lifeco Inc. has agreed to acquire Putnam Investments Trust, the parent company of Putnam, LLC, which in turn owns Putnam Investment Management, LLC (“Putnam Management”). When this transaction is completed, each of the Putnam funds’ management contracts with Putnam Management will automatically terminate, as required by law. We are asking you to approve a new management contract with Putnam Management that will become effective when the transaction with Great-West Lifeco Inc. is completed, so that there will not be any disruption in the services that your fund receives. There will be no change in your fund’s fee rates or in the services that your fund receives as a result of the transaction. The Trustees of the Putnam funds unanimously recommend that you vote FOR the approval of a new management contract.

I’m sure that you, like most people, lead a busy life and are tempted to put this proxy aside for another day. Please don’t. When shareholders do not vote their proxies, additional solicitations may be necessary, and consideration of important matters affecting the operations of your fund may be delayed. All shareholders benefit from the speedy return of proxies.

Your vote is important to us. We appreciate the time and consideration I am sure you will give these important matters. If you have questions about any of these proposals, please call a Putnam customer services representative at 1-800-225-1581 or contact your financial representative.

Sincerely yours,

/s/ John A. Hill

John A. Hill, Chairman

Notice of a Special Meeting of Shareholders

To the Shareholders of:

PUTNAM AMERICAN GOVERNMENT INCOME FUND      PUTNAM MICHIGAN TAX EXEMPT INCOME FUND 
PUTNAM AMT-FREE INSURED MUNICIPAL FUND  PUTNAM MID CAP VALUE FUND 
PUTNAM ARIZONA TAX EXEMPT INCOME FUND       PUTNAM MINNESOTA TAX EXEMPT INCOME FUND 
PUTNAM ASSET ALLOCATION: BALANCED  PUTNAM MONEY MARKET FUND 
PORTFOLIO  PUTNAM MUNICIPAL BOND FUND 
PUTNAM ASSET ALLOCATION: CONSERVATIVE  PUTNAM MUNICIPAL OPPORTUNITIES TRUST 
PORTFOLIO  PUTNAM NEW JERSEY TAX EXEMPT INCOME FUND 
PUTNAM ASSET ALLOCATION: GROWTH  PUTNAM NEW OPPORTUNITIES FUND 
PORTFOLIO  PUTNAM NEW VALUE FUND 
PUTNAM CALIFORNIA INVESTMENT GRADE  PUTNAM NEW YORK INVESTMENT GRADE 
MUNICIPAL TRUST  MUNICIPAL TRUST 
PUTNAM CALIFORNIA TAX EXEMPT INCOME FUND  PUTNAM NEW YORK TAX EXEMPT INCOME FUND 
PUTNAM CAPITAL APPRECIATION FUND  PUTNAM OHIO TAX EXEMPT INCOME FUND 
PUTNAM CAPITAL OPPORTUNITIES FUND  PUTNAM OTC & EMERGING GROWTH FUND 
PUTNAM CLASSIC EQUITY FUND  PUTNAM PENNSYLVANIA TAX EXEMPT INCOME 
PUTNAM CONVERTIBLE INCOME-GROWTH TRUST  FUND 
PUTNAM DISCOVERY GROWTH FUND  PUTNAM PREMIER INCOME TRUST 
PUTNAM DIVERSIFIED INCOME TRUST  PUTNAM PRIME MONEY MARKET FUND 
PUTNAM EQUITY INCOME FUND  PUTNAM RESEARCH FUND 
PUTNAM EUROPE EQUITY FUND  PUTNAM RETIREMENTREADY 2050 FUND 
PUTNAM FLOATING RATE INCOME FUND  PUTNAM RETIREMENTREADY 2045 FUND 
THE PUTNAM FUND FOR GROWTH AND INCOME  PUTNAM RETIREMENTREADY 2040 FUND 
THE GEORGE PUTNAM FUND OF BOSTON  PUTNAM RETIREMENTREADY 2035 FUND 
PUTNAM GLOBAL EQUITY FUND  PUTNAM RETIREMENTREADY 2030 FUND 
PUTNAM GLOBAL INCOME TRUST  PUTNAM RETIREMENTREADY 2025 FUND 
PUTNAM GLOBAL NATURAL RESOURCES FUND  PUTNAM RETIREMENTREADY 2020 FUND 
PUTNAM GROWTH OPPORTUNITIES FUND  PUTNAM RETIREMENTREADY 2015 FUND 
PUTNAM HEALTH SCIENCES TRUST  PUTNAM RETIREMENTREADY 2010 FUND 
PUTNAM HIGH INCOME SECURITIES FUND  PUTNAM RETIREMENTREADY MATURITY FUND 
PUTNAM HIGH YIELD ADVANTAGE FUND  PUTNAM SMALL CAP GROWTH FUND 
PUTNAM HIGH YIELD MUNICIPAL TRUST  PUTNAM SMALL CAP VALUE FUND 
PUTNAM HIGH YIELD TRUST  PUTNAM TAX EXEMPT INCOME FUND 
PUTNAM INCOME FUND  PUTNAM TAX EXEMPT MONEY MARKET FUND 
PUTNAM INCOME STRATEGIES FUND  PUTNAM TAX-FREE HEALTH CARE FUND 
PUTNAM INTERNATIONAL CAPITAL  PUTNAM TAX-FREE HIGH YIELD FUND 
OPPORTUNITIES FUND  PUTNAM TAX SMART EQUITY FUND® 
PUTNAM INTERNATIONAL EQUITY FUND  PUTNAM U.S. GOVERNMENT INCOME TRUST 
PUTNAM INTERNATIONAL GROWTH AND INCOME  PUTNAM UTILITIES GROWTH AND INCOME FUND 
FUND  PUTNAM VISTA FUND 
PUTNAM INTERNATIONAL NEW OPPORTUNITIES  PUTNAM VOYAGER FUND 
FUND  PUTNAM VT AMERICAN GOVERNMENT INCOME 
PUTNAM INVESTMENT GRADE MUNICIPAL TRUST  FUND 
PUTNAM INVESTORS FUND  PUTNAM VT CAPITAL APPRECIATION FUND 
PUTNAM LIMITED DURATION GOVERNMENT  PUTNAM VT CAPITAL OPPORTUNITIES FUND 
INCOME FUND  PUTNAM VT DISCOVERY GROWTH FUND 
PUTNAM MANAGED MUNICIPAL INCOME TRUST  PUTNAM VT DIVERSIFIED INCOME FUND 
PUTNAM MASSACHUSETTS TAX EXEMPT INCOME  PUTNAM VT EQUITY INCOME FUND 
FUND  PUTNAM VT THE GEORGE PUTNAM FUND OF 
PUTNAM MASTER INTERMEDIATE INCOME TRUST  BOSTON 

PUTNAM VT GLOBAL ASSET ALLOCATION FUND      PUTNAM VT INVESTORS FUND 
PUTNAM VT GLOBAL EQUITY FUND  PUTNAM VT MID CAP VALUE FUND 
PUTNAM VT GROWTH AND INCOME FUND  PUTNAM VT MONEY MARKET FUND 
PUTNAM VT GROWTH OPPORTUNITIES FUND  PUTNAM VT NEW OPPORTUNITIES FUND 
PUTNAM VT HEALTH SCIENCES FUND  PUTNAM VT NEW VALUE FUND 
PUTNAM VT HIGH YIELD FUND  PUTNAM VT OTC & EMERGING GROWTH FUND 
PUTNAM VT INCOME FUND  PUTNAM VT RESEARCH FUND 
PUTNAM VT INTERNATIONAL EQUITY FUND  PUTNAM VT SMALL CAP VALUE FUND 
PUTNAM VT INTERNATIONAL GROWTH AND  PUTNAM VT UTILITIES GROWTH AND INCOME 
INCOME FUND  FUND 
PUTNAM VT INTERNATIONAL NEW  PUTNAM VT VISTA FUND 
OPPORTUNITIES FUND  PUTNAM VT VOYAGER FUND 

This is the formal notice for your fund’s shareholder meeting. It tells you what proposals will be voted on and the time and place of the meeting, in case you wish to attend in person.

A Special Meeting of Shareholders of your fund will be held on Tuesday, May 15, 2007 at 11:00 a.m., Boston time, at the principal offices of the fund on the ___th floor of One Post Office Square, Boston, Massachusetts 02109, to consider the following:

1. Approving a new management contract for each fund.

By Judith Cohen, Clerk,
and by the Trustees

John A. Hill, Chairman
Jameson A. Baxter, Vice Chairman
George Putnam, III, President

Charles B. Curtis
Myra R. Drucker
Charles E. Haldeman, Jr.
Paul L. Joskow
Elizabeth T. Kennan
Kenneth R. Leibler
Robert E. Patterson
W. Thomas Stephens
Richard B. Worley

We urge you to mark, sign, date, and mail the enclosed proxy in the postage-paid envelope provided or to record your voting instructions by telephone or via the Internet so that you will be represented at the meeting.

February ___ 2007

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Proxy Statement

This document gives you the information you need to vote on the proposal. Much of the information is required under rules of the Securities and Exchange Commission (“SEC”); some of it is technical. If there is anything you don’t understand, please contact us at our toll-free number, 1-800-225-1581, or call your financial representative.

Why has a special meeting of shareholders been called?

On January 31, 2007, Marsh & McLennan Companies, Inc. (“Marsh & McLennan”), the ultimate parent company of Putnam Investment Management, LLC (“Putnam Management”), your fund’s investment adviser, entered into a Stock Purchase Agreement with Great-West Lifeco Inc. (“Lifeco”). Lifeco is a financial services holding company with operations in Canada, the United States and Europe and is a member of the Power Financial Corporation group of companies. Under the Stock Purchase Agreement, Lifeco will, through a direct or indirect wholly owned subsidiary (“Great-West”), acquire 100% of Putnam Investments Trust, which owns Putnam, LLC (Putnam Investments), the parent company of Putnam Management and the other Putnam companies.

As a result of this transaction, your fund’s management contract with Putnam Management will terminate. This is because the Investment Company Act of 1940, as amended (the “1940 Act”), which regulates investment companies such as your fund, requires management contracts to terminate automatically when there is a “change of control” of a fund’s investment adviser. The transaction with Lifeco will result in a “change of control” of Putnam Management, your fund’s investment adviser. Thus, your fund’s management contract with Putnam Management will automatically terminate when the transaction closes, and your fund’s shareholders must approve a new management contract. We are recommending that you approve a new management contract with Putnam Management so that Putnam Management can continue as your fund’s investment adviser after the transaction. This proxy statement describes Lifeco, the transaction, and the new management contract proposed for your fund.

How will the change of control affect Putnam Management?

The change of control is not expected to have a material effect on Putnam Management. Putnam Management will operate as a stand-alone subsidiary of Lifeco and is expected to retain its brand and its existing management, investment and other service teams.

How does the proposed new management contract differ from your fund’s current management contract?

Although there are some differences between your fund’s current management contract and the proposed new management contract, which are described in this proxy statement, there will be no change in the services that your fund will receive. Except for these differences, the proposed new management contract is substantially identical to the current contract. Under the current management contracts, Putnam Management provides investment advisory and administrative services to all of the funds except for Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund, which only receive investment advisory services under their current

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management contracts. Putnam Management currently provides administrative services to these two funds under a separate administrative services contract. The proposed new management contracts for all of the Putnam funds, including Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund, cover Putnam Management’s provision of both investment management and administrative services.

Will your fund’s total fees for advisory and administrative services change?

No, there will be no change in your fund’s total fees for investment management and administrative services. For the two funds mentioned above that currently have separate management and administrative services contracts, both sets of services are proposed to be covered by a single management contract with a single fee that will not exceed the sum of the current investment management and administrative services fee.

Who is asking for your vote?

The enclosed proxy is solicited by the Trustees of the Putnam funds for use at the special meeting of shareholders of each fund to be held on Tuesday, May 15, 2007 and, if your fund’s meeting is adjourned, at any later meetings, for the purposes stated in the Notice of a Special Meeting (see previous pages). The Notice of a Special Meeting, the proxy and the Proxy Statement are being mailed on or about March __, 2007.

How do your fund’s Trustees recommend that shareholders vote on the proposal?

The Trustees unanimously recommend that you vote FOR the proposal.

Who is eligible to vote?

Shareholders of record of each fund at the close of business on Thursday, February 15, 2007 (the “Record Date”) are entitled to be present and to vote at the special meeting or any adjourned meeting.

The number of shares of each fund outstanding on the Record Date is shown in Appendix A. Each share is entitled to one vote, with fractional shares voting proportionately. Shares represented by your duly executed proxy will be voted in accordance with your instructions. If you sign the proxy card but don’t fill in a vote, your shares will be voted in accordance with the Trustees’ recommendation. If any other business is brought before your fund’s special meeting, your shares will be voted at the discretion of the persons designated on the proxy card.

Shareholders of each fund vote separately with respect to the proposal. The outcome of a vote affecting one fund does not affect any other fund.

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The Proposal

1. APPROVING A NEW MANAGEMENT CONTRACT FOR EACH FUND

Background Information about the Transaction

On January 31, 2007, Marsh & McLennan, the ultimate parent company of Putnam Management, your fund’s investment adviser, entered into a Stock Purchase Agreement with Lifeco. Under the Stock Purchase Agreement, Lifeco will, through Great-West, its direct or indirect wholly owned subsidiary, acquire 100% of Putnam Investments Trust, a holding company that, except for a minority stake owned by employees, is owned by Marsh & McLennan. Putnam Investments Trust owns Putnam, LLC (Putnam Investments), which in turn owns Putnam Management and the other Putnam companies.

After the transaction, Putnam Management will continue to be a wholly owned subsidiary of Putnam Investments. Putnam Investments will continue to be a wholly owned subsidiary of Putnam Investments Trust. Putnam Investments Trust will become a wholly owned subsidiary of Great-West, which will be a wholly owned holding company subsidiary of Lifeco. Lifeco is a Canadian financial services holding company with interests in the life insurance, health insurance, retirement, savings, and reinsurance businesses. Its businesses have operations in Canada, the United States and Europe. Power Financial Corporation (“Power Financial”), an international management and holding company of financial services businesses, owns approximately 70.6% of the voting shares of Lifeco. Power Corporation of Canada, a diversified international management and holding company, owns approximately 66.4% of the voting securities of Power Financial. The Honorable Paul Desmarais, Sr., through a group of private holding companies which he controls, has voting control of Power Corporation of Canada

The address of Mr. Desmarais, Power Corporation of Canada, and Power Financial is 751 Victoria Square, Montreal, Quebec H2Y 2J3. The address of Lifeco is 100 Osborne Street North, Winnipeg, Manitoba, R3C 3A5. The address of Great-West will be 8515 East Orchard Road, Greenwood Village, Colorado 80111.

The funds have been informed that Lifeco’s strategic purpose for acquiring Putnam Investments is to establish a strong presence in the United States asset management business. Lifeco values Putnam Investments’ focus on the advice segment of the U.S. market, its significant investment management capabilities and diversified range of investment products, its high quality wholesaling organization with strong relationships with financial advisers, its distribution capabilities in Japan and Europe, and its experienced management team. Lifeco has said that it intends to operate Putnam Investments as a separate business unit, retaining Putnam Investments’ and Putnam Management’s existing management team and other key professionals. Although Lifeco may pursue sub-advisory and other synergistic opportunities for Putnam Investments within the Power Financial group of companies, it does not anticipate significant integration issues or other disruption, in light of its intent to continue to operate Putnam Investments, Putnam Management and the other Putnam companies on a stand-alone basis and its experience in operating other companies that it has acquired as stand-alone businesses. Lifeco has advised the funds that it has no current plans to make any changes to the operations of the funds. In particular, it has advised that it has no current

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plans to make changes with respect to existing management fees, expense limitations, distribution arrangements, or quality of services provided to shareholders. In addition, Lifeco has advised that it intends to retain the Putnam brand and to support Putnam Investments’ current business strategy and Putnam Management’s investment management philosophy so as to minimize disruption and change for fund shareholders and the Putnam organization. Lifeco does not plan to consolidate any Putnam fund with any other company in the Power Financial group of companies.

Although the transaction is not expected to result in significant change in the operations of Putnam Management or its management of the funds, as a result of this transaction, which is expected to close in the middle of 2007, your fund’s management contract with Putnam Management will terminate. This is because the 1940 Act, which regulates investment companies such as your fund, requires management contracts to terminate automatically when there is a “change of control” of the investment adviser. The transaction with Lifeco will result in a “change of control” of Putnam Management, your fund’s investment adviser. Thus, your fund’s shareholders must approve a new management contract. The Trustees are recommending that you approve a new management contract with Putnam Management so that Putnam Management can continue as your fund’s investment adviser.

The Stock Purchase Agreement

Under the Stock Purchase Agreement, Lifeco will acquire 100% of the ownership interests of Putnam Investments Trust, which owns Putnam Investments, the owner of Putnam Management, your fund’s current investment adviser. These Putnam Investments Trust ownership interests are in the form of class A shares, all of which are owned by Marsh & McLennan, and class B shares and options to purchase class B shares, all of which are held by Putnam employees. The estimated total value of the transaction is approximately $3.9 billion (based on the estimated value of Putnam Investments Trust’s equity interests on September 30, 2006). The final price is subject to certain adjustments at closing.

The Stock Purchase Agreement requires Lifeco, or its permitted assignee, at the closing of the transaction, to purchase all of the issued and outstanding class A common shares of Putnam Investments Trust currently held by Marsh & McLennan. Lifeco will assign its right to purchase the class A shares of Putnam Investments Trust to Great-West. Lifeco remains fully liable for its obligations under the Stock Purchase Agreement. Also at the closing, all of the issued and outstanding class B common shares and options currently held by Putnam employees under Putnam Investments Trust’s equity partnership plan will be cancelled according to the terms of the equity partnership plan, and each Putnam employee will receive cash payments for these shares and options, a portion of which will be paid at the closing and the remainder of which will, subject to the satisfaction of certain conditions, be paid over a three-year period, provided generally that the employee is still employed by Putnam on the date of payment. These deferred payments to employees may increase or decrease based upon, among other things, the performance of the Putnam funds. The transaction structure as described in this section is

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subject to modification by Marsh & McLennan and Lifeco before closing to improve the tax efficiency of the transaction for Lifeco and to limit the extent to which the transaction consideration is subject to withholding requirements.  It is not expected that any such modification would result in any significant change in Putnam Management’s operations or its management of the funds.

Consummation of the transaction is subject to customary terms and conditions, including, among others, Marsh & McLennan and Lifeco obtaining certain regulatory approvals and the approval of new management contracts by shareholders of a substantial number of the Putnam funds. Although there is no assurance that the transaction will be completed, if each of the terms and conditions is satisfied or waived, the parties to the transaction anticipate that the closing will take place in the middle of 2007. If the transaction is not completed, your fund’s current management contract with Putnam Management will not terminate because there will be no change of control. Putnam Management would continue to serve as your fund’s investment adviser under the current management contract or, if approved at the shareholder meeting, under the proposed management contract described in this proxy statement, effective as of January 1, 2008 or such other date as the Trustees may establish.

Section 15(f) of the 1940 Act

Lifeco has agreed to comply with Section 15(f) of the 1940 Act. Section 15(f) provides a non-exclusive “safe harbor” for an investment company’s adviser or any affiliated persons of the adviser to receive any amount or benefit in connection with a change of control of the investment adviser as long as two conditions are met. First, for a period of three years after the change of control, at least 75% of the directors of the investment company must not be interested persons of the adviser or the predecessor adviser. Second, there must not be any “unfair burden” imposed on the investment company as a result of the transaction or any express or implied terms, conditions or understandings relating to the transaction. Section 15(f) defines “unfair burden” to include any arrangement during the two-year period after the transaction in which the adviser or predecessor adviser, or any interested person of the adviser or predecessor adviser, receives or is entitled to receive any compensation, directly or indirectly, from the investment company or its security holders (other than fees for bona fide investment advisory or other services) or from any person in connection with the purchase or sale of securities or other property to, from or on behalf of the investment company (other than bona fide ordinary compensation as principal underwriter for the investment company). Putnam Management has advised the funds that neither it, Marsh & McLennan nor Lifeco, after reasonable inquiry, is aware of any express or implied term, condition, arrangement or understanding that would impose an “unfair burden” on the funds as a result of the transaction. Marsh & McLennan and Lifeco have agreed to pay all costs incurred by the funds in connection with this transaction, including all costs of this proxy solicitation.

The Proposed New Management Contract; Comparison with the Funds’ Current Management Contracts

The Trustees have approved, and recommend to the shareholders of each fund that they approve, a new management contract between each fund and Putnam Management. The

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form of the proposed new management contract is attached at Appendix B. You should refer to Appendix B for the complete terms of your fund’s proposed management contract.

On being presented with the need to approve new management contracts, the Trustees decided to take the opportunity to standardize, clarify and modernize various provisions of the current contracts. Because they were implemented at different times, the funds’ current management contracts differ in some cases from fund to fund, and some contain outdated provisions. The Trustees believe that this standardization will benefit shareholders by making the administration of the funds’ management contracts more efficient. In addition, Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund, which currently have both a management contract and an administrative services contract, will each combine those two contracts into a single management contract. All of the other Putnam funds receive investment management and administrative services under their current management contracts.

Except as described below, the terms of the proposed new management contracts are substantially identical to those of the current contracts. The terms of the proposed new management contracts, and certain differences between the proposed new management contracts and the current contracts, are described generally below. A more detailed description of certain differences between the proposed and current management (and administrative services, as applicable) contracts is attached at Appendix C. The date of each fund’s current management contract, the date on which it was last approved by shareholders, and the date on which its continuance was last approved by the Board of Trustees is set forth on Appendix D.

Fees. There is no change in the rate of the fees that the funds will pay Putnam Management under the proposed new management contract, except in the case of Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund (see below). The current fee schedule for investment management services and, if applicable, administrative services, for each fund is set forth in Appendix E. The actual fees paid by some funds are subject to expense limitations to which Putnam Management has agreed. It is not anticipated that any existing expense limitation commitment will change as a result of the transaction.

There are some minor procedural changes proposed for the fee provisions of the closed-end funds, which are described in Appendix C.

Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund currently have separate investment management and administrative services contracts with Putnam Management. However, the proposed new management contract for each fund, including Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund, addresses the provision of both investment management and administrative services and includes a single fee for both of these services. There is no change in the aggregate rate that Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund will pay to Putnam Management for investment management and administrative services.

Investment Management Services. The proposed new management contract for your fund provides that Putnam Management will furnish continuously an investment program for the fund, determining what investments to purchase, hold, sell or exchange and what portion of the fund’s assets will be held uninvested, in compliance with the fund’s governing documents, investment objectives, policies and restrictions, and subject to the oversight and

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control of the Trustees. Putnam Management has assured the funds and the Trustees that after the transaction it will continue to provide the same level of services to each fund and that the transaction will not have an adverse impact on the scope or nature of the services that each fund receives.

Putnam Management is authorized under the proposed new management contract to place orders for the purchase and sale of portfolio investments for your fund with brokers or dealers that Putnam Management selects. Putnam Management must select brokers and dealers, and place orders, using its best efforts to obtain for the funds the most favorable price and execution available, except that Putnam Management may pay higher brokerage commissions if it determines in good faith that the commission is reasonable in relation to the value of brokerage and research services provided by the broker or dealer (a practice commonly known as “soft dollars”). Putnam Management may make this determination in terms of either the particular transaction or Putnam Management’s overall responsibilities with respect to a fund and to other clients of Putnam Management as to which Putnam Management exercises investment discretion. Putnam Management’s use of soft dollars is subject to policies established by the SEC and by the Trustees from time to time.

Each of the funds’ current management contracts contains similar provisions relating to the provision of investment management services.

Delegation of Responsibilities. The proposed new management contract for your fund expressly provides that Putnam Management may, in its discretion and with the approval of the Trustees (including a majority of the Trustees who are not “interested persons”) and, if required, the approval of shareholders, delegate responsibilities under the contract to one or more sub-advisers or sub-administrators. The separate costs of employing any sub-adviser or sub-administrator must be borne by Putnam Management or the sub-adviser or sub-administrator, not by the fund. Putnam Management is responsible for overseeing the performance of any sub-adviser or sub-administrator and remains fully responsible to the fund under the proposed new management contract regardless of whether it delegates any responsibilities.

None of the current management contracts addresses delegation of responsibilities. Putnam Management has no plans to delegate services except as described below.

At present, Putnam Management has delegated certain responsibilities to sub-advisers, as described below under the heading “Sub-Adviser Arrangements.” The sub-management contracts governing these arrangements will terminate at the same time as the current management contracts of these funds. Pursuant to the proposed new management contract (and as otherwise permitted by law), Putnam Management will enter into equivalent sub-management contracts with these sub-advisers, effective at the time the proposed new management contracts become effective, with respect to these funds. See “Sub-Adviser Arrangements” below for a description of the sub-advisers, and see Appendix F for copies of the current sub-management contracts. The new sub-management contracts will be substantially identical to the current sub-management contracts except for the effective dates.

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In addition, Putnam Management has delegated certain administrative, pricing and bookkeeping services to State Street Bank and Trust Company. This delegation will not be affected by the transaction.

Administrative Services. The proposed new management contracts, and all of the current management contracts with the exception of those applying to Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund, provide that Putnam Management will manage, supervise and conduct the other (i.e., non-investment) affairs and business of the fund and incidental matters. These administrative services include providing suitable office space for the fund and administrative facilities, such as bookkeeping, clerical personnel and equipment necessary for the efficient conduct of the fund’s affairs, including determination of the net asset value of the fund, but excluding shareholder accounting services.

Expenses. The proposed new management contracts require Putnam Management to bear the expenses associated with (i) furnishing all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties faithfully, (ii) providing suitable office space for the fund and (iii) providing administrative services. The proposed new management contracts also provide that the fund will pay the fees of its Trustees and will reimburse Putnam Management for compensation paid to officers and persons assisting officers of the fund, and all or part of the cost of suitable office space, utilities, support services and equipment used by such officers and persons, as the Trustees may determine. Under this provision, the fund will bear the costs of the Trustees’ independent staff, which assists the Trustees in overseeing each of the funds.

The current management contracts contain similar expense and reimbursement provisions.

Term and Termination. If approved by shareholders of your fund, the proposed new management contract will become effective upon its execution and will remain in effect continuously, unless terminated under the termination provisions of the contract. The proposed new management contract provides that the management contract may be terminated at any time, without the payment of any penalty by the fund, by either Putnam Management or the fund by not less than 60 days’ written notice to the other party. A fund may effect termination by vote of a majority of its Trustees or by the affirmative vote of a “majority of the outstanding shares” of the fund, as defined in the 1940 Act. The proposed new management contracts will also terminate automatically in the event of their "assignment".

The proposed new management contract will, unless terminated as described above, continue until June 30, 2008 and will continue in effect from year to year thereafter so long as its continuance is approved at least annually by (i) the Trustees of the fund or the shareholders by the affirmative vote of a majority of the outstanding shares of the fund and (ii) a majority of the Trustees who are not “interested persons” of the fund or of Putnam Management, by vote cast in person at a meeting called for the purpose of voting on such approval.

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All of the current management contracts have similar provisions for their term and termination, except that the initial terms of the contracts differ and the current management contracts require that written notice be given not more than 60 nor less than 30 days before termination.

Limitation of Liability. Under the proposed new management contract, Putnam Management is not liable to a fund or to any shareholder of the fund for any act or omission in the course of, or connected with, rendering services under the proposed management contract, unless there is willful misfeasance, bad faith or gross negligence on the part of Putnam Management or reckless disregard of its obligations and duties under the proposed management contract. Each current management contract contains substantially identical provisions.

As required under each fund’s Declaration of Trust, the proposed management contract contains a notice provision stating that the fund’s Declaration of Trust is on file with the Secretary of The Commonwealth of Massachusetts and that the proposed management contract is executed on behalf of the Trustees as Trustees of the fund and not individually. Also, the obligations arising out of the proposed management contract are limited only to the assets and property of the fund and are not binding on any of the Trustees, officers or shareholders individually. Each current management contract contains a substantially identical notice.

Amendments; Defined Terms. The proposed management contract may only be amended in writing, and any amendments must be approved in a manner consistent with the 1940 Act, the rules and regulations under the1940 Act and any applicable guidance or interpretations of the SEC or its staff. Similarly, certain terms used in the proposed management contract are used as defined in the 1940 Act, the rules and regulations under the 1940 Act and any applicable guidance or interpretation of the SEC or its staff. The current management contracts contain similar terms, except that they generally do not make reference to guidance or interpretation of the SEC or its staff. Thus, the proposed management contracts explicitly permit the funds and Manager to operate in a manner consistent with regulatory guidance and interpretations, which may provide advantages and operational flexibility from time to time.

Sub-Adviser Arrangements

For certain funds, Putnam Management has retained an affiliate to provide sub-management services.

Putnam Management has retained Putnam Investments Limited (“PIL”), a wholly owned subsidiary of The Putnam Advisory Company, LLC (“PAC,” which is itself a subsidiary of Putnam Investments) and an affiliate of Putnam Management, as the sub-adviser for a portion of certain funds’ assets as determined by Putnam Management from time to time. PIL is currently authorized to serve as the sub-adviser, to the extent determined by Putnam Management from time to time, for the following funds: Putnam Diversified Income Trust, Putnam VT Diversified Income Trust, Putnam Europe Equity Fund, Putnam Global Equity Fund, Putnam VT Global Equity Fund, Putnam Global Income Trust, Putnam Global Natural Resources Fund, Putnam High Income Securities Fund, Putnam High Yield Advantage Fund, Putnam High Yield Trust, Putnam International Capital Opportunities Fund, Putnam

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International Equity Fund, Putnam VT International Equity Fund, Putnam International Growth and Income Fund, Putnam VT International Growth and Income Fund, Putnam International New Opportunities Fund, Putnam VT International New Opportunities Fund, Putnam Master Intermediate Trust, Putnam Premier Income Trust, Putnam Research Fund, Putnam VT Research Fund, Putnam Utilities Growth and Income Fund and Putnam VT Utilities Growth and Income Fund.

PIL serves as sub-adviser for those funds under a sub-management agreement between Putnam Management and PIL. Pursuant to the terms of the sub-management agreement, Putnam Management (and not the fund) pays a quarterly sub-management fee to PIL for its services at the annual rate of 0.35% of the average aggregate net asset value of the portion of a fund’s assets invested in equity securities and 0.40% of the portion of a fund’s assets invested in fixed-income securities, if any, that PIL manages from time to time except that, in the case of Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust and Putnam Premier Income Trust, Putnam Management (and not the fund) pays PIL a quarterly sub-management fee for its services at the annual rate of 0.40% of the funds’ average weekly assets, if any, that PIL manages from time to time.

Under the terms of the sub-management contract, PIL, at its own expense, furnishes continuously an investment program for the portion of each fund that Putnam Management allocates to PIL from time to time and makes investment decisions on behalf of these portions of the fund, subject to Putnam Management’s supervision. Putnam Management may also, at its discretion, request PIL to provide assistance with purchasing and selling securities for the fund, including order placement with certain broker-dealers. PIL, at its expense, furnishes all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties.

The sub-management contract provides that PIL is not subject to any liability to Putnam Management, the fund or any shareholder of the fund for any act or omission in the course of or connected with rendering services to the fund in the absence of PIL’s willful misfeasance, bad faith, gross negligence or reckless disregard of its obligations and duties.

The sub-management contract may be terminated with respect to a fund without penalty by vote of the Trustees or the shareholders of the fund, or by PIL or Putnam Management, on 30 days’ written notice. The sub-management contract also terminates without payment of any penalty in the event of its assignment. Subject to applicable law, it may be amended by a majority of the Trustees who are not “interested persons” of Putnam Management or the fund. The sub-management contract provides that it will continue in effect only so long as such continuance is approved at least annually by vote of either the Trustees or the shareholders and, in either case, by a majority of the Trustees who are not “interested persons” of Putnam Management or the fund. In each of the foregoing cases, the vote of the shareholders is the affirmative vote of a “majority of the outstanding voting securities” as defined in the 1940 Act.

PAC has been retained as a sub-adviser for a portion of the assets of Putnam International Equity Fund as determined from time to time by Putnam Management or, with respect to portions of that fund’s assets for which PIL acts as sub-adviser as described above, by PIL.

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PAC serves as sub-adviser under a sub-advisory agreement among Putnam Management, PIL and PAC. Pursuant to the terms of the sub-advisory agreement, Putnam Management or, with respect to portions of Putnam International Equity Fund’s assets for which PIL acts as sub-adviser, PIL (and not the fund) pays a quarterly sub-advisory fee to PAC for its services at the annual rate of 0.10% of the average aggregate net asset value of the portion of the fund with respect to which PAC acts as sub-adviser.

Under the terms of the sub-advisory contract, PAC, at its own expense, furnishes recommendations to purchase, hold, sell or exchange investments, securities and assets for that portion of Putnam International Equity Fund that is allocated to PAC from time to time by Putnam Management or PIL. Putnam Management or PIL, as applicable, determines whether to execute each such recommendation by PAC, whose activities as sub-adviser are subject to the supervision of Putnam Management and PIL, as applicable. PAC, at its expense, furnishes all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties.

The sub-advisory contract provides that PAC is not subject to any liability to Putnam Management, PIL, Putnam International Equity Fund or any shareholder of the fund for any act or omission in the course of or connected with rendering services to the fund in the absence of PAC’s willful misfeasance, bad faith, gross negligence or reckless disregard of its obligations and duties.

The sub-advisory contract may be terminated without penalty by vote of the Trustees or the shareholders of Putnam International Equity Fund, or by PAC, PIL or Putnam Management, on 30 days’ written notice. The sub-advisory contract also terminates without payment of any penalty in the event of its assignment. Subject to applicable law, it may be amended by a majority of the Trustees who are not “interested persons” of Putnam Management or the fund. The sub-advisory contract provides that it will continue in effect only so long as such continuance is approved at least annually by vote of either the Trustees or the shareholders and, in either case, by a majority of the Trustees who are not “interested persons” of Putnam Management or the fund. In each of the foregoing cases, the vote of the shareholders is the affirmative vote of a “majority of the outstanding voting securities” as defined in the 1940 Act.

A “change of control” that constitutes an assignment terminating automatically the funds’ management contracts will also terminate automatically the sub-management contract with PIL and the sub-advisory contract with PIL and PAC. So that your fund will not lose the benefit of PIL’s or PAC’s services, Putnam Management intends to enter into a new sub-management contract with PIL and a new sub-advisory contract with PIL and PAC, each identical to the current contract except for the effective date. See Appendix F for copies of the current contracts.

What did the Trustees consider in evaluating the proposal?

The Trustees met in person on October 12 and 13, 2006 to discuss the implications of a possible sale of Putnam Investments in light of a decision made by its parent company, Marsh & McLennan, to explore the possibility of a sale. At this meeting, the Trustees

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considered information relating to the operations, competitive position in the mutual fund industry and recent history of a number of firms that had indicated to Marsh & McLennan a preliminary interest in acquiring Putnam Investments. During the course of this meeting, the Trustees received presentations on these matters from two consultants with recognized expertise in the mutual fund industry. In addition, the Trustees reviewed information about recent significant acquisitions in the mutual fund industry and considered the possible effects of a sale transaction on Putnam Management and the rest of the Putnam organization. The Trustees received a report from the chief executive officer of Marsh & McLennan and considered analyst reports relating to Marsh & McLennan and its ownership of Putnam Investments. The Trustees also received advice from their independent legal counsel regarding their responsibilities in evaluating a possible sale transaction.

The Trustees actively monitored the sale process throughout the period leading up to the public announcement of a final sale agreement on February 1, 2007. The Trustees discussed developments at telephone meetings on October 18, October 25, November 1, November 29, December 20, January 12 and January 18, and at their regular in-person meetings on November 9-10, December 14-15 and January 11-12. The Trustees who are not affiliated with Putnam Investments met separately to discuss these matters during most of these meetings. Mr. Haldeman, the only Trustee affiliated with Putnam Investments, participated in portions of these meetings to provide the perspective of the Putnam organization, but did not otherwise participate in the deliberations of the Trustees regarding a possible sale.

Over the course of these meetings, the Trustees discussed and developed general principles to guide their evaluation of a possible sale transaction. Following the emergence of a number of interested bidders by early November 2006, the Trustees conducted due diligence on these bidders with the assistance of their independent legal counsel. The Trustees communicated their perspectives on these bidders to Marsh & McLennan and also submitted specific requests for information to be provided by bidders. After learning in December 2006 that Marsh & McLennan was negotiating exclusively with Power Financial and Lifeco, the Trustees focused their diligence efforts on Power Financial and Lifeco.

On January 2, 2007, a committee of the Trustees, together with their independent legal counsel, met with representatives of Power Financial and Lifeco to discuss the proposal to acquire Putnam Investments and responses to the Trustees’ diligence requests. The Trustees were advised in this meeting that Power Financial and Lifeco intended to maintain Putnam Investments as a separate, stand-alone organization under the Putnam brand and to retain Putnam Investments’ current management team. Power Financial and Lifeco expressed their intention to maintain the quality of services that the Putnam organization currently provides to the funds and the funds’ current cost structure. At the same time, they indicated their intention, consistent with this commitment, to pursue opportunities for improving the profitability of the Putnam organization. Power Financial and Lifeco indicated interest in pursuing the possibility of making the Putnam funds and other Putnam Investments products available through certain of their distribution channels, but indicated that no significant operational changes were envisioned. Power Financial and Lifeco also raised the possibility of using Putnam Investments’ distribution network to distribute certain of the products of one or more Power Financial or Lifeco companies. The Trustees noted that these proposals may benefit Lifeco and may also enable Putnam Investments to allocate the costs of its distribution network across a greater number

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of products. At this meeting, the Trustees reviewed with Power Financial and Lifeco the role and operation of the Board of Trustees, emphasizing its historical independence and activism in such areas as fees and expenses, regulatory issues, quality of service provided by Putnam to the funds, soft dollars and proxy voting. On January 10, 2007, Ms. Baxter, Vice Chairman of the Trustees and the Chairman of the Contract Committee, also met with a representative of Power Financial and Lifeco for further discussion of these matters. At a telephonic meeting on January 18, 2007, the Trustees received a presentation on the terms of the proposed sale and unanimously expressed their support for the proposed sale, subject to their review of final agreements.

Mr. Hill, Chairman of the Board of Trustees, met with the Chairman and Co-Chief Executive Officer and the President and Co-Chief Executive Officer of Power Corporation of Canada and the Chairman of the Board and the President and Chief Executive Officer of Power Financial on January 28, 2007 to further discuss the role of the Board of Trustees in overseeing the funds and Power Financial’s and Lifeco’s commitment to the Putnam brand, to Putnam Investments’ management team, and to support Putnam Investments' management team and the team's strategy following the transaction with the aim of minimizing disruption and change for the Putnam shareholders. Following the public announcement of the transaction on February 1, 2007, the Trustees received a report from Putnam Investments on the final terms of the transaction at a telephonic meeting on February 5, 2007.

At an in-person meeting on February 8-9, 2007, the Trustees received further presentations regarding the final terms of the transaction and considered the approval of new management contracts for each fund proposed to become effective upon the closing of the sale. They reviewed the terms of the proposed new management contracts and the differences between the proposed new management contracts and the current management contracts (and administrative services contracts, in the case of Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund). They noted that the terms of the proposed new management contracts were substantially identical to the current management contracts, except for certain changes developed at the initiative of the Trustees and designed largely to address inconsistencies among various of the existing contracts, which had been developed and implemented at different times in the past. (These differences are described elsewhere in this proxy statement.)

In considering the approval of the new management contracts, the Trustees also considered the following matters:

(i) their belief that the transaction will not adversely affect the Putnam funds, and by addressing uncertainty regarding the ownership of Putnam Investments, should enhance the ability of Putnam Management and its affiliates to continue to provide high quality investment advisory and other services to the funds;

(ii) the intention expressed by representatives of Power Financial and Lifeco to retain the existing Putnam Investments’ management team and other key professionals and that Putnam Investments would be operated as a separate business unit;

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(iii) Power Financial’s and Lifeco’s commitment to support the continued effort of Putnam Management’s current management team to rebuild Putnam’s reputation and enhance the investment process;

(iv) that representatives of Power Financial, Lifeco and Putnam Management advised that they have no current plans to make changes with respect to existing management fees, expense limitations, distribution arrangements or quality of services provided to fund shareholders and committed to maintain the current program of fund expense limitations, at least through June 30, 2009, which ensures that all Putnam funds will have expense levels at or below competitive industry averages;

(v) the financial condition and reputation of Power Financial and Lifeco, their record of operating acquired companies with minimal disruption to their businesses, their high level of respect for the mutual fund governance process and the independence of the Trustees and their decisions and their commitment to maintain the high level of cooperation and support that the Putnam organization has historically provided;

(vi) the possible benefits that the funds may receive as a result of Putnam Management joining the Power Financial group of companies, which is expected to promote stability of the Putnam organization and eliminate the previous uncertainty with respect to the future ownership of Putnam Investments;

(vii) Power Financial’s and Lifeco’s commitment to maintaining competitive compensation arrangements to allow the Putnam organization to attract and retain highly qualified personnel;

(viii) that the current senior management team at Putnam Investments has indicated its strong support of the transaction; and

(ix) the commitments of Marsh & McLennan and Lifeco to bear all expenses incurred by the Putnam funds in connection with the transaction, including all costs associated with this proxy solicitation.

Finally, in considering the proposed new management contracts, the Trustees also took into account their deliberations and conclusions in connection with their most recent annual approval of the continuance of the funds’ management contracts effective July 1, 2006, and the extensive materials that they had reviewed in connection with that approval process. Appendix G contains a summary description of the matters considered by the Trustees in connection with that approval.

Based upon the foregoing considerations, on February 9, 2007, the Trustees, including all of the Trustees present who are not “interested persons” of the funds or Putnam Investments, approved the proposed new management contracts and determined to recommend their approval to the shareholders of the Putnam funds.

Additional Information Regarding Potential Interests of Certain Trustees in the Transaction

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Charles E. Haldeman, Jr., a Trustee of the funds, serves as the President and Chief Executive Officer of Putnam Investments. Mr. Haldeman is also a stockholder of Putnam Investments Trust. On March 15, 2005, Putnam Investments Trust granted Mr. Haldeman 210,635 shares of class B common stock pursuant to the Putnam Investments Trust Equity Partnership Plan. With respect to this grant, Mr. Haldeman’s shares vest over a four-year period, with 25% of the shares vesting on each anniversary of the grant, although vesting may be accelerated under certain circumstances if Mr. Haldeman’s employment with Putnam terminates. On September 29, 2005, Mr. Haldeman participated in the Putnam Option Exchange Program, in which holders of eligible options to purchase class B common stock were permitted to elect to exchange their options for restricted shares of class B common stock with a value equal to the value of the exchanged options. Mr. Haldeman was granted 14,226 restricted shares of class B common stock in exchange for an option to purchase 99,200 shares of class B common stock. On March 15, 2006, Putnam Investments Trust granted Mr. Haldeman 111,693 restricted shares of class B common stock for his performance in 2005. With respect to such grant, Mr. Haldeman’s shares vest over a four-year period, with 25% of the shares vesting on each anniversary of the grant. On March 15, 2006, Mr. Haldeman received an additional grant of 314,136 restricted shares of class B common stock and an option to purchase 510,638 shares as a special grant as a result of his employment contract with Marsh & McLennan. With respect to each such grant, Mr. Haldeman’s shares vest 10%, 20%, 30% and 40% over the next four years, subject to acceleration provisions based on investment performance. Mr. Haldeman also holds other restricted shares of class B common stock from grants in years prior to 2005, and it is expected that an additional grant of such restricted shares will be made in March 2007.  As a stockholder of Putnam Investments Trust, Mr. Haldeman will benefit directly from the sale of your fund’s investment adviser to Lifeco in an estimated amount of between $___ and $___ depending upon, among other things, the closing price for the transaction. 

In addition to the interests described above, Mr. Haldeman currently owns certain stock and options to purchase stock of Marsh & McLennan, and may benefit indirectly from the sale of your fund's investment adviser to Lifeco to the extent of his interests in Marsh & McLennan.

George Putnam, III, is the President of your fund as well as a Trustee. Mr. Putnam is also a stockholder of Marsh & McLennan. As of December 31, 2006, he and his children own in the aggregate 12,110 shares of Marsh & McLennan. In addition, Mr. Putnam serves as a trustee of trusts holding in the aggregate 102,317 shares of Marsh & McLennan; Mr. Putnam is a likely beneficiary of these trusts. Mr. Putnam is also a director of a charitable organization that owns 12,000 shares of Marsh & McLennan in which Mr. Putnam has no economic interest. In addition, certain other members of Mr. Putnam’s family own in the aggregate 518,846 shares of Marsh & McLennan in which Mr. Putnam has no current economic interest. Mr. Putnam may benefit indirectly from the sale of your fund’s investment adviser to Lifeco to the extent of his interests in shares of Marsh & McLennan.

What is the voting requirement for approving the proposal?

Approval of your fund’s proposed new management contract requires the affirmative vote of the lesser of (a) more than 50% of the outstanding shares of the fund, or (b) 67% or more of the shares of the fund present (in person or by proxy) at the meeting if more than 50% of the outstanding shares of the fund are present at the meeting in person or by proxy.

The Trustees, including a majority of the Trustees who are not “interested persons” of Putnam Management or the funds, recommend that shareholders approve the proposed management contracts.

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Further Information About Voting and the Special Meeting

Quorum and Methods of Tabulation. The shareholders of each fund vote separately with respect to the proposal. In the case of all closed-end funds, a majority of the shares entitled to vote constitutes a quorum for the transaction of business with respect to any proposal at the meeting. In the case of each other fund, 30% of the shares entitled to vote constitutes a quorum. Shares of all classes of each fund vote together as a single class. Votes cast by proxy or in person at the meeting will be counted by persons appointed by your fund as tellers for the meeting. The tellers will count the total number of votes cast “for” approval of the proposal for purposes of determining whether sufficient affirmative votes have been cast. Shares represented by proxies that reflect abstentions and “broker non-votes” (i.e., shares held by brokers or nominees as to which (i) instructions have not been received from the beneficial owners or the persons entitled to vote and (ii) the broker or nominee does not have the discretionary voting power on a particular matter) will be counted as shares that are present and entitled to vote on the matter for purposes of determining the presence of a quorum.

The documents that authorize Putnam Fiduciary Trust Company to act as Trustee for certain individual retirement accounts (including traditional, Roth and SEP IRA’s) provide that if an IRA account owner does not submit voting instructions for his or her shares, Putnam Fiduciary Trust Company will vote such shares in the same proportions as other shareholders with similar accounts have submitted voting instructions for their shares. Shareholders should be aware that this practice, known as “echo-voting,” may have the effect of increasing the number of shares voted in favor of the proposal (possibly increasing the likelihood that the proposal will be approved) and that Putnam Fiduciary Trust Company, which is an affiliate of Putnam Management, may benefit indirectly from the approval of the proposed new management contracts.

Abstentions and broker non-votes have the effect of a negative vote on the proposal. Treating broker non-votes as negative votes may result in a proposal not being approved, even though the votes cast in favor would have been sufficient to approve the proposal if some or all of the broker non-votes had been withheld. In certain circumstances in which a fund has received sufficient votes to approve a matter being recommended for approval by the fund’s Trustees, the fund may request that brokers and nominees, in their discretion, withhold submission of broker non-votes in order to avoid the need for solicitation of additional votes in favor of the proposal. A fund may also request that selected brokers and nominees, in their discretion, submit broker non-votes, if doing so is necessary to obtain a quorum.

Shareholders who object to any proposal in this Proxy Statement will not be entitled under Massachusetts law or the Agreement and Declaration of Trust of the particular Putnam fund to demand payment for, or an appraisal of, their shares.

Special Rule for Proportional Voting (for Putnam High Yield Municipal Trust, Putnam Investment Grade Municipal Trust, Putnam Managed Municipal Income Trust, Putnam Municipal Bond Fund and Putnam Municipal Opportunities Trust). For funds listed on the New York Stock Exchange that have outstanding preferred shares, in accordance with the

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rules of the New York Stock Exchange, brokerage firms may vote for or against a proposal, on behalf of their clients who beneficially own the remarketed or auction rate preferred shares and from whom they have not received voting instructions, in the same proportion as votes for and against such proposal have been received from holders of preferred shares if (i) a minimum of 30% of the outstanding preferred shares have been voted by the holders of preferred shares, (ii) holders of less than 10% of the outstanding preferred shares have voted against the proposal and (iii) the holders of the common shares have approved the proposal.

Other business. The Trustees know of no matters other than those described in this proxy statement to be brought before the meeting. If, however, any other matters properly come before the meeting, proxies will be voted on such matters in accordance with the judgment of the persons named in the enclosed form of proxy.

Simultaneous meetings. The meeting of shareholders of your fund is called to be held at the same time as the meetings of shareholders of certain of the other Putnam funds. It is anticipated that all meetings will be held simultaneously.

If any shareholder at the meeting objects to the holding of a simultaneous meeting and moves for an adjournment of the meeting to a time promptly after the simultaneous meetings, the persons named as proxies will vote in favor of such adjournment.

Information for all Putnam funds except funds that
are series of Putnam Variable Trust

Solicitation of proxies. In addition to soliciting proxies by mail, Trustees of your fund and employees of Putnam Management, Putnam Fiduciary Trust Company and Putnam Retail Management may solicit proxies in person or by telephone. Your fund may arrange to have a proxy solicitation firm call you to record your voting instructions by telephone. The procedures for voting proxies by telephone are designed to authenticate shareholders’ identities, to allow them to authorize the voting of their shares in accordance with their instructions and to confirm that their instructions have been properly recorded. Your fund has been advised by counsel that these procedures are consistent with the requirements of applicable law. If these procedures were subject to a successful legal challenge, such votes would not be counted at the meeting. Your fund is unaware of any such challenge at this time. Shareholders would be called at the phone number Putnam Management has in its records for their accounts, and would be asked for their Social Security number or other identifying information. The shareholders would then be given an opportunity to authorize the proxies to vote their shares at the meeting in accordance with their instructions. To ensure that the shareholders’ instructions have been recorded correctly, they will also receive a confirmation of their instructions in the mail. A special toll-free number will be available in case the information contained in the confirmation is incorrect.

Common shareholders have the opportunity to submit their voting instructions via the Internet by using a program provided by a third-party vendor hired by Putnam Management or by automated telephone service. The giving of a proxy will not affect your right to vote in person should you decide to attend the meeting. To use the Internet, please access the Internet address listed on your proxy card and follow the instructions on the Internet site. To

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record your voting instructions via automated telephone service, use the toll-free number listed on your proxy card. The Internet and telephone voting procedures are designed to authenticate shareholder identities, to allow shareholders to give their voting instructions, and to confirm that shareholders’ instructions have been recorded properly. Shareholders voting via the Internet should understand that there may be costs associated with electronic access, such as usage charges from Internet access providers and telephone companies that must be borne by the shareholders.

Your fund’s Trustees have adopted a general policy of maintaining confidentiality in the voting of proxies. Consistent with this policy, your fund may solicit proxies from shareholders who have not voted their shares or who have abstained from voting, including brokers and nominees.

Revocation of proxies. Proxies, including proxies given by telephone or over the Internet, may be revoked at any time before they are voted either (i) by a written revocation received by the Clerk of your fund, (ii) by properly executing a later-dated proxy, (iii) by recording later-dated voting instructions by telephone or via the Internet, (iv) in the case of brokers and nominees, by submitting written instructions to your fund’s solicitation agent or the applicable record shareholders or (v) by attending the meeting and voting in person.

Information for funds that are series of
Putnam Variable Trust

Voting Process. With respect to funds that are series of Putnam Variable Trust only, as of the Record Date, certain insurance companies (each, an “Insurance Company”) were shareholders of record of each fund that is a series of Putnam Variable Trust. Each Insurance Company will vote shares of the fund or funds held by it in accordance with voting instructions received from variable annuity contract and variable life insurance policy owners (collectively, the “Contract Owners”) for whose accounts the shares are held. Accordingly, with respect to funds that are series of Putnam Variable Trust, this proxy statement is also intended to be used by each Insurance Company in obtaining these voting instructions from Contract Owners. In the event that a Contract Owner gives no instructions, the relevant Insurance Company will vote the shares of the appropriate fund attributable to the Contract Owner in the same proportion as shares of that fund for which it has received instructions. One effect of this system of proportional voting is that, if only a small number of Contract Owners provide voting instructions, this small number of Contract Owners may determine the outcome of a vote for a fund.

Solicitation of proxies. In addition to soliciting proxies and voting instructions by mail, the Trustees of your fund and employees of Putnam Management, Putnam Fiduciary Trust Company, Putnam Retail Management and the Insurance Companies may solicit voting instructions from Contract Owners in person or by telephone. Your fund may arrange to have a proxy solicitation firm call you to record your voting instructions by telephone. The procedures for solicitation of proxies and voting instructions by telephone are designed to authenticate Contract Owners’ identities, to allow them to authorize the voting of their units in accordance with their instructions and to confirm that their instructions have been properly recorded. Your fund has been advised by counsel that these procedures are consistent with

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the requirements of applicable law. If these procedures were subject to a successful legal challenge, such votes would not be counted at the meeting. Your fund is unaware of any such challenge at this time. Contract Owners would be called at the phone number Putnam Management has in its records for their accounts (or that Putnam Management obtains from the Insurance Companies), and would be asked for their Social Security number or other identifying information. The Contract Owners would then be given an opportunity to give their instructions. To ensure that the Contract Owners’ instructions have been recorded correctly, they will also receive a confirmation of their instructions in the mail. A special toll-free number will be available in case the information contained in the confirmation is incorrect.

Contract Owner Instructions. Each Contract Owner is entitled to instruct his or her insurance company as to how to vote its shares and can do so by marking voting instructions on the ballot enclosed with this proxy statement and then signing, dating and mailing the ballot in the envelope provided. If a ballot is not marked to indicate voting instructions, but is signed, dated and returned, it will be treated as an instruction to vote the shares in favor of the proposal. Each Insurance Company will vote the shares for which it receives timely voting instructions from Contract Owners in accordance with those instructions and will vote those shares for which it receives no timely voting instructions for and against approval of a proposal, and as an abstention, in the same proportion as the shares for which it receives voting instructions. Shares attributable to accounts retained by each Insurance Company will be voted in the same proportion as votes cast by Contract Owners. Accordingly, there are not expected to be any “broker non-votes.”

Contract Owners have the opportunity to submit their voting instructions via the Internet by utilizing a program provided by a third party vendor hired by Putnam Management or by automated telephone service. The giving of such voting instructions will not affect your right to vote in person should you decide to attend the meeting. To use the Internet, please access the Internet address listed on your proxy card, and follow the instructions on the Internet site. The Internet voting procedures are designed to authenticate Contract Owners’ identities, to allow Contract Owners to give their voting instructions and to confirm that their instructions have been recorded properly. Contract Owners voting via the Internet should understand that there may be costs associated with electronic access, such as usage charges from Internet access providers and telephone companies, that must be borne by the Contract Owners.

Your fund’s Trustees have adopted a general policy of maintaining confidentiality in the voting of proxies and the giving of voting instructions. Consistent with this policy, your fund may solicit proxies from Contract Owners who have not voted their shares or who have abstained from voting.

Revocation of instructions. Any Contract Owner giving instructions to an Insurance Company has the power to revoke such instructions by mail by providing superseding instructions. All properly executed instructions received in time for the meeting will be voted as specified in the instructions.

Revocation of proxies. Proxies, including proxies given by telephone or over the Internet, may be revoked at any time before they are voted either (i) by a written revocation received

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by the Clerk of your fund, (ii) by properly executing a later-dated proxy, (iii) by recording later-dated voting instructions by telephone or via the Internet, or (iv) by attending the meeting and voting in person.

Information for all Putnam funds
other than the closed-end funds

Date for receipt of shareholders’ proposals for subsequent meetings of shareholders.

Your fund does not regularly hold annual shareholder meetings, but may from time to time schedule special meetings. In addition, your fund has voluntarily undertaken to hold shareholder meetings at least every five years for the purpose of electing your fund’s Trustees; the last such meeting was held in 2004. In accordance with the regulations of the SEC, in order to be eligible for inclusion in the fund’s proxy statement for such a meeting, a shareholder or Contract Owner proposal must be received a reasonable time before the fund prints and mails its proxy statement.

The Board Policy and Nominating Committee of the Board of Trustees, which consists of Independent Trustees only, will also consider nominees recommended by shareholders of the fund to serve as Trustees. A shareholder or Contract Owner must submit the names of any such nominees in writing to the fund, to the attention of the Clerk, at the address of the principal offices of the fund.

If a shareholder who wishes to present a proposal at a special shareholder meeting fails to notify the fund within a reasonable time before the fund mails its proxy statement, the persons named as proxies will have discretionary authority to vote on the shareholder’s proposal if it is properly brought before the meeting. If a shareholder makes a timely notification, the proxies may still exercise discretionary voting authority under circumstances consistent with the SEC’s proxy rules. All shareholder proposals must also comply with other requirements of the SEC’s rules and the fund’s Agreement and Declaration of Trust.

Information for all Putnam closed-end funds

Date for receipt of shareholders’ proposals for the next annual meeting. It is currently anticipated that your fund’s next annual meeting of shareholders will be held in the month/year as denoted below:

Putnam California Investment Grade Municipal Trust  September, 2007 
Putnam High Income Securities Fund  January, 2008 
Putnam High Yield Municipal Trust  September, 2007 
Putnam Investment Grade Municipal Trust  September, 2007 
Putnam Managed Municipal Income Trust  September, 2007 
Putnam Master Intermediate Income Trust  January, 2008 
Putnam Municipal Bond Fund  September, 2007 
Putnam Municipal Opportunities Trust  September, 2007 
Putnam New York Investment Grade Municipal Trust  September, 2007 
Putnam Premier Income Trust  January, 2008 
Putnam Tax-Free Health Care Fund  September, 2007 

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The Trustees of your fund reserve the right to set an earlier or later date for the next meeting. Shareholder proposals to be included in the proxy statement for that meeting must be received by your fund on or before July 23, 2007 for Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust and Putnam Premier Income Trust and _______ __, 2007 for the other closed-end funds identified above. In order for a shareholder proposal to be included in the proxy statement, both the submitting shareholder and the proposal itself must satisfy the requirements set forth in Rule 14a-8 under the Securities Exchange Act of 1934, as amended. Shareholders who wish to make a proposal at the next annual meeting—other than one that will be included in the fund’s proxy materials—should notify the fund no later than October 6, 2007 for Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust and Putnam Premier Income Trust and _______ __, 2007 for the other closed-end funds identified above. Shareholders who wish to propose one or more nominees for election as Trustees, or to make a proposal fixing the number of Trustees, at the next annual meeting must provide written notice to the fund (including all required information) so that such notice is received in good order by the fund no earlier than October 13, 2007 and no later than November 12, 2007 for Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust and Putnam Premier Income Trust and no earlier than  ______ __, 2007 and no later than _______ __, 2007 for the other closed-end funds identified above.

The Board Policy and Nominating Committee will also consider nominees recommended by shareholders of each fund to serve as Trustees. A shareholder must submit the names of any such nominees in writing to the fund, to the attention of the Clerk, at the address of the principal offices of the fund.

If a shareholder who wishes to present a proposal fails to notify the fund by the dates specified above, the proxies solicited for the meeting will have discretionary authority to vote on the shareholder’s proposal if it is properly brought before the meeting. If a shareholder makes a timely notification, the proxies may still exercise discretionary voting authority under circumstances consistent with the SEC’s proxy rules. All shareholder proposals must also comply with other requirements of the SEC’s rules and the fund’s Agreement and Declaration of Trust.

Information for all Putnam funds

Expenses of Solicitation. Persons holding shares as nominees will, upon request, be reimbursed for their reasonable expenses in soliciting instructions from their principals. The Putnam funds have retained ____________________ to aid in the solicitation of instructions for registered and nominee accounts. _______________’s fee, as well as the other expenses of the preparation of proxy statements and related materials, including printing and delivery costs and the proxy solicitation expenses, are borne by Marsh McLennan and Lifeco.

Adjournment. If sufficient votes in favor the proposal set forth in the Notice of a Special Meeting of Shareholders are not received by the time scheduled for the meeting or if the quorum required for the proposal has not been met, the persons named as proxies may propose adjournments of the special meeting for a period or periods of not more than 60 days

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in the aggregate to permit further solicitation of proxies. Any adjournment will require the affirmative vote of a majority of the votes cast on the question in person or by proxy at the session of the meeting to be adjourned. The persons named as proxies will vote in favor of adjournment those proxies that they are entitled to vote in favor of the proposal. They will vote against any such adjournment those proxies required to be voted against the proposal. Any proposal for which sufficient favorable votes have been received by the time of the meeting may be acted upon and considered final regardless of whether the meeting is adjourned to permit additional solicitation with respect to any other proposal.

Duplicate mailings. As permitted by SEC rules, Putnam’s policy is to send a single copy of the proxy statement to shareholders who share the same last name and address, unless a shareholder previously has requested otherwise. Separate proxy ballots will be included with the proxy statement for each account registered at that address. If you would prefer to receive your own copy of the proxy statement, please contact Putnam Investor Services by phone at 1-800-225-1581 or by mail at P.O. Box 41203, Providence, Rhode Island 02940-1203.

Financial information. Your fund’s Clerk will furnish to you, upon request and without charge, a copy of the fund’s annual report for its most recent fiscal year, and a copy of its semiannual report for any subsequent semiannual period. You may direct such requests to Putnam Investor Services, P.O. Box 41203, Providence, RI 02940-1203 or 1-800-225-1581.

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Fund Information

Putnam Investments. Putnam Investment Management, LLC, your fund’s investment manager and administrator, is a subsidiary of Putnam, LLC (Putnam Investments). Putnam Investments is a wholly owned subsidiary of Putnam Investments Trust, a holding company that, except for a minority stake owned by employees, is in turn owned by Marsh & McLennan, a leading professional services firm that includes risk and insurance services, investment management and consulting businesses. Following the transaction described in this Proxy Statement, Putnam Investments Trust will be a wholly owned subsidiary of Great-West as described above, and Power Corporation of Canada will be the ultimate parent company of Putnam Investment Management, LLC. Effective January 1, 2007, Putnam Management has delegated responsibility for providing certain administrative, pricing and bookkeeping services for the funds to State Street Bank and Trust Company.

The address of each of Putnam Investments Trust, Putnam Investments and Putnam Investment Management, LLC, is One Post Office Square, Boston, Massachusetts 02109. The address of the executive offices of Marsh & McLennan is 1166 Avenue of the Americas, New York, New York 10036. Charles E. Haldeman, Jr. is the President and Chief Executive Officer of Putnam Investments. His address is One Post Office Square, Boston, Massachusetts 02109. The addresses of the Putnam companies and Mr. Haldeman are not expected to change following the completion of the transaction.

Putnam Management provides investment advisory services to other funds that may have investment objectives and policies similar to those of your fund. The table in Appendix H identifies these other funds and states their net assets and the management fees that they paid to Putnam Management during the fiscal years noted.

Putnam Investments Limited and The Putnam Advisory Company, LLC. Putnam Investments Limited, which has been retained by Putnam Investment Management, LLC as investment sub-adviser with respect to a portion of the assets of certain funds, is a subsidiary of The Putnam Advisory Company, LLC, which is owned by Putnam Advisory Company LP, a subsidiary of Putnam Investments. Putnam Advisory Company LP’s general partner is Putnam Advisory Company GP, Inc. Putnam Advisory Company GP, Inc. is a wholly owned subsidiary of Putnam Investments, which is also the sole limited partner of Putnam Advisory Company LP. The Putnam Advisory Company, LLC has also been retained to serve as a sub-adviser for a portion of the assets of Putnam International Equity Fund.

The address of Putnam Investments Limited is Cassini House, 57-59 St. James’s Street, London, England, SW1A 1LD. The address of each of The Putnam Advisory Company, LLC, Putnam Advisory Company LP, and Putnam Advisory Company GP, Inc. is One Post Office Square, Boston, Massachusetts 02109.

Putnam Fiduciary Trust Company. Putnam Fiduciary Trust Company, the fund’s investor servicing agent and custodian, is a subsidiary of Putnam Investments. Its address is One Post Office Square, Boston, Massachusetts 02109. The funds have retained State Street Bank and Trust Company as custodian, and it is expected that Putnam Fiduciary Trust Company’s

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service as custodian will terminate during the first half of 2007 when all of the funds’ assets in its custody or the custody of its sub-custodian have been transferred into State Street Bank and Trust Company’s safekeeping.

Putnam Retail Management. Putnam Retail Management Limited Partnership, the fund’s principal underwriter (“PRM”), is a subsidiary of Putnam Investments. Putnam Retail Management GP, Inc. is the general partner of PRM, and also owns a minority stake in PRM. Putnam Retail Management GP, Inc. is a wholly owned subsidiary of Putnam Investments. The address of PRM and Putnam Retail Management GP, Inc. is One Post Office Square, Boston, Massachusetts 02109.

Payments to Putnam Management or its affiliates. Appendix I shows amounts paid to Putnam Management or its affiliates during each fund’s most recent fiscal year for the services noted. The funds made no other material payments to Putnam Management or its affiliates during the periods shown.

Limitation of Trustee liability. Your fund’s Agreement and Declaration of Trust provides that the fund will indemnify its Trustees and officers against liabilities and expenses incurred in connection with litigation in which they may be involved because of their offices with the fund, except if it is determined in the manner specified in the Agreement and Declaration of Trust that they have not acted in good faith in the reasonable belief that their actions were in the best interests of the fund or that such indemnification would relieve any officer or Trustee of any liability to the fund or its shareholders arising by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of his or her duties. Your fund, at its expense, provides liability insurance for the benefit of its Trustees and officers.

Officers and other information. All of the officers of your fund, with the exception of George Putnam, III, the fund’s President, are employees of Putnam Management or its affiliates or serve on the staff of the Office of the Trustees. Because of their positions with Putnam Management or its affiliates or their ownership of stock of Marsh & McLennan, the parent corporation of Putnam Investments Trust and indirectly of Putnam Investments, Messrs. Haldeman and Putnam, as well as the other officers of your fund, except those who serve on the staff of the Office of the Trustees, will benefit from the management fees, distribution fees, custodian fees, and investor servicing fees paid or allowed by your fund. In addition, Mr. Haldeman and certain of your fund’s executive officers (other than Mr. Putnam and those officers who are members of the Trustees’ independent administrative staff) own class B shares of Putnam Investments Trust or options to purchase class B shares and, accordingly, will benefit, pro rata with other holders of class B shares and options, from the payments to be made with respect to class B shares and options in connection with the transaction, as described above under “The Stock Purchase Agreement.” In addition to Mr. Putnam, the other officers of your fund are as follows:

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  Year first   
Name (year of birth)  elected to  Business experience 
Office with the fund  office  during past five years 
 
Charles E. Porter (Born 1938)*  1989  Executive Vice President, 
Executive Vice President, Associate    Associate Treasurer, Principal 
Treasurer, Principal Executive Officer and    Executive Officer and 
Compliance Liaison    Compliance Liaison, The 
      Putnam Funds 
 
Jonathan S. Horwitz (Born 1955)*  2004  Senior Vice President and 
Senior Vice President and Treasurer    Treasurer, The Putnam 
    Funds. Prior to 2004, Mr. 
    Horwitz was a Managing 
    Director at Putnam 
    Investments 
 
Steven D. Krichmar (Born 1958)  2002  Senior Managing Director, 
Vice President and Principal Financial    Putnam Investments. Prior to 
Officer    2001, Mr. Krichmar was a 
    Partner at 
    PricewaterhouseCoopers, 
    LLP 
 
Janet C. Smith (Born 1965)  2006  Managing Director, Putnam 
Vice President, Assistant Treasurer and    Investments 
Principal Accounting Officer     
 
Beth Mazor (Born 1958)  2002  Managing Director, Putnam 
Vice President    Investments 
 
Mark C. Trenchard (Born 1962)  2002  Managing Director, Putnam 
Vice President and BSA Compliance officer    Investments 
 
Francis J. McNamara, III (Born 1955)  2004  Senior Managing Director, 
Vice President and Chief Legal Officer    Putnam Investments, Putnam 
    Management and Putnam 
    Retail Management. Prior to 
    2004, Mr. McNamara was 
    General Counsel of State 
    Street Research & 
    Management. 
 
Charles A. Ruys de Perez (Born 1957)  2004  Managing Director, Putnam 
Vice President and Chief Compliance    Investments 
Officer     

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  Year first   
Name (year of birth)  elected to  Business experience 
Office with the fund  office  during past five years 
 
James P. Pappas (Born 1953)  2004  Managing Director, Putnam 
Vice President    Investments and Putnam 
    Management. During 2002, 
    Mr. Pappas was Chief 
    Operating Officer of 
    Atalanta/Sosnoff Management 
    Corporation; prior to 2001, he 
    was President and Chief 
    Executive Officer of UAM 
    Investment Services, Inc. 
 
Richard S. Robie III (Born 1960)  2004  Senior Managing Director, 
Vice President    Putnam Investments, Putnam 
    Management and Putnam 
    Retail Management. Prior to 
    2003, Mr. Robie was Senior 
    Vice President of United Asset 
    Management Corporation 
 
Judith Cohen (Born 1945)*  1993  Clerk and Assistant 
Vice President, Assistant Treasurer and    Treasurer, The Putnam 
Clerk    Funds 
 
Wanda M. McManus (Born 1947)*  1993  Vice President, Senior 
Vice President, Senior Associate Treasurer    Associate Treasurer and 
and Assistant Clerk    Assistant Clerk, The Putnam 
    Funds 
 
Nancy E. Florek (Born 1957)*  2000  Vice President, Assistant 
Vice President, Assistant Clerk, Assistant    Clerk, Assistant Treasurer 
Treasurer and Proxy Manager    and Proxy Manager, The 
    Putnam Funds 

*Officers of each fund who are members of the Trustees’ independent administrative staff. Compensation for these individuals is fixed by the Trustees and reimbursed to Putnam Management.

5% Beneficial Ownership. As of February 9, 2007, to the knowledge of each fund, no person other than those listed on Appendix J owned beneficially or of record 5% or more of any class of shares of the fund.

Security Ownership. As of February 9, 2007, the officers and Trustees of each fund as a group owned less than 1% of the outstanding shares of each class of each fund except as listed on Appendix K.

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APPENDIX A – Number of Shares Outstanding as of the Record Date

  Putnam American  Putnam Asset  Putnam Asset  Putnam Asset  Putnam Capital 
  Government Income  Allocation:  Allocation:  Allocation: Growth  Appreciation Fund 
  Fund  Balanced Portfolio  Conservative  Portfolio   
      Portfolio     
Class A           
Class B           
Class C           
Class M           
Class R           
Class Y           
 
 
  Putnam Capital  Putnam Classic  Putnam Convertible  Putnam Discovery  Putnam Diversified 
  Opportunities Fund  Equity Fund  Income-Growth  Growth Fund  Income Trust 
      Trust     
Class A           
Class B           
Class C           
Class M           
Class R           
Class Y           
 
 
  Putnam Equity  Putnam Europe  Putnam Floating  The Putnam Fund for  The George Putnam 
  Income Fund  Equity Fund  Rate Income Fund  Growth and Income  Fund of Boston 
Class A           
Class B           
Class C           
Class M           
Class R           
Class Y           

A-1

  Putnam Global  Putnam Global  Putnam Global  Putnam Growth  Putnam Health 
  Equity Fund  Income Trust  Natural Resources  Opportunities Fund  Sciences Trust 
      Fund     
Class A           
Class B           
Class C           
Class M           
Class R           
Class Y           
 
 
  Putnam High Yield  Putnam High Yield  Putnam Income Fund  Putnam Income  Putnam International 
  Trust  Advantage Fund    Strategies Fund  Capital 
          Opportunities Fund 
Class A           
Class B           
Class C      --       
Class M           
Class R      --       
Class Y           
 
 
  Putnam International  Putnam International  Putnam International  Putnam Investors  Putnam Limited 
  Equity Fund  Growth and Income  New Opportunities  Fund  Duration 
    Fund  Fund    Government Income 
          Fund 
Class A           
Class B           
Class C           
Class M           
Class R           
Class Y           

A-2

  Putnam Mid Cap  Putnam Money  Putnam New  Putnam New Value  Putnam OTC & 
  Value Fund  Market Fund  Opportunities Fund  Fund  Emerging Growth 
          Fund 
Class A           
Class B           
Class C           
Class M           
Class R           
Class Y      --       
Class T    --      --    --    -- 
 
 
  Putnam Research  Putnam  Putnam  Putnam  Putnam 
  Fund  RetirementReady  RetirementReady  RetirementReady  RetirementReady 
    2010 Fund  2015 Fund  2020 Fund  2025 Fund 
Class A           
Class B           
Class C           
Class M           
Class R           
Class Y           
 
 
  Putnam  Putnam  Putnam  Putnam  Putnam 
  RetirementReady  RetirementReady  RetirementReady  RetirementReady  RetirementReady 
  2030 Fund  2035 Fund  2040 Fund  2045 Fund  2050 Fund 
Class A           
Class B           
Class C           
Class M           
Class R           
Class Y           

A-3

  Putnam  Putnam Small Cap  Putnam Small Cap  Putnam U.S.  Putnam Utilities 
  RetirementReady  Growth Fund  Value Fund  Government Income  Growth and Income 
  Maturity Fund      Trust  Fund 
Class A           
Class B           
Class C           
Class M           
Class R        --     
Class Y           
 
 
  Putnam Vista Fund  Putnam Voyager  Putnam AMT-Free  Putnam Arizona Tax  Putnam California 
    Fund  Insured Municipal  Exempt Income  Tax Exempt Income 
      Fund  Fund  Fund 
Class A           
Class B           
Class C           
Class M           
Class R        --    --    -- 
Class Y        --    --    -- 
 
 
  Putnam  Putnam Michigan  Putnam Minnesota  Putnam New Jersey  Putnam New York 
  Massachusetts Tax  Tax Exempt Income  Tax Exempt Income  Tax Exempt Income  Tax Exempt Income 
  Exempt Income  Fund  Fund  Fund  Fund 
  Fund         
Class A           
Class B           
Class C           
Class M           
 
 
  Putnam Ohio Tax  Putnam  Putnam Tax Exempt  Putnam Tax-Free  Putnam Tax Smart 
  Exempt Income  Pennsylvania Tax  Income Fund  High Yield Fund  Equity Fund 
  Fund  Exempt Income       
    Fund       
Class A           
Class B           
Class C           
Class M           

A-4

    Putnam Prime        Putnam Tax Exempt 
    Money Market Fund        Money Market Fund 
  Class A          Class A       
  Class I                 
  Class P                 
  Class R                 
  Class S                 
 
 
    Putnam High Income  Putnam Master  Putnam Premier  Putnam Tax-Free 
    Securities Fund  Intermediate Income  Income Trust  Health Care Fund 
        Trust           
  Common                 
 
 
    Putnam California  Putnam High Yield  Putnam Investment  Putnam Managed 
    Investment Grade  Municipal Trust  Grade Municipal  Municipal Income 
    Municipal Trust      Trust    Trust   
  Common                 
  Preferred                 
 
 
      Putnam Municipal  Putnam Municipal  Putnam New York   
      Bond Fund    Opportunities Trust  Investment Grade   
              Municipal Trust   
    Common               
    Preferred               
 
 
    Putnam VT  Putnam VT Capital  Putnam VT Capital  Putnam VT    Putnam VT 
    American  Appreciation Fund  Opportunities Fund  Discovery Growth  Diversified Income 
    Government Income          Fund    Fund 
    Fund               
Class IA                   
Class IB                   
 
 
    Putnam VT Equity  Putnam VT The  Putnam VT Global  Putnam VT Global  Putnam VT Growth 
    Income Fund  George Putnam Fund  Asset Allocation  Equity Fund    and Income Fund 
      of Boston    Fund         
Class IA                   
Class IB                   

A-5

  Putnam VT Growth  Putnam VT Health  Putnam VT High  Putnam VT Income  Putnam VT 
  Opportunities Fund  Sciences Fund  Yield Fund  Fund  International Equity 
          Fund 
Class IA           
Class IB           
 
 
  Putnam VT  Putnam VT  Putnam VT Investors  Putnam VT Mid Cap  Putnam VT Money 
  International Growth  International New  Fund  Value Fund  Market Fund 
  and Income Fund  Opportunities Fund       
Class IA           
Class IB           
 
 
  Putnam VT New  Putnam VT New  Putnam VT OTC &  Putnam VT Research  Putnam VT Small 
  Opportunities Fund  Value Fund  Emerging Growth  Fund  Cap Value Fund 
      Fund     
Class IA           
Class IB           
 
 
    Putnam VT Utilities  Putnam VT Vista  Putnam VT Voyager   
    Growth and Income  Fund  Fund   
    Fund       
  Class IA         
  Class IB         

A-6

APPENDIX B – Form of New Management Contract

FORM OF NEW
MANAGEMENT CONTRACT

This Management Contract is dated as of ____________ , 2007 between [NAME OF FUND], a Massachusetts business trust (the “Fund”), and PUTNAM INVESTMENT MANAGEMENT, LLC, a Delaware limited liability company (the “Manager”).

In consideration of the mutual covenants herein contained, it is agreed as follows:

1. SERVICES TO BE RENDERED BY MANAGER TO FUND.

(a) The Manager, at its expense, will furnish continuously an investment program for the Fund or, in the case of a Fund that has divided its shares into two or more series under Section 18(f)(2) of the Investment Company Act of 1940, as amended (the “1940 Act”), each series of the Fund identified from time to time on Schedule A to this Contract (each reference in this Contract to “a Fund” or to “the Fund” is also deemed to be a reference to any existing series of the Fund, as appropriate in the particular context), will determine what investments will be purchased, held, sold or exchanged by the Fund and what portion, if any, of the assets of the Fund will be held uninvested and will, on behalf of the Fund, make changes in such investments. Subject always to the control of the Trustees of the Fund and except for the functions carried out by the officers and personnel referred to in Section 1(d), the Manager will also manage, supervise and conduct the other affairs and business of the Fund and matters incidental thereto. In the performance of its duties, the Manager will comply with the provisions of the Agreement and Declaration of Trust and By-Laws of the Fund and the stated investment objectives, policies and restrictions of the Fund, will use its best efforts to safeguard and promote the welfare of the Fund and to comply with other policies which the Trustees may from time to time determine and will exercise the same care and diligence expected of the Trustees.

(b) The Manager, at its expense, except as such expense is paid by the Fund as provided in Section 1(d), will furnish (1) all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties faithfully; (2) suitable office space for the Fund; and (3) administrative facilities, including bookkeeping, clerical personnel and equipment necessary for the efficient conduct of the affairs of the Fund, including determination of the net asset value of the Fund, but excluding shareholder accounting services. Except as otherwise provided in Section 1(d), the Manager will pay the compensation, if any, of the officers of the Fund.

(c) The Manager, at its expense, will place all orders for the purchase and sale of portfolio investments for the Fund’s account with brokers or dealers selected by the Manager. In the selection of such brokers or dealers and the placing of such orders, the Manager will use its best efforts to obtain for the Fund the most favorable price and execution available, except to the extent it may be permitted to pay higher brokerage

B-1

commissions for brokerage and research services as described below. In using its best efforts to obtain for the Fund the most favorable price and execution available, the Manager, bearing in mind the Fund’s best interests at all times, will consider all factors it deems relevant, including by way of illustration, price, the size of the transaction, the nature of the market for the security, the amount of the commission, the timing of the transaction taking into account market prices and trends, the reputation, experience and financial stability of the broker or dealer involved and the quality of service rendered by the broker or dealer in other transactions. Subject to such policies as the Trustees of the Fund may determine, the Manager will not be deemed to have acted unlawfully or to have breached any duty created by this Contract or otherwise solely by reason of its having caused the Fund to pay a broker or dealer that provides brokerage and research services to the Manager an amount of commission for effecting a portfolio investment transaction in excess of the amount of commission another broker or dealer would have charged for effecting that transaction, if the Manager determines in good faith that such amount of commission was reasonable in relation to the value of the brokerage and research services provided by such broker or dealer, viewed in terms of either that particular transaction or the Manager’s overall responsibilities with respect to the Fund and to other clients of the Manager as to which the Manager exercises investment discretion. The Manager agrees that in connection with purchases or sales of portfolio investments for the Fund’s account, neither the Manager nor any officer, director, employee or agent of the Manager shall act as a principal or receive any commission other than as provided in Section 3.

(d) The Fund will pay or reimburse the Manager for the compensation in whole or in part of such officers of the Fund and persons assisting them as may be determined from time to time by the Trustees of the Fund. The Fund will also pay or reimburse the Manager for all or part of the cost of suitable office space, utilities, support services and equipment attributable to such officers and persons as may be determined in each case by the Trustees of the Fund. The Fund will pay the fees, if any, of the Trustees of the Fund.

(e) The Manager will not be obligated to pay any expenses of or for the Fund not expressly assumed by the Manager pursuant to this Section 1 other than as provided in Section 3.

(f) Subject to the prior approval of a majority of the Trustees, including a majority of the Trustees who are not “interested persons” and, to the extent required by the 1940 Act and the rules and regulations under the 1940 Act, subject to any applicable guidance or interpretation of the Securities Exchange Commission or its staff, by the shareholders of the Fund, the Manager may, from time to time, delegate to a sub-adviser or sub-administrator any of the Manager’s duties under this Contract, including the management of all or a portion of the assets being managed. In all instances, however, the Manager must oversee the provision of delegated services, the Manager must bear the separate costs of employing any sub-adviser or sub-administrator, and no delegation will relieve the Manager of any of its obligations under this Contract.

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2. OTHER AGREEMENTS, ETC.

It is understood that any of the shareholders, Trustees, officers and employees of the Fund may be a shareholder, director, officer or employee of, or be otherwise interested in, the Manager, and in any person controlled by or under common control with the Manager, and that the Manager and any person controlled by or under common control with the Manager may have an interest in the Fund. It is also understood that the Manager and any person controlled by or under common control with the Manager may have advisory, management, service or other contracts with other organizations and persons and may have other interests and business.

3. COMPENSATION TO BE PAID BY THE FUND TO THE MANAGER.

The Fund will pay to the Manager as compensation for the Manager’s services rendered, for the facilities furnished and for the expenses borne by the Manager pursuant to paragraphs (a), (b), and (c) of Section 1, a fee, based on the Fund’s Average Daily Net Assets, computed and paid [monthly/quarterly]1 at the annual rates set forth on Schedule B attached to this Contract, as from time to time amended.

[This paragraph included for all funds except closed-end funds] “Average Daily Net Assets” means the average of all of the determinations of the Fund’s net asset value at the close of business on each business day during each [month/quarter] while this Contract is in effect. The fee is payable for each [month/quarter] within [15/30]2 days after the close of the [month/quarter].

[This paragraph included for all closed-end funds] “Average Daily Net Assets” means the average of all of the determinations of the difference between the total assets of the Fund and the total liabilities of the Fund (excluding any investment leverage, as defined below), determined at the close of business on each business day during each quarter while this Contract is in effect. The fee is payable for each quarter within 30 days after the close of the quarter. The term “investment leverage” as used in this Section 3 means indebtedness incurred, or the liquidation preference of any preferred shares issued, for purposes of acquiring assets to be invested in accordance with the Fund’s investment

1 Fees are computed and paid monthly for Putnam AMT-Free Insured Municipal Fund, Putnam Floating Rate Income Fund, Putnam Global Equity Fund, Putnam Income Strategies Fund, Putnam OTC & Emerging Growth Fund, Putnam Prime Money Market Fund, Putnam RetirementReady 2050 Fund, Putnam RetirementReady 2045 Fund, Putnam RetirementReady 2040 Fund, Putnam RetirementReady 2035 Fund, Putnam RetirementReady 2030 Fund, Putnam RetirementReady 2025 Fund, Putnam RetirementReady 2020 Fund, Putnam RetirementReady 2015 Fund, Putnam RetirementReady 2010 Fund, Putnam RetirementReady Maturity Fund, Putnam Tax-Free High Yield Fund, Putnam VT Capital Appreciation Fund, Putnam VT Capital Opportunities Fund, Putnam VT Discovery Growth Fund, Putnam VT Equity Income Fund, and Putnam VT Mid Cap Value Fund. For all other Putnam funds, fees are computed and paid quarterly.

2 Fees are payable within 15 days after the close of the month for Putnam AMT-Free Insured Municipal Fund, Putnam Income Strategies Fund, Putnam Prime Money Market Fund, and Putnam Tax-Free High Yield Fund. Fees are payable within 30 days after the close of the month or quarter, as applicable, for all other Putnam funds.

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objective and is deemed to include liabilities relating to specific portfolio instruments or portfolio transactions used to leverage the Fund’s portfolio for investment purposes.

[This paragraph included for all closed-end funds] In the event that, during any fiscal quarter, the expenses of the Fund incurred for purposes of maintaining investment leverage (including any interest on indebtedness, dividends on preferred shares and other fees and expenses related to maintaining investment leverage) exceed the portion of the Fund’s net income accrued during such fiscal quarter as a result of the fact that such investment leverage was outstanding during such fiscal quarter, then the fee payable to the Manager pursuant to this Section 3 shall be reduced by the amount of such excess; provided, however, that the amount of such reduction for any such fiscal quarter shall not exceed the amount determined by multiplying (i) the portion of the Average Daily Net Assets representing investment leverage by (ii) the percentage of the Average Daily Net Assets of the Fund which the fee payable to the Manager during such fiscal quarter pursuant to this Section 3 would constitute without giving effect to such reduction. The amount of any such reduction will reduce the amount of the next quarterly payment of the fee payable pursuant to this Section 3 following the end of such fiscal quarter, and of any subsequent quarterly payments, as may be necessary. The expenses incurred for purposes of maintaining investment leverage, the portion of the Fund’s net income accrued as a result of the fact that investment leverage was outstanding during a fiscal quarter, and the liabilities relating to specific portfolio instruments or portfolio transactions used to leverage the Fund’s portfolio for investment purposes will be determined in accordance with such methods as the Trustees may reasonably determine from time to time.

The fees payable by the Fund to the Manager pursuant to this Section 3 will be reduced by any commissions, fees, brokerage or similar payments received by the Manager or any affiliated person of the Manager in connection with the purchase and sale of portfolio investments of the Fund, less any direct expenses approved by the Trustees incurred by the Manager or any affiliated person of the Manager in connection with obtaining such payments.

In the event that expenses of the Fund for any fiscal year exceed the expense limitation on investment company expenses imposed by any statute or regulatory authority of any jurisdiction in which shares of the Fund are qualified for offer or sale, the compensation due the Manager for such fiscal year will be reduced by the amount of excess by a reduction or refund thereof. In the event that the expenses of the Fund exceed any expense limitation which the Manager may, by written notice to the Fund, voluntarily declare to be effective subject to such terms and conditions as the Manager may prescribe in such notice, the compensation due the Manager will be reduced, and if necessary, the Manager will assume expenses of the Fund, to the extent required by the terms and conditions of such expense limitation.

If the Manager serves for less than the whole of a [month/quarter], the foregoing compensation will be prorated.

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4. ASSIGNMENT TERMINATES THIS CONTRACT; AMENDMENTS OF THIS CONTRACT.

This Contract will automatically terminate, without the payment of any penalty, in the event of its assignment, provided that no delegation of responsibilities by the Manager pursuant to Section 1(f) will be deemed to constitute an assignment. No provision of this Contract may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought. No amendment of this Contract is effective until approved in a manner consistent with the 1940 Act, the rules and regulations under the 1940 Act and any applicable guidance or interpretation of the Securities Exchange Commission or its staff.

5. EFFECTIVE PERIOD AND TERMINATION OF THIS CONTRACT.

This Contract is effective upon its execution and will remain in full force and effect as to a Fund continuously thereafter (unless terminated automatically as set forth in Section 4 or terminated in accordance with the following paragraph) through June 30, 2008, and will continue in effect from year to year thereafter so long as its continuance is approved at least annually by (i) the Trustees, or the shareholders by the affirmative vote of a majority of the outstanding shares of the respective Fund, and (ii) a majority of the Trustees who are not interested persons of the Fund or of the Manager, by vote cast in person at a meeting called for the purpose of voting on such approval.

Either party hereto may at any time terminate this Contract as to a Fund by not less than 60 days’ written notice delivered or mailed by registered mail, postage prepaid, to the other party. Action with respect to a Fund may be taken either (i) by vote of a majority of the Trustees or (ii) by the affirmative vote of a majority of the outstanding shares of the respective Fund.

Termination of this Contract pursuant to this Section 5 will be without the payment of any penalty.

6. CERTAIN DEFINITIONS.

For the purposes of this Contract, the “affirmative vote of a majority of the outstanding shares” of a Fund means the affirmative vote, at a duly called and held meeting of shareholders of the respective Fund, (a) of the holders of 67% or more of the shares of the Fund present (in person or by proxy) and entitled to vote at the meeting, if the holders of more than 50% of the outstanding shares of the Fund entitled to vote at the meeting are present in person or by proxy or (b) of the holders of more than 50% of the outstanding shares of the Fund entitled to vote at the meeting, whichever is less.

For the purposes of this Contract, the terms “affiliated person,” “control,” “interested person” and “assignment” have their respective meanings defined in the 1940 Act, subject, however, to the rules and regulations under the 1940 Act and any applicable guidance or interpretation of the Securities Exchange Commission or its staff; the term “approve at least annually” will be construed in a manner consistent with the 1940 Act

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and the rules and regulations under the 1940 Act and any applicable guidance or interpretation of the Securities Exchange Commission or its staff; and the term “brokerage and research services” has the meaning given in the Securities Exchange Act of 1934 and the rules and regulations under the Securities Exchange Act of 1934 and under any applicable guidance or interpretation of the Securities Exchange Commission or its staff.

7. NON-LIABILITY OF MANAGER.

In the absence of willful misfeasance, bad faith or gross negligence on the part of the Manager, or reckless disregard of its obligations and duties hereunder, the Manager shall not be subject to any liability to the Fund or to any shareholder of the Fund for any act or omission in the course of, or connected with, rendering services hereunder.

8. LIMITATION OF LIABILITY OF THE TRUSTEES, OFFICERS, AND SHAREHOLDERS.

A copy of the Agreement and Declaration of Trust of the Fund 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 the 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, officers or shareholders individually but are binding only upon the assets and property of the respective Fund.

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IN WITNESS WHEREOF, [NAME OF FUND] and PUTNAM INVESTMENT MANAGEMENT, LLC have each caused this instrument to be signed on its behalf by its President or a Vice President thereunto duly authorized, all as of the day and year first above written.

[NAME OF FUND]

By:
___________________________

PUTNAM INVESTMENT MANAGEMENT, LLC

By:
___________________________

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Schedule A

[LIST OF FUNDS]

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Schedule B

[FEE SCHEDULE. See Appendix E to this proxy statement for each fund’s detailed fee information]

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APPENDIX C – Comparison of Terms of Management Contracts

As noted above, the Trustees have taken the opportunity presented by the need to approve new management contracts to standardize, clarify and modernize various provisions of your fund’s management contract. This Appendix C describes certain differences between the proposed new management contract and the current management contracts. Except as noted, the proposed management contract for a fund does not differ in any substantive respects from a fund’s current management contract. Minor clarifications of language, corrections of obvious typographical errors and elimination of outdated provisions with no current or future application that do not change a reasonable substantive interpretation of a contract are not separately described. The complete text of the form of the proposed new management contract is included in Appendix B and you should refer to that Appendix for the complete terms of the contract. For each fund’s particular fee schedule, please refer to Appendix E. Note that defined terms reflected here are defined in the proposed management contract at Appendix B (i.e., Manager).

Names

The current management contracts for some funds have not been updated to reflect the current name and jurisdiction of organization of the funds’ investment adviser, Putnam Investment Management, LLC, a Delaware limited liability company. In addition, for a number of funds, the current management contracts have not been updated to reflect new fund names (as a result of the creation of a new fund) or the termination of a prior fund (e.g., in the case of a fund merger). The proposed management contracts reflect the current name and jurisdiction of organization of the funds’ investment adviser, Putnam Investment Management, LLC, as well as the current names of the funds.

Services

Putnam Municipal Opportunities Trust 
Putnam Prime Money Market Fund 

These funds are currently party to separate investment management and administrative services contracts with the Manager. Each fund’s current investment management contract, in comparison with its proposed new management contract, does not include provisions relating to administrative services. If the proposed new management contracts for these funds are approved, these funds’ administrative services contracts will be terminated and the funds will receive administrative (and investment management) services under the proposed new management contract.

Sub-Advisers and Sub-Administrators

All Putnam Funds 

None of the funds’ current management contracts specifically address the Manager’s ability to delegate responsibilities to sub-advisers or sub-administrators. A provision is included in the proposed new management contracts for all of the funds that explicitly recognizes the Manager’s ability to delegate responsibilities, in

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accordance with current interpretations and guidance of the SEC’s staff. In addition, the proposed new management contract provides that a delegation of the Manager’s responsibilities permitted under the contract is not deemed to constitute an “assignment” that would automatically cause the contract to terminate. The funds do not anticipate any change in the Manager’s delegation of responsibilities as a result of these changes.

Fees

Putnam Municipal Opportunities Trust 
Putnam Prime Money Market Fund 

The current management contracts and the proposed new management contracts for these funds provide that the fund will pay the Manager compensation for the Manager’s investment management services rendered, for the facilities furnished to the fund, and for the expenses borne by the Manager in connection with providing such services and facilities, including placing orders with brokers or dealers for the purchase and sale of portfolio investments for the fund. As mentioned above, the proposed new management contracts for these funds also address the provision of administrative services. Thus, the proposed new management contracts for these funds include the fees for both investment and administrative services. There is no change in the aggregate fees that each of these funds will pay to the Manager for investment management and administrative services. Please refer to Appendix E for information about the applicable fee rates.

Putnam Convertible Income-Growth Trust  Putnam Income Fund 
Putnam Equity Income Fund  Putnam Investors Fund 
The Putnam Fund for Growth and Income  Putnam Vista Fund 
The George Putnam Fund of Boston  Putnam Voyager Fund 
Putnam Global Natural Resources Fund   

The current management contracts for these funds do not address a reduction of management fees through an expense limitation voluntarily agreed to in writing by the Manager in the event that the expenses of the fund exceed any expense limitation which the Manager may have declared to be effective. The proposed new management contracts include a provision addressing the possibility that management fees may be reduced where expenses of the fund exceed any voluntary expense limitations assumed by the Manager.

Putnam closed-end funds: 
California Investment Grade Municipal Trust        
Putnam High Income Securities Fund         
Putnam High Yield Municipal Trust         
Putnam Investment Grade Municipal Trust         
Putnam Managed Municipal Income Trust         
Putnam Master Intermediate Income Trust         
Putnam Municipal Bond Fund         
Putnam Municipal Opportunities Trust         
Putnam New York Investment Grade Municipal Trust         
Putnam Premier Income Trust         
Putnam Tax-Free Health Care Fund         

The proposed new management contracts make several minor changes to the manner in which management fees are calculated for these closed-end funds.

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The current management contracts for these funds provide that average net asset value, the basis on which management fees are calculated and paid, is determined by averaging the net asset value of the funds determined at the end of each week during the calculation period. This was common industry practice when these funds were organized, since at the time closed-end funds typically reported their net asset values only as of the last day of the week. The proposed new management contracts provide that average net asset value is determined by averaging the net asset value of the funds on each business day during the calculation period, which is considered a more precise calculation and is consistent with the method for calculating the net asset value for the other Putnam funds. This change is not expected to result in any meaningful change in the management fees paid by the funds.

The current management contracts for these funds all contemplate that the funds may engage in investment leverage and that any incremental assets attributable to any such investment leverage will be included in the calculation of the management fee paid by the funds. In the case of Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust and Putnam Premier Income Trust, which invest primarily in taxable securities, the current contracts refer to investment leverage incurred through issuance of indebtedness and certain portfolio transactions that have similar effects, such as reverse repurchase agreements and dollar roll transactions. In the case of the remaining closed-end funds (except for Putnam Tax-Free Health Care Fund), which invest primarily in tax-exempt securities, the current contracts refer to investment leverage incurred through the issuance of preferred shares, which was the leverage technique anticipated when these funds were originally organized. The proposed new management contracts for all of these funds include a standardized provision that includes the full range of leverage techniques described above. This change is intended to provide greater investment flexibility by allowing for the use of the most efficient means of investment leverage available and is not expected to result in any meaningful change in the management fees paid by the funds. (In the case of Putnam Tax-Free Health Care Fund, the current contract already refers to indebtedness, portfolio transactions with similar effects and the issuance of preferred shares.)

The current management contracts for these funds also contain a provision that reduces the management fee payable on assets attributable to investment leverage in the event that the cost of maintaining the leverage exceeds the incremental investment income produced by the leverage. The purpose of this provision is to align the interests of the investment manager with the interests of fund shareholders. The current contracts provide that this potential fee reduction is to be calculated in connection with each adjustment of the interest or dividend rate paid for the investment leverage, which could occur as often as monthly or even weekly. The proposed new contracts for these funds contain a standardized provision that requires the calculation of this potential fee reduction to be made only on a quarterly basis, which the Trustees view as a more representative measuring period for evaluating whether fund shareholders are benefiting from investment leverage. It is possible under some circumstances that the fee reductions calculated on a quarterly basis might be lower than the fee reductions resulting from a more frequent calculation. The provision in the current contracts also includes consideration of short-term capital gains in the calculation of the net benefit produced by investment leverage. The new contracts eliminate short-term capital gains from the calculation, which could result in a larger fee reduction under some circumstances. These changes, taken in the aggregate, are not expected to result in any meaningful change in the management fees paid by the funds.

Term and Termination

All Putnam funds 

The current management contracts provide that either party may terminate the contract as to a fund by not more than 60 days’ nor less than 30 days’ written notice. Each proposed new management contract provides that either party to it may terminate the contract as to a fund at any time by not less than 60 days’ written notice, which, from the funds’ perspective, provides a more reasonable period of time during which to seek a new investment adviser if the Manager terminates the contract.

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All Putnam funds 

Each proposed new management contract provides that it is effective upon execution and will remain in full force and effect as to a fund continuously thereafter, unless terminated automatically in the event of assignment or by either party to the contract by written notice (as described above), through June 30, 2008, and that after June 30, 2008 it will continue from year to year so long as its continuance is approved at least annually in a specified manner. The current management contracts’ provisions addressing effective period and termination do not contain any reference to June 30, 2008 but are otherwise substantively the same as the provisions in the proposed new management contract.

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APPENDIX D – Management Contracts: Dates and Approvals

The following table contains information regarding the date of each fund’s current management contract, the date on which it was last approved by shareholders and the purpose for that submission, as well as, where applicable, action taken (other than renewal) with respect to the current management contracts by the Board of Trustees since the beginning of each fund’s last fiscal year. For each fund listed below, the date on which the continuance of its management contract was last approved by the Board of Trustees was June 9, 2006, except that the management contract of Putnam Investment Funds, the Trust of which Putnam Capital Opportunities Fund, Putnam Growth Opportunities Fund, Putnam International Capital Opportunities Fund, Putnam International New Opportunities Fund, Putnam Mid Cap Value Fund, Putnam New Value Fund, Putnam Research Fund, and Putnam Small Cap Value Fund are series, was amended by the Board of Trustees on February 9, 2007 to eliminate references to funds no longer in existence or which have separate management contracts with Putnam Management.

      Purpose of Last 
      Submission of 
    Date Current  Current 
    Management  Management 
    Contract Last  Contract to 
  Date of Current  Submitted to  Shareholder 
Fund  Management Contract  Shareholder Vote  Vote 
Putnam American Government Income Fund  03/05/98  March 5, 1998  Fee increase 
Putnam AMT-Free Insured Municipal Fund  07/26/85, revised 07/01/99,  July 7, 1991  Fee increase 
  03/21/05     
Putnam Arizona Tax Exempt Income Fund  07/16/99  March 5, 1992  Fee structure 
      change 
Putnam Asset Allocation: Balanced Portfolio  01/20/97  November 4, 1993  Organization of 
      the fund 
Putnam Asset Allocation: Conservative Portfolio  01/20/97  November 4, 1993  Organization of 
      the fund 
Putnam Asset Allocation: Growth Portfolio  01/20/97  November 4, 1993  Organization of 
      the fund 
Putnam California Investment Grade Municipal Trust*   01/01/06  November 12, 1992  Organization of 
      the fund 
Putnam California Tax Exempt Income Fund  07/01/99  July 11, 1991  Fee structure 
      change 
Putnam Capital Appreciation Fund  09/20/96  May, 1993  Organization of 
      the fund 
Putnam Capital Opportunities Fund  12/02/94, revised 07/14/95,  June 1, 1998  Organization of 
  12/01/95, 04/01/97,    the fund 
  03/06/98, 07/10/98,     
  03/12/99, 07/01/99,     
  09/10/99, 11/06/00,     
  01/11/01, 03/12/01     
Putnam Classic Equity Fund  10/07/94  June 6, 1991  Fee increase 
Putnam Convertible Income-Growth Trust  02/20/97  July 1, 1994  Fee increase 
Putnam Discovery Growth Fund  09/29/95  September 8, 1995  Fee increase 
Putnam Diversified Income Trust  01/20/97  August, 1988  Organization of 
      the fund 
Putnam Equity Income Fund  07/11/96  July 11, 1996  Fee increase 
Putnam Europe Equity Fund  10/21/96  December 5, 1991  Organization of 
      the fund 

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      Purpose of Last 
      Submission of 
    Date Current  Current 
    Management  Management 
    Contract Last  Contract to 
  Date of Current  Submitted to  Shareholder 
Fund  Management Contract  Shareholder Vote  Vote 
Putnam Floating Rate Income Fund  06/07/96, revised  June, 2004  Organization of 
  10/03/96, 12/06/96,    the fund 
  11/06/97, 12/08/97,     
  01/08/98, 03/05/98,     
  05/08/00, 06/05/00,     
  07/24/00, 11/06/00,     
  12/11/00, 01/31/03,     
  06/15/04, 06/25/04     
The Putnam Fund for Growth and Income  07/01/00  July 11, 1991  Fee structure 
      change 
The George Putnam Fund of Boston  07/11/96  July 11, 1996  Fee increase 
Putnam Global Equity Fund  12/07/00  December 7, 2000  Fee increase 
Putnam Global Income Trust  07/01/99  July 11, 1991  Fee structure 
      change 
Putnam Global Natural Resources Fund  12/20/96  July 9, 1992  Fee decrease 
Putnam Growth Opportunities Fund  12/02/94, revised 07/14/95,  October 2, 1995  Organization of 
  12/01/95, 04/01/97,    the fund 
  03/06/98, 07/10/98,     
  03/12/99, 07/01/99,     
  09/10/99, 11/06/00,     
  01/11/01, 03/12/01     
Putnam Health Sciences Trust  10/20/96  March 5, 1992  Fee increase 
Putnam High Income Securities Fund*   01/01/06  July 14, 2005  Permit compensation 
      for the management 
      of leveraged assets 
Putnam High Yield Advantage Fund  03/20/97  May 5, 1994  Fee increase 
Putnam High Yield Municipal Trust*   01/01/06  June 6, 1991  Continuation of 
      contract without any 
      changes approved at 
      first shareholder 
      meeting 
Putnam High Yield Trust  12/20/96  July 8, 1993  Fee increase 
Putnam Income Fund  04/06/95  April 6, 1995  Fee increase 
Putnam Income Strategies Fund  06/07/96, revised  September, 2005  Organization of 
  10/03/96, 12/06/96,    the fund 
  11/06/97, 12/08/97,     
  01/08/98, 03/05/98,     
  05/08/00, 06/05/00,     
  07/24/00, 11/06/00,     
  12/11/00, 06/15/04,     
  06/25/04     
Putnam International Capital Opportunities Fund  12/02/94, revised 07/14/95,  December 28, 1995  Organization of 
  12/01/95, 04/01/97,    the fund 
  03/06/98, 07/10/98,     
  03/12/99, 07/01/99,     
  09/10/99, 11/06/00,     
  01/11/01, 03/12/01     
Putnam International Equity Fund  10/21/96  October, 1990  Organization of 
      the fund 

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      Purpose of Last 
      Submission of 
    Date Current  Current 
    Management  Management 
    Contract Last  Contract to 
  Date of Current  Submitted to  Shareholder 
Fund  Management Contract  Shareholder Vote  Vote 
Putnam International Growth and Income Fund  06/07/96, revised  January, 1996  Organization of 
  10/03/96, 12/06/96,    the fund 
  11/06/97, 12/08/97,     
  01/08/98, 03/05/98,     
  05/08/00, 06/05/00,     
  07/24/00, 11/06/00,     
  12/11/00, 06/15/04,     
  06/25/04     
Putnam International New Opportunities Fund  12/02/94, revised 07/14/95,  January 3, 1995  Organization of 
  12/01/95, 04/01/97,    the fund 
  03/06/98, 07/10/98,     
  03/12/99, 07/01/99,     
  09/10/99, 11/06/00,     
  01/11/01, 03/12/01     
Putnam Investment Grade Municipal Trust*   01/01/06  July 11, 1991  Continuation of 
      contract without any 
      changes approved at 
      first shareholder 
      meeting 
Putnam Investors Fund  11/20/96  July 9, 1992  Fee increase 
Putnam Limited Duration Government Income Fund  07/01/00  November, 1990  Organization of 
      the fund 
Putnam Managed Municipal Income Trust*   01/01/06  September 9, 1993  Organization of 
      the fund 
Putnam Massachusetts Tax Exempt Income Fund  07/01/99  July 11, 1991  Fee structure 
      change 
Putnam Master Intermediate Income Trust*   01/01/06  July 14, 2005  Permit compensation 
      for the management 
      of leveraged assets 
Putnam Michigan Tax Exempt Income Fund  07/01/99  July 11, 1991  Fee structure 
      change 
Putnam Mid Cap Value Fund  12/02/94, revised 07/14/95,  November 1, 1999  Organization of 
  12/01/95, 04/01/97,    the fund 
  03/06/98, 07/10/98,     
  03/12/99, 07/01/99,     
  09/10/99, 11/06/00,     
  01/11/01, 03/12/01     
Putnam Minnesota Tax Exempt Income Fund  07/01/99  July 11, 1991  Fee structure 
      change 
Putnam Money Market Fund*   01/01/06  November 5, 1982  Fee decrease 
Putnam Municipal Bond Fund*   01/01/06  November 12, 1992  Organization of 
      the fund 
Putnam Municipal Opportunities Trust*   01/01/06  May 13, 1993  Organization of 
      the fund 
Putnam New Jersey Tax Exempt Income Fund  07/01/99  July 11, 1991  Fee structure 
      change 
Putnam New Opportunities Fund  07/01/00  December 5, 1991  Fee decrease 
Putnam New Value Fund  12/02/94, revised 07/14/95,  January 3, 1995  Organization of 
  12/01/95, 04/01/97,    the fund 
  03/06/98, 07/10/98,     
  03/12/99, 07/01/99,     
  09/10/99, 11/06/00,     
  01/11/01, 03/12/01     
Putnam New York Investment Grade Municipal Trust*   01/01/06  November 12, 1992  Organization of 
      the fund 
Putnam New York Tax Exempt Income Fund  07/01/99  July 11, 2001  Fee increase 

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      Purpose of Last 
      Submission of 
    Date Current  Current 
    Management  Management 
    Contract Last  Contract to 
  Date of Current  Submitted to  Shareholder 
Fund  Management Contract  Shareholder Vote  Vote 
Putnam Ohio Tax Exempt Income Fund  07/01/99  July 11, 2001  Fee structure 
      change 
Putnam OTC & Emerging Growth Fund  11/20/96  July 8, 1993  Fee structure 
      change 
Putnam Pennsylvania Tax Exempt Income Fund  07/01/99  July 11, 1991  Fee structure 
      change 
Putnam Premier Income Trust*   01/01/06  July 14, 2005  Permit compensation 
      for the management 
      of leveraged assets 
Putnam Prime Money Market Fund  02/13/03  February, 2003  Organization of 
      the fund 
Putnam Research Fund**  01/01/07  December 14, 2006  Eliminating the 
      incentive fee 
      component of the 
      management fee 
Putnam RetirementReady 2010 Fund  06/11/04, revised 03/10/05  October 28, 2004  Organization of 
      the fund 
Putnam RetirementReady 2015 Fund  06/11/04, revised 03/10/05  October 28, 2004  Organization of 
      the fund 
Putnam RetirementReady 2020 Fund  06/11/04, revised 03/10/05  October 28, 2004  Organization of 
      the fund 
Putnam RetirementReady 2025 Fund  06/11/04, revised 03/10/05  October 28, 2004  Organization of 
      the fund 
Putnam RetirementReady 2030 Fund  06/11/04, revised 03/10/05  October 28, 2004  Organization of 
      the fund 
Putnam RetirementReady 2035 Fund  06/11/04, revised 03/10/05  October 28, 2004  Organization of 
      the fund 
Putnam RetirementReady 2040 Fund  06/11/04, revised 03/10/05  October 28, 2004  Organization of 
      the fund 
Putnam RetirementReady 2045 Fund  06/11/04, revised 03/10/05  October 28, 2004  Organization of 
      the fund 
Putnam RetirementReady 2050 Fund  06/11/04, revised 03/10/05  April 22, 2005  Organization of 
      the fund 
Putnam RetirementReady Maturity Fund  06/11/04, revised 03/10/05  October 28, 2004  Organization of 
      the fund 
Putnam Small Cap Growth Fund  06/07/96, revised  January, 1996  Organization of 
  10/03/96, 12/06/96,    the fund 
  11/06/97, 12/08/97,     
  01/08/98, 03/05/98,     
  05/08/00, 06/05/00,     
  07/24/00, 11/06/00,     
  12/11/00, 06/15/04,     
  06/25/04     
Putnam Small Cap Value Fund  12/02/94, revised 07/14/95,  April 13, 1999  Organization of 
  12/01/95, 04/01/97,    the fund 
  03/06/98, 07/10/98,     
  03/12/99, 07/01/99,     
  09/10/99, 11/06/00,     
  01/11/01, 03/12/01     
Putnam Tax Exempt Income Fund  07/01/99  July 11, 1991  Fee increase 
Putnam Tax Exempt Money Market Fund  01/20/97  July 9, 1992  Fee decrease 
Putnam Tax-Free Health Care Fund***  01/01/03, revised 01/01/06  December 27, 2005  Permit compensation 
      for the management 
      of leveraged assets 
Putnam Tax-Free High Yield Fund  07/26/85, revised 07/01/99,  May 5, 1994  Fee increase 
  03/21/05     
Putnam Tax Smart Equity Fund  04/13/99  April, 1999  Organization of 
      the fund 

D-4

      Purpose of Last 
      Submission of 
    Date Current  Current 
    Management  Management 
    Contract Last  Contract to 
  Date of Current  Submitted to  Shareholder 
Fund  Management Contract  Shareholder Vote  Vote 
Putnam U.S. Government Income Trust  07/08/94  July 11, 1991  Fee decrease 
Putnam Utilities Growth and Income Fund  02/20/97  March 5, 1992  Fee structure 
      change 
Putnam Vista Fund  11/20/96  July 8, 1993  Fee increase 
Putnam Voyager Fund  07/01/00  July 11, 1991  Fee increase 
Putnam VT American Government Income Fund  10/02/87, revised 03/02/90,  February 1, 2000  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Capital Appreciation Fund  10/02/87, revised 03/02/90,  September 29, 2000  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Capital Opportunities Fund  10/02/87, revised 03/02/90,  May 1, 2003  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Discovery Growth Fund  10/02/87, revised 03/02/90,  September 29, 2000  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Diversified Income Fund  10/02/87, revised 03/02/90,  September 15, 1993  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     

D-5

      Purpose of Last 
      Submission of 
    Date Current  Current 
    Management  Management 
    Contract Last  Contract to 
  Date of Current  Submitted to  Shareholder 
Fund  Management Contract  Shareholder Vote  Vote 
Putnam VT Equity Income Fund  10/02/87, revised 03/02/90,  May 1, 2003  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT The George Putnam Fund of Boston  10/02/87, revised 03/02/90,  April 30, 1998  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Global Asset Allocation Fund  10/02/87, revised 03/02/90,  February 1, 1988  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Global Equity Fund  10/02/87, revised 03/02/90,  November 4, 1999  Fee increase 
  02/27/92, 07/09/93,     
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Growth and Income Fund  10/02/87, revised 03/02/90,  February 1, 1988  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Growth Opportunities Fund  10/02/87, revised 03/02/90,  February 1, 2000  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     

D-6

      Purpose of Last 
      Submission of 
    Date Current  Current 
    Management  Management 
    Contract Last  Contract to 
  Date of Current  Submitted to  Shareholder 
Fund  Management Contract  Shareholder Vote  Vote 
Putnam VT Health Sciences Fund  10/02/87, revised 03/02/90,  April 30, 1998  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT High Yield Fund  10/02/87, revised 03/02/90,  February 1, 1988  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Income Fund  10/02/87, revised 03/02/90,  July 13, 1995  Fee increase 
  02/27/92, 07/09/93,     
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT International Equity Fund  10/02/87, revised 03/02/90,  January 2, 1997  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT International Growth and Income Fund  10/02/87, revised 03/02/90,  January 2, 1997  Organization of 
  02/27/92, 07/09/93,    the fund. 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT International New Opportunities Fund  10/02/87, revised 03/02/90,  January 2, 1997  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     

D-7

      Purpose of Last 
      Submission of 
    Date Current  Current 
    Management  Management 
    Contract Last  Contract to 
  Date of Current  Submitted to  Shareholder 
Fund  Management Contract  Shareholder Vote  Vote 
Putnam VT Investors Fund  10/02/87, revised 03/02/90,  April 30, 1998  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Mid Cap Value Fund  10/02/87, revised 03/02/90,  May 1, 2003  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Money Market Fund  10/02/87, revised 03/02/90,  February 1, 1988  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT New Opportunities Fund  10/02/87, revised 03/02/90,  May 2, 1994  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT New Value Fund  10/02/87, revised 03/02/90,  January 2, 1997  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT OTC & Emerging Growth Fund  10/02/87, revised 03/02/90,  April 30, 1998  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     

D-8

      Purpose of Last 
      Submission of 
    Date Current  Current 
    Management  Management 
    Contract Last  Contract to 
  Date of Current  Submitted to  Shareholder 
Fund  Management Contract  Shareholder Vote  Vote 
Putnam VT Research Fund  10/02/87, revised 03/02/90,  September 30, 1998  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Small Cap Value Fund  10/02/87, revised 03/02/90,  April 30, 1999  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Utilities Growth and Income Fund  10/02/87, revised 03/02/90,  July 11, 1996  Fee increase 
  02/27/92, 07/09/93,     
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Vista Fund  10/02/87, revised 03/02/90,  January 2, 1997  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     
Putnam VT Voyager Fund  10/02/87, revised 03/02/90,  February 1, 1988  Organization of 
  02/27/92, 07/09/93,    the fund 
  04/05/94, 06/02/94,     
  04/07/95, 07/13/95,     
  07/11/96, 12/20/96,     
  02/06/98, 07/10/98,     
  03/04/99, 07/01/99,     
  11/08/99, 06/05/00,     
  07/24/00, 03/17/03     

* At a meeting held on January 13, 2006, the Board of Trustees formally approved revised management contracts for these funds reflecting management fee reductions.

** At a meeting held on October 13, 2006, the Board of Trustees formally approved a revised management contract for this fund, amending the management contract to remove the incentive fee component from the management fee.

*** At a meeting held on July 15, 2005, the Board of Trustees formally approved a revised management contract for this fund, reflecting a management fee reduction and changing the fee base under the contract to “average weekly assets,” which includes assets representing leverage for investment purposes.


 

D-9

APPENDIX E – Management Contracts: Fees     
 
 
 
 
      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam American  First $500 million  0.65%  4,373,306  0.55% of average 
Government Income Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam AMT-Free  The lesser of 0.50%, or    1,790,563  0.50% of average 
Insured Municipal Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess thereafter  0.33%     
Putnam Arizona Tax  The lesser of 0.50%, or    396,902  0.41% of average 
Exempt Income Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess over $21.5 billion  0.33%     
Putnam Asset Allocation:  First $500 million  0.70%  10,841,716  0.58% of average 
Balanced Portfolio  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess over $21.5 billion  0.43%     
Putnam Asset Allocation:  First $500 million  0.70%  5,759,923  0.63% of average 
Conservative Portfolio  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess over $21.5 billion  0.43%     
Putnam Asset Allocation:  First $500 million  0.70%  9,639,295  0.60% of average 
Growth Portfolio  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess over $21.5 billion  0.43%     

* Under the proposed new management contract, as described in the proxy statement, each fund's fee is calculated based on average daily net assets.

E-1

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam California  The lesser of 0.55%, or    531,472  0.77% of average 
Investment Grade  First $500 million  0.65%    weekly net assets 
Municipal Trust  Next $500 million  0.55%    attributable to 
  Next $500 million  0.50%    common shares 
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam California Tax  The lesser of 0.50%, or    10,368,635  0.48% of average 
Exempt Income Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess thereafter  0.33%     
Putnam Capital  First $500 million  0.65%  4,388,833  0.62% of average 
Appreciation Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess over $21.5 billion  0.38%     
Putnam Capital  First $500 million  0.65%  6,363,713  0.59% of average 
Opportunities Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam Classic Equity  First $500 million  0.65%  4,836,159  0.61% of average 
Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam Convertible  First $500 million  0.65%  4,231,616  0.62% of average 
Income-Growth Trust  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam Discovery Growth  First $500 million  0.70%  5,497,942  0.60% of average 
Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     

E-2

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam Diversified  First $500 million  0.70%  17,403,729  0.55% of average 
Income Trust  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam Equity Income  First $500 million  0.65%  18,067,258  0.50% of average 
Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam Europe Equity  First $500 million  0.80%  4,213,337  0.79% of average 
Fund  Next $500 million  0.70%    net assets 
  Next $500 million  0.65%     
  Next $5 billion  0.60%     
  Next $5 billion  0.575%     
  Next $5 billion  0.555%     
  Next $5 billion  0.54%     
  Any excess thereafter  0.53%     
Putnam Floating Rate  First $500 million  0.65%  1,719,001  0.62% of average 
Income Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Next $5 billion  0.38%     
  Next $5 billion  0.37%     
  Next $5 billion  0.36%     
  Next $5 billion  0.35%     
  Next $5 billion  0.34%     
  Next $8.5 billion  0.33%     
  Any excess thereafter  0.32%     
The Putnam Fund for  First $500 million  0.65%  67,376,969  0.44% of average 
Growth and Income  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Next $5 billion  0.38%     
  Next $5 billion  0.37%     
  Next $5 billion  0.36%     
  Next $5 billion  0.35%     
  Next $5 billion  0.34%     
  Next $8.5 billion  0.33%     
  Any excess over $55 billion  0.32%     
The George Putnam Fund  First $500 million  0.65%  23,520,227  0.48% of average 
of Boston  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     

E-3

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam Global Equity  First $500 million  0.80%  15,165,340  0.68% of average 
Fund  Next $500 million  0.70%    net assets 
  Next $500 million  0.65%     
  Next $5 billion  0.60%     
  Next $5 billion  0.575%     
  Next $5 billion  0.555%     
  Next $5 billion  0.54%     
  Next $5 billion  0.53%     
  Next $5 billion  0.52%     
  Next $5 billion  0.51%     
  Next $5 billion  0.50%     
  Next $5 billion  0.49%     
  Next $8.5 billion  0.48%     
  Any excess over $55 billion  0.47%     
Putnam Global Income  First $500 million  0.70%  528,321  0.39% of average 
Trust  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam Global Natural  First $500 million  0.70%  4,126,921  0.68% of average 
Resources Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam Growth  First $500 million  0.70%  2,913,736  0.36% of average 
Opportunities Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam Health Sciences  First $500 million  0.70%  14,802,805  0.57% of average 
Trust  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess over $21.5 billion  0.43%     
Putnam High Income  First $500 million  0.70%  1,372,004  0.71% of average 
Securities Fund  Next $500 million  0.60%    weekly net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Next $5 billion  0.43%     
  Next $5 billion  0.42%     
  Next $5 billion  0.41%     
  Next $5 billion  0.40%     
  Next $5 billion  0.39%     
  Next $8.5 billion  0.38%     
  Any excess thereafter  0.37%     

E-4

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam High Yield  First $500 million  0.70%  5,676,755  0.66% of average 
Advantage Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam High Yield  The lesser of 0.55%, or    1,448,462  0.83% of average 
Municipal Trust  First $500 million  0.65%    weekly net assets 
  Next $500 million  0.55%    attributable to 
  Next $500 million  0.50%    common shares 
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam High Yield Trust  First $500 million  0.70%  13,784,128  0.57% of average 
  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam Income Fund  First $500 million  0.65%  11,940,410  0.47% of average 
  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam Income Strategies  First $500 million  0.65%  0**   0.00%**  
Fund  Next $500 million  0.55%     
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Next $5 billion  0.38%     
  Next $5 billion  0.37%     
  Next $5 billion  0.36%     
  Next $5 billion  0.35%     
  Next $5 billion  0.34%     
  Next $8.5 billion  0.33%     
  Any excess thereafter  0.32%     
Putnam International  First $500 million  1.00%  13,345,775  0.92% of average 
Capital Opportunities  Next $500 million  0.90%    net assets 
Fund  Next $500 million  0.85%     
  Next $5 billion  0.80%     
  Next $5 billion  0.775%     
  Next $5 billion  0.755%     
  Next $5 billion  0.74%     
  Any excess thereafter  0.73%     

**Due to expense limitations in effect during the fund’s most recent fiscal year, Putnam Income Strategies Fund did not pay a management fee to Putnam Management.

E-5

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam International  First $500 million  0.80%  39,425,440  0.63% of average 
Equity Fund  Next $500 million  0.70%    net assets 
  Next $500 million  0.65%     
  Next $5 billion  0.60%     
  Next $5 billion  0.575%     
  Next $5 billion  0.555%     
  Next $5 billion  0.54%     
  Any excess over $21.5 billion  0.53%     
Putnam International  First $500 million  0.80%  5,732,946  0.72% of average 
Growth and Income Fund  Next $500 million  0.70%    net assets 
  Next $500 million  0.65%     
  Next $5 billion  0.60%     
  Next $5 billion  0.575%     
  Next $5 billion  0.555%     
  Next $5 billion  0.54%     
  Any excess thereafter  0.53%     
Putnam International New  First $500 million  1.00%  6,580,631  0.87% of average 
Opportunities Fund  Next $500 million  0.90%    net assets 
  Next $500 million  0.85%     
  Next $5 billion  0.80%     
  Next $5 billion  0.775%     
  Next $5 billion  0.755%     
  Next $5 billion  0.74%     
  Any excess thereafter  0.73%     
Putnam Investment Grade  The lesser of 0.55%, or    2,059,634  0.91% of average 
Municipal Trust  First $500 million  0.65%    weekly net assets 
  Next $500 million  0.55%    attributable to 
  Next $500 million  0.50%    common shares 
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam Investors Fund  First $500 million  0.65%  19,513,803  0.49% of average 
  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess over $21.5 billion  0.38%     
Putnam Limited Duration  The lesser of 0.50%, or    2,392,584  0.48% of average 
Government Income Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess over $21.5 billion  0.33%     
Putnam Managed  The lesser of 0.55%, or    3,167,820  0.84% of average 
Municipal Income Trust  First $500 million  0.65%    weekly net assets 
  Next $500 million  0.55%    attributable to 
  Next $500 million  0.50%    common shares 
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     

E-6

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam Massachusetts  The lesser of 0.50%, or    1,675,201  0.50% of average 
Tax Exempt Income Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess over $21.5 billion  0.33%     
Putnam Master  First $500 million  0.75%  4,797,486  0.70% of average 
Intermediate Income Trust  Next $500 million  0.65%    weekly net assets 
  Next $500 million  0.60%     
  Next $5 billion  0.55%     
  Next $5 billion  0.525%     
  Next $5 billion  0.505%     
  Next $5 billion  0.49%     
  Next $5 billion  0.48%     
  Next $5 billion  0.47%     
  Next $5 billion  0.46%     
  Next $5 billion  0.45%     
  Next $5 billion  0.44%     
  Next $8.5 billion  0.43%     
  Any excess thereafter  0.42%     
Putnam Michigan Tax  The lesser of 0.50%, or    648,238  0.50% of average 
Exempt Income Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess over $21.5 billion  0.33%     
Putnam Mid Cap Value  First $500 million  0.70%  5,871,795  0.66% of average 
Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam Minnesota Tax  The lesser of 0.50%, or    538,350  0.45% of average 
Exempt Income Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess over $21.5 billion  0.33%     
Putnam Money Market  First $100 million  0.50%  10,390,443  0.30% of average 
Fund  Next $100 million  0.40%    net assets 
  Next $300 million  0.35%     
  Next $500 million  0.325%     
  Next $500 million  0.30%     
  Next $2.5 billion  0.275%     
  Next $2.5 billion  0.25%     
  Next $5 billion  0.225%     
  Next $5 billion  0.205%     
  Next $5 billion  0.19%     
  Any excess thereafter  0.18%     

E-7

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam Municipal Bond  The lesser of 0.55%, or    2,290,901  0.97% of average 
Fund  First $500 million  0.65%    weekly net assets 
  Next $500 million  0.55%    attributable to 
  Next $500 million  0.50%    common shares 
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam Municipal  The lesser of 0.35%, or    1,394,604  0.66% of average 
Opportunities Trust***   First $500 million  0.45%    weekly net assets 
  Next $500 million  0.35%    attributable to 
  Next $500 million  0.30%    common shares 
  Next $5 billion  0.25%     
  Next $5 billion  0.225%     
  Next $5 billion  0.205%     
  Next $5 billion  0.19%     
  Any excess thereafter  0.18%     
Putnam New Jersey Tax  The lesser of 0.50%, or    1,101,027  0.50% of average 
Exempt Income Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess over $21.5 billion  0.33%     
Putnam New  First $500 million  0.70%  30,814,799  0.53% of average 
Opportunities Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Next $5 billion  0.43%     
  Next $5 billion  0.42%     
  Next $5 billion  0.41%     
  Next $5 billion  0.40%     
  Next $5 billion  0.39%     
  Next $8.5 billion  0.38%     
  Any excess above $55 billion  0.37%     
Putnam New Value Fund  First $500 million  0.70%  11,478,217  0.59% of average 
  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     

*** The management fee rate for Putnam Municipal Opportunities Trust represents fees paid only for investment advisory services. As described in this proxy statement, the fund paid Putnam Management separately for administrative services. For the most recent fiscal year, the fund paid an administrative services fee of $662,851 to Putnam Management, based on an annual rate of 0.32% of the average weekly net assets attributable to common shares. Under the proposed new management contract, the Fund will pay a single fee of 0.98% of average net assets.

E-8

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam New York  The lesser of 0.55%, or    302,665  0.78% of average 
Investment Grade  First $500 million  0.65%    weekly net assets 
Municipal Trust  Next $500 million  0.55%    attributable to 
  Next $500 million  0.50%    common shares 
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam New York Tax  The lesser of 0.50%, or    5,972,705  0.50% of average 
Exempt Income Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess over $21.5 billion  0.33%     
Putnam Ohio Tax Exempt  The lesser of 0.50%, or    849,434  0.49% of average 
Income Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess over $21.5 billion  0.33%     
Putnam OTC & Emerging  First $500 million  0.70%  6,255,747  0.60% of average 
Growth Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam Pennsylvania Tax  The lesser of 0.50%, or    926,507  0.50% of average 
Exempt Income Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess over $21.5 billion  0.33%     

E-9

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam Premier Income  First $500 million  0.75%  8,927,294  0.66% of average 
Trust  Next $500 million  0.65%    weekly net assets 
  Next $500 million  0.60%     
  Next $5 billion  0.55%     
  Next $5 billion  0.525%     
  Next $5 billion  0.505%     
  Next $5 billion  0.49%     
  Next $5 billion  0.48%     
  Next $5 billion  0.47%     
  Next $5 billion  0.46%     
  Next $5 billion  0.45%     
  Next $5 billion  0.44%     
  Next $8.5 billion  0.43%     
  Any excess thereafter  0.42%     
Putnam Prime Money    0.20%  2,183,172  0.07% of average 
Market Fund^        net assets 
 
Putnam Research Fund†  First $500 million  0.65%  5,269,897  0.53% of average 
  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam RetirementReady    0.05%  29,736  0.05% of average 
2010 Fund        net assets 
 
Putnam RetirementReady    0.05%  58,932  0.05% of average 
2015 Fund        net assets 
 
Putnam RetirementReady    0.05%  64,225  0.05% of average 
2020 Fund        net assets 
 
Putnam RetirementReady    0.05%  49,571  0.05% of average 
2025 Fund        net assets 
 
Putnam RetirementReady    0.05%  25,310  0.05% of average 
2030 Fund        net assets 
 
Putnam RetirementReady    0.05%  6,096  0.05% of average 
2035 Fund        net assets 
 
Putnam RetirementReady    0.05%  0††  0.05% of average 
2040 Fund        net assets 

^ The management fee rate for Putnam Prime Money Market Fund represents fees paid only for investment advisory services. As described in this proxy statement, the fund paid Putnam Management separately for administrative services. For the most recent fiscal year, the fund paid $1,549,992 in administrative services fees to Putnam Management, based on an annual rate of 0.05% of the average net assets of the fund. Under the proposed new management contract, the Fund will pay a single fee of 0.25% of average net assets.

† A revised management contract for this fund was recently approved by shareholders on December 14, 2006 to remove the incentive fee component from the management fee. Under the fund's previous management contract, the fund paid Putnam Management a quarterly fee consisting of an assets-based component and an incentive component. The base fee was subject to a performance adjustment based on the investment performance of the fund compared to changes in the value of the Standard & Poor’s 500 (“S&P 500”) composite Stock Price Index. Performance was calculated for these purposes at the beginning of each calendar quarter, for the thirty-six month period immediately preceding such quarter or the life of the fund, if shorter. The applicable base fee was increased or decreased for each calendar quarter by an incentive payment or penalty at the annual rate of 0.01% of the fund’s average net assets for each 1.00% increment by which the fund outperformed or underperformed the S&P 500 in excess of 3.00%, subject to a maximum increase or decrease of 0.07% of average net assets. The revised management contract provides for an eighteen-month transition period during which the fund's fee will be the lesser of (i) the base fee and (ii) the performance-adjusted fee that would have been calculated under the previous contract. The fund is currently in this transition period, which will end on June 30, 2008, after which the base management fee will apply without performance-based adjustments.

††  Due to expense limitations in effect during the most recent fiscal year, Putnam RetirementReady 2040 Fund, Putnam RetirementReady 2045 Fund, Putnam RetirementReady 2050 Fund and Putnam RetirementReady Maturity Fund did not pay management fees to Putnam Management.

E-10

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam RetirementReady    0.05%  0††  0.05% of average 
2045 Fund        net assets 
 
Putnam RetirementReady    0.05%  0††  0.05% of average 
2050 Fund        net assets 
 
Putnam RetirementReady    0.05%  0††  0.05% of average 
Maturity Fund        net assets 
 
Putnam Small Cap  First $500 million  1.00%  3,840,676  0.88% of average 
Growth Fund  Next $500 million  0.90%    net assets 
  Next $500 million  0.85%     
  Next $5 billion  0.80%     
  Next $5 billion  0.775%     
  Next $5 billion  0.755%     
  Next $5 billion  0.74%     
  Any excess thereafter  0.73%     
Putnam Small Cap Value  First $500 million  0.80%  6,409,797  0.76% of average 
Fund  Next $500 million  0.70%    net assets 
  Next $500 million  0.65%     
  Next $5 billion  0.60%     
  Next $5 billion  0.575%     
  Next $5 billion  0.555%     
  Next $5 billion  0.54%     
  Any excess thereafter  0.53%     
Putnam Tax Exempt  The lesser of 0.50%, or    6,301,826  0.50% of average 
Income Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess thereafter  0.33%     
Putnam Tax Exempt  First $500 million  0.45%  390,524  0.33% of average 
Money Market Fund  Next $500 million  0.35%    net assets 
  Next $500 million  0.30%     
  Next $5 billion  0.25%     
  Next $5 billion  0.225%     
  Next $5 billion  0.205%     
  Next $5 billion  0.19%     
  Any excess thereafter  0.18%     
Putnam Tax-Free Health  The lesser of 0.55%, or    1,177,515  0.61% of average 
Care Fund  First $500 million  0.65%    weekly net assets 
  Next $500 million  0.55%     
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess over $21.5 billion  0.38%     
Putnam Tax-Free High  The lesser of 0.50%, or    7,815,394  0.50% of average 
Yield Fund  First $500 million  0.60%    net assets 
  Next $500 million  0.50%     
  Next $500 million  0.45%     
  Next $5 billion  0.40%     
  Next $5 billion  0.375%     
  Next $5 billion  0.355%     
  Next $5 billion  0.34%     
  Any excess thereafter  0.33%     

E-11

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam Tax Smart Equity  First $500 million  0.70%  1,914,939  0.70% of average 
Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam U.S. Government  First $500 million  0.57%  6,820,873  0.50% of average 
Income Trust  Next $500 million  0.475%    net assets 
  Next $500 million  0.4275%     
  Any excess over $1.5 billion  0.38%     
Putnam Utilities Growth  First $500 million  0.70%  3,727,421  0.68% of average 
and Income Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam Vista Fund  First $500 million  0.65%  14,101,874  0.51% of average 
  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess over $21.5 billion  0.38%     
Putnam Voyager Fund  First $500 million  0.70%  51,035,233  0.51% of average 
  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Next $5 billion  0.43%     
  Next $5 billion  0.42%     
  Next $5 billion  0.41%     
  Next $5 billion  0.40%     
  Next $5 billion  0.39%     
  Next $8.5 billion  0.38%     
  Above $55 billion  0.37%     
Putnam VT American  First $500 million  0.65%  693,021  0.43% of average 
Government Income Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Next $5 billion  0.38%     
  Next $5 billion  0.37%     
  Next $5 billion  0.36%     
  Next $5 billion  0.35%     
  Any excess thereafter  0.34%     

E-12

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam VT Capital  First $500 million  0.65%  225,344  0.44% of average 
Appreciation Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Next $5 billion  0.38%     
  Next $5 billion  0.37%     
  Next $5 billion  0.36%     
  Next $5 billion  0.35%     
  Next $5 billion  0.34%     
  Next $8.5 billion  0.33%     
  Any excess thereafter  0.32%     
Putnam VT Capital  First $500 million  0.65%  222,790  0.54% of average 
Opportunities Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam VT Discovery  First $500 million  0.70%  105,127  0.27% of average 
Growth Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Next $5 billion  0.43%     
  Next $5 billion  0.42%     
  Next $5 billion  0.41%     
  Next $5 billion  0.40%     
  Next $5 billion  0.39%     
  Next $8.5 billion  0.38%     
  Any excess thereafter  0.37%     
Putnam VT Diversified  First $500 million  0.70%  2,933,530  0.61% of average 
Income Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam VT Equity  First $500 million  0.65%  1,326,897  0.64% of average 
Income Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam VT The George  First $500 million  0.65%  3,969,447  0.62% of average 
Putnam Fund of Boston  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     

E-13

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam VT Global Asset  First $500 million  0.70%  2,392,952  0.60% of average 
Allocation Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam VT Global Equity  First $500 million  0.80%  4,692,325  0.78% of average 
Fund  Next $500 million  0.70%    net assets 
  Next $500 million  0.65%     
  Next $5 billion  0.60%     
  Next $5 billion  0.575%     
  Next $5 billion  0.555%     
  Next $5 billion  0.54%     
  Any excess thereafter  0.53%     
Putnam VT Growth and  First $500 million  0.65%  20,729,712  0.49% of average 
Income Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam VT Growth  First $500 million  0.70%  243,122  0.46% of average 
Opportunities Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Next $5 billion  0.43%     
  Any excess thereafter  0.42%     
Putnam VT Health  First $500 million  0.70%  2,204,609  0.70% of average 
Sciences Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam VT High Yield  First $500 million  0.70%  3,720,493  0.62% of average 
Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam VT Income Fund  First $500 million  0.65%  3,498,163  0.45% of average 
  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     

E-14

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam VT International  First $500 million  0.80%  8,271,996  0.74% of average 
Equity Fund  Next $500 million  0.70%    net assets 
  Next $500 million  0.65%     
  Next $5 billion  0.60%     
  Next $5 billion  0.575%     
  Next $5 billion  0.555%     
  Next $5 billion  0.54%     
  Any excess thereafter  0.53%     
Putnam VT International  First $500 million  0.80%  2,838,706  0.70% of average 
Growth and Income Fund  Next $500 million  0.70%    net assets 
  Next $500 million  0.65%     
  Next $5 billion  0.60%     
  Next $5 billion  0.575%     
  Next $5 billion  0.555%     
  Next $5 billion  0.54%     
  Any excess thereafter  0.53%     
Putnam VT International  First $500 million  1.00%  2,485,049  0.91% of average 
New Opportunities Fund  Next $500 million  0.90%    net assets 
  Next $500 million  0.85%     
  Next $5 billion  0.80%     
  Next $5 billion  0.775%     
  Next $5 billion  0.755%     
  Next $5 billion  0.74%     
  Any excess thereafter  0.73%     
Putnam VT Investors  First $500 million  0.65%  3,216,355  0.65% of average 
Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam VT Mid Cap  First $500 million  0.70%  634,565  0.69% of average 
Value Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam VT Money  First $500 million  0.45%  1,529,264  0.40% of average 
Market Fund  Next $500 million  0.35%    net assets 
  Next $500 million  0.30%     
  Next $5 billion  0.25%     
  Next $5 billion  0.225%     
  Next $5 billion  0.205%     
  Next $5 billion  0.19%     
  Any excess thereafter  0.18%     
Putnam VT New  First $500 million  0.70%  8,663,759  0.62% of average 
Opportunities Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     

E-15

      Amount of Management Fee   
      Paid in the Most Recent   
      Fiscal Year  Annual Rate at 
      (after applicable waivers and  which Fees 
Fund  Management Fee Rate  reimbursements, if any) ($)  were Paid* 
Putnam VT New Value  First $500 million  0.70%  4,475,605  0.67% of average 
Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam VT OTC &  First $500 million  0.70%  575,537  0.67% of average 
Emerging Growth Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam VT Research  First $500 million  0.65%  1,213,099  0.65% of average 
Fund  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam VT Small Cap  First $500 million  0.80%  6,827,461  0.75% of average 
Value Fund  Next $500 million  0.70%    net assets 
  Next $500 million  0.65%     
  Next $5 billion  0.60%     
  Next $5 billion  0.575%     
  Next $5 billion  0.555%     
  Next $5 billion  0.54%     
  Any excess thereafter  0.53%     
Putnam VT Utilities  First $500 million  0.70%  2,437,187  0.67% of average 
Growth and Income Fund  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     
Putnam VT Vista Fund  First $500 million  0.65%  3,006,605  0.65% of average 
  Next $500 million  0.55%    net assets 
  Next $500 million  0.50%     
  Next $5 billion  0.45%     
  Next $5 billion  0.425%     
  Next $5 billion  0.405%     
  Next $5 billion  0.39%     
  Any excess thereafter  0.38%     
Putnam VT Voyager Fund  First $500 million  0.70%  11,832,070  0.59% of average 
  Next $500 million  0.60%    net assets 
  Next $500 million  0.55%     
  Next $5 billion  0.50%     
  Next $5 billion  0.475%     
  Next $5 billion  0.455%     
  Next $5 billion  0.44%     
  Any excess thereafter  0.43%     

E-16

APPENDIX F – Current Sub-Management Contract and Sub-Advisory Contract

PUTNAM FUNDS

AMENDED AND RESTATED SUB-MANAGEMENT CONTRACT

Amended and Restated Sub-Management Contract dated as of December 30, 2006 between PUTNAM INVESTMENT MANAGEMENT, LLC, a Delaware limited liability company (the “Manager”) and PUTNAM INVESTMENTS LIMITED, a company organized under the laws of England and Wales (the “Sub-Manager”), amending and restating in its entirety that certain Sub-Management Contract dated as of January 1, 2006, as amended (the “Prior Agreement”), between the Manager and the Sub-Manager.

WHEREAS, the Manager is the investment manager of each of the investment companies registered under the United States Investment Company Act of 1940, as amended, that are identified on Schedule A hereto, as it may from time to time be amended by the Manager (the “Funds”), and a registered investment adviser under the United States Investment Advisers Act of 1940, as amended;

WHEREAS, the Sub-Manager is licensed as an investment manager by the Financial Services Authority of the United Kingdom (the “FSA”);

WHEREAS, the Manager and the Sub-Manager previously entered into, and now wish to amend and restate, the Prior Agreement; and

WHEREAS, the Manager continues to desire to engage the Sub-Manager from time to time to manage a portion of certain of the Funds:

NOW THEREFORE, in consideration of the mutual covenants herein contained, it is agreed as follows:

1. SERVICES TO BE RENDERED BY SUB-MANAGER

(a) The Sub-Manager, at its expense, will furnish continuously an investment program for that portion of any Fund the management of which is allocated from time to time by the Manager to the Sub-Manager (an “Allocated Sleeve”). The Manager shall, in its sole discretion, determine which Funds will have an Allocated Sleeve and the amount of assets allocated from time to time to each such Allocated Sleeve; provided that, with respect to any Fund, the Trustees of such Fund must have approved the use of the Sub-Manager prior to the creation of an Allocated Sleeve for such Fund. The Sub-Manager will determine what investments shall be purchased, held, sold or exchanged by any Allocated Sleeve and what portion, if any, of the assets of the Allocated Sleeve shall be held uninvested and shall, on behalf of the Fund, make changes in the Fund’s investments held in such Allocated Sleeve.

(b) The Manager may also, at its discretion, request the Sub-Manager to provide assistance with purchasing and selling securities for any Fund, including the placement of orders

F-1

with broker-dealers selected in accordance with Section 1(d), even if the Manager has not established an Allocated Sleeve for such Fund.

(c) The Sub-Manager at its expense will furnish all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties faithfully.

(d) The Sub-Manager shall place all orders for the purchase and sale of portfolio investments for any Allocated Sleeve with brokers or dealers selected by the Sub-Manager. In the selection of such brokers or dealers and the placing of such orders, the Sub-Manager shall use its best efforts to obtain for the related Fund the most favorable price and execution available, except to the extent it may be permitted to pay higher brokerage commissions for brokerage and research services as described below. In using its best efforts to obtain for the Fund the most favorable price and execution available, the Sub-Manager, bearing in mind the Fund’s best interests at all times, shall consider all factors it deems relevant, including by way of illustration, price, the size of the transaction, the nature of the market for the security, the amount of the commission, the timing of the transaction taking into account market prices and trends, the reputation, experience and financial stability of the broker or dealer involved and the quality of service rendered by the broker or dealer in other transactions. Subject to such policies as the Trustees of the Funds may determine, the Sub-Manager shall not be deemed to have acted unlawfully or to have breached any duty created by this Contract or otherwise solely by reason of its having caused a Fund to pay a broker or dealer that provides brokerage and research services to the Manager or the Sub-Manager an amount of commission for effecting a portfolio investment transaction in excess of the amount of commission another broker or dealer would have charged for effecting that transaction, if the Sub-Manager determines in good faith that such amount of commission was reasonable in relation to the value of the brokerage and research services provided by such broker or dealer, viewed in terms of either that particular transaction or its overall responsibilities with respect to the Fund and to other clients of the Manager or the Sub-Manager as to which the Manager or the Sub-Manager exercises investment discretion. The Sub-Manager agrees that in connection with purchases or sales of portfolio investments for any Fund, neither the Sub-Manager nor any officer, director, employee or agent of the Sub-Manager shall act as a principal or receive any commission other than as provided in Section 3.

(e) The Sub-Manager shall not be obligated to pay any expenses of or for the Manager or any Fund not expressly assumed by the Sub-Manager pursuant to this Section 1.

(f) In the performance of its duties, the Sub-Manager will comply with the provisions of the Agreement and Declaration of Trust and By-Laws of each applicable Fund and such Fund’s stated investment objectives, policies and restrictions, and will use its best efforts to safeguard and promote the welfare of such Fund and to comply with other policies which the Manager or the Trustees may from time to time determine and shall exercise the same care and diligence expected of the Manager.

2. OTHER AGREEMENTS, ETC.

It is understood that any of the shareholders, Trustees, officers and employees of a Fund may be a shareholder, director, officer or employee of, or be otherwise interested in, the Sub-

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Manager, and in any person controlled by or under common control with the Sub-Manager, and that the Sub-Manager and any person controlled by or under common control with the Sub-Manager may have an interest in such Fund. It is also understood that the Sub-Manager and any person controlled by or under common control with the Sub-Manager have and may have advisory, management, service or other contracts with other organizations and persons, and may have other interests and business.

3. COMPENSATION.

Except as provided below, the Manager will pay to the Sub-Manager as compensation for the Sub-Manager’s services rendered, a fee, computed and paid quarterly at the annual rate of 0.35% per annum of average aggregate net asset value of the assets in equity Allocated Sleeves and 0.40% per annum of average aggregate net asset value of the assets in fixed-income Allocated Sleeves. Such average net asset value shall be determined by taking an average of all of the determinations of such net asset value during a quarter at the close of business on each business day during such quarter while this Contract is in effect. Such fee shall be payable for each quarter within 30 days after the close of such quarter. The Sub-Manager shall look only to the Manager for payment of its fees. No Fund shall have any responsibility for paying any fees due the Sub-Manager.

With respect to each of Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust and Putnam Premier Income Trust, the Manager will pay to the Sub-Manager as compensation for the Sub-Manager’s services rendered, a fee, computed and paid quarterly at the annual rate of 0.40% of Average Weekly Assets in Allocated Sleeves. “Average Weekly Assets” means the average of the weekly determinations of the difference between the total assets of the Fund (including any assets attributable to leverage for investment purposes) attributable to an Allocated Sleeve and the total liabilities of the Fund (excluding liabilities incurred in connection with leverage for investment purposes) attributable to such Allocated Sleeve, determined at the close of the last business day of each week, for each week which ends during the quarter. Such fee shall be payable for each quarter within 30 days after the close of such quarter. As used in this Section 3, “leverage for investment purposes” means any incurrence of indebtedness the proceeds of which are to be invested in accordance with the Fund’s investment objective. For purposes of calculating Average Weekly Assets, liabilities associated with any instruments or transactions used to leverage the Fund’s portfolio for investment purposes (whether or not such instruments or transactions are “covered” within the meaning of the Investment Company Act of 1940 and the rules and regulations thereunder, giving effect to any interpretations of the Securities and Exchange Commission and its staff) are not considered liabilities. For purposes of calculating Average Weekly Assets, the total assets of the Fund will be deemed to include (a) any proceeds from the sale or transfer of an asset (the “Underlying Asset”) of the Fund to a counterparty in a reverse repurchase or dollar roll transaction and (b) the value of such Underlying Asset as of the relevant measuring date.

In the event that the Manager’s management fee from any of Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust or Putnam Premier Income Trust is reduced pursuant to the Amended and Restated Management Contract between such Fund and the Manager because during any Measurement Period (as defined below) the amount of interest payments and fees with respect to indebtedness or other obligation of the Fund incurred for

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investment leverage purposes, plus additional expenses attributable to any such leverage for investment purposes, exceeds the portion of the Fund’s net income and net short-term capital gains (but not long-term capital gains) accruing during such Measurement Period as a result of the fact that such indebtedness or other obligation was outstanding during the Measurement Period, the fee payable to the Sub-Manager with respect to such Fund shall be reduced in the same proportion as the fee paid to the Manager with respect to such Fund is so reduced. “Measurement Period” shall be any period for which payments of interest or fees (whether designated as such or implied) are payable in connection with any indebtedness or other obligation of the Fund incurred for investment purposes.

If the Sub-Manager shall serve for less than the whole of a quarter, the foregoing compensation shall be prorated.

4. ASSIGNMENT TERMINATES THIS CONTRACT; AMENDMENTS OF THIS CONTRACT.

This Contract shall automatically terminate without the payment of any penalty, in the event of its assignment; and this Contract shall not be amended with respect to any Allocated Sleeve unless such amendment be approved at a meeting by the vote, cast in person at a meeting called for the purpose of voting on such approval, of a majority of the Trustees of the related Fund who are not interested persons of such Fund or of the Manager.

5. EFFECTIVE PERIOD AND TERMINATION OF THIS CONTRACT.

This Contract shall become effective upon its execution, and shall remain in full force and effect continuously thereafter (unless terminated automatically as set forth in Section 4) until terminated as follows:

(a) Either party hereto or, with respect to any Allocated Sleeve, the related Fund may at any time terminate this Contract by not more than sixty days’ nor less than thirty days’ written notice delivered or mailed by registered mail, postage prepaid, to the other party, or

(b) With respect to any Allocated Sleeve, if (i) the Trustees of the related Fund or the shareholders by the affirmative vote of a majority of the outstanding shares of such Fund, and (ii) a majority of the Trustees of such Fund who are not interested persons of such Fund or of the Manager, by vote cast in person at a meeting called for the purpose of voting on such approval, do not specifically approve at least annually the continuance of this Contract, then this Contract shall automatically terminate at the close of business on the anniversary of its execution, or upon the expiration of one year from the effective date of the last such continuance, whichever is later, or

(c) With respect to any Allocated Sleeve, automatically upon termination of the Manager’s investment management contract with the related Fund.

Action by a Fund under (a) above may be taken either (i) by vote of a majority of its Trustees, or (ii) by the affirmative vote of a majority of the outstanding shares of such Fund.

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Termination of this Contract pursuant to this Section 5 will be without the payment of any penalty.

6. CERTAIN DEFINITIONS.

For the purposes of this Contract, the “affirmative vote of a majority of the outstanding shares of a Fund” means the affirmative vote, at a duly called and held meeting of shareholders of such Fund, (a) of the holders of 67% or more of the shares of such Fund present (in person or by proxy) and entitled to vote at such meeting, if the holders of more than 50% of the outstanding shares of such Fund entitled to vote at such meeting are present in person or by proxy, or (b) of the holders of more than 50% of the outstanding shares of such Fund entitled to vote at such meeting, whichever is less.

For the purposes of this Contract, the terms “affiliated person,” “control,” “interested person” and “assignment” shall have their respective meanings defined in the United States Investment Company Act of 1940 and the Rules and Regulations thereunder (the “1940 Act”), subject, however, to such exemptions as may be granted by the Securities and Exchange Commission under said Act; the term “specifically approve at least annually” shall be construed in a manner consistent with the 1940 Act, and the Rules and Regulations thereunder; and the term “brokerage and research services” shall have the meaning given in the United States Securities Exchange Act of 1934 and the Rules and Regulations thereunder.

7. NON-LIABILITY OF SUB-MANAGER.

In the absence of willful misfeasance, bad faith or gross negligence on the part of the Sub-Manager, or reckless disregard of its obligations and duties hereunder, the Sub-Manager shall not be subject to any liability to the Manager, any Fund or to any shareholder of any Fund, for any act or omission in the course of, or connected with, rendering services hereunder.

8. ADDITIONAL PROVISIONS

(a) The Sub-Manager represents that it is regulated by the FSA in the conduct of its investment business. The Sub-Manager has in operation a written procedure in accordance with FSA rules for the effective consideration and proper handling of complaints from customers. Any complaint by the Manager or any Fund should be sent to the Compliance Officer of the Sub-Manager. The Manager and any Fund is also entitled to make any complaints about the Sub-Manager to the Financial Ombudsman Service established by the FSA. The Manager and any Fund may also request a statement describing its rights to compensation in the event of the Sub-Manager’s inability to meet its liabilities.

(b) The Manager represents that it and each Fund are “Intermediate Customers” in the meaning of FSA rules.

(c) Although each Fund is not a party hereto and shall have no responsibility for the Manager’s or the Sub-Manager’s obligations hereunder, each Fund is named as explicit third party beneficiary of the parties’ agreements hereunder.

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IN WITNESS WHEREOF, PUTNAM INVESTMENTS LIMITED and PUTNAM INVESTMENT MANAGEMENT, LLC have each caused this instrument to be signed in duplicate on its behalf by an officer duly authorized, all as of the day and year first above written.

                                                                                                                                                                            PUTNAM INVESTMENTS LIMITED 
By:  /s/ Jeffrey F. Peters 
Name:  Jeffrey F. Peters 
 
PUTNAM INVESTMENT MANAGEMENT, LLC 
By:  /s/ James P. Pappas 
Name:  James P. Pappas 

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Schedule A
(Updated through December 30, 2006)

Putnam Diversified Income Trust
Putnam VT Diversified Income Fund
Putnam Europe Equity Fund
Putnam Global Equity Fund
Putnam VT Global Equity Fund
Putnam Global Income Trust
Putnam Global Natural Resources Fund
Putnam High Yield Advantage Fund
Putnam High Yield Trust
Putnam VT High Yield Fund
Putnam International Capital Opportunities Fund
Putnam International Equity Fund
Putnam VT International Equity Fund
Putnam International New Opportunities Fund
Putnam VT International New Opportunities Fund
Putnam International Growth and Income Fund
Putnam VT International Growth and Income Fund
Putnam Research Fund
Putnam VT Research Fund
Putnam Utilities Growth and Income Fund
Putnam VT Utilities Growth and Income Fund
Putnam High Income Securities Fund
Putnam Master Intermediate Income Trust
Putnam Premier Income Trust

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PUTNAM FUNDS

SUB-ADVISORY CONTRACT

Sub-Advisory Contract dated as of July 14, 2006 between and among PUTNAM INVESTMENT MANAGEMENT, LLC, a Delaware limited liability company (the “Manager”), PUTNAM INVESTMENTS LIMITED, a company organized under the laws of England and Wales (“PIL”), and THE PUTNAM ADVISORY COMPANY, LLC, a Delaware limited liability company (the “Sub-Advisor”).

WHEREAS, the Manager is the investment manager of each of the investment companies registered under the United States Investment Company Act of 1940, as amended, that are identified on Schedule A hereto, as it may from time to time be amended by the Manager (the “Funds”), and a registered investment adviser under the United States Investment Advisers Act of 1940, as amended;

WHEREAS, PIL is a registered investment adviser under the United States Investment Advisers Act of 1940, as amended, is licensed as an investment manager by the Financial Services Authority of the United Kingdom (the “FSA”) and is a sub-manager of each of the Funds pursuant to that certain Amended and Restated Sub-Management Contract dated as of January 1, 2006 (the “PIL Sub-Management Contract”), between the Manager and PIL;

WHEREAS, the Manager has contracted with PIL for the management of certain portions of each of the Funds (each, a “PIL-Advised Sleeve”);

WHEREAS, the Sub-Advisor is a registered investment adviser under the United States Investment Advisers Act of 1940, as amended, and is an investment adviser registered with the Kanto Local Finance Bureau to provide non-discretionary investment advice in Japan;

WHEREAS, the Manager and PIL desire to engage the Sub-Advisor from time to time to provide non-discretionary investment advice with respect to a portion of certain of the Funds:

NOW THEREFORE, in consideration of the mutual covenants herein contained, it is agreed as follows:

1. SERVICES TO BE RENDERED BY SUB-ADVISOR

(a) The Sub-Advisor, at its expense, will from time to time furnish to either PIL or the Manager recommendations to purchase, hold, sell or exchange investments, securities and assets (the “Assets”) in that portion of any Fund for which the Manager or PIL contracts for such services to be provided by the Sub-Advisor (an “Allocated Sleeve”). The Manager or PIL, as the case may be, shall determine whether to execute each recommendation of the Sub-Advisor provided hereunder. The Manager shall determine which Funds will have an Allocated Sleeve; provided that, with respect to any Fund, the Trustees of such Fund must have approved the use of the Sub-Advisor prior to the creation of an Allocated Sleeve for such Fund. The Manager, and in the case of a PIL-Advised Sleeve, PIL shall (at all times in the case of PIL subject to the oversight and supervision of the Manager), determine the amount of assets allocated from time to time to each such Allocated Sleeve.

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(b) The Sub-Advisor at its expense will furnish all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties faithfully.

(c) The Sub-Advisor shall not be obligated to pay any expenses of or for the Manager, PIL or any Fund not expressly assumed by the Sub-Advisor pursuant to this Section 1.

(d) The Manager may, and in the case of a PIL-Advised Sleeve, PIL may, each at its discretion, also request the Sub-Advisor to perform certain services set forth in Section 1(a) with respect to any portion of a Fund, even if the Manager or PIL, as the case may be, has not established an Allocated Sleeve with respect to that portion of the Fund.

(e) In the performance of its duties, the Sub-Advisor will comply with the provisions of the Agreement and Declaration of Trust and By-Laws of each applicable Fund and such Fund’s stated investment objectives, policies and restrictions, and will use its best efforts to safeguard and promote the welfare of such Fund and to comply with other policies which the Manager, PIL or the Trustees may from time to time determine and shall exercise the same care and diligence expected of the Manager and PIL.

2. OTHER AGREEMENTS, ETC.

It is understood that any of the shareholders, Trustees, officers and employees of a Fund may be a shareholder, director, officer or employee of, or be otherwise interested in, the Sub-Advisor, and in any person controlled by or under common control with the Sub-Advisor, and that the Sub-Advisor and any person controlled by or under common control with the Sub-Advisor may have an interest in such Fund. It is also understood that the Sub-Advisor and any person controlled by or under common control with the Sub-Advisor have and may have advisory, management, service or other contracts with other organizations and persons, and may have other interests and business.

3. COMPENSATION.

Except as provided below, the Manager or PIL, as the case may be, will pay to the Sub-Advisor as compensation for the Sub-Advisor’s services rendered a fee, computed and paid quarterly at the annual rate of 0.10% per annum of average net asset value of the assets in each Allocated Sleeve. Such average net asset value shall be determined by taking an average of all of the determinations of such net asset value during a quarter at the close of business on each business day during such quarter while this Contract is in effect. Such fee shall be payable for each quarter within 30 days after the close of such quarter. The Sub-Advisor shall look only to the Manager or PIL, as the case may be, for payment of its fees. No Fund shall have any responsibility for paying any fees due the Sub-Advisor.

If the Sub-Advisor shall serve for less than the whole of a quarter, the foregoing compensation shall be prorated.

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4. ASSIGNMENT TERMINATES THIS CONTRACT; AMENDMENTS OF THIS CONTRACT.

This Contract shall automatically terminate, without the payment of any penalty, in the event of its assignment; and this Contract shall not be amended with respect to any Allocated Sleeve unless such amendment be approved at a meeting by the vote, cast in person at a meeting called for the purpose of voting on such approval, of a majority of the Trustees of the related Fund who are not interested persons of such Fund or of the Manager.

5. EFFECTIVE PERIOD AND TERMINATION OF THIS CONTRACT.

This Contract shall become effective upon its execution, and shall remain in full force and effect continuously thereafter (unless terminated automatically as set forth in Section 4) until terminated as follows:

(a) Any party hereto or, with respect to any Allocated Sleeve, the related Fund may at any time terminate this Contract by not more than sixty days’ nor less than thirty days’ written notice delivered or mailed by registered mail, postage prepaid, to the other parties, or

(b) With respect to any Allocated Sleeve, if (i) the Trustees of the related Fund or the shareholders by the affirmative vote of a majority of the outstanding shares of such Fund, and (ii) a majority of the Trustees of such Fund who are not interested persons of such Fund or of the Manager, by vote cast in person at a meeting called for the purpose of voting on such approval, do not specifically approve at least annually the continuance of this Contract, then this Contract shall automatically terminate at the close of business on the anniversary of its execution, or upon the expiration of one year from the effective date of the last such continuance, whichever is later, or

(c) With respect to any Allocated Sleeve, automatically upon termination of the Manager’s investment management contract with the related Fund, or with respect to any Allocated Sleeve for which PIL has contracted with the Sub-Advisor to provide services under this Contract, automatically upon termination of the PIL Sub-Management Contract.

Action by a Fund under (a) above may be taken either (i) by vote of a majority of its Trustees, or (ii) by the affirmative vote of a majority of the outstanding shares of such Fund.

Termination of this Contract pursuant to this Section 5 will be without the payment of any penalty.

6. CERTAIN DEFINITIONS.

For the purposes of this Contract, the “affirmative vote of a majority of the outstanding shares of a Fund” means the affirmative vote, at a duly called and held meeting of shareholders of such Fund, (a) of the holders of 67% or more of the shares of such Fund present (in person or by proxy) and entitled to vote at such meeting, if the holders of more than 50% of the outstanding shares of such Fund entitled to vote at such meeting are present in person or by proxy, or (b) of the holders of more than 50% of the outstanding shares of such Fund entitled to vote at such meeting, whichever is less.

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For the purposes of this Contract, the terms “affiliated person,” “control,” “interested person” and “assignment” shall have their respective meanings defined in the United States Investment Company Act of 1940 and the Rules and Regulations thereunder (the “1940 Act”), subject, however, to such exemptions as may be granted by the Securities and Exchange Commission under said Act; and the term “specifically approve at least annually” shall be construed in a manner consistent with the 1940 Act, and the Rules and Regulations thereunder.

7. NON-LIABILITY OF SUB-ADVISOR.

In the absence of willful misfeasance, bad faith or gross negligence on the part of the Sub-Advisor, or reckless disregard of its obligations and duties hereunder, the Sub-Advisor shall not be subject to any liability to the Manager, PIL, any Fund or to any shareholder of any Fund, for any act or omission in the course of, or connected with, rendering services hereunder.

8. ADDITIONAL PROVISIONS

(a) PIL represents that it is regulated by the FSA in the conduct of its investment business. PIL has in operation a written procedure in accordance with FSA rules for the effective consideration and proper handling of complaints from customers. Any complaint by the Manager or any Fund should be sent to the Compliance Officer of PIL. The Manager and any Fund is also entitled to make any complaints about PIL to the Financial Ombudsman Service established by the FSA. The Manager and any Fund may also request a statement describing its rights to compensation in the event of PIL’s inability to meet its liabilities.

(b) The Manager represents that it and each Fund are “Intermediate Customers” in the meaning of FSA rules.

(c) Although each Fund is not a party hereto and shall have no responsibility for the Manager’s, PIL’s or the Sub-Advisor’s obligations hereunder, each Fund is named as explicit third party beneficiary of the parties’ agreements hereunder.

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In witness whereof, PUTNAM INVESTMENT MANAGEMENT, LLC, PUTNAM INVESTMENTS LIMITED and THE PUTNAM ADVISORY COMPANY, LLC have each caused this instrument to be signed on its behalf by an officer duly authorized, all as of the day and year first above written.

                                                                                                                                                                  PUTNAM INVESTMENT MANAGEMENT, LLC 
By:  /s/ James P. Pappas 
Name:  James P. Pappas 
 
PUTNAM INVESTMENTS LIMITED 
By:  /s/ Simon L. Davis 
Name:  Simon L. Davis 
 
THE PUTNAM ADVISORY COMPANY, LLC 
By: /s/ Robert R. Leveille 
Name:  Robert R. Leveille 

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Schedule A

Putnam International Equity Fund

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APPENDIX G – Description of Contract Approval Process

General conclusions

The Board of Trustees of the Putnam funds oversees the management of each fund and, as required by law, determines annually whether to approve the continuance of the funds’ management contracts with Putnam Management, and with respect to certain funds, the administrative services contracts with Putnam Management or the sub-management contracts between Putnam Management’s affiliate, Putnam Investments Limited (“PIL”), and Putnam Management. In this regard, the Board of Trustees, with the assistance of its Contract Committee consisting solely of Trustees who are not “interested persons” (as such term is defined in the Investment Company Act of 1940, as amended) of the Putnam funds (the “Independent Trustees”), requests and evaluates all information it deems reasonably necessary under the circumstances. Over the course of several months ending in June 2006, the Contract Committee met four times to consider the information provided by Putnam Management and other information developed with the assistance of the Board’s independent counsel and independent staff. The Contract Committee reviewed and discussed key aspects of this information with all of the Independent Trustees. Upon completion of this review, the Contract Committee recommended, and the Independent Trustees approved, the continuance of the funds’ management contracts—and with respect to certain funds, the administrative services contracts or the sub-management contracts—effective July 1, 2006. (With respect to certain funds that may be sub-managed from time to time by PIL, because PIL is an affiliate of Putnam Management and Putnam Management remains fully responsible for all services provided by PIL, the Trustees have not evaluated PIL as a separate entity, and all subsequent references to Putnam Management below include reference to PIL as necessary or appropriate in the context.)

This approval was based on the following conclusions:

Ø That the fee schedules in effect for the funds (which, for those funds with administrative services contracts, included fees paid under such contracts) represented reasonable compensation in light of the nature and quality of the services being provided to the funds, the fees paid by competitive funds and the costs incurred by Putnam Management in providing such services, and

Ø That such fee schedules represented an appropriate sharing between the funds’ shareholders and Putnam Management of such economies of scale as may exist in the management of the funds at current asset levels.

These conclusions were based on a comprehensive consideration of all information provided to the Trustees and were not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered these factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors. It is also important to recognize that the fee arrangements for the funds are the result of many years of review and discussion between the Independent Trustees and Putnam Management, that certain aspects of the arrangements may receive greater scrutiny in some years than others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements in prior years.

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Management fee schedules and categories; total expenses

The Trustees reviewed the management (and administrative services, if applicable) fee schedules in effect for all Putnam funds, including fee levels and breakpoints, and the assignment of funds to particular fee categories. In reviewing fees and expenses, the Trustees generally focused their attention on material changes in circumstances—for example, changes in a fund’s size or investment style, changes in Putnam Management’s operating costs, or changes in competitive practices in the mutual fund industry—that suggest that consideration of fee changes might be warranted. The Trustees concluded that the circumstances did not warrant changes to the management (and administrative services, if applicable) fee structures of the funds, which had been carefully developed over the years, re-examined on many occasions and adjusted where appropriate. The Trustees focused on two areas of particular interest, as discussed further below:

Ø Competitiveness. The Trustees reviewed comparative fee and expense information for competitive funds, which indicated that, in a custom peer group of competitive funds selected by Lipper Inc., each Putnam fund ranked in particular percentiles in management fees and in total expenses (less any applicable 12b-1 fees for open-end funds, and excluding charges and expenses at the insurance company separate account level for the funds of Putnam Variable Trust) as of December 31, 2005 (the first percentile being the least expensive funds and the 100th percentile being the most expensive funds). (The comparative fee and expense information for each Putnam RetirementReady Fund excluded the fees and expenses of the underlying Putnam funds in which a Putnam RetirementReady Fund invested, as well as the fees and expenses of the underlying funds in which other funds in the Lipper peer group invested.) With respect to the open-end funds, the Trustees noted that expense ratios for a number of Putnam funds, which show the percentage of fund assets used to pay for management and administrative services, distribution (12b-1) fees and other expenses, had been increasing recently as a result of declining net assets and the natural operation of fee breakpoints. With respect to all funds, the Trustees expressed their intention to monitor the funds’ percentile rankings in management fees and in total expenses to ensure that fees and expenses of the funds continue to meet evolving competitive standards.

With respect to the open-end funds, the Trustees noted that the expense ratio increases described above were currently being controlled by expense limitations implemented in January 2004 and which Putnam Management, in consultation with the Contract Committee, has committed to maintain at least through 2007. These expense limitations give effect to a commitment by Putnam Management that the expense ratio of each fund would be no higher than the average expense ratio of the competitive funds included in the fund’s relevant Lipper universe (exclusive of any applicable 12b-1 charges in each case). The Trustees observed that this commitment to limit fund expenses has served shareholders well since its inception. In order to ensure that the expenses of the Putnam funds continue to meet evolving competitive standards, the Trustees requested, and Putnam Management agreed, to implement an additional expense limitation for certain open-end funds for the twelve months beginning January 1, 2007 equal to the average expense ratio (exclusive of 12b-1 charges) of a custom peer group of competitive funds selected by Lipper based on the size of the fund. This additional expense limitation will be applied to those open-end funds that had above-average expense ratios (exclusive of

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12b-1 charges) based on the Lipper custom peer group data for the period ended December 31, 2005.

Ø Economies of scale. Most funds currently have the benefit of breakpoints in their management fees that provide shareholders with significant economies of scale, which means that the effective management fee rate of a fund (as a percentage of fund assets) declines as a fund grows in size and crosses specified asset thresholds. Conversely, as a fund shrinks in size—as has been the case for many Putnam open-end funds in recent years—these breakpoints result in increasing fee levels. In recent years, the Trustees have examined the operation of the existing breakpoint structure during periods of both growth and decline in asset levels. The Trustees concluded that the fee schedules in effect for the funds represented an appropriate sharing of economies of scale at current asset levels. In reaching this conclusion, the Trustees considered the Contract Committee’s stated intent to continue to work with Putnam Management to plan for an eventual resumption in the growth of assets, including a study of potential economies that might be produced under various growth assumptions.

In connection with their review of the management fees and total expenses of the Putnam funds, the Trustees also reviewed the costs of the services to be provided and profits to be realized by Putnam Management and its affiliates from the relationship with the funds. This information included trends in revenues, expenses and profitability of Putnam Management and its affiliates relating to the investment management and distribution services provided to the funds. In this regard, the Trustees also reviewed an analysis of Putnam Management’s revenues, expenses and profitability with respect to the funds’ management contracts, allocated on a fund-by-fund basis. Because many of the costs incurred by Putnam Management in managing the funds are not readily identifiable to particular funds, the Trustees observed that the methodology for allocating costs is an important factor in evaluating Putnam Management’s costs and profitability, both as to the Putnam funds in the aggregate and as to individual funds. The Trustees reviewed Putnam Management’s cost allocation methodology with the assistance of independent consultants and concluded that this methodology was reasonable and well-considered.

Investment performance

The quality of the investment process provided by Putnam Management represented a major factor in the Trustees’ evaluation of the quality of services provided by Putnam Management under the funds’ management contracts. The Trustees were assisted in their review of the Putnam funds’ investment process and performance by the work of the Investment Process Committee of the Trustees and the Investment Oversight Committees of the Trustees, which meet on a regular monthly basis with the funds’ portfolio teams throughout the year. The Trustees concluded that Putnam Management generally provides a high-quality investment process—as measured by the experience and skills of the individuals assigned to the management of fund portfolios, the resources made available to such personnel, and in general the ability of Putnam Management to attract and retain high-quality personnel—but also recognize that this does not guarantee favorable investment results for every fund in every time period. The Trustees considered the investment performance of each fund over multiple time periods and considered information comparing each fund’s performance with various benchmarks and with the performance of competitive funds.

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The Trustees noted the satisfactory investment performance of many Putnam funds. They also noted the disappointing investment performance of certain funds in recent years and discussed with senior management of Putnam Management the factors contributing to this underperformance and actions being taken to improve performance. The Trustees recognized that, in recent years, Putnam Management has made significant changes in its investment personnel and processes and in the fund product line to address areas of underperformance. In particular, they noted the important contributions of Putnam Management’s leadership in attracting, retaining and supporting high-quality investment professionals and in systematically implementing an investment process that seeks to merge the best features of fundamental and quantitative analysis. The Trustees indicated their intention to continue to monitor performance trends to assess the effectiveness of these changes and to evaluate whether additional changes to address areas of underperformance are warranted.

In the case of each open-end fund, the Trustees considered that each fund’s class A (class I, in the case of Putnam Prime Money Market Fund, and class IA in the case of Putnam Variable Trust) share cumulative total return performance at net asset value was in particular percentiles of its Lipper Inc. peer group for the one-, three- and five-year periods ended March 31, 2006 (the first percentile being the best performing funds and the 100th percentile being the worst performing funds). In the case of each closed-end fund, the Trustees considered the same Lipper peer group information for the fund’s common share cumulative total return performance at net asset value. In the case of tax-exempt open-end and closed-end funds, the funds’ total return performance was compared against the Lipper peer group performance information using tax-adjusted performance to recognize the different federal income tax treatment for capital gains distributions and exempt-interest distributions.

As a general matter, the Trustees concluded that cooperative efforts between the Trustees and Putnam Management represent the most effective way to address investment performance problems. The Trustees noted that investors in the Putnam funds have, in effect, placed their trust in the Putnam organization, under the oversight of the funds’ Trustees, to make appropriate decisions regarding the management of the funds. Based on the responsiveness of Putnam Management in the recent past to Trustee concerns about investment performance, the Trustees concluded that it is preferable to seek change within Putnam Management to address performance shortcomings. In the Trustees’ view, the alternative of terminating a management contract and engaging a new investment adviser for an underperforming fund would entail significant disruptions and would not provide any greater assurance of improved investment performance.

Brokerage and soft-dollar allocations; other benefits

The Trustees considered various potential benefits that Putnam Management may receive in connection with the services it provides under the management contracts with the funds. These include benefits related to brokerage and soft-dollar allocations, whereby a portion of the commissions paid by a fund for brokerage may be used to acquire research services that may be useful to Putnam Management in managing the assets of the fund and of other clients. The Trustees indicated their continued intent to monitor the potential benefits associated with the allocation of fund brokerage to ensure that the principle of seeking “best price and execution” remains paramount in the portfolio trading process.

G-4

The Trustees’ annual review of the funds’ management contracts also included the review of the custodian and investor servicing agreements with Putnam Fiduciary Trust Company, which agreements provide benefits to an affiliate of Putnam Management. In the case of the open-end funds, the Trustees’ annual review of the funds’ management contracts also included the review of the funds’ distributor’s contracts and distribution plans with Putnam Retail Management Limited Partnership, which contracts and plans also provide benefits to an affiliate of Putnam Management.

Comparison of retail and institutional fee schedules

The information examined by the Trustees as part of their annual contract review has included for many years information regarding fees charged by Putnam Management and its affiliates to institutional clients such as defined benefit pension plans, college endowments, etc. This information included comparison of such fees with fees charged to the funds, as well as a detailed assessment of the differences in the services provided to these two types of clients. The Trustees observed, in this regard, that the differences in fee rates between institutional clients and the funds are by no means uniform when examined by individual asset sectors, suggesting that differences in the pricing of investment management services to these types of clients reflect to a substantial degree historical competitive forces operating in separate market places. The Trustees considered the fact that fee rates across all asset sectors are higher on average for funds than for institutional clients, as well as the differences between the services that Putnam Management provides to the Putnam funds and those that it provides to institutional clients of the firm, but did not rely on these comparisons to any significant extent in concluding that the management fees paid by the funds are reasonable.

Approval of the Sub-Advisory Contract among Putnam Management, Putnam Investments Limited and The Putnam Advisory Company, LLC for Putnam International Equity Fund

In July 2006, the Trustees approved a sub-advisory contract among Putnam Management, PIL and The Putnam Advisory Company, LLC (“PAC”) for Putnam International Equity Fund. The Contract Committee reviewed information provided by Putnam Management and, upon completion of this review, recommended, and the Independent Trustees approved, Putnam International Equity Fund’s sub-advisory contract with PAC, effective July 14, 2006.

The Trustees considered numerous factors they believe relevant in approving Putnam International Equity Fund’s sub-advisory contract with PAC, including Putnam Management’s belief that the interest of shareholders would be best served by using Putnam’s Tokyo investment professionals who are employed by PAC to provide investment recommendations for certain equity sleeves of Putnam International Equity Fund that are currently managed by Putnam Management or PIL, and PAC’s expertise with respect to Asian markets. The Trustees also considered that Japanese securities laws require a sub-advisory relationship among Putnam Management, PIL and PAC in order for Putnam’s Tokyo investment professionals to provide investment recommendations for Putnam International Equity Fund. The Trustees noted that Putnam Management or PIL, and not Putnam International Equity Fund, would pay the sub-management fee to PAC for its services and that the sub-management contract with PAC will not

G-5

reduce the nature, quality or overall level of service provided to Putnam International Equity Fund.

G-6

APPENDIX H – Other Similar Funds Advised by Putnam Management

The following table contains certain information regarding funds for which Putnam Management provides investment advisory services and that may have similar investment objectives and policies to your fund.

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam American  707,703,667  First $500 million  0.65%  4,373,306  Yes  High current 
Government    Next $500 million  0.55%      income with 
Income Fund    Next $500 million  0.50%      preservation of 
    Next $5 billion  0.45%      capital as its 
    Next $5 billion  0.425%      secondary 
    Next $5 billion  0.405%      objective. 
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       
Putnam AMT-Free  327,849,054  The lesser of 0.50%, or    1,790,563  Yes  High current 
Insured Municipal    First $500 million  0.60%      income exempt 
Fund    Next $500 million  0.50%      from federal 
    Next $500 million  0.45%      income tax. 
    Next $5 billion  0.40%       
    Next $5 billion  0.375%       
    Next $5 billion  0.355%       
    Next $5 billion  0.34%       
    Any excess thereafter  0.33%       
Putnam Arizona  89,150,402  The lesser of 0.50%, or    396,902  Yes  To provide as high 
Tax Exempt    First $500 million  0.60%      a level of current 
Income Fund    Next $500 million  0.50%      income exempt 
    Next $500 million  0.45%      from federal 
    Next $5 billion  0.40%      income tax and 
    Next $5 billion  0.375%      personal income 
    Next $5 billion  0.355%      tax (if any) of the 
    Next $5 billion  0.34%      state of Arizona as 
    Any excess over $21.5 billion  0.33%      Putnam 
            Management 
            believes is 
            consistent with 
            preservation of 
            capital. 
Putnam Asset  2,109,899,934  First $500 million  0.70%  10,841,716  Yes  Total return. 
Allocation:    Next $500 million  0.60%       
Balanced Portfolio    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess over $21.5 billion  0.43%       
Putnam Asset  985,940,217  First $500 million  0.70%  5,759,923  Yes  Total return 
Allocation:    Next $500 million  0.60%      consistent with 
Conservative    Next $500 million  0.55%      preservation of 
Portfolio    Next $5 billion  0.50%      capital. 
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess over $21.5 billion  0.43%       

H-1

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam Asset  2,156,488,751  First $500 million  0.70%  9,639,295  Yes  Capital 
Allocation: Growth    Next $500 million  0.60%      appreciation. 
Portfolio    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess over $21.5 billion  0.43%       
Putnam California  83,373,293  The lesser of 0.55%, or    531,472  Yes  To provide as high 
Investment Grade    First $500 million  0.65%      a level of current 
Municipal Trust    Next $500 million  0.55%      income free from 
    Next $500 million  0.50%      federal income tax 
    Next $5 billion  0.45%      and California 
    Next $5 billion  0.425%      personal income 
    Next $5 billion  0.405%      taxes as Putnam 
    Next $5 billion  0.39%      Management 
    Any excess thereafter  0.38%      believes is 
            consistent with the 
            preservation of 
            capital. 
Putnam California  2,076,820,792  The lesser of 0.50%, or    10,368,635  Yes  To provide as high 
Tax Exempt    First $500 million  0.60%      a level of current 
Income Fund    Next $500 million  0.50%      income exempt 
    Next $500 million  0.45%      from federal 
    Next $5 billion  0.40%      income tax and 
    Next $5 billion  0.375%      California personal 
    Next $5 billion  0.355%      income tax as 
    Next $5 billion  0.34%      Putnam 
    Any excess thereafter  0.33%      Management 
            believes to be 
            consistent with the 
            preservation of 
            capital. 
Putnam Capital  649,313,138  First $500 million  0.65%  4,388,833  Yes  Capital 
Appreciation Fund    Next $500 million  0.55%      appreciation. 
    Next $500 million  0.50%       
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess over $21.5 billion  0.38%       
Putnam Capital  1,125,906,050  First $500 million  0.65%  6,363,713  Yes  Long-term growth 
Opportunities Fund    Next $500 million  0.55%      of capital. 
    Next $500 million  0.50%       
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       
Putnam Classic  766,747,810  First $500 million  0.65%  4,836,159  Yes  Capital growth. 
Equity Fund    Next $500 million  0.55%      Current income is a 
    Next $500 million  0.50%      secondary goal. 
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       

H-2

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam Convertible  724,297,978  First $500 million  0.65%  4,231,616  Yes  Current income and 
Income-Growth    Next $500 million  0.55%      capital 
Trust    Next $500 million  0.50%      appreciation. 
    Next $5 billion  0.45%      Conservation of 
    Next $5 billion  0.425%      capital is a 
    Next $5 billion  0.405%      secondary 
    Next $5 billion  0.39%      objective. 
    Any excess thereafter  0.38%       
Putnam Discovery  850,247,984  First $500 million  0.70%  5,497,942  Yes  Long-term growth 
Growth Fund    Next $500 million  0.60%      of capital. 
    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       
Putnam Diversified  2,770,991,703  First $500 million  0.70%  17,403,729  Yes  To provide as high 
Income Trust    Next $500 million  0.60%      a level of current 
    Next $500 million  0.55%      income as Putnam 
    Next $5 billion  0.50%      Management 
    Next $5 billion  0.475%      believes is 
    Next $5 billion  0.455%      consistent with 
    Next $5 billion  0.44%      preservation of 
    Any excess thereafter  0.43%      capital. 
Putnam Equity  3,842,617,273  First $500 million  0.65%  18,067,258  Yes  Capital growth and 
Income Fund    Next $500 million  0.55%      current income. 
    Next $500 million  0.50%       
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       
Putnam Europe  560,853,928  First $500 million  0.80%  4,213,337  Yes  The fund seeks 
Equity Fund    Next $500 million  0.70%      capital 
    Next $500 million  0.65%      appreciation. 
    Next $5 billion  0.60%       
    Next $5 billion  0.575%       
    Next $5 billion  0.555%       
    Next $5 billion  0.54%       
    Any excess thereafter  0.53%       
Putnam Floating  494,289,793  First $500 million  0.65%  1,719,001  Yes  High current 
Rate Income Fund    Next $500 million  0.55%      income. 
    Next $500 million  0.50%      Preservation of 
    Next $5 billion  0.45%      capital is a 
    Next $5 billion  0.425%      secondary goal. 
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Next $5 billion  0.38%       
    Next $5 billion  0.37%       
    Next $5 billion  0.36%       
    Next $5 billion  0.35%       
    Next $5 billion  0.34%       
    Next $8.5 billion  0.33%       
    Any excess thereafter  0.32%       

H-3

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
The Putnam Fund  15,172,174,430  First $500 million  0.65%  67,376,969  Yes  Capital growth and 
for Growth and    Next $500 million  0.55%      current income. 
Income    Next $500 million  0.50%       
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Next $5 billion  0.38%       
    Next $5 billion  0.37%       
    Next $5 billion  0.36%       
    Next $5 billion  0.35%       
    Next $5 billion  0.34%       
    Next $8.5 billion  0.33%       
    Any excess over $55 billion  0.32%       
The George Putnam  4,654,483,340  First $500 million  0.65%  23,520,227  Yes  To provide a 
Fund of Boston    Next $500 million  0.55%      balanced 
    Next $500 million  0.50%      investment 
    Next $5 billion  0.45%      composed of a 
    Next $5 billion  0.425%      well-diversified 
    Next $5 billion  0.405%      portfolio of stocks 
    Next $5 billion  0.39%      and bonds which 
    Any excess thereafter  0.38%      produce both 
            capital growth and 
            current income. 
Putnam Global  2,116,008,457  First $500 million  0.80%  15,165,340  Yes  Capital 
Equity Fund    Next $500 million  0.70%      appreciation. 
    Next $500 million  0.65%       
    Next $5 billion  0.60%       
    Next $5 billion  0.575%       
    Next $5 billion  0.555%       
    Next $5 billion  0.54%       
    Next $5 billion  0.53%       
    Next $5 billion  0.52%       
    Next $5 billion  0.51%       
    Next $5 billion  0.50%       
    Next $5 billion  0.49%       
    Next $8.5 billion  0.48%       
    Any excess over $55 billion  0.47%       
Putnam Global  128,502,186  First $500 million  0.70%  528,321  Yes  High current 
Income Trust    Next $500 million  0.60%      income by 
    Next $500 million  0.55%      investing 
    Next $5 billion  0.50%      principally in debt 
    Next $5 billion  0.475%      securities of 
    Next $5 billion  0.455%      sovereign and 
    Next $5 billion  0.44%      private issuers 
    Any excess thereafter  0.43%      worldwide, 
            including 
            supranational 
            issuers. 
Putnam Global  627,944,661  First $500 million  0.70%  4,126,921  Yes  Capital 
Natural Resources    Next $500 million  0.60%      appreciation. 
Fund    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       

H-4

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam Growth  659,146,436  First $500 million  0.70%  2,913,736  Yes  Capital 
Opportunities Fund    Next $500 million  0.60%      appreciation. 
    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       
Putnam Health  2,267,488,061  First $500 million  0.70%  14,802,805  Yes  Capital 
Sciences Trust    Next $500 million  0.60%      appreciation. 
    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess over $21.5 billion  0.43%       
Putnam High  198,149,622  First $500 million  0.70%  1,372,004  Yes  To provide high 
Income Securities    Next $500 million  0.60%      current income as a 
Fund    Next $500 million  0.55%      primary objective 
    Next $5 billion  0.50%      and capital 
    Next $5 billion  0.475%      appreciation as a 
    Next $5 billion  0.455%      secondary 
    Next $5 billion  0.44%      objective. 
    Next $5 billion  0.43%       
    Next $5 billion  0.42%       
    Next $5 billion  0.41%       
    Next $5 billion  0.40%       
    Next $5 billion  0.39%       
    Next $8.5 billion  0.38%       
    Any excess thereafter  0.37%       
Putnam High Yield  801,711,721  First $500 million  0.70%  5,676,755  Yes  High current 
Advantage Fund    Next $500 million  0.60%      income. Capital 
    Next $500 million  0.55%      growth is a 
    Next $5 billion  0.50%      secondary goal 
    Next $5 billion  0.475%      when consistent 
    Next $5 billion  0.455%      with achieving high 
    Next $5 billion  0.44%      current income. 
    Any excess thereafter  0.43%       
Putnam High Yield  213,917,148  The lesser of 0.55%, or    1,448,462  Yes  To provide high 
Municipal Trust    First $500 million  0.65%      current income 
    Next $500 million  0.55%      exempt from 
    Next $500 million  0.50%      federal income tax. 
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       
Putnam High Yield  2,357,157,321  First $500 million  0.70%  13,784,128  Yes  High current 
Trust    Next $500 million  0.60%      income. Capital 
    Next $500 million  0.55%      growth is a 
    Next $5 billion  0.50%      secondary goal. 
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       

H-5

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam Income  2,447,632,260  First $500 million  0.65%  11,940,410  Yes  High current 
Fund    Next $500 million  0.55%      income consistent 
    Next $500 million  0.50%      with what Putnam 
    Next $5 billion  0.45%      management 
    Next $5 billion  0.425%      believes to be 
    Next $5 billion  0.405%      prudent risk. 
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       
Putnam Income  13,002,265  First $500 million  0.65%  0*   Yes  Current income 
Strategies Fund    Next $500 million  0.55%      consistent with 
    Next $500 million  0.50%      what Putnam 
    Next $5 billion  0.45%      Management 
    Next $5 billion  0.425%      believes to be 
    Next $5 billion  0.405%      prudent risk. Its 
    Next $5 billion  0.39%      secondary objective 
    Next $5 billion  0.38%      is capital 
    Next $5 billion  0.37%      appreciation. 
    Next $5 billion  0.36%       
    Next $5 billion  0.35%       
    Next $5 billion  0.34%       
    Next $8.5 billion  0.33%       
    Any excess thereafter  0.32%       
Putnam  1,783,630,400  First $500 million  1.00%  13,345,775  Yes  Long-term capital 
International    Next $500 million  0.90%      appreciation. 
Capital    Next $500 million  0.85%       
Opportunities Fund    Next $5 billion  0.80%       
    Next $5 billion  0.775%       
    Next $5 billion  0.755%       
    Next $5 billion  0.74%       
    Any excess thereafter  0.73%       
Putnam  7,003,286,336  First $500 million  0.80%  39,425,440  Yes  Capital 
International Equity    Next $500 million  0.70%      appreciation. 
Fund    Next $500 million  0.65%       
    Next $5 billion  0.60%       
    Next $5 billion  0.575%       
    Next $5 billion  0.555%       
    Next $5 billion  0.54%       
    Any excess over $21.5 billion  0.53%       
Putnam  1,037,228,946  First $500 million  0.80%  5,732,946  Yes  Capital growth. 
International    Next $500 million  0.70%      Current income is a 
Growth and Income    Next $500 million  0.65%      secondary 
Fund    Next $5 billion  0.60%      objective. 
    Next $5 billion  0.575%       
    Next $5 billion  0.555%       
    Next $5 billion  0.54%       
    Any excess thereafter  0.53%       

* Due to expense limitations in effect during the fund’s most recent fiscal year, Putnam Income Strategies Fund did not pay a management fee to Putnam Management.

H-6

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam  811,831,094  First $500 million  1.00%  6,580,631  Yes  Long-term capital 
International New    Next $500 million  0.90%      appreciation. 
Opportunities Fund    Next $500 million  0.85%       
    Next $5 billion  0.80%       
    Next $5 billion  0.775%       
    Next $5 billion  0.755%       
    Next $5 billion  0.74%       
    Any excess thereafter  0.73%       
Putnam Investment  363,338,832  The lesser of 0.55%, or    2,059,634  Yes  To provide as high 
Grade Municipal    First $500 million  0.65%      a level of current 
Trust    Next $500 million  0.55%      income exempt 
    Next $500 million  0.50%      from federal 
    Next $5 billion  0.45%      income tax as 
    Next $5 billion  0.425%      Putnam 
    Next $5 billion  0.405%      Management 
    Next $5 billion  0.39%      believes to be 
    Any excess thereafter  0.38%      consistent with the 
            preservation of 
            capital. 
Putnam Investors  4,107,665,166  First $500 million  0.65%  19,513,803  Yes  Long-term growth 
Fund    Next $500 million  0.55%      of capital and any 
    Next $500 million  0.50%      increased income 
    Next $5 billion  0.45%      that results from 
    Next $5 billion  0.425%      this growth. 
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess over $21.5 billion  0.38%       
Putnam Limited  439,936,540  The lesser of 0.50%, or    2,392,584  Yes  As high a level of 
Duration    First $500 million  0.60%      current income as 
Government    Next $500 million  0.50%      Putnam 
Income Fund    Next $500 million  0.45%      Management 
    Next $5 billion  0.40%      believes is 
    Next $5 billion  0.375%      consistent with 
    Next $5 billion  0.355%      preservation of 
    Next $5 billion  0.34%      capital. 
    Any excess over $21.5 billion  0.33%       
Putnam Managed  548,638,387  The lesser of 0.55%, or    3,167,820  Yes  To provide high 
Municipal Income    First $500 million  0.65%      current income free 
Trust    Next $500 million  0.55%      from federal 
    Next $500 million  0.50%      income tax. 
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       

H-7

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam  309,261,461  The lesser of 0.50%, or    1,675,201  Yes  As high a level of 
Massachusetts Tax    First $500 million  0.60%      current income 
Exempt Income    Next $500 million  0.50%      exempt from 
Fund    Next $500 million  0.45%      federal income tax 
    Next $5 billion  0.40%      and personal 
    Next $5 billion  0.375%      income tax (if any) 
    Next $5 billion  0.355%      of the 
    Next $5 billion  0.34%      Commonwealth of 
    Any excess over $21.5 billion  0.33%      Massachusetts as 
            Putnam 
            Management 
            believes is 
            consistent with 
            preservation of 
            capital. 
Putnam Master  654,273,418  First $500 million  0.75%  4,797,486  Yes  With equal 
Intermediate    Next $500 million  0.65%      emphasis, to 
Income Trust    Next $500 million  0.60%      provide high 
    Next $5 billion  0.55%      current income and 
    Next $5 billion  0.525%      relative stability of 
    Next $5 billion  0.505%      net asset value. 
    Next $5 billion  0.49%       
    Next $5 billion  0.48%       
    Next $5 billion  0.47%       
    Next $5 billion  0.46%       
    Next $5 billion  0.45%       
    Next $5 billion  0.44%       
    Next $8.5 billion  0.43%       
    Any excess thereafter  0.42%       
Putnam Michigan  117,691,883  The lesser of 0.50%, or    648,238  Yes  As high a level of 
Tax Exempt    First $500 million  0.60%      current income 
Income Fund    Next $500 million  0.50%      exempt from 
    Next $500 million  0.45%      federal income tax 
    Next $5 billion  0.40%      and personal 
    Next $5 billion  0.375%      income tax (if any) 
    Next $5 billion  0.355%      of the state of 
    Next $5 billion  0.34%      Michigan as 
    Any excess over $21.5 billion  0.33%      Putnam 
            Management 
            believes is 
            consistent with 
            preservation of 
            capital. 
Putnam Mid Cap  973,670,094  First $500 million  0.70%  5,871,795  Yes  Capital 
Value Fund    Next $500 million  0.60%      appreciation and, as 
    Next $500 million  0.55%      a secondary 
    Next $5 billion  0.50%      objective, current 
    Next $5 billion  0.475%      income. 
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       

H-8

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam Minnesota  108,716,812  The lesser of 0.50%, or    538,350  Yes  As high a level of 
Tax Exempt    First $500 million  0.60%      current income 
Income Fund    Next $500 million  0.50%      exempt from 
    Next $500 million  0.45%      federal income tax 
    Next $5 billion  0.40%      and personal 
    Next $5 billion  0.375%      income tax (if any) 
    Next $5 billion  0.355%      of the state of 
    Next $5 billion  0.34%      Minnesota as 
    Any excess over $21.5 billion  0.33%      Putnam 
            Management 
            believes is 
            consistent with 
            preservation of 
            capital. 
Putnam Money  3,278,464,902  First $100 million  0.50%  10,390,443  Yes  As high a rate of 
Market Fund    Next $100 million  0.40%      current income as 
    Next $300 million  0.35%      Putnam 
    Next $500 million  0.325%      Management 
    Next $500 million  0.30%      believes is 
    Next $2.5 billion  0.275%      consistent with 
    Next $2.5 billion  0.25%      preservation of 
    Next $5 billion  0.225%      capital and 
    Next $5 billion  0.205%      maintenance of 
    Next $5 billion  0.19%      liquidity. 
    Any excess thereafter  0.18%       
Putnam Municipal  363,454,277  The lesser of 0.55%, or    2,290,901  Yes  To provide as high 
Bond Fund    First $500 million  0.65%      a level of current 
    Next $500 million  0.55%      income exempt 
    Next $500 million  0.50%      from federal 
    Next $5 billion  0.45%      income tax as 
    Next $5 billion  0.425%      Putnam 
    Next $5 billion  0.405%      Management 
    Next $5 billion  0.39%      believes is 
    Any excess thereafter  0.38%      consistent with 
            preservation of 
            capital. 
Putnam Municipal  322,775,012  The lesser of 0.35%, or    1,394,604  Yes  The fund seeks to 
Opportunities    First $500 million  0.45%      provide as high a 
Trust**    Next $500 million  0.35%      level of current 
    Next $500 million  0.30%      income free from 
    Next $5 billion  0.25%      federal income tax 
    Next $5 billion  0.225%      as Putnam 
    Next $5 billion  0.205%      Management 
    Next $5 billion  0.19%      believes is 
    Any excess thereafter  0.18%      consistent with the 
            preservation of 
            capital. 

** The management fee schedule for this fund represents fees paid only for investment advisory services. As described in this proxy statement, the fund also paid administrative fees to Putnam Management for administrative services.

H-9

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam New Jersey  204,244,200  The lesser of 0.50%, or    1,101,027  Yes  As high a level of 
Tax Exempt    First $500 million  0.60%      current income 
Income Fund    Next $500 million  0.50%      exempt from 
    Next $500 million  0.45%      federal income tax 
    Next $5 billion  0.40%      and personal 
    Next $5 billion  0.375%      income tax (if any) 
    Next $5 billion  0.355%      of the state of New 
    Next $5 billion  0.34%      Jersey as Putnam 
    Any excess over $21.5 billion  0.33%      Management 
            believes is 
            consistent with 
            preservation of 
            capital. 
Putnam New  4,697,260,397  First $500 million  0.70%  30,814,799  Yes  Long-term capital 
Opportunities Fund    Next $500 million  0.60%      appreciation. 
    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Next $5 billion  0.43%       
    Next $5 billion  0.42%       
    Next $5 billion  0.41%       
    Next $5 billion  0.40%       
    Next $5 billion  0.39%       
    Next $8.5 billion  0.38%       
    Any excess above $55 billion  0.37%       
Putnam New Value  2,074,162,525  First $500 million  0.70%  11,478,217  Yes  Long-term capital 
Fund    Next $500 million  0.60%      appreciation. 
    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       
Putnam New York  48,297,644  The lesser of 0.55%, or    302,665  Yes  To provide as high 
Investment Grade    First $500 million  0.65%      a level of current 
Municipal Trust    Next $500 million  0.55%      income free from 
    Next $500 million  0.50%      federal income tax 
    Next $5 billion  0.45%      and New York 
    Next $5 billion  0.425%      state and city 
    Next $5 billion  0.405%      personal income 
    Next $5 billion  0.39%      taxes as Putnam 
    Any excess thereafter  0.38%      Management 
            believes is 
            consistent with the 
            preservation of 
            capital. 

H-10

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam New York  1,158,329,137  The lesser of 0.50%, or    5,972,705  Yes  As high a level of 
Tax Exempt    First $500 million  0.60%      current income 
Income Fund    Next $500 million  0.50%      exempt from 
    Next $500 million  0.45%      federal income tax 
    Next $5 billion  0.40%      and New York 
    Next $5 billion  0.375%      State and City 
    Next $5 billion  0.355%      personal income 
    Next $5 billion  0.34%      taxes as Putnam 
    Any excess over $21.5 billion  0.33%      Management 
            believes to be 
            consistent with 
            preservation of 
            capital. 
Putnam Ohio Tax  162,665,349  The lesser of 0.50%, or    849,434  Yes  As high a level of 
Exempt Income    First $500 million  0.60%      current income 
Fund    Next $500 million  0.50%      exempt from 
    Next $500 million  0.45%      federal income tax 
    Next $5 billion  0.40%      and personal 
    Next $5 billion  0.375%      income tax (if any) 
    Next $5 billion  0.355%      of the state of Ohio 
    Next $5 billion  0.34%      as Putnam 
    Any excess over $21.5 billion  0.33%      Management 
            believes is 
            consistent with 
            preservation of 
            capital. 
Putnam OTC &  707,529,454  First $500 million  0.70%  6,255,747  Yes  Capital 
Emerging Growth    Next $500 million  0.60%      appreciation. 
Fund    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       
Putnam  170,561,420  The lesser of 0.50%, or    926,507  Yes  As high a level of 
Pennsylvania Tax    First $500 million  0.60%      current income 
Exempt Income    Next $500 million  0.50%      exempt from 
Fund    Next $500 million  0.45%      federal income tax 
    Next $5 billion  0.40%      and personal 
    Next $5 billion  0.375%      income tax (if any) 
    Next $5 billion  0.355%      of the 
    Next $5 billion  0.34%      Commonwealth of 
    Any excess over $21.5 billion  0.33%      Pennsylvania as 
            Putnam 
            Management 
            believes is 
            consistent with 
            preservation of 
            capital. 

H-11

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam Premier  1,290,918,588  First $500 million  0.75%  8,927,294  Yes  To provide high 
Income Trust    Next $500 million  0.65%      current income. 
    Next $500 million  0.60%       
    Next $5 billion  0.55%       
    Next $5 billion  0.525%       
    Next $5 billion  0.505%       
    Next $5 billion  0.49%       
    Next $5 billion  0.48%       
    Next $5 billion  0.47%       
    Next $5 billion  0.46%       
    Next $5 billion  0.45%       
    Next $5 billion  0.44%       
    Next $8.5 billion  0.43%       
    Any excess thereafter  0.42%       
Putnam Prime  6,828,544,083    0.20%  2,183,172  Yes  As high a rate of 
Money Market            current income as 
Fund***            Putnam 
            Management 
            believes is 
            consistent with 
            preservation of 
            capital and 
            maintenance of 
            liquidity. 
Putnam Research  825,539,509  First $500 million  0.65%  5,269,897  Yes  Capital 
Fund****    Next $500 million  0.55%      appreciation. 
    Next $500 million  0.50%       
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       

*** The management fee schedule for this fund represents fees paid only for investment advisory services. As described in this proxy statement, the fund also pays administrative fees to Putnam Management for administrative services.

**** A revised management contract for this fund was recently approved by shareholders on December 14, 2006 to remove the incentive fee component from the management fee. Under the fund's previous management contract, the fund paid Putnam Management a quarterly fee consisting of an assets-based component and an incentive component. The base fee was subject to a performance adjustment based on the investment performance of the fund compared to changes in the value of the Standard & Poor’s 500 (“S&P 500”) composite Stock Price Index. Performance was calculated for these purposes at the beginning of each calendar quarter, for the thirty-six month period immediately preceding such quarter or the life of the fund, if shorter. The applicable base fee was increased or decreased for each calendar quarter by an incentive payment or penalty at the annual rate of 0.01% of the fund’s average net assets for each 1.00% increment by which the fund outperformed or underperformed the S&P 500 in excess of 3.00%, subject to a maximum increase or decrease of 0.07% of average net assets. The revised management contract provides for an eighteen-month transition period during which the fund's fee will be the lesser of (i) the base fee and (ii) the performance-adjusted fee that would have been calculated under the previous contract. The fund is currently in this transition period, which will end on June 30, 2008, after which the base management fee will apply without performance-based adjustments.

H-12

        Has   
      Amount of  compensation   
      Management  been waived,   
      Fee Paid in the  reduced or   
      Most Recent  otherwise   
      Fiscal Year  agreed to be   
      (after applicable  reduced   
      waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule  if any) ($)  contract?  Objective 
Putnam  82,508,709  0.05%  29,736  Yes  Capital 
RetirementReady          appreciation and 
2010 Fund          current income 
          consistent with a 
          decreasing 
          emphasis on capital 
          appreciation and an 
          increasing 
          emphasis on 
          current income as it 
          approaches its 
          target date. 
Putnam  150,347,628  0.05%  58,932  Yes  Capital 
RetirementReady          appreciation and 
2015 Fund          current income 
          consistent with a 
          decreasing 
          emphasis on capital 
          appreciation and an 
          increasing 
          emphasis on 
          current income as it 
          approaches its 
          target date. 
Putnam  162,096,359  0.05%  64,225  Yes  Capital 
RetirementReady          appreciation and 
2020 Fund          current income 
          consistent with a 
          decreasing 
          emphasis on capital 
          appreciation and an 
          increasing 
          emphasis on 
          current income as it 
          approaches its 
          target date. 
Putnam  133,811,161  0.05%  49,571  Yes  Capital 
RetirementReady          appreciation and 
2025 Fund          current income 
          consistent with a 
          decreasing 
          emphasis on capital 
          appreciation and an 
          increasing 
          emphasis on 
          current income as it 
          approaches its 
          target date. 

H-13

        Has   
      Amount of  compensation   
      Management  been waived,   
      Fee Paid in the  reduced or   
      Most Recent  otherwise   
      Fiscal Year  agreed to be   
      (after applicable  reduced   
      waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule  if any) ($)  contract?  Objective 
Putnam  101,690,671  0.05%  25,310  Yes  Capital 
RetirementReady          appreciation and 
2030 Fund          current income 
          consistent with a 
          decreasing 
          emphasis on capital 
          appreciation and an 
          increasing 
          emphasis on 
          current income as it 
          approaches its 
          target date. 
Putnam  68,748,550  0.05%  6,096  Yes  Capital 
RetirementReady          appreciation and 
2035 Fund          current income 
          consistent with a 
          decreasing 
          emphasis on capital 
          appreciation and an 
          increasing 
          emphasis on 
          current income as it 
          approaches its 
          target date. 
Putnam  44,524,474  0.05%  0†  Yes  Capital 
RetirementReady          appreciation and 
2040 Fund          current income 
          consistent with a 
          decreasing 
          emphasis on capital 
          appreciation and an 
          increasing 
          emphasis on 
          current income as it 
          approaches its 
          target date. 
Putnam  34,373,111  0.05%  0†  Yes  Capital 
RetirementReady          appreciation and 
2045 Fund          current income 
          consistent with a 
          decreasing 
          emphasis on capital 
          appreciation and an 
          increasing 
          emphasis on 
          current income as it 
          approaches its 
          target date. 

† Due to expense limitations in effect during the most recent fiscal year, Putnam RetirementReady 2040 Fund, Putnam RetirementReady 2045 Fund, Putnam RetirementReady 2050 Fund and Putnam RetirementReady Maturity Fund did not pay management fees to Putnam Management.

H-14

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam  8,214,863    0.05%  0†  Yes  Capital 
RetirementReady            appreciation and 
2050 Fund            current income 
            consistent with a 
            decreasing 
            emphasis on capital 
            appreciation and an 
            increasing 
            emphasis on 
            current income as it 
            approaches its 
            target date. 
Putnam  48,280,916    0.05%  0†  Yes  As high a rate of 
RetirementReady            current income as 
Maturity Fund            Putnam 
            Management 
            believes is 
            consistent with 
            preservation of 
            capital. 
Putnam Small Cap  499,218,523  First $500 million  1.00%  3,840,676  Yes  Capital 
Growth Fund    Next $500 million  0.90%      appreciation. 
    Next $500 million  0.85%       
    Next $5 billion  0.80%       
    Next $5 billion  0.775%       
    Next $5 billion  0.755%       
    Next $5 billion  0.74%       
    Any excess thereafter  0.73%       
Putnam Small Cap  774,255,867  First $500 million  0.80%  6,409,797  Yes  Capital 
Value Fund    Next $500 million  0.70%      appreciation. 
    Next $500 million  0.65%       
    Next $5 billion  0.60%       
    Next $5 billion  0.575%       
    Next $5 billion  0.555%       
    Next $5 billion  0.54%       
    Any excess thereafter  0.53%       
Putnam Tax  1,200,407,523  The lesser of 0.50%, or    6,301,826  Yes  As high a level of 
Exempt Income    First $500 million  0.60%      current income 
Fund    Next $500 million  0.50%      exempt from 
    Next $500 million  0.45%      federal income tax 
    Next $5 billion  0.40%      as Putnam 
    Next $5 billion  0.375%      Management 
    Next $5 billion  0.355%      believes to be 
    Next $5 billion  0.34%      consistent with 
    Any excess thereafter  0.33%      preservation of 
            capital. 

H-15

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam Tax  130,101,465  First $500 million  0.45%  390,524  Yes  As high a level of 
Exempt Money    Next $500 million  0.35%      current income 
Market Fund    Next $500 million  0.30%      exempt from 
    Next $5 billion  0.25%      federal income tax 
    Next $5 billion  0.225%      as Putnam 
    Next $5 billion  0.205%      Management 
    Next $5 billion  0.19%      believes is 
    Any excess thereafter  0.18%      consistent with 
            preservation of 
            capital, 
            maintenance of 
            liquidity and 
            stability of 
            principal. 
Putnam Tax-Free  192,025,045  The lesser of 0.55%, or    1,177,515  Yes  The fund seeks to 
Health Care Fund    First $500 million  0.65%      provide as high a 
    Next $500 million  0.55%      level of current 
    Next $500 million  0.50%      income free from 
    Next $5 billion  0.45%      federal income tax 
    Next $5 billion  0.425%      as Putnam 
    Next $5 billion  0.405%      Management 
    Next $5 billion  0.39%      believes is 
    Any excess over $21.5 billion  0.38%      consistent with the 
            preservation of 
            capital. 
Putnam Tax-Free  1,463,606,993  The lesser of 0.50%, or    7,815,394  Yes  High current 
High Yield Fund    First $500 million  0.60%      income exempt 
    Next $500 million  0.50%      from federal 
    Next $500 million  0.45%      income tax. 
    Next $5 billion  0.40%       
    Next $5 billion  0.375%       
    Next $5 billion  0.355%       
    Next $5 billion  0.34%       
    Any excess thereafter  0.33%       
Putnam Tax Smart  282,128,891  First $500 million  0.70%  1,914,939  Yes  Long-term growth 
Equity Fund    Next $500 million  0.60%      of capital on an 
    Next $500 million  0.55%      after-tax basis. 
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       
Putnam U.S.  1,209,378,791  First $500 million  0.57%  6,820,873  Yes  As high a level of 
Government    Next $500 million  0.475%      current income as 
Income Trust    Next $500 million  0.4275%      Putnam 
    Any excess over $1.5 billion  0.38%      Management 
            believes is 
            consistent with 
            preservation of 
            capital. 

H-16

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam Utilities  622,775,796  First $500 million  0.70%  3,727,421  Yes  Capital growth and 
Growth and Income    Next $500 million  0.60%      current income. 
Fund    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       
Putnam Vista Fund  2,389,026,658  First $500 million  0.65%  14,101,874  Yes  Capital 
    Next $500 million  0.55%      appreciation. 
    Next $500 million  0.50%       
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess over $21.5 billion  0.38%       
Putnam Voyager  8,241,571,476  First $500 million  0.70%  51,035,233  Yes  Capital 
Fund    Next $500 million  0.60%      appreciation. 
    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Next $5 billion  0.43%       
    Next $5 billion  0.42%       
    Next $5 billion  0.41%       
    Next $5 billion  0.40%       
    Next $5 billion  0.39%       
    Next $8.5 billion  0.38%       
    Above $55 billion  0.37%       
Putnam VT  149,012,146  First $500 million  0.65%  693,021  Yes  High current 
American    Next $500 million  0.55%      income with 
Government    Next $500 million  0.50%      preservation of 
Income Fund    Next $5 billion  0.45%      capital as a 
    Next $5 billion  0.425%      secondary 
    Next $5 billion  0.405%      objective. 
    Next $5 billion  0.39%       
    Next $5 billion  0.38%       
    Next $5 billion  0.37%       
    Next $5 billion  0.36%       
    Next $5 billion  0.35%       
    Any excess thereafter  0.34%       
Putnam VT Capital  50,843,215  First $500 million  0.65%  225,344  Yes  Capital 
Appreciation Fund    Next $500 million  0.55%      appreciation. 
    Next $500 million  0.50%       
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Next $5 billion  0.38%       
    Next $5 billion  0.37%       
    Next $5 billion  0.36%       
    Next $5 billion  0.35%       
    Next $5 billion  0.34%       
    Next $8.5 billion  0.33%       
    Any excess thereafter  0.32%       

H-17

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam VT Capital  46,989,019  First $500 million  0.65%  222,790  Yes  Long-term growth 
Opportunities Fund    Next $500 million  0.55%      of capital. 
    Next $500 million  0.50%       
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       
Putnam VT  36,740,778  First $500 million  0.70%  105,127  Yes  Long-term growth 
Discovery Growth    Next $500 million  0.60%      of capital. 
Fund    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Next $5 billion  0.43%       
    Next $5 billion  0.42%       
    Next $5 billion  0.41%       
    Next $5 billion  0.40%       
    Next $5 billion  0.39%       
    Next $8.5 billion  0.38%       
    Any excess thereafter  0.37%       
Putnam VT  479,813,483  First $500 million  0.70%  2,933,530  Yes  As high a level of 
Diversified Income    Next $500 million  0.60%      current income as 
Fund    Next $500 million  0.55%      Putnam 
    Next $5 billion  0.50%      Management 
    Next $5 billion  0.475%      believes is 
    Next $5 billion  0.455%      consistent with 
    Next $5 billion  0.44%      preservation of 
    Any excess thereafter  0.43%      capital. 
Putnam VT Equity  241,424,798  First $500 million  0.65%  1,326,897  Yes  Capital growth and 
Income Fund    Next $500 million  0.55%      current income. 
    Next $500 million  0.50%       
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       
Putnam VT The  608,279,822  First $500 million  0.65%  3,969,447  Yes  To provide a 
George Putnam    Next $500 million  0.55%      balanced 
Fund of Boston    Next $500 million  0.50%      investment 
    Next $5 billion  0.45%      composed of a well 
    Next $5 billion  0.425%      diversified 
    Next $5 billion  0.405%      portfolio of stocks 
    Next $5 billion  0.39%      and bonds which 
    Any excess thereafter  0.38%      produce both 
            capital growth and 
            current income. 
Putnam VT Global  400,137,286  First $500 million  0.70%  2,392,952  Yes  A high level of 
Asset Allocation    Next $500 million  0.60%      long-term total 
Fund    Next $500 million  0.55%      return consistent 
    Next $5 billion  0.50%      with preservation 
    Next $5 billion  0.475%      of capital. 
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       

H-18

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam VT Global  608,067,124  First $500 million  0.80%  4,692,325  Yes  Capital 
Equity Fund    Next $500 million  0.70%      appreciation. 
    Next $500 million  0.65%       
    Next $5 billion  0.60%       
    Next $5 billion  0.575%       
    Next $5 billion  0.555%       
    Next $5 billion  0.54%       
    Any excess thereafter  0.53%       
Putnam VT Growth  4,101,216,725  First $500 million  0.65%  20,729,712  Yes  Capital growth and 
and Income Fund    Next $500 million  0.55%      current income. 
    Next $500 million  0.50%       
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       
Putnam VT Growth  50,923,698  First $500 million  0.70%  243,122  Yes  Capital 
Opportunities Fund    Next $500 million  0.60%      appreciation. 
    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Next $5 billion  0.43%       
    Any excess thereafter  0.42%       
Putnam VT Health  270,659,925  First $500 million  0.70%  2,204,609  Yes  Capital 
Sciences Fund    Next $500 million  0.60%      appreciation. 
    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       
Putnam VT High  599,035,287  First $500 million  0.70%  3,720,493  Yes  High current 
Yield Fund    Next $500 million  0.60%      income. Capital 
    Next $500 million  0.55%      growth is a 
    Next $5 billion  0.50%      secondary goal 
    Next $5 billion  0.475%      when consistent 
    Next $5 billion  0.455%      with achieving high 
    Next $5 billion  0.44%      current income. 
    Any excess thereafter  0.43%       
Putnam VT Income  737,543,099  First $500 million  0.65%  3,498,163  Yes  High current 
Fund    Next $500 million  0.55%      income consistent 
    Next $500 million  0.50%      with what Putnam 
    Next $5 billion  0.45%      Management 
    Next $5 billion  0.425%      believes to be 
    Next $5 billion  0.405%      prudent risk. 
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       
Putnam VT  1,267,657,390  First $500 million  0.80%  8,271,996  Yes  Capital 
International Equity    Next $500 million  0.70%      appreciation. 
Fund    Next $500 million  0.65%       
    Next $5 billion  0.60%       
    Next $5 billion  0.575%       
    Next $5 billion  0.555%       
    Next $5 billion  0.54%       
    Any excess thereafter  0.53%       

H-19

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam VT  460,469,163  First $500 million  0.80%  2,838,706  Yes  Capital growth. 
International    Next $500 million  0.70%      Current income is a 
Growth and Income    Next $500 million  0.65%      secondary 
Fund    Next $5 billion  0.60%      objective. 
    Next $5 billion  0.575%       
    Next $5 billion  0.555%       
    Next $5 billion  0.54%       
    Any excess thereafter  0.53%       
Putnam VT  287,674,855  First $500 million  1.00%  2,485,049  Yes  Long-term capital 
International New    Next $500 million  0.90%      appreciation. 
Opportunities Fund    Next $500 million  0.85%       
    Next $5 billion  0.80%       
    Next $5 billion  0.775%       
    Next $5 billion  0.755%       
    Next $5 billion  0.74%       
    Any excess thereafter  0.73%       
Putnam VT  494,282,635  First $500 million  0.65%  3,216,355  Yes  Long-term growth 
Investors Fund    Next $500 million  0.55%      of capital and any 
    Next $500 million  0.50%      increased income 
    Next $5 billion  0.45%      that results from 
    Next $5 billion  0.425%      this growth. 
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       
Putnam VT Mid  95,124,663  First $500 million  0.70%  634,565  Yes  Capital 
Cap Value Fund    Next $500 million  0.60%      appreciation and, as 
    Next $500 million  0.55%      a secondary 
    Next $5 billion  0.50%      objective, current 
    Next $5 billion  0.475%      income. 
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       
Putnam VT Money  399,752,655  First $500 million  0.45%  1,529,264  Yes  As high a rate of 
Market Fund    Next $500 million  0.35%      current income as 
    Next $500 million  0.30%      Putnam 
    Next $5 billion  0.25%      Management 
    Next $5 billion  0.225%      believes is 
    Next $5 billion  0.205%      consistent with 
    Next $5 billion  0.19%      preservation of 
    Any excess thereafter  0.18%      capital and 
            maintenance of 
            liquidity. 
Putnam VT New  1,291,099,249  First $500 million  0.70%  8,663,759  Yes  Long-term capital 
Opportunities Fund    Next $500 million  0.60%      appreciation. 
    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       

H-20

          Has   
        Amount of  compensation   
        Management  been waived,   
        Fee Paid in the  reduced or   
        Most Recent  otherwise   
        Fiscal Year  agreed to be   
        (after applicable  reduced   
        waivers and  under any  Current 
  Net Assets as of  Current Management  reimbursements,  applicable  Investment 
Fund  December 31, 2006 ($)  Fee Schedule    if any) ($)  contract?  Objective 
Putnam VT New  679,407,446  First $500 million  0.70%  4,475,605  Yes  Long-term capital 
Value Fund    Next $500 million  0.60%      appreciation. 
    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       
Putnam VT OTC &  79,065,231  First $500 million  0.70%  575,537  Yes  Capital 
Emerging Growth    Next $500 million  0.60%      appreciation. 
Fund    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       
Putnam VT  177,820,555  First $500 million  0.65%  1,213,099  Yes  The fund seeks 
Research Fund    Next $500 million  0.55%      capital 
    Next $500 million  0.50%      appreciation. 
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       
Putnam VT Small  978,000,195  First $500 million  0.80%  6,827,461  Yes  Capital 
Cap Value Fund    Next $500 million  0.70%      appreciation. 
    Next $500 million  0.65%       
    Next $5 billion  0.60%       
    Next $5 billion  0.575%       
    Next $5 billion  0.555%       
    Next $5 billion  0.54%       
    Any excess thereafter  0.53%       
Putnam VT Utilities  382,902,568  First $500 million  0.70%  2,437,187  Yes  Capital growth and 
Growth and Income    Next $500 million  0.60%      current income. 
Fund    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       
Putnam VT Vista  420,426,636  First $500 million  0.65%  3,006,605  Yes  Capital 
Fund    Next $500 million  0.55%      appreciation. 
    Next $500 million  0.50%       
    Next $5 billion  0.45%       
    Next $5 billion  0.425%       
    Next $5 billion  0.405%       
    Next $5 billion  0.39%       
    Any excess thereafter  0.38%       
Putnam VT  1,860,346,341  First $500 million  0.70%  11,832,070  Yes  Capital 
Voyager Fund    Next $500 million  0.60%      appreciation. 
    Next $500 million  0.55%       
    Next $5 billion  0.50%       
    Next $5 billion  0.475%       
    Next $5 billion  0.455%       
    Next $5 billion  0.44%       
    Any excess thereafter  0.43%       

H-21

The following table contains certain information regarding other funds for which Putnam Management provides investment advisory services as a sub-adviser. Unlike the other funds addressed in this proxy statement, Putnam Management does not provide administrative or other services to these funds.

          Has     
          compensation     
          been waived,     
          reduced or     
        Amount of  otherwise     
        Sub-Advisory  agreed to be     
  Net Assets as      Fee Paid in the  reduced under  Current   
  of December      Most Recent  any applicable  Investment  Fiscal Year 
Fund  31, 2006 ($)  Sub-Advisory Fee Rate  Fiscal Year ($)  contract?  Objective   
Met Investors  44,828,654  0.54% of average daily net  244,961  No  Long-term  December 31, 
Series Trust:    assets††        growth of  2006 
Met/Putnam            capital.   
Capital               
Opportunities               
Portfolio               
 
Valic Company I:  432,979,141  0.50% of average daily net  17,697√  No  Capital  May 31, 2006 
Global Equity Fund    assets††        appreciation.   
 
Valic Company I:  185,427,002  0.63% of average daily net  14,918√  No  To produce  May 31, 2006 
Small Cap Special    assets††        growth of   
Values Fund √√            capital by   
            investing   
            primarily in   
            common   
            stocks.   
Seasons Series  393,715,244  0.45% of average daily net  1,728,770  Yes  Capital  March 31, 
Trust – Asset    assets††        appreciation.  2006 
Allocation:               
Diversified Growth               
Portfolio               
 
JNL/Putnam Equity  141,960,660  First $150 million  0.45%  694,815  No  Long-term  December 31, 
Fund    Next $150 million  0.35%      capital growth.  2006 
    Excess thereafter  0.30%         
JNL/Putnam  31,233,273  First $250 million  0.475%  188,472  No  Capital  December 31, 
Midcap Growth    Excess thereafter  0.40%      appreciation.  2006 
Fund               
 
SunAmerica Series  234,230,726  First $100 million  0.85%  1,891,099  No  Long-term  January 31, 
Trust Emerging    Next $100 million  0.80%      capital  2007 
Markets Portfolio    Excess thereafter  0.75%      appreciation.   
 
SunAmerica Series  455,306,042  First $150 million  0.65%  2,227,733  No  Growth of  January 31, 
Trust: International    Next $150 million  0.55%      capital, and  2007 
Growth & Income    Excess thereafter  0.45%      secondarily,   
Portfolio            current income.   
 
SunAmerica Series  170,785,085  First $150 million  0.50%  709,398  Yes  Capital  January 31, 
Trust: Putnam    Next $150 million  0.45%      appreciation.  2007 
Growth: Voyager    Excess thereafter  0.35%         
Portfolio               

†† The effective annual management fee rate is provided for these funds as the management fee schedule for each fund is not publicly disclosed.

√ These amounts represent fees paid by each fund for a partial fiscal year since each fund’s inception was December 5, 2005.

√√ Putnam Management currently sub-advises approximately 50% of the fund’s assets, with the remainder being advised by another investment adviser. The net assets provided here represent only those assets of the fund sub-advised by Putnam Management.

H-22

APPENDIX I – Payments to Putnam Management and its Affiliates

The following fees were paid by the funds to Putnam Management and its affiliates during each fund’s most recent fiscal year (other than under a management contract). These services will continue to be provided after the proposed management contract is approved; however, the funds have retained State Street Bank and Trust Company as custodian, and it is expected that Putnam Fiduciary Trust Company’s service as custodian will terminate during the first half of 2007 when all of the funds’ assets in its custody or the custody of its sub-custodian have been transferred into State Street Bank and Trust Company’s safekeeping.

Also, as described in this proxy statement, Putnam Prime Money Market Fund and Putnam Municipal Opportunities Trust paid administrative services fees to Putnam Management. Please refer to the footnotes to these particular funds in Appendix E for information about the administrative services fees paid to Putnam Management during the most recent fiscal year.

  Fees paid to Putnam  Fees paid to Putnam  Fees paid to Putnam Retail   
  Fiduciary Trust Company  Fiduciary Trust  Management Limited   
  for serving as investor  Company for serving  Partnership pursuant to   
Fund  servicing agent ($)*  as custodian ($)*  distribution plans ($)  Fiscal Year End 
Putnam American  1,306,503  236,148  2,407,457  September 30, 2006 
Government         
Income Fund         
Putnam AMT-Free  168,922  116,080  1,281,572  July 31, 2006 
Insured Municipal         
Fund         
Putnam Arizona  38,915  46,131  283,374  May 31, 2006 
Tax Exempt         
Income Fund         
Putnam Asset  3,197,418  722,008  7,690,831  September 30, 2006 
Allocation:         
Balanced Portfolio         
Putnam Asset  1,751,830  450,008  2,498,757  September 30, 2006 
Allocation:         
Conservative         
Portfolio         
Putnam Asset  3,385,542  1,560,157  7,209,776  September 30, 2006 
Allocation: Growth         
Portfolio         
Putnam California  34,777  41,090  Not Applicable  April 30, 2006 
Investment Grade         
Municipal Trust         
Putnam California  687,684  169,424  5,547,728  September 30, 2006 
Tax Exempt         
Income Fund         
Putnam Capital  2,448,787  219,444  3,461,183  May 31, 2006 
Appreciation Fund         
Putnam Capital  3,432,751  347,870  3,827,544  April 30, 2006 
Opportunities Fund         
Putnam Classic  1,952,796  175,325  3,180,135  November 30, 2006 
Equity Fund         

* Excludes custody credits and investor servicing credits.

I-1

  Fees paid to Putnam  Fees paid to Putnam  Fees paid to Putnam Retail   
  Fiduciary Trust Company  Fiduciary Trust  Management Limited   
  for serving as investor  Company for serving  Partnership pursuant to   
Fund  servicing agent ($)*  as custodian ($)*  distribution plans ($)  Fiscal Year End 
Putnam Convertible  781,757  137,389  2,235,945  October 31, 2006 
Income-Growth         
Trust         
Putnam Discovery  5,314,129  180,530  4,788,597  December 31, 2006 
Growth Fund         
Putnam Diversified  3,299,040  581,814  14,908,977  September 30, 2006 
Income Trust         
Putnam Equity  6,951,658  245,063  14,113,121  November 30, 2006 
Income Fund         
Putnam Europe  1,372,486  573,492  2,634,957  June 30, 2006 
Equity Fund         
Putnam Floating  175,806  129,462  1,244,466  February 28, 2006 
Rate Income Fund         
The Putnam Fund  26,869,135  599,513  51,322,232  October 31, 2006 
for Growth and         
Income         
The George Putnam  9,125,947  480,131  18,216,870  July 31, 2006 
Fund of Boston         
Putnam Global  5,695,273  1,368,894  8,397,834  October 31, 2006 
Equity Fund         
Putnam Global  254,473  130,104  546,850  October 31, 2006 
Income Trust         
Putnam Global  1,043,084  301,780  2,729,494  August 31, 2006 
Natural Resources         
Fund         
Putnam Growth  5,034,903  170,468  4,889,338  July 31, 2006 
Opportunities Fund         
Putnam Health  6,313,802  507,220  12,527,764  August 31, 2006 
Sciences Trust         
Putnam High  96,278  137,361  Not Applicable  August 31, 2006 
Income Securities         
Fund         
Putnam High Yield  701,060  188,244  3,305,078  November 30, 2006 
Advantage Fund         
Putnam High Yield  86,711  104,108  Not Applicable  March 31, 2006 
Municipal Trust         
Putnam High Yield  3,593,375  247,504  9,404,607  August 31, 2006 
Trust         
Putnam Income  5,188,989  406,144  6,057,170  October 31, 2006 
Fund         
Putnam Income  1,014  6,428  9,348  February 28, 2006 
Strategies Fund         
Putnam  3,486,799  1,655,998  7,485,283  August 31, 2006 
International         
Capital         
Opportunities Fund         
Putnam  15,299,530  6,653,687  24,900,584  June 30, 2006 
International Equity         
Fund         

I-2

  Fees paid to Putnam  Fees paid to Putnam  Fees paid to Putnam Retail   
  Fiduciary Trust Company  Fiduciary Trust  Management Limited   
  for serving as investor  Company for serving  Partnership pursuant to   
Fund  servicing agent ($)*  as custodian ($)*  distribution plans ($)  Fiscal Year End 
Putnam  2,170,028  851,927  3,774,490  June 30, 2006 
International         
Growth and Income         
Fund         
Putnam  2,552,793  777,569  3,072,562  September 30, 2006 
International New         
Opportunities Fund         
Putnam Investment  112,961  124,251  Not Applicable  November 30, 2006 
Grade Municipal         
Trust         
Putnam Investors  11,541,559  295,418  16,725,612  July 31, 2006 
Fund         
 
Putnam Limited  1,035,304  174,392  1,485,486  November 30, 2006 
Duration         
Government         
Income Fund         
Putnam Managed  188,595  145,207  Not Applicable  October 31, 2006 
Municipal Income         
Trust         
Putnam  141,481  110,395  1,112,889  May 31, 2006 
Massachusetts Tax         
Exempt Income         
Fund         
Putnam Master  340,900  289,863  Not Applicable  September 30, 2006 
Intermediate         
Income Trust         
Putnam Michigan  75,770  56,902  411,398  May 31, 2006 
Tax Exempt         
Income Fund         
Putnam Mid Cap  2,439,108  144,668  4,523,402  April 30, 2006 
Value Fund         
Putnam Minnesota  78,884  54,736  405,217  May 31, 2006 
Tax Exempt         
Income Fund         
Putnam Money  7,108,735  26,396  1,813,923  September 30, 2006 
Market Fund         
Putnam Municipal  118,092  126,202  Not Applicable  April 30, 2006 
Bond Fund         
Putnam Municipal  105,176  117,534  Not Applicable  April 30, 2006 
Opportunities Trust         
Putnam New Jersey  109,963  87,009  815,048  May 31, 2006 
Tax Exempt         
Income Fund         
Putnam New  18,449,214  284,869  19,722,612  June 30, 2006 
Opportunities Fund         
Putnam New Value  4,874,321  175,324  8,846,785  August 31, 2006 
Fund         
Putnam New York  19,398  26,438  Not Applicable  April 30, 2006 
Investment Grade         
Municipal Trust         

I-3

  Fees paid to Putnam  Fees paid to Putnam  Fees paid to Putnam Retail   
  Fiduciary Trust Company  Fiduciary Trust  Management Limited   
  for serving as investor  Company for serving  Partnership pursuant to   
Fund  servicing agent ($)*  as custodian ($)*  distribution plans ($)  Fiscal Year End 
Putnam New York  572,969  147,793  2,977,860  November 30, 2006 
Tax Exempt         
Income Fund         
Putnam Ohio Tax  96,299  91,003  504,029  May 31, 2006 
Exempt Income         
Fund         
Putnam OTC &  5,529,799  169,354  4,424,411  July 31, 2006 
Emerging Growth         
Fund         
Putnam  107,359  78,985  613,022  May 31, 2006 
Pennsylvania Tax         
Exempt Income         
Fund         
Putnam Premier  677,416  366,332  Not Applicable  July 31, 2006 
Income Trust         
Putnam Prime  320,694  49,161  10,226  September 30, 2006 
Money Market         
Fund         
Putnam Research  3,274,639  168,708  4,752,048  July 31, 2006 
Fund         
Putnam  Not Applicable  Not Applicable  108,176  July 31, 2006 
RetirementReady         
2010 Fund         
Putnam  Not Applicable  Not Applicable  153,376  July 31, 2006 
RetirementReady         
2015 Fund         
Putnam  Not Applicable  Not Applicable  175,406  July 31, 2006 
RetirementReady         
2020 Fund         
Putnam  Not Applicable  Not Applicable  143,679  July 31, 2006 
RetirementReady         
2025 Fund         
Putnam  Not Applicable  Not Applicable  100,250  July 31, 2006 
RetirementReady         
2030 Fund         
Putnam  Not Applicable  Not Applicable  67,617  July 31, 2006 
RetirementReady         
2035 Fund         
Putnam  Not Applicable  Not Applicable  42,154  July 31, 2006 
RetirementReady         
2040 Fund         
Putnam  Not Applicable  Not Applicable  29,079  July 31, 2006 
RetirementReady         
2045 Fund         
Putnam  Not Applicable  Not Applicable  3,856  July 31, 2006 
RetirementReady         
2050 Fund         
Putnam  Not Applicable  Not Applicable  74,474  July 31, 2006 
RetirementReady         
Maturity Fund         
Putnam Small Cap  1,303,853  172,809  1,727,604  June 30, 2006 
Growth Fund         

I-4

  Fees paid to Putnam  Fees paid to Putnam  Fees paid to Putnam Retail   
  Fiduciary Trust Company  Fiduciary Trust  Management Limited   
  for serving as investor  Company for serving  Partnership pursuant to   
Fund  servicing agent ($)*  as custodian ($)*  distribution plans ($)  Fiscal Year End 
Putnam Small Cap  1,721,218  189,821  4,206,106  February 28, 2006 
Value Fund         
Putnam Tax  619,569  157,244  2,965,084  September 30, 2006 
Exempt Income         
Fund         
Putnam Tax  92,314  7,225  Not Applicable  September 30, 2006 
Exempt Money         
Market Fund         
Putnam Tax-Free  96,730  89,104  Not Applicable  May 31, 2006 
Health Care Fund         
Putnam Tax-Free  876,144  181,530  4,924,806  July 31, 2006 
High Yield Fund         
Putnam Tax Smart  308,021  136,425  1,725,253  October 31, 2006 
Equity Fund         
Putnam U.S.  1,912,986  524,492  4,893,122  September 30, 2006 
Government         
Income Trust         
Putnam Utilities  969,213  343,106  1,921,475  October 31, 2006 
Growth and Income         
Fund         
Putnam Vista Fund  7,285,460  292,982  10,325,341  July 31, 2006 
Putnam Voyager  30,585,086  398,461  32,965,281  July 31, 2006 
Fund         
Putnam VT  48,941  114,013  173,639  December 31, 2006 
American         
Government         
Income Fund         
Putnam VT Capital  15,725  65,351  57,034  December 31, 2006 
Appreciation Fund         
Putnam VT Capital  12,527  54,559  46,005  December 31, 2006 
Opportunities Fund         
Putnam VT  11,659  63,423  65,208  December 31, 2006 
Discovery Growth         
Fund         
Putnam VT  145,032  268,013  425,943  December 31, 2006 
Diversified Income         
Fund         
Putnam VT Equity  61,671  104,545  236,721  December 31, 2006 
Income Fund         
Putnam VT The  194,190  268,645  744,815  December 31, 2006 
George Putnam         
Fund of Boston         
Putnam VT Global  118,715  433,160  193,024  December 31, 2006 
Asset Allocation         
Fund         
Putnam VT Global  178,611  512,462  184,854  December 31, 2006 
Equity Fund         
Putnam VT Growth  1,270,937  311,396  1,981,707  December 31, 2006 
and Income Fund         

I-5

  Fees paid to Putnam  Fees paid to Putnam  Fees paid to Putnam Retail   
  Fiduciary Trust Company  Fiduciary Trust  Management Limited   
  for serving as investor  Company for serving  Partnership pursuant to   
Fund  servicing agent ($)*  as custodian ($)*  distribution plans ($)  Fiscal Year End 
Putnam VT Growth  15,810  48,399  75,526  December 31, 2006 
Opportunities Fund         
Putnam VT Health  95,118  155,996  444,903  December 31, 2006 
Sciences Fund         
Putnam VT High  181,736  189,665  413,089  December 31, 2006 
Yield Fund         
Putnam VT Income  231,988  265,541  738,885  December 31, 2006 
Fund         
Putnam VT  338,452  1,358,361  1,823,795  December 31, 2006 
International Equity         
Fund         
Putnam VT  121,377  546,929  291,287  December 31, 2006 
International         
Growth and Income         
Fund         
Putnam VT  82,490  369,808  400,747  December 31, 2006 
International New         
Opportunities Fund         
Putnam VT  148,076  182,489  563,681  December 31, 2006 
Investors Fund         
Putnam VT Mid  27,834  51,386  73,775  December 31, 2006 
Cap Value Fund         
Putnam VT Money  110,530  135,076  411,984  December 31, 2006 
Market Fund         
Putnam VT New  415,595  187,781  381,899  December 31, 2006 
Opportunities Fund         
Putnam VT New  200,902  140,816  676,015  December 31, 2006 
Value Fund         
Putnam VT OTC &  25,507  60,623  91,357  December 31, 2006 
Emerging Growth         
Fund         
Putnam VT  56,664  91,120  272,176  December 31, 2006 
Research Fund         
Putnam VT Small  276,850  215,429  1,582,848  December 31, 2006 
Cap Value Fund         
Putnam VT  113,131  278,585  146,590  December 31, 2006 
Utilities Growth         
and Income Fund         
Putnam VT Vista  167,571  190,972  628,075  December 31, 2006 
Fund         
Putnam VT  569,884  211,176  1,114,380  December 31, 2006 
Voyager Fund         

I-6

APPENDIX J –5% Beneficial Ownership

As of February 9, 2007, to the knowledge of the funds, no person owned beneficially or of record 5% or more of any class of shares of any fund, except as follows:

 

J-1

APPENDIX K – Security Ownership

The following table sets forth for each Trustee, and for the Trustees and officers as a group, the amount of equity securities owned in each Putnam fund as of February 9, 2007.

    Jameson          Elizabeth  Kenneth    George  W.  Richard  Trustees 
  John  Adkins  Charles  Myra R.  Charles E.  Paul L.  T.  R.  Robert E.  Putnam,  Thomas  B.  and 
Fund  A. Hill  Baxter  B. Curtis  Drucker  Haldeman  Joskow  Kennan  Leibler  Patterson  III  Stephens  Worley  Officers 
Putnam                           
American                           
Government                           
Income Fund                           
Putnam                           
AMT-Free                           
Insured                           
Municipal                           
Fund                           
Putnam                           
Arizona Tax                           
Exempt                           
Income Fund                           
Putnam                           
Asset                           
Allocation:                           
Balanced                           
Portfolio                           
Putnam                           
Asset                           
Allocation:                           
Conservative                           
Portfolio                           
Putnam                           
Asset                           
Allocation:                           
Growth                           
Portfolio                           
Putnam                           
California                           
Investment                           
Grade                           
Municipal                           
Trust                           
Putnam                           
California                           
Tax Exempt                           
Income Fund                           
Putnam                           
Capital                           
Appreciation                           
Fund                           
Putnam                           
Capital                           
Opportunities                           
Fund                           
Putnam                           
Classic                           
Equity Fund                           
Putnam                           
Convertible                           
Income-                           
Growth Trust                           
Putnam                           
Discovery                           
Growth Fund                           
Putnam                           
Diversified                           
Income Trust                           

K-1

    Jameson          Elizabeth  Kenneth    George  W.  Richard  Trustees 
  John  Adkins  Charles  Myra R.  Charles E.  Paul L.  T.  R.  Robert E.  Putnam,  Thomas  B.  and 
Fund  A. Hill  Baxter  B. Curtis  Drucker  Haldeman  Joskow  Kennan  Leibler  Patterson  III  Stephens  Worley  Officers 
Putnam                           
Equity                           
Income Fund                           
Putnam                           
Europe                           
Equity Fund                           
Putnam                           
Floating Rate                           
Income Fund                           
The Putnam                           
Fund for                           
Growth and                           
Income                           
The George                           
Putnam Fund                           
of Boston                           
Putnam                           
Global                           
Equity Fund                           
Putnam                           
Global                           
Income Trust                           
Putnam                           
Global                           
Natural                           
Resources                           
Fund                           
Putnam                           
Growth                           
Opportunities                           
Fund                           
Putnam                           
Health                           
Sciences                           
Trust                           
Putnam High                           
Income                           
Securities                           
Fund                           
Putnam High                           
Yield                           
Advantage                           
Fund                           
Putnam High                           
Yield                           
Municipal                           
Trust                           
Putnam High                           
Yield Trust                           
Putnam                           
Income Fund                           
Putnam                           
Income                           
Strategies                           
Fund                           
Putnam                           
International                           
Capital                           
Opportunities                           
Fund                           
Putnam                           
International                           
Equity Fund                           
Putnam                           
International                           
Growth and                           
Income Fund                           

K-2

    Jameson          Elizabeth  Kenneth    George  W.  Richard  Trustees 
  John  Adkins  Charles  Myra R.  Charles E.  Paul L.  T.  R.  Robert E.  Putnam,  Thomas  B.  and 
Fund  A. Hill  Baxter  B. Curtis  Drucker  Haldeman  Joskow  Kennan  Leibler  Patterson  III  Stephens  Worley  Officers 
Putnam                           
International                           
New                           
Opportunities                           
Fund                           
Putnam                           
Investment                           
Grade                           
Municipal                           
Trust                           
Putnam                           
Investors                           
Fund                           
Putnam                           
Limited                           
Duration                           
Government                           
Income Fund                           
Putnam                           
Managed                           
Municipal                           
Income Trust                           
Putnam                           
Massachusett                           
s Tax                           
Exempt                           
Income Fund                           
Putnam                           
Master                           
Intermediate                           
Income Trust                           
Putnam                           
Michigan                           
Tax Exempt                           
Income Fund                           
Putnam Mid                           
Cap Value                           
Fund                           
Putnam                           
Minnesota                           
Tax Exempt                           
Income Fund                           
Putnam                           
Money                           
Market Fund                           
Putnam                           
Municipal                           
Bond Fund                           
Putnam                           
Municipal                           
Opportunities                           
Trust                           
Putnam New                           
Jersey Tax                           
Exempt                           
Income Fund                           
Putnam New                           
Opportunities                           
Fund                           
Putnam New                           
Value Fund                           
Putnam New                           
York                           
Investment                           
Grade                           
Municipal                           
Trust                           

K-3

    Jameson          Elizabeth  Kenneth    George  W.  Richard  Trustees 
  John  Adkins  Charles  Myra R.  Charles E.  Paul L.  T.  R.  Robert E.  Putnam,  Thomas  B.  and 
Fund  A. Hill  Baxter  B. Curtis  Drucker  Haldeman  Joskow  Kennan  Leibler  Patterson  III  Stephens  Worley  Officers 
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                           
Prime Money                           
Market Fund                           
Putnam                           
Research                           
Fund                           
Putnam                           
Retirement                           
Ready 2010                           
Fund                           
Putnam                           
Retirement                           
Ready 2015                           
Fund                           
Putnam                           
Retirement                           
Ready 2020                           
Fund                           
Putnam                           
Retirement                           
Ready 2025                           
Fund                           
Putnam                           
Retirement                           
Ready 2030                           
Fund                           
Putnam                           
Retirement                           
Ready 2035                           
Fund                           
Putnam                           
Retirement                           
Ready 2040                           
Fund                           
Putnam                           
Retirement                           
Ready 2045                           
Fund                           
Putnam                           
Retirement                           
Ready 2050                           
Fund                           
Putnam                           
Retirement                           
Ready                           
Maturity                           
Fund                           
Putnam                           
Small Cap                           
Growth Fund                           

K-4

    Jameson          Elizabeth  Kenneth    George  W.  Richard  Trustees 
  John  Adkins  Charles  Myra R.  Charles E.  Paul L.  T.  R.  Robert E.  Putnam,  Thomas  B.  and 
Fund  A. Hill  Baxter  B. Curtis  Drucker  Haldeman  Joskow  Kennan  Leibler  Patterson  III  Stephens  Worley  Officers 
Putnam                           
Small Cap                           
Value Fund                           
Putnam Tax                           
Exempt                           
Income Fund                           
Putnam Tax                           
Exempt                           
Money                           
Market Fund                           
Putnam Tax-                           
Free Health                           
Care Fund                           
Putnam Tax-                           
Free High                           
Yield Fund                           
Putnam Tax                           
Smart Equity                           
Fund                           
Putnam U.S.                           
Government                           
Income Trust                           
Putnam                           
Utilities                           
Growth and                           
Income Fund                           
Putnam Vista                           
Fund                           
Putnam                           
Voyager                           
Fund                           
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                           

K-5

    Jameson          Elizabeth  Kenneth    George  W.  Richard  Trustees 
  John  Adkins  Charles  Myra R.  Charles E.  Paul L.  T.  R.  Robert E.  Putnam,  Thomas  B.  and 
Fund  A. Hill  Baxter  B. Curtis  Drucker  Haldeman  Joskow  Kennan  Leibler  Patterson  III  Stephens  Worley  Officers 
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                           

K-6

P U T N A M INVESTMENTS

The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
Toll-free 1-800-225-1581

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