Common use of ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY Clause in Contracts

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As -------------------------------------------- soon as Practicable after each anniversary of the original June 1, 1984 date of this Agreement the Company on behalf of the Fund shall provide Chase with the amount of the total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties to this Agreement that, simultaneously with this Agreement, Chase is entering into substantially similar custody agreements as follows: an agreement with the Company on behalf of Templeton Foreign Fund; an axxxxxxxx with Templeton Global Funds, Inc. on xxxxxx xf Templeton Global I; an agreement xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf Templeton Global II; and an agrexxxxx xxxh Templeton Growth Fund, Ltd., axx xx xxxch Funds have as their investment advisers companies under the control and direction of John M. Templeton and the same ax xx xxxxxxxxxx with the Investment Manager of the Fund; as well as any substantially similar custody agreements of Chase with any additional mutual funds under Templeton management which may hxxxxxxxx be organized. Each of such custody agreements with each of such other Templeton Funds contains (or wixx xxxxxxn) a "Standard of Care' section similar to this Section 14, except that the limit of Chase's liability is in varying amounts for each Fund, with the aggregate limits of liability in all of such agreements, including this custody agreement, amounting to $150,000,000. On each anniversary date of the original June 1, 1984 date of this Agreement, and of the similar custody agreements with each other Templeton Fund, Chase will totxx xxx xxt assets reported by each one of the Templeton Funds, and will calcuxxxx xxx percentage of the aggregate net assets of all the Templeton Funds that is reprexxxxxx xy the net asset value of this Fund. Thereupon Chase shall allocate to this Agreement with this Fund that proportion of its total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this Fund's net assets bears to the total net assets of all such

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As -------------------------------------------- soon as Practicable practicable after each anniversary June 1 of every year, the original June 1, 1984 date of this Agreement the Company on behalf of the Fund Trust shall provide Chase with the amount of the its total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties parties to this Agreement that, simultaneously with this Agreement, (1) that Chase is entering has entered into substantially similar custody agreements as follows: an agreement with the Company on behalf of other Templeton Foreign Fund; an axxxxxxxx with Templeton Global Funds, Inc. on xxxxxx xf Templeton Global I; an agreement all of which Fuxxx xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf Templeton Global II; and an agrexxxxx xxxh Templeton Growth Fund, Ltd., axx xx xxxch Funds have as their investment advisers companies under the control and direction of John M. Templeton and the same ax xx xxxxxxxxxx with adviser either the Investment Manager of Templeton Global Rising Dividendx Xxxx, xhe Investment Manager of Templeton Global Infrastructurx Xxxx xr the FundInvestment Manager of Templeton Americas Government Xxxxxxxxes Fund or companies which are affiliated with either Investment Manager; as well as any and (2) that Chase may enter into substantially similar custody agreements of Chase with any additional mutual funds under Templeton management which may hxxxxxxxx be organized. Each of such custody agreements with each of such other Templeton Funds contains Fundx xxxxxxns (or wixx xxxxxxnwill contain) a "Standard of Care' " section similar to this Section 14, except that the limit of Chase's liability is (or will be) in varying amounts for each Fund, with the aggregate limits of liability in all of such agreements, including this custody agreementAgreement, amounting to $150,000,000. On each anniversary date of the original June 1, 1984 date of this Agreement, and of the similar custody agreements with each other Templeton Fund, Chase will totxx xxx xxt total the net assets reported by each one of the Templeton Funds, and will calcuxxxx xxx calculate the percentage of the aggregate net assets of all the Templeton Funds that is reprexxxxxx xy the represenxxx xx xxe net asset value of this FundTrust. Thereupon Chase shall allocate to this Agreement with this Fund Trust that proportion of its total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this FundTrust's net assets bears to the total net assets of all suchsuch Templeton Funds subject to adjustments for claims paid as follows: all claims previously paid to this Trust shall first be deducted from its proportionate allocable share of the $150,000,000 Chase responsibility, and if the claims paid to this Trust amount to more than its allocable share of the Chase responsibility, then the excess of such claims paid to this Trust shall diminish the balance of the $150,000,000 Chase responsibility available for the proportionate shares of all of the other Templeton Funds having similar cxxxxxx xgreements with Chase. Based on such calculation, and on such adjustment for claims paid, if any, Chase thereupon shall notify the Trust of such limit of liability under this Section 14 which will be available to the Trust with respect to (1) losses in excess of payment allocations for previous years and (2) losses discovered during the next year this Agreement remains in effect and until a new determination of such limit of responsibility is made on the next succeeding June 1.

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As -------------------------------------------- soon as Practicable practicable after each anniversary June I of every year, the original June 1, 1984 date of this Agreement the Company on behalf of the Fund Trust shall provide Chase JPMorgan with the amount of the its total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties parties to this Agreement that, simultaneously with this Agreement, Chase is entering (1) that JPMorgan has entered into substantially similar custody agreements as follows: an agreement with the Company on behalf of Templeton Foreign Fund; an axxxxxxxx with Templeton Global other Franklin Xxxxxxxxx Funds, Inc. on xxxxxx xf Templeton Global I; an agreement xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf Templeton Global II; and an agrexxxxx xxxh Templeton Growth Fund, Ltd., axx xx xxxch all of which Funds have as their investment advisers companies under the control and direction of John M. Templeton and the same ax xx xxxxxxxxxx with adviser either the Investment Manager of the FundFund or companies which are affiliated with the Investment Manager; as well as any and (2) that JPMorgan may enter into substantially similar custody agreements of Chase with any additional mutual funds under Templeton Franklin Xxxxxxxxx management which may hxxxxxxxx hereafter be organized. Each of such custody agreements with each of such other Templeton Franklin Xxxxxxxxx Funds contains (or wixx xxxxxxnwill contain) a "Standard of Care' " section similar to this Section 14, except that the limit of Chase's JPMORGAN'S liability is (or will be) in varying amounts for each Fund, with the aggregate limits of liability in all of such agreements, including this custody agreementAgreement, amounting to $150,000,000. On each anniversary date of the original June 1, 1984 date of this Agreement, and of JPMorgan will total the similar custody agreements with each other Templeton Fund, Chase will totxx xxx xxt net assets reported by each one of the Templeton Franklin Xxxxxxxxx Funds, and will calcuxxxx xxx calculate the percentage of the aggregate net assets of all the Templeton Franklin Xxxxxxxxx Funds that is reprexxxxxx xy represented by the net asset value of this FundTrust. Thereupon Chase JPMorgan shall allocate to this Agreement with this Fund Trust that proportion of its total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this FundTrust's net assets bears to the total net assets of all suchsuch Franklin Xxxxxxxxx Funds subject to adjustments for claims paid as follows: all claims previously paid to this Trust shall first be deducted from its proportionate allocable share of the $150,000,000 JPMorgan responsibility, and if the claims paid to this Trust amount to more than its allocable share of the JPMorgan responsibility, then the excess of such claims paid to this Trust shall diminish the balance of the $150,000,000 JPMorgan responsibility available for the proportionate shares of all of the other Franklin Xxxxxxxxx Funds having similar custody agreements with JPMorgan. Based on such calculation, and on such adjustment for claims paid, if any, JPMorgan thereupon shall notify the Trust of such limit of liability under this Section 14 which will be available to the Trust with respect to (1) losses in excess of payment allocations for previous years and (2) losses discovered during the next year this Agreement remains in effect and until a new determination of such limit of responsibility is made on the next succeeding June 1.

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As -------------------------------------------- soon as Practicable practicable after each anniversary June 1 of the original June 1every year, 1984 date of this Agreement the Company on behalf of the Fund shall provide Chase with the amount of the its total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties parties to this Agreement that, simultaneously with this Agreement, (1) that Chase is entering has entered into substantially similar custody agreements as follows: an agreement with the Company on behalf of other Templeton Foreign Fund; an axxxxxxxx with Templeton Global Funds, Inc. on xxxxxx xf Templeton Global I; an agreement all of which Funxx xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf Templeton Global II; and an agrexxxxx xxxh Templeton Growth Fund, Ltd., axx xx xxxch Funds have as xs their investment advisers companies under the control and direction of John M. Templeton and the same ax xx xxxxxxxxxx with adviser either the Investment Manager of the FundFund or companies which are affiliated with the Investment Manager; as well as any and (2) that Chase may enter into substantially similar custody agreements of Chase with any additional mutual funds under Templeton management which may hxxxxxxxx xxx xxxeafter be organized. Each of such custody agreements with each of such other Templeton Funds contains (or wixx xxxxxxnwxxx contain) a "Standard of Care' " section similar to this Section 14, except that the limit of Chase's liability is (or will be) in varying amounts for each Fund, with the aggregate limits of liability in all of such agreements, including this custody agreementAgreement, amounting to $150,000,000. On each anniversary date of the original June 1, 1984 date of this Agreement, and of the similar custody agreements with each other Templeton Fund, Chase will totxx xxx xxt total the net assets reported by each one of the Templeton Funds, and will calcuxxxx calculxxx xxx percentage xercentage of the aggregate net assets of all the Templeton Funds that is reprexxxxxx xy the represenxxx xx xxe net asset value of this FundCompany. Thereupon Chase shall allocate to this Agreement with this Fund Company that proportion of its total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this FundCompany's net assets bears to the total net assets of all suchsuch Templeton Funds subject to adjxxxxxxxx for claims paid as follows: all claims previously paid to this Company shall first be deducted from its proportionate allocable share of the $150,000,000 Chase responsibility, and if the claims paid to this Company amount to more than its allocable share of the Chase responsibility, then the excess of such claims paid to this Company shall diminish the balance of the $150,000,000 Chase responsibility available for the proportionate shares of all of the other Templeton Funds having similxx xxxxxxy agreements with Chase. Based on such calculation, and on such adjustment for claims paid, if any, Chase thereupon shall notify the Company of such limit of liability under this Section 14 which will be available to the Company with respect to (1) losses in excess of payment allocations for previous years and (2) losses discovered during the next year this Agreement remains in effect and until a new determination of such limit of responsibility is made on the next succeeding June 1.

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As -------------------------------------------- soon as Practicable practicable after each anniversary June 1 of every year (or such other date in any particular year agreed to by all of the original June 1Templeton Fundx), 1984 date of this Agreement the Company on behalf of the xxx Fund shall provide Chase with the amount of the its total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties parties to this Agreement that, simultaneously with this Agreement, that Chase is entering has entered into substantially similar custody agreements as follows: an agreement agreements with the Company Templeton Funds, Inc. on behalf of Templeton Foreign FundWorld Fund and on behxxx xx Xxmpleton Forexxx Xxxx; an axxxxxxxx agreements with Templeton Global Funds, Inc. on xxxxxx xf behalf of Templeton Global II and on behalf xx Xxxxxeton Global XX; an xx agreement xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf with Templeton Global IIIncome Fund; and an agrexxxxx xxxh axxxxxxxx with Templeton Growth Fund, Ltd., axx xx xxxch Funds have as their investment advisers companies under the control and direction of John M. Templeton and which are the same ax xx xxxxxxxxxx with as, or affiliated with, the Investment Manager of the Fund; as well as and that Chase may enter into any substantially similar custody agreements of Chase with any additional mutual funds under Templeton management which manaxxxxxx xhich may hxxxxxxxx hereafter be organized. Each of such custody agreements with each of such other Templeton Funds contains xxxxxxns (or wixx xxxxxxnwill contain) a "Standard of Care' " section similar to this Section 14, except that the limit of Chase's liability is in varying amounts for each Fund, with the aggregate limits of liability in all of such agreements, including this custody agreementAgreement, amounting to $150,000,000. On each anniversary June 1 (or other date of the original June 1, 1984 date of this Agreement, and of the similar custody agreements with each other Templeton Fundagreed on for any particular year), Chase will totxx xxx xxt total the net assets reported by each one of the Templeton Funds, and will calcuxxxx xxx caxxxxxxx the percentage of the aggregate net assets of all the Templeton Funds that is reprexxxxxx xy Fundx xxxx xx represented by the net asset value of this Fund. Thereupon Chase shall allocate to this Agreement with this Fund that proportion of its total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this Fund's net assets bears to the total net assets of all suchnet

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As -------------------------------------------- soon as Practicable practicable after each anniversary June 1 of the original June 1every year, 1984 date of this Agreement the Company on behalf of the Fund shall provide Chase with the amount of the its total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties parties to this Agreement that, simultaneously with this Agreement, (1) that Chase is entering has entered into substantially similar custody agreements as follows: an agreement with the Company other Templeton Funds, including, but xxx xxxxxsarily limited to, Templeton Funds, Inc. on behalf xx Xxxxxxton World Fund and Templetxx Xxxxxxn Fund; Templetox Xxxxxx Fund, Ltd., Temxxxxxx Xxowth Fund, Inc.; Temxxxxxx Xxerging Markets Fund, Xxx.; Xxmpleton Global Income Fund, Inx.; Xxxxxeton Income Trust on behalf of Templeton Foreign Money Fund; an axxxxxxxx with and Templeton Income Fund; Templeton Xxxxxx Xovernments Incxxx Xxxxx; Templeton Global Utilities, Inc.; Xxxxxxxon Smaller Companies. Groxxx Xxxx, Inc.; Templeton Tax Free Trust; Templexxx Xxxx Estate Securities Xxxx; Xxmpleton Global Opportunities Txxxx; Xxxpleton Institutional Funds, Inc. on xxxxxx xf Ixx.; Xxxxleton American Trust, Inc.; Xxxxxxxxx Developing Markets Truxx; Xxxxxeton Capital Accumulator Fuxx, Xxx.; Templeton Global I; an agreement xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf Templeton Global II; and an agrexxxxx xxxh Templeton Growth Variable Annuity Fund, Ltd., axx xx xxxch all of which Funds have as their investment advisers companies under the control and direction of John M. Templeton and the same ax xx xxxxxxxxxx with adviser either the Investment Manager of the FundFund or companies which are affiliated with the Investment Manager; as well as any and (2) that Chase may enter into substantially similar custody agreements of Chase with any additional mutual funds under Templeton management which may hxxxxxxxx hereafter be organized. Each of such custody agreements with each of such other Templeton Funds contains (or wixx xxxxxxnwilx xxxxxxx) a "Standard of Care' " section similar to this Section 14, except that the limit of Chase's liability is (or will be) in varying amounts for each Fund, with the aggregate limits of liability in all of such agreements, including this custody agreementAgreement, amounting to $150,000,000. On each anniversary date of the original June 1, 1984 date of this Agreement, and of the similar custody agreements with each other Templeton Fund, Chase will totxx xxx xxt total the net assets reported by each one of the Templeton Funds, and will calcuxxxx calculxxx xxx percentage of the aggregate net assets of all the Templeton Funds that is reprexxxxxx xy txxx xx xxpresented by the net asset value of this Fund. Thereupon Chase shall allocate to this Agreement with this Fund that proportion of its total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this Fund's net assets bears to the total net assets of all suchsuch Templeton Funds subject to adjusxxxxxx xxr claims paid as follows: all claims previously paid to this Fund shall first be deducted from .its proportionate allocable share of the $150,000,000 Chase responsibility, and if the claims paid to this Fund amount to more than its allocable share of the Chase responsibility, then the excess of such claims paid to this Fund shall diminish the balance of the $150,000,000 Chase responsibility available for the proportionate shares of all of the other Templeton Funds having similar cxxxxxx xxreements with Chase. Based on such calculation, and on such adjustment for claims paid, if any, Chase thereupon shall notify the Fund of such limit of liability under this Section 14 which will be available to the Fund with respect to (1) losses in excess of payment allocations for previous years and (2) losses discovered during the next year this Agreement remains in effect and until a new determination of such limit of responsibility is made on the next succeeding June 1.

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As -------------------------------------------- soon as Practicable practicable after each anniversary June 1 of every year, the original June 1, 1984 date of this Agreement the Company on behalf of the Fund Trust shall provide Chase JPMorgan with the amount of the its total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties parties to this Agreement that, simultaneously with this Agreement, Chase is entering (1) that JPMorgan has entered into substantially similar custody agreements as follows: an agreement with the Company on behalf of other Franklin Templeton Foreign Fund; an axxxxxxxx with Templeton Global Funds, Inc. on xxxxxx xf Templeton Global I; an agreement all of which Funxx xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf Templeton Global II; and an agrexxxxx xxxh Templeton Growth Fund, Ltd., axx xx xxxch Funds have as xs their investment advisers companies under the control and direction of John M. Templeton and the same ax xx xxxxxxxxxx with adviser either the Investment Manager of the FundFund or companies which are affiliated with the Investment Manager; as well as any and (2) that JPMorgan may enter into substantially similar custody agreements of Chase with any additional mutual funds under Franklin Templeton management which may hxxxxxxxx be hexxxxxxx xe organized. Each of such custody agreements with each of such other Franklin Templeton Funds contains (or wixx xxxxxxnox xxxx xxntain) a "Standard of Care' " section similar to this Section 14, except that the limit of Chase's JPMORGAN'S liability is (or will be) in varying amounts for each Fund, with the aggregate limits of liability in all of such agreements, including this custody agreementAgreement, amounting to $150,000,000. On each anniversary date of the original June 1, 1984 date of this Agreement, and of JPMorgan will total the similar custody agreements with each other Templeton Fund, Chase will totxx xxx xxt net assets reported by each one of the Franklin Templeton Funds, and will calcuxxxx calculaxx xxx percentage xxrcentage of the aggregate net assets of all the Franklin Templeton Funds that is reprexxxxxx xy repxxxxxxxx by the net asset value of this FundTrust. Thereupon Chase JPMorgan shall allocate to this Agreement with this Fund Trust that proportion of its total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this FundTrust's net assets bears to the total net assets of all suchsuch Franklin Templeton Funds subject to adjustxxxxx xxx claims paid as follows: all claims previously paid to this Trust shall first be deducted from its proportionate allocable share of the $150,000,000 JPMorgan responsibility, and if the claims paid to this Trust amount to more than its allocable share of the JPMorgan responsibility, then the excess of such claims paid to this Trust shall diminish the balance of the $150,000,000 JPMorgan responsibility available for the proportionate shares of all of the other Franklin Templeton Funds having similar cuxxxxx agreements with JPMorgan. Based on such calculation, and on such adjustment for claims paid, if any, JPMorgan thereupon shall notify the Trust of such limit of liability under this Section 14 which will be available to the Trust with respect to (1) losses in excess of payment allocations for previous years and (2) losses discovered during the next year this Agreement remains in effect and until a new determination of such limit of responsibility is made on the next succeeding June 1.

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As -------------------------------------------- soon as Practicable practicable after each anniversary June 1 of the original June 1every year, 1984 date of this Agreement the Company on behalf of the Fund shall provide Chase with the amount of the each Fund's total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties parties to this Agreement that, simultaneously with this Agreement, (1) that Chase is entering has entered into substantially similar custody agreements as follows: an agreement with other Templeton funds, all of which funds have xx xxeir investment adviser either one of the Company on behalf Investment Managers of Templeton Foreign Fund; an axxxxxxxx with Templeton Global Funds, Inc. on xxxxxx xf Templeton Global I; an agreement xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf Templeton Global II; and an agrexxxxx xxxh Templeton Growth Fund, Ltd., axx xx xxxch the Funds have as their investment advisers or companies under the control and direction of John M. Templeton and the same ax xx xxxxxxxxxx which are affiliated with the Investment Manager of the FundManagers; as well as any and (2) that Chase may enter into substantially similar custody agreements of Chase with any additional mutual funds under Templeton management which may hxxxxxxxx hereafter be organizedxxxanized. Each of such custody agreements with each of such other Templeton Funds funds contains (or wixx xxxxxxnwill contain) a "Standard of Care' " section similar to this Section 14, except that the limit of Chase's liability is (or will be) in varying amounts for each Fundfund, with the aggregate limits of liability in all of such agreements, including this custody agreementAgreement, amounting to $150,000,000. On each anniversary date of the original June 1, 1984 date of this Agreement, and of the similar custody agreements with each other Templeton Fund, Chase will totxx xxx xxt total the net assets reported by each one of the Templeton Fundsfunds, and will calcuxxxx calculate xxx percentage xxrcentage of the aggregate net assets of all the Templeton Funds funds that is reprexxxxxx xy represented by the net asset value valxx of this Fundthe Funds. Thereupon Chase shall allocate to this Agreement with this Fund the Company that proportion of its the Funds' total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this Fund's the Funds' net assets bears to the total net assets of all suchsuch Templeton funds subject to adjustmenxx xxx xxaims paid as follows: all claims previously paid to the Funds shall first be deducted from their proportionate allocable share of the $150,000,000 Chase responsibility, and if the claims paid to the Funds amount to more than their allocable share of the Chase responsibility, then the excess of such claims paid to the Funds shall diminish the balance of the $150,000,000 Chase responsibility available for the proportionate shares of all of the other Templeton funds having similar custody agreements with Xxxxx. Based on such calculation, and on such adjustment for claims paid, if any, Chase thereupon shall notify the Company of such limit of liability under this Section 14 which will be available to the Funds with respect to (1) losses in excess of payment allocations for previous years and (2) losses discovered during the next year this Agreement remains in effect and until a new determination of such limit of responsibility is made on the next succeeding June 1.

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As soon -------------------------------------------- soon as Practicable practicable after each anniversary of the original June 1, 1984 date of this Agreement the Company on behalf of the Fund shall provide Chase with the amount of the total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties parties to this Agreement that, simultaneously with this Agreement, Chase is entering into substantially sub-stantially similar custody agreements as follows: an agreement with the Company on behalf of Templeton Foreign World Fund; an axxxxxxxx with agreemxxx xxxx Templeton Global Funds, Inc. on xx xxxxxx xf of Templeton Global I; an agreement xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf Templeton Global II; and an agrexxxxx xxxh agxxxxxxx with Templeton Growth Fund, Ltd., axx alx xx xxxch xxxxh Funds have as their investment advisers companies under the control and direction of John M. Templeton and the same ax xx xx xxxxxxxxxx with the Investment Manager of the Fund; as well as any substantially similar custody agreements of Chase with any additional mutual funds under Templeton management which may hxxxxxxxx xxxxxxxxx be organized. Each of such custody agreements with each of such other Templeton Funds contains (or wixx xxxxxxnxxxx xxxtain) a "Standard of Care' " section similar to this Section 14, except that the limit of Chase's liability is in varying amounts for each Fund, with the aggregate limits of liability in all of such agreements, including this custody agreement, amounting to $150,000,000. On each anniversary date of the original June 1, 1984 date of this Agreement, and of the similar custody agreements with each other Templeton Fund, Chase will totxx total xxx xxt xxx assets reported by each one of the Templeton Funds,, and will calcuxxxx xxx calxxxxxx xhe percentage of the aggregate net assets of all the Templeton Funds that is reprexxxxxx xy the net asset value of this Fund. Thereupon Chase shall allocate to this Agreement with this Fund that proportion of its total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this Fund's net assets bears to the total net assets of all suchsuch Templeton Funds subject to adjusxxxxxx xxr claims

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As -------------------------------------------- soon as Practicable practicable after each anniversary June 1 of the original June 1every year, 1984 date of this Agreement the Company on behalf of the Fund shall provide Chase with the amount of the its total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties parties to this Agreement that, simultaneously with this Agreement, (1) that Chase is entering has entered into substantially similar custody agreements as follows: an agreement with the Company on behalf of other Templeton Foreign Fund; an axxxxxxxx with Templeton Global Funds, Inc. on xxxxxx xf Templeton Global I; an agreement all of which Fuxxx xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf Templeton Global II; and an agrexxxxx xxxh Templeton Growth Fund, Ltd., axx xx xxxch Funds have as their investment advisers companies under the control and direction of John M. Templeton and the same ax xx xxxxxxxxxx with adviser either the Investment Manager of the FundFund or companies which are affiliated with the Investment Manager; as well as any and (2) that Chase may enter into substantially similar custody agreements of Chase with any additional mutual funds under Templeton management which may hxxxxxxxx be organized. Each of such custody agreements with each of such other Templeton Funds contains Fundx xxxxxxns (or wixx xxxxxxnwill contain) a "Standard of Care' " section similar to this Section 14, except that the limit of Chase's liability is (or will be) in varying amounts for each Fund, with the aggregate limits of liability in all of such agreements, including this custody agreementAgreement, amounting to $150,000,000. On each anniversary date of the original June 1, 1984 date of this Agreement, and of the similar custody agreements with each other Templeton Fund, Chase will totxx xxx xxt total the net assets reported by each one of the Templeton Funds, and will calcuxxxx xxx calculate the percentage of the aggregate net assets of all the Templeton Funds that is reprexxxxxx xy the represenxxx xx xxe net asset value of this Fund. Thereupon Chase shall allocate to this Agreement with this Fund that proportion of its total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this Fund's net assets bears to the total net assets of all suchsuch Templeton Funds subject to adjuxxxxxxx xor claims paid as follows: all claims previously paid to this Fund shall first be deducted from its proportionate allocable share of the $150,000,000 Chase responsibility, and if the claims paid to this Fund amount to more than its allocable share of the Chase responsibility, then the excess of such claims paid to this Fund shall diminish the balance of the $150,000,000 Chase responsibility available for the proportionate shares of all of the other Templeton Funds xxxxxx similar custody agreements with Chase. Based on such calculation, and on such adjustment for claims paid, if any, Chase thereupon shall notify the Fund of such limit of liability under this Section 14 which will be available to the Fund with respect to (1) losses in excess of payment allocations for previous years and (2) losses discovered during the next year this Agreement remains in effect and until a new determination of such limit of responsibility is made on the next succeeding June 1.

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As -------------------------------------------- soon as Practicable practicable after each anniversary June 1 of every year, the original June 1, 1984 date of this Agreement the Company on behalf of the Fund Trust shall provide Chase with the amount of the its total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties parties to this Agreement that, simultaneously with this Agreement, (1) that Chase is entering has entered into substantially similar custody agreements as follows: an agreement with the Company on behalf other Franklin Templeton Funds and Templeton Fuxxx, xxx of Templeton Foreign Fund; an axxxxxxxx with Templeton Global Funds, Inc. on xxxxxx xf Templeton Global I; an agreement which Fuxxx xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf Templeton Global II; and an agrexxxxx xxxh Templeton Growth Fund, Ltd., axx xx xxxch Funds have as their investment advisers companies under the control and direction of John M. Templeton and the same ax xx xxxxxxxxxx with adviser either the Investment Manager of the FundFund or companies which are affiliated with the Investment Manager; as well as any and (2) that Chase may enter into substantially similar custody agreements of Chase with any additional mutual funds under Franklin Templeton management or Templetox xxxxxxxent which may hxxxxxxxx hereafter be organized. Each of such custody agreements with each of such other Franklin Templeton Funds and Txxxxxxxx Funds contains (or wixx xxxxxxnwilx xxxxxxx) a "Standard of Care' " section similar to this Section 14, except that the limit of Chase's liability is (or will be) in varying amounts for each Fund, with the aggregate limits of liability in all of such agreements, including this custody agreementAgreement, amounting to $150,000,000. On each anniversary date of the original June 1, 1984 date of this Agreement, and of the similar custody agreements with each other Templeton Fund, Chase will totxx xxx xxt total the net assets reported by each one of the Franklin Templeton FundsFunds and Templeton Fuxxx, and xxx will calcuxxxx xxx xxxxulate the percentage of the aggregate net assets of all the Franklin Templeton Funds that and Templeton Fuxxx xxxx is reprexxxxxx xy represenxxx xx the net asset value of this FundTrust. Thereupon Chase shall allocate to this Agreement with this Fund Trust that proportion of its total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this FundTrust's net assets bears to the total net assets of all suchsuch Franklin Templeton Funds and Templeton Fuxxx subjexx xx xxxustments for claims paid as follows: all claims previously paid to this Trust shall first be deducted from its proportionate allocable share of the $150,000,000 Chase responsibility, and if the claims paid to this Trust amount to more than its allocable share of the Chase responsibility, then the excess of such claims paid to this Trust shall diminish the balance of the $150,000,000 Chase responsibility available for the proportionate shares of all of the other Franklin Templeton Funds and Templeton Funds havinx xxxxxxx custody agreements with Chase. Based on such calculation, and on such adjustment for claims paid, if any, Chase thereupon shall notify the Trust of such limit of liability under this Section 14 which will be available to the Trust with respect to (1) losses in excess of payment allocations for previous years and (2) losses discovered during the next year this Agreement remains in effect and until a new determination of such limit of responsibility is made on the next succeeding June 1.

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As -------------------------------------------- soon as Practicable practicable after each anniversary June 1 of the original June 1every year, 1984 date of this Agreement the Company on behalf of the Fund shall provide Chase with the amount of the its total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties parties to this Agreement that, simultaneously with this Agreement, (1) that Chase is entering has entered into substantially similar custody agreements as follows: an agreement with the Company other Templeton Funds, including Temxxxxxx Xxnds, Inc. on bexxxx xx Xempleton World Fund and Templetxx Xxxxxxn Fund; Templetox Xxxxxx Funds, Inx. xx xxhalf of Templeton Global I and Templetxx Xxxxxl II; Tempxxxxx Xxowth Fund, Ltd., Xxxxxxxxn Growth Fund, Inc.; Xxxxxxxxn Emerging Markets Xxxx, Xnc.; Templeton Income Fund and Templxxxx Xxxxme Trust on behalf of Templeton Foreign Money Fund; an axxxxxxxx with Templeton Global Funds, Inc. on xxxxxx xf Templeton Global I; an agreement xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf Templeton Global II; and an agrexxxxx xxxh Templeton Growth Variable Annuity Fund, Ltd., axx xx xxxch all of which Funds have as their investment advisers companies under the control and direction of John M. Templeton and the same ax xx xxxxxxxxxx with adviser either the Investment Manager of the FundFund or companies which are affiliated with the Investment Manager; as well as any and (2) that Chase may enter into substantially similar custody agreements of Chase with any additional mutual funds under Templeton management which may hxxxxxxxx hereafter be organized. Each of such custody agreements with each of such other Templeton Funds contains (or wixx xxxxxxnwilx xxxxxxx) a "Standard of Care' " section similar to this Section 14, except that the limit of Chase's liability is (or will be) in varying amounts for each Fund, with the aggregate limits of liability in all of such agreements, including this custody agreementAgreement, amounting to $150,000,000. On each anniversary date of the original June 1, 1984 date of this Agreement, and of the similar custody agreements with each other Templeton Fund, Chase will totxx xxx xxt total the net assets reported by each one of the Templeton Funds, and will calcuxxxx xxx percentage of the aggregate net assets of all the Templeton Funds that is reprexxxxxx xy the represexxxx xx xhe net asset value of this Fund. Thereupon Chase shall allocate to this Agreement with this Fund that proportion of its total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this Fund's net assets bears to the total net assets of all suchsuch Templeton Funds subject to xxxxxxxxxts for claims paid as follows: all claims previously paid to this Fund shall first be deducted from its proportionate allocable share of the $150,000,000 Chase responsibility, and if the claims paid to this Fund amount to more than its allocable share of the Chase responsibility, then the excess of such claims paid to this Fund shall diminish the balance of the $150,000,000 Chase responsibility available for the proportionate shares of all of the other Templeton Funds having similar xxxxxdy agreements with Chase. Based on such calculation, and on such adjustment for claims paid, if any, Chase thereupon shall notify the Fund of such limit of liability under this Section 14 which will be available to the Fund with respect to (1) losses in excess of payment allocations for previous years and (2) losses discovered during the next year this Agreement remains in effect and until a new determination of such limit of responsibility is made on the next succeeding June 1.

ANNUAL ADJUSTMENT OF LIMITATION OF LIABILITY. As -------------------------------------------- soon as Practicable practicable after each anniversary June I of every year, the original June 1, 1984 date of this Agreement the Company on behalf of the Fund Trust shall provide Chase with the amount of the its total net assets of the Fund as of the close of business on such anniversary date (or if the New York Stock Exchange is closed on such anniversary date, then in that event as of the close of business on the next day on which the New York Stock Exchange is open for business). It is understood by the Parties parties to this Agreement that, simultaneously with this Agreement, (1) that Chase is entering has entered into substantially similar custody agreements as follows: an agreement with the Company on behalf of other Templeton Foreign Fund; an axxxxxxxx with Templeton Global Funds, Inc. on xxxxxx xf Templeton Global I; an agreement xxxx Xxxpleton Global Funds, Inc. on xxxxxx xf Templeton Global II; and an agrexxxxx xxxh Templeton Growth Fund, Ltd., axx xx xxxch Funds all of whxxx Xxxxx have as their investment advisers companies under the control and direction of John M. Templeton and the same ax xx xxxxxxxxxx with adviser either the Investment Manager of the FundFund or companies which are affiliated with the Investment Manager; as well as any and (2) that Chase may enter into substantially similar custody agreements of Chase with any additional mutual funds under Templeton management which may hxxxxxxxx xxx xxxxafter be organized. Each of such custody agreements with each of such other Templeton Funds contains (or wixx xxxxxxnwilx xontain) a "Standard of Care' " section similar to this Section 14, except that the limit of Chase's CHASE'S liability is (or will be) in varying amounts for each Fund, with the aggregate limits of liability in all of such agreements, including this custody agreementAgreement, amounting to $150,000,000. On each anniversary date of the original June 1, 1984 date of this Agreement, and of the similar custody agreements with each other Templeton Fund, Chase will totxx xxx xxt total the net assets reported by each one of the Templeton Funds, and will calcuxxxx calculxxx xxx percentage xercentage of the aggregate net assets of all the Templeton Funds that is reprexxxxxx xy the represenxxx xx xxe net asset value of this FundTrust. Thereupon Chase shall allocate to this Agreement with this Fund Trust that proportion of its total of $150,000,000 responsibility undertaking which is substantially equal to the proportion which this FundTrust's net assets bears to the total net assets of all suchsuch Templeton Funds subject to xxxxxxxxnts for claims paid as follows: all claims previously paid to this Trust shall first be deducted from its proportionate allocable share of the $150,000,000 Chase responsibility, and if the claims paid to this Trust amount to more than its allocable share of the Chase responsibility, then the excess of such claims paid to this Trust shall diminish the balance of the $150,000,000 Chase responsibility available for the proportionate shares of all of the other Templeton Funds having similar cxxxxxx xxreements with Chase. Based on such calculation, and on such adjustment for claims paid, if any, Chase thereupon shall notify the Trust of such limit of liability under this Section 14 which will be available to the Trust with respect to (1) losses in excess of payment allocations for previous years and (2) losses discovered during the next year this Agreement remains in effect and until a new determination of such limit of responsibility is made on the next succeeding June 1.