The Lima Arizona Class C Distribution Plan and Agreement is an essential component of the financial relationship between Putnam Mutual Funds Corp and Putnam High Yield Trust II. This agreement outlines the terms and conditions for the distribution of Class C shares of the funds managed by Putnam Mutual Funds Corp in the state of Arizona. The Class C Distribution Plan and Agreement is designed to facilitate the effective and efficient distribution of Class C shares, which are typically sold with a contingent deferred sales charge that declines over a specified period. This plan ensures that investors are adequately informed about the costs and risks associated with investing in Class C shares, while providing a framework for distributing the shares to investors in compliance with all applicable regulations. Compliance with regulatory requirements is a crucial aspect of the Lima Arizona Class C Distribution Plan and Agreement. It ensures that both Putnam Mutual Funds Corp and Putnam High Yield Trust II adhere to all laws and regulations governing the distribution of securities in the state of Arizona. By complying with these regulations, investors can have confidence in the integrity and transparency of the distribution process. Furthermore, the Lima Arizona Class C Distribution Plan and Agreement may include provisions for compensation and incentives to financial intermediaries that distribute the funds. These provisions are designed to encourage financial intermediaries to promote and distribute Class C shares to their clients. Compensation structures may vary depending on the specific terms and conditions of the agreement, which may include various fees, commissions, or other incentives. It is worth mentioning that there might be different types of Lima Arizona Class C Distribution Plans and Agreements between Putnam Mutual Funds Corp and Putnam High Yield Trust II based on the specific funds or series of funds being distributed. Each agreement is tailored to the particular characteristics and requirements of the funds in question, ensuring that the distribution plan is aligned with the fund's investment objectives and strategies. In summary, the Lima Arizona Class C Distribution Plan and Agreement between Putnam Mutual Funds Corp and Putnam High Yield Trust II is a vital document that regulates the distribution of Class C shares in accordance with regulatory requirements. This agreement aims to safeguard the interests of investors while providing a comprehensive framework for the effective and transparent distribution of the funds.