SECTION 4. WAIVERS AND

REIMBURSEMENTS

Any waiver or reimbursement of a fee or expense incurred by the RIC shall meet the following requirements:

.01 Fees and expenses related to arrangements for shareholder services or the distribution of shares. The benefit of a waiver or reimbursement of all or part of a fee or expense that is described in section 3.01 of this revenue procedure is allocated to the Qualified Group of shares on behalf of which the fee or expense was incurred. Thus, for example, if a RIC meeting the requirements of this revenue procedure issues Class A shares bearing a Rule 12b-1 fee of .50 percent of net asset value and issues Class B shares bearing a Rule 12b-1 fee of .75 percent of net asset value, a distributor may waive all or part of the Class B Rule 12b-1 fee. Because the Class B Rule 12b-1 fee was allocated to Class B on the basis of the amount incurred by Class B, the benefit of a waiver of the Class B Rule 12b-1 fee is allocated entirely to Class B, and no portion of the waiver may be allocated to Class A.

.02 Other fees and expenses. The benefit of a waiver or reimbursement of all or part of a fee or expense described in section 3.02 of this revenue procedure is allocated in accordance with the method of allocation of the fee or expense pursuant to section 3.02. If pursuant to section 3.02 the fee or expense was allocated on the basis of the amount incurred on behalf of each Qualified Group, the benefit of a waiver or reimbursement of the fee or expense described in section 3.02 is allocated to the Qualified Group of shares on behalf of which the expense was incurred. If pursuant to section 3.02 the fee or expense was allocated on the basis of net asset value, the benefit of a waiver or reimbursement of the fee or expense is allocated by net asset value. Thus, for example, if Class A shares are allocated a transfer agency fee pursuant to section 3.02 on the basis of the amount incurred

by Class A, and Class B shares are allocated a transfer agency fee pursuant to section 3.02 on the basis of the amount incurred by Class B, the transfer agent may waive all or part of the Class B transfer agency fee. Because the Class B transfer agency fee was allocated to Class B on the basis of the amount incurred by Class B, the benefit of a waiver of the Class B transfer agency fee is allocated entirely to Class B, and no portion of the waiver may be allocated to Class A.

.03 Advisory fees and other expenses related to the management of the corpo- ration’s assets —(1) General rule. The benefit of a waiver or reimbursement of a fee or expense that is described in section 3.03(1) of this revenue procedure is allocated to all shares by net asset value, regardless of Qualified Group, except as provided in paragraph (2) of this section.

(2) Performance fees. A RIC whose advisory contract contains performance fee provisions described in section 3.03(2) of this revenue procedure shall comply with the requirement in this section 4.03(2) instead of that contained in section 4.03(1) of this revenue procedure. If, under these performance fee provisions, a Qualified Group is allocated an advisory fee that exceeds the advisory fee that would have been allocated to that Qualified Group if its performance were equivalent to that of the index or other measure of performance under these performance fee provisions, then the benefit of a waiver or reimbursement of all or part of the excess shall be allocated to the Qualified Group to which the excess is allocated. The benefit of any waiver or reimbursement of any other portion of the advisory fee shall comply with section 4.03(1) of this revenue procedure.