MEMORANDUM OF AGREEMENT

MEMORANDUM OF AGREEMENT

X. Xxxx Price Institutional Equity Funds, Inc., on behalf of the X. Xxxx Price Institutional

Mid-Cap Equity Growth Fund, X. Xxxx Price Institutional Small-Cap Stock Fund, X. Xxxx Price

Institutional Large-Cap Value Fund, X. Xxxx Price Institutional Large-Cap Growth Fund and X.

Xxxx Price Institutional Large-Cap Core Growth Fund, X. Xxxx Price Institutional Income Funds,

Inc., on behalf of X. Xxxx Price Institutional High Yield Fund and X. Xxxx Price Institutional Core

Plus Fund and X. Xxxx Price Institutional International Funds, Inc., on behalf of X. Xxxx Xxxxx

Institutional Foreign Equity Fund, X. Xxxx Price Institutional Emerging Markets Equity Fund and X.

Xxxx Price Institutional Global Equity Fund, Reserve Investment Funds, Inc., on behalf of

Government Reserve Investment Fund and Reserve Investment Fund, X. Xxxx Price Balanced Fund,

Inc., X. Xxxx Price Blue Chip Growth Fund, Inc., X. Xxxx Price California Tax-Free Income Trust,

on behalf of the California Tax-Free Bond Fund and California Tax-Free Money Fund, X. Xxxx

Price Capital Appreciation Fund, X. Xxxx Price Capital Opportunity Fund, Inc., X. Xxxx Price

Corporate Income Fund, Inc., X. Xxxx Price Developing Technologies Fund, Inc., X. Xxxx Price

Diversified Mid-Cap Growth Fund, X. Xxxx Price Diversified Small-Cap Growth Fund, Inc.,

X. Xxxx Price Dividend Growth Fund, Inc., X. Xxxx Price Equity Income Fund, X. Xxxx Price

Equity Series, Inc., on behalf of X. Xxxx Price Blue Chip Growth Portfolio, X. Xxxx Price Equity

Index 500 Portfolio, X. Xxxx Price Health Sciences Portfolio, X. Xxxx Price Equity Income

Portfolio, X. Xxxx Price Personal Strategy Balanced Portfolio, X. Xxxx Price Mid-Cap Growth

Portfolio and X. Xxxx Price New America Growth Portfolio, X. Xxxx Price Financial Services

Fund, Inc., X. Xxxx Price Fixed Income Series, Inc., on behalf of X. Xxxx Price Limited-Term Bond

Portfolio and X. Xxxx Price Prime Reserve Portfolio, X. Xxxx Price Global Technology Fund, Inc.,

X. Xxxx Price GNMA Fund, X. Xxxx Price Growth & Income Fund, Inc., X. Xxxx Price Growth

Stock Fund, Inc., X. Xxxx Price Health Sciences Fund, Inc., X. Xxxx Price High Yield Fund, Inc., X.

Xxxx Price Index Trust, Inc., on behalf of X. Xxxx Price Equity Index 500 Fund, X. Xxxx Price

Total Equity Market Index Fund and X. Xxxx Price Extended Equity Market Index Fund, X. Xxxx

Price Inflation-Protected Bond Fund, Inc., X. Xxxx Price International Funds, Inc., on behalf of the

X. Xxxx Price Emerging Markets Bond Fund, X. Xxxx Price Emerging Markets Stock Fund, X.

Xxxx Price European Stock Fund, X. Xxxx Price Global Stock Fund, X. Xxxx Price International

Bond Fund, X. Xxxx Price International Discovery Fund, X. Xxxx Price International Growth &

Income Fund, X. Xxxx Price International Stock Fund, X. Xxxx Price Japan Fund, X. Xxxx Price

Latin America Fund, X. Xxxx Price New Asia Fund and X. Xxxx Price Emerging Europe &

Mediterranean Fund, X. Xxxx Price International Index Fund, Inc., on behalf of X. Xxxx Xxxxx

International Equity Index Fund, X. Xxxx Price International Series, Inc., on behalf of X. Xxxx

Price International Stock Portfolio, X. Xxxx Price Media and Telecommunications Fund, Inc., X.

Xxxx Price Mid-Cap Growth Fund, Inc., X. Xxxx Price Mid-Cap Value Fund, Inc., X. Xxxx Price

New America Growth Fund, X. Xxxx Price New Era Fund, Inc., X. Xxxx Price New Horizons Fund,

Inc., X. Xxxx Price New Income Fund, Inc., X. Xxxx Price Small-Cap Stock Fund, Inc., X. Xxxx

Price Personal Strategy Funds, Inc., on behalf of X. Xxxx Price Personal Strategy Balanced Fund, X.

Xxxx Price Personal Strategy Growth Fund and X. Xxxx Price Personal Strategy Income Fund, X.

Xxxx Price Prime Reserve Fund, Inc., X. Xxxx Price Real Estate Fund, Inc., X. Xxxx Price

Retirement Funds, Inc., on behalf of X. Xxxx Price Retirement Income Fund, X. Xxxx Price

Retirement 2005 Fund, X. Xxxx Price Retirement 2010 Fund, X. Xxxx Price Retirement 2015 Fund,

X. Xxxx Price Retirement 2020 Fund, X. Xxxx Price Retirement 2025 Fund, X. Xxxx Xxxxx

Retirement 2030 Fund, X. Xxxx Price 2035 Fund, X. Xxxx Price Retirement 2040 Fund and X.

Xxxx Price Retirement 2045 Fund, X. Xxxx Price Science & Technology Fund, Inc., X. Xxxx Price

Short-Term Bond Fund, Inc., X. Xxxx Price Small-Cap Value Fund, Inc., X. Xxxx Price Spectrum

Fund, Inc., on behalf of Spectrum Growth Fund, Spectrum Income Fund and Spectrum International

Fund, X. Xxxx Price State Tax-Free Income Trust, on behalf of the Florida Intermediate Tax-Free

Fund (formerly Florida Insured Intermediate Tax-Free Fund), Georgia Tax-Free Bond Fund,

Maryland Tax-Free Bond Fund, Maryland Short-Term Tax-Free Bond Fund, Maryland Tax-Free

Money Fund, New Jersey Tax-Free Bond Fund, New York Tax-Free Bond Fund, New York Tax-

Free Money Fund, and Virginia Tax-Free Bond Fund, X. Xxxx Price Summit Funds, Inc., on behalf

of X. Xxxx Price Summit Cash Reserves Fund and X. Xxxx Price Summit GNMA Fund, X. Xxxx

Price Summit Municipal Funds, Inc., on behalf of X. Xxxx Price Summit Municipal Money Market

Fund, X. Xxxx Price Summit Municipal Intermediate Fund and X. Xxxx Price Summit Municipal

Income Fund, X. Xxxx Price Tax-Efficient Funds, Inc., on behalf of X. Xxxx Price Tax-Efficient

Balanced Fund, X. Xxxx Price Tax-Efficient Growth Fund and X. Xxxx Price Tax-Efficient Multi-

Cap Growth Fund, X. Xxxx Price Tax-Exempt Money Fund, Inc., X. Xxxx Price Tax-Free High

Yield Fund, Inc., X. Xxxx Price Tax-Free Income Fund, Inc., X. Xxxx Price Tax-Free Intermediate

Bond Fund, Inc. (formerly X. Xxxx Price Tax-Free Insured Intermediate Bond Fund, Inc.), X. Xxxx

Price Tax-Free Short-Intermediate Fund, Inc., X. Xxxx Price U.S. Bond Index Fund, Inc., X. Xxxx

Price U.S. Treasury Funds, Inc., on behalf of the U.S. Treasury Intermediate Fund, U.S. Treasury

Long-Term Fund and U.S. Treasury Money Fund, X. Xxxx Price Value Fund, Inc. (all of which are

hereinafter collectively called the "Funds" and each of which is hereinafter sometimes called a

"Fund"), which are registered as diversified open-end management investment companies under the

Federal Investment Company Act of 1940 (the "Act"). X. Xxxx Price Associates, Inc. ("Adviser") is

investment adviser to all the Funds except Institutional International Funds, Inc., X. Xxxx Price

International Funds, Inc. and X. Xxxx Price International Series, Inc.; X. Xxxx Price International,

Inc. ("TRPI") is investment adviser to each of these investment companies. X. Xxxx Price

Investment Services, Inc. ("Distributor"), X. Xxxx Price Services, Inc. ("Services"), and X. Xxxx

Price Retirement Plan Services, Inc. (“RPS”) are Maryland corporations and wholly-owned

subsidiaries of the Adviser. In accordance with the rules of the Securities and Exchange

Commission under the Act, the Funds, the Adviser, TRPI, the Distributor, Services, and RPS, as well

as other affiliated companies of the Adviser, X. Xxxx Price Group, Inc., (all of which are hereinafter

sometimes collectively called the "Insureds" and each of which is hereinafter sometimes individually

called the "Insured"), have jointly agreed to maintain a Brokers' Blanket Bond and Policy, designated

as Bond No. 87163206B (the “Bond”) from the ICI Mutual Insurance Company, as attached hereto.

The Bond became effective on August 31, 2006, and is to run through August 31, 2007 unless

canceled. The coverage of the Bond is in the principal amount of $95,000,000.

The Bond coverage shall be allocated among the Insureds for the period August 31, 2006

through August 31, 2007, in the following proportions in accordance with the appropriations outlined

in the Price Funds Quarterly Compliance Report for the Joint Brokers Blanket Bond, attached hereto

as “Exhibit A”.

(b) Due to the large number of X. Xxxx Price entities listed on the Bond, the Boards

have allocated the premium based on a ratio of 70% to the Price Funds and 30% to the X. Xxxx Xxxxx

entities.

Each investment company is allocated a percentage of the total bond coverage that is

allotted to all of the Price Funds (97% of coverage) based on the required bond amount for that

investment company as specified under the Act. The minimum amount of coverage is calculated

based on the total assets of each investment company rather than each underlying series. The

premium for each Price Fund is calculated using each Price Fund’s (including each underlying series)

percentage of total gross assets of all of the Price Funds. This percentage is multiplied by the total

premium allocated to all of the Price Funds (70% of premium).

2. Except as otherwise provided in this Agreement, each Insured shall be entitled to the full

amount of any recovery under the Bond in connection with any loss sustained by it, and shall bear all

of the expenses attendant upon the realization of such recovery.

3. (a) In the event that all of the Insureds shall together sustain, as the result of any single

occurrence, a loss equal to or greater than the principal amount of the Bond, or in the event that all of

the Insureds shall together sustain losses under any other circumstances in which the aggregate

amount of the recovery under the Bond shall be less than the aggregate amount of such losses, then

in either such event the amount of such recovery shall be proportioned among all Insureds as

allocated in Section 1(a). Each underlying series would receive a portion of its investment

company’s allocation based on the percentage of assets of the underlying series of the total assets of

the series’ investment company.

In the event that any two or more of the Insured entities shall together sustain a loss or losses,

then any recovery under the Bond shall be allocated between them in such proportions as shall be

determined in the case of each Insured by the application of the following fraction:

(i)		the numerator of which shall be the numerator of the fraction applicable to such
		Insured as set forth in Section 1(a) (each series would receive a proportional amount
		of the coverage calculated for the investment company based on the number of
		underlying series suffering losses), and
(ii)		the denominator of which shall be the sum of the numerators applicable to such
		Insured as set forth in Section 1(a).
	(b)	Anything in Paragraph 3(a) to the contrary notwithstanding, in the event that the
		result of the operation of that paragraph would be to allocate to any one or more of
		the Insureds sustaining losses as a result of any single occurrence an amount in
		excess of the loss actually sustained by it or them, each such Insured shall be entitled
		only to an amount equal to the loss it has sustained, and the excess shall be allocated
		as between the other Insured or Insureds participating in such loss by a computation
		made in the manner prescribed in the second sentence of Paragraph 3(a); provided,
		however, in the event that the result of such computation shall be the allocation to
		one or more of such other Insureds of an amount or amounts which, when added to
		the amount or amounts allocated to such Insured or Insureds pursuant to Paragraph
		3(a), shall exceed the loss or losses actually sustained by it or them, the procedure
		specified in the foregoing sentence shall be repeated successively until none of the
		Insureds sustaining a loss by virtue of such occurrence shall have been allocated an
		amount in excess of such loss.

4. Any cost involved in the interpretation and enforcement of the Bond shall be borne by all

of the Insureds in the same proportions as used to calculate the premium of the Bond; provided,

however, that if the interpretation of the Bond arises out of or in connection with a loss or losses in

which any two or more of the Insureds are involved, such costs shall be allocated among them in the

manner specified in Paragraph 3; and provided further, that if only one Insured is involved in any

such loss, then all of such costs shall be borne by Insured.

5.	Each of the Insureds shall notify each of the other Insureds within ten days of:
	(a)	the filing of any claim under the Bond, and
	(b)	the settlement of any claim under the Bond.
6.	The Insureds agree to consult and cooperate among themselves in order to procure the
benefits of the Bond and of this Agreement for all of them.
7.	This Agreement has been executed and delivered in order to comply with the terms and
conditions set forth in Rule 17g-1 under the Investment Company Act of 1940.

IN WITNESS WHEREOF, each of the Insureds has caused this Agreement to be executed in
its name and its corporate seal to be affixed hereunto and attested, in each case by its corporate
officers thereunto duly authorized, all as of the 31st day of	August	, 2006.

X. XXXX PRICE INSTITUTIONAL EQUITY FUNDS, INC., on behalf of

X. XXXX PRICE INSTITUTIONAL MID-CAP EQUITY GROWTH FUND

X. XXXX PRICE INSTITUTIONAL SMALL-CAP STOCK FUND,

X. XXXX PRICE INSTITUTIONAL LARGE-CAP VALUE FUND

X. XXXX PRICE INSTITUTIONAL LARGE-CAP GROWTH FUND

X. XXXX PRICE INSTITUTIONAL LARGE-CAP CORE GROWTH FUND

X. XXXX PRICE INSTITUTIONAL INCOME FUNDS, INC., on behalf of

X. XXXX PRICE INSTITUTIONAL HIGH YIELD FUND

X. XXXX PRICE INSTITUTIONAL CORE PLUS FUND

X. XXXX PRICE INSTITUTIONAL INTERNATIONAL FUNDS, INC., on behalf of

X. XXXX PRICE INSTITUTIONAL FOREIGN EQUITY FUND

X. XXXX PRICE INSTITUTIONAL EMERGING MARKETS EQUITY FUND

X. XXXX PRICE INSTITUTIONAL GLOBAL EQUITY FUND

X. XXXX PRICE RESERVE INVESTMENT FUNDS, INC., on behalf of

X. XXXX PRICE GOVERNMENT RESERVE INVESTMENT FUND,

X. XXXX PRICE RESERVE INVESTMENT FUND

X. XXXX PRICE BALANCED FUND, INC.

X. XXXX PRICE BLUE CHIP GROWTH FUND, INC.

X. XXXX PRICE CALIFORNIA TAX-FREE INCOME TRUST, on behalf of

CALIFORNIA TAX-FREE BOND FUND,

CALIFORNIA TAX-FREE MONEY FUND

X. XXXX PRICE CAPITAL APPRECIATION FUND

X. XXXX PRICE CAPITAL OPPORTUNITY FUND, INC.

X. XXXX PRICE CORPORATE INCOME FUND, INC.

X. XXXX PRICE DEVELOPING TECHNOLOGIES FUND, INC.

X. XXXX PRICE DIVERSIFIED MID-CAP GROWTH FUND

X. XXXX PRICE DIVERSIFIED SMALL-CAP GROWTH FUND, INC.

X. XXXX PRICE DIVIDEND GROWTH FUND, INC.

X. XXXX PRICE EQUITY INCOME FUND

X. XXXX PRICE EQUITY SERIES, INC., on behalf of

X. XXXX PRICE EQUITY INCOME PORTFOLIO,

X. XXXX PRICE MID-CAP GROWTH PORTFOLIO,

X. XXXX PRICE NEW AMERICA GROWTH PORTFOLIO,

X. XXXX PRICE PERSONAL STRATEGY BALANCED PORTFOLIO

X. XXXX PRICE BLUE CHIP GROWTH PORTFOLIO

X. XXXX PRICE EQUITY INDEX 500 PORTFOLIO

X. XXXX PRICE HEALTH SCIENCES PORTFOLIO

X. XXXX PRICE FINANCIAL SERVICES FUND, INC.

X. XXXX PRICE FIXED INCOME SERIES, INC., on behalf of

X. XXXX PRICE LIMITED-TERM BOND PORTFOLIO,

X. XXXX PRICE PRIME RESERVE PORTFOLIO

X. XXXX PRICE GLOBAL TECHNOLOGY FUND, INC.

X. XXXX PRICE GNMA FUND

X. XXXX PRICE GROWTH & INCOME FUND, INC.

X. XXXX PRICE GROWTH STOCK FUND, INC.

X. XXXX PRICE HEALTH SCIENCES FUND, INC.

X. XXXX PRICE HIGH YIELD FUND, INC.

X. XXXX PRICE INDEX TRUST, INC., on behalf of

X. XXXX PRICE EQUITY INDEX 500 FUND,

X. XXXX PRICE TOTAL EQUITY MARKET INDEX FUND,

X. XXXX PRICE EXTENDED EQUITY MARKET INDEX FUND

X. XXXX PRICE INFLATION-PROTECTED BOND FUND, INC.

X. XXXX PRICE INTERNATIONAL FUNDS, INC., on behalf of

X. XXXX PRICE EMERGING MARKETS BOND FUND,

X. XXXX PRICE EMERGING MARKETS STOCK FUND,

X. XXXX PRICE EUROPEAN STOCK FUND,

X. XXXX PRICE GLOBAL STOCK FUND,

X. XXXX PRICE INTERNATIONAL BOND FUND,

X. XXXX PRICE INTERNATIONAL DISCOVERY FUND,

X. XXXX PRICE INTERNATIONAL GROWTH & INCOME FUND

X. XXXX PRICE INTERNATIONAL STOCK FUND,

X. XXXX PRICE JAPAN FUND,

X. XXXX PRICE LATIN AMERICA FUND,

X. XXXX PRICE NEW ASIA FUND, and

X. XXXX PRICE EMERGING EUROPE & MEDITERRANEAN FUND

X. XXXX PRICE INTERNATIONAL INDEX FUND, INC. on behalf of

X. XXXX PRICE INTERNATIONAL EQUITY INDEX FUND

X. XXXX PRICE INTERNATIONAL SERIES, INC., on behalf of

X. XXXX PRICE INTERNATIONAL STOCK PORTFOLIO

X. XXXX PRICE MEDIA & TELECOMMUNICATIONS FUND, INC.

X. XXXX PRICE MID-CAP GROWTH FUND, INC.

X. XXXX PRICE MID-CAP VALUE FUND, INC.

X. XXXX PRICE NEW AMERICA GROWTH FUND

X. XXXX PRICE NEW ERA FUND, INC.

X. XXXX PRICE NEW HORIZONS FUND, INC.

X. XXXX PRICE NEW INCOME FUND, INC.

X. XXXX PRICE PERSONAL STRATEGY FUNDS, INC., on behalf of

X. XXXX PRICE PERSONAL STRATEGY BALANCED FUND,

X. XXXX PRICE PERSONAL STRATEGY GROWTH FUND,

X. XXXX PRICE PERSONAL STRATEGY INCOME FUND

X. XXXX PRICE PRIME RESERVE FUND, INC.

X. XXXX PRICE REAL ESTATE FUND, INC.

X. XXXX PRICE RETIREMENT FUNDS, INC., on behalf of

X. XXXX PRICE RETIREMENT INCOME FUND

X. XXXX PRICE RETIREMENT 2005 FUND

X. XXXX PRICE RETIREMENT 2010 FUND

X. XXXX PRICE RETIREMENT 2015 FUND

X. XXXX PRICE RETIREMENT 2020 FUND

X. XXXX PRICE RETIREMENT 2025 FUND

X. XXXX PRICE RETIREMENT 2030 FUND

X. XXXX PRICE RETIREMENT 2035 FUND

X. XXXX PRICE RETIREMENT 2040 FUND

X. XXXX PRICE RETIREMENT 2045 FUND

X. XXXX PRICE SCIENCE & TECHNOLOGY FUND, INC.

X. XXXX PRICE SHORT-TERM BOND FUND, INC.

X. XXXX PRICE SMALL-CAP STOCK FUND, INC.

X. XXXX PRICE SMALL-CAP VALUE FUND, INC.

X. XXXX PRICE SPECTRUM FUND, INC., on behalf of

SPECTRUM GROWTH FUND,

SPECTRUM INCOME FUND,

SPECTRUM INTERNATIONAL FUND

X. XXXX PRICE STATE TAX-FREE INCOME TRUST, on behalf of

FLORIDA INTERMEDIATE TAX-FREE FUND

(formerly Florida Insured Intermediate Tax-Free Fund),

GEORGIA TAX-FREE BOND FUND,

MARYLAND TAX-FREE BOND FUND,

MARYLAND SHORT-TERM TAX-FREE BOND FUND,

MARYLAND TAX-FREE MONEY FUND,

NEW JERSEY TAX-FREE BOND FUND,

NEW YORK TAX-FREE BOND FUND,

NEW YORK TAX-FREE MONEY FUND,

VIRGINIA TAX-FREE BOND FUND

X. XXXX PRICE SUMMIT FUNDS, INC., on behalf of

X. XXXX PRICE SUMMIT CASH RESERVES FUND,

X. XXXX PRICE SUMMIT GNMA FUND

X. XXXX PRICE SUMMIT MUNICIPAL FUNDS, INC., on behalf of

X. XXXX PRICE SUMMIT MUNICIPAL MONEY MARKET FUND,

X. XXXX PRICE SUMMIT MUNICIPAL INTERMEDIATE FUND,

X. XXXX PRICE SUMMIT MUNICIPAL INCOME FUND

X. XXXX PRICE TAX-EFFICIENT FUNDS, INC., on behalf of

X. XXXX PRICE TAX-EFFICIENT BALANCED FUND,

X. XXXX PRICE TAX-EFFICIENT GROWTH FUND

X. XXXX PRICE TAX-EFFICIENT MULTI-CAP GROWTH FUND

X. XXXX PRICE TAX-EXEMPT MONEY FUND, INC.

X. XXXX PRICE TAX-FREE HIGH YIELD FUND, INC.

X. XXXX PRICE TAX-FREE INCOME FUND, INC.

X. XXXX PRICE TAX-FREE INTERMEDIATE BOND FUND, INC.

(formerly X. Xxxx Price Tax-Free Insured Intermediate Bond Fund, Inc.)

X. XXXX PRICE TAX-FREE SHORT-INTERMEDIATE FUND, INC.

X. XXXX XXXXX U.S. BOND INDEX FUND, INC.

X. XXXX XXXXX U.S. TREASURY FUNDS, INC., on behalf of

U.S. TREASURY INTERMEDIATE FUND,

U.S. TREASURY LONG-TERM FUND,

U.S. TREASURY MONEY FUND

X. XXXX PRICE VALUE FUND, INC.

By:
_______________________________

Xxxxx X. Xxxxxxx

X. XXXX PRICE ASSOCIATES, INC.

By
_______________________________

Xxxxxx X. Xxxxx

Revised DLK\5457\insur\memoins.06

August 2006

RESOLVED, that the Brokers’ Blanket Bond be maintained on behalf of the Corporation/Trust and

be in the form of a joint insured bond issued by ICI Mutual Insurance Company in the aggregate

amount of $95 million with respect to each of the entities set forth in the attached Memorandum of

Agreement dated August 31, 2006 and in the amounts indicated therein.

RESOLVED, that the proper officer of the Corporation/Trust be, and he is hereby authorized and

directed in his name and on his behalf to execute and deliver to the Funds/Trust named or to be

named on the said Brokers’ Blanket Bond, the Agreement with those Corporations/Trusts referred to

in the foregoing resolution.

RESOLVED, that the Board of Directors/Trustees of the Corporation/Trust hereby designate Xxxxxxxx

X. Xxxxxxx as the officer of said Corporation/Trust who shall make filings with the Securities and

Exchange Commission and give all notices to directors/trustees of the Corporation/Trust which shall

at any time be required by Paragraph (h) of Rule 17-g-1.

Revised 8/31/2006

DLK\5457\INSUR\MemoIns.06

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MEMORANDUM OF AGREEMENT

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