EXHIBIT (8)(a) Daily Valuation Agency Agreement (Vanguard)
Exhibit 8
THE VANGUARD GROUP, INC.
THIS
AGREEMENT, made this __ 22nd ___ day of ___ March ___, 2006_, by and between THE VANGUARD
GROUP, INC. (“Vanguard”), a Pennsylvania corporation with its principal place of business
in Pennsylvania, and Diversified Investment Advisors _______ (the
“Agent”), a __ Registered
Investment Advisor with its principal place of business in ______
Purchase, New York____________.
W I T N
E S S E T H:
WHEREAS, Vanguard provides services as transfer agent, dividend disbursement agent, and
shareholder servicing agent for the open-end management investment companies registered under the
Investment Company Act of 1940, as amended (the “1940 Act”), that are included in The Vanguard
Group of investment companies, as well as Vanguard STAR Funds and Vanguard Institutional Index
Fund (each, a “Vanguard Fund” and collectively, the “Vanguard Funds”);
WHEREAS, the Agent is either (i) a broker-dealer registered under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), (ii) an investment adviser registered under the
Investment Advisers Act of 1940, as amended, (iii) a bank or trust company which is a member of
the Federal Reserve System or is supervised and examined by state or federal authorities having
supervision over banks, (iv) an insurance company which is supervised and examined by state
authorities having supervision over insurance companies, or (v) a transfer agent or clearing
agency registered under the Exchange Act;
WHEREAS, the Agent provides participant accounting, record-keeping, administrative and/or
other services to certain tax-qualified defined contribution plans (each, a “Plan” and
collectively, the “Plans”);
WHEREAS, the Agent has established or will establish individual accounts on its defined
contribution plan record-keeping system reflecting all transactions by or on behalf of participants
and beneficiaries under each Plan which result in purchases or redemptions by the Plans of shares
of the Vanguard Funds;
WHEREAS, Vanguard has established or will establish accounts on its mutual fund
shareholder record-keeping system to reflect the Plans’ ownership of shares of the Vanguard
Funds and all transactions by the Plans involving such shares;
WHEREAS, Vanguard has established an electronic data transmission platform (the “DV
Platform”) that permits the electronic transmission of the
Plans’ account transaction data
between Vanguard and the Agent;
WHEREAS, Vanguard and the Agent desire to communicate via the DV Platform with respect to
transactions by the Plans involving shares of the Vanguard Funds, pursuant to the terms and
conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties
hereto, intending to be legally bound, hereby agree as follows:
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1.
Appointment of the Agent as Agent.
(a) Authorization of Agent. Subject to any and all limitations set forth in this
Agreement, Vanguard, as transfer agent for the Vanguard Funds, hereby appoints the Agent
as the limited agent of Vanguard, and the Agent hereby accepts such appointment, to accept
on the Vanguard Funds’ behalf orders from or on behalf of the Plans for the purchase,
redemption and exchange of shares of the Vanguard Funds. A Vanguard Fund will be deemed to
have received a purchase, redemption or exchange order when the Agent accepts the order in
accordance with this Agreement. In most instances, a Plan will receive the share price
next computed by the Vanguard Fund after the time at which such Plan places its order with
the Agent, provided all of the requirements and obligations of the Agent with respect to
acceptance and transmission of orders set forth in this Agreement are satisfied.
(b) Participant-Level Transactions. The purchases, redemptions and exchanges accepted
by the Agent pursuant to Section 1(a) above shall be based on: (i) participant-level transactions
made by or on behalf of participants and beneficiaries under the Plans which are recorded on the
Agent’s defined contribution plan record-keeping system; or (ii) other authorized transaction
directions received by the Agent from Plan fiduciaries which are recorded on the Agent’s defined
contribution plan record-keeping system. For purposes of this Agreement, “participant-level
transactions” shall relate only to defined contribution funds and shall include:
(i) Any authorized direction to a Plan by or on behalf of any participant to invest
contributions
in a Vanguard Fund in accordance with the terms and conditions of the Plan and the applicable
Vanguard Fund prospectus;
(ii) Any authorized direction to a Plan to exchange existing amounts held on
behalf of any participant or beneficiary to a Vanguard Fund in accordance with the terms and
conditions of the Plan and the applicable Vanguard Fund prospectus;
(iii) Any authorized direction to a Plan to exchange existing amounts invested in a
Vanguard Fund on behalf of any participant or beneficiary to any other investment option offered
under the Plan in accordance with the terms and conditions of the Plan and the applicable Vanguard
Fund prospectus; and
(iv) Any authorized direction to a Plan on behalf of any participant or beneficiary to
pay loan, withdrawal or distribution proceeds to a participant or beneficiary from a Vanguard Fund
in accordance with the terms and conditions of the Plan and the applicable Vanguard Fund
prospectus.
(c) Plan Recordkeeping. (i) The Agent shall maintain records for the Plans and for
the participants and beneficiaries thereof reflecting all shares of the Vanguard Funds
purchased and redeemed by the Plans based on participant-level transactions (including the
date and price for all transactions and share balances) and all reinvestments by the Plans
of dividends and capital gains distributions paid by the Vanguard Funds. The Agent shall
reconcile on each day that the New York Stock Exchange is open for trading (a “Business
Day”) all transactions by the Plans involving shares of the Vanguard Funds (including
purchases, redemptions, and reinvestments of dividends and capital gains distributions) with
the corresponding participant-level transactions on the Agent’s defined contribution plan
record-keeping system. It is understood that the Agent’s maintenance of participant-level
account records for a Plan is done as the agent for a Plan and not as the agent for
Vanguard or any of its affiliates.
(ii) The Agent shall promptly notify Vanguard if the Agent experiences difficulty in
maintaining participant-level records described above in an accurate and complete manner. The Agent
agrees to furnish Vanguard with such information as Vanguard may reasonably request from time to
time in order for Vanguard
to verify the Agent’s compliance with the terms of this Agreement (including, without
limitation, periodic certifications confirming the provision of the Agent’s record-keeping services
to the Plans in a manner consistent with the terms of this Agreement).
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(d) No Extension of Agency. Notwithstanding the authorization granted by Vanguard
under this Section 1, the Agent shall not be, nor hold itself out to the public or engage in any
activity as, an agent for Vanguard in respect of or in connection with the distribution or
marketing of shares of the Vanguard Funds.
(e) Availability of Vanguard Fund Shares. The parties acknowledge and agree that the
availability of shares of any Vanguard Fund shall be subject to the Vanguard Fund’s then-current
prospectus and statement of additional information, applicable federal and state laws, and
applicable rules and regulations of the Securities and Exchange Commission (“SEC”) and the
National Association of Securities Dealers, Inc. (“NASD”).
2. Compliance Responsibilities.
(a) Vanguard is responsible for (i) the compliance of each prospectus, registration
statement, annual or other periodic report, proxy statement and item of advertising or
marketing material prepared by it relating to each Vanguard Fund with all applicable laws,
rules and regulations (except for advertising or marketing material prepared by the Agent
to the extent any information therein was not published or provided to the Agent by or on
behalf of Vanguard or any Vanguard Fund or accurately derived from information published
or provided by or on behalf of Vanguard or any Vanguard Fund), (ii) the registration or
qualification of the shares of each Vanguard Fund under all applicable laws, rules and
regulations, and (iii) the compliance by Vanguard and each Vanguard Fund with all
applicable laws, rules and regulations (including the 0000 Xxx) governing its performance
under this Agreement, and the rules and regulations of each self-regulatory organization
with jurisdiction over Vanguard or the Vanguard Fund, except to the extent that the
failure to so comply by Vanguard or any Vanguard Fund is caused by the Agent’s breach of
this Agreement or the Agent’s willful misconduct or negligence in the performance of, or
failure to perform, its obligations under this Agreement.
(b) The Agent is responsible for the Agent’s compliance with all applicable laws,
rules and regulations governing its performance under this Agreement, and the rules and
regulations of each self-regulatory organization with jurisdiction over the Agent, except to the
extent that the Agent’s failure to comply with any law, rule or regulation is caused by Vanguard’s
breach of this Agreement, or Vanguard’s willful misconduct or negligence in the performance of, or
failure to perform, its obligations under this Agreement.
3. Fees and Expenses.
(a) Vanguard and the Agent agree that no fees will be paid to, or exchanged or shared
between Vanguard and the Agent under this Agreement.
(b) Each party will pay all of its out-of-pocket expenses incurred in connection with the
performance of its obligations under this Agreement, except as may otherwise be specified in
this Agreement.
4. Representations and Warranties.
(a) Vanguard represents and warrants that:
(i) It has the requisite authority to enter into this Agreement on its own behalf and
on behalf of the Vanguard Funds;
(ii) It has taken all actions legally necessary to authorize the execution and
delivery of this Agreement and the performance of its obligations hereunder, and this Agreement
has been duly executed and delivered by its authorized representative and constitutes its
legal, valid and binding obligation, enforceable against Vanguard in accordance with its terms;
(iii) It or an affiliate is in compliance with the applicable conditions and
qualifications set forth in Rule 2830 of the Conduct Rules of the National Association of
Securities Dealers Regulation. Inc., as
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amended from time to time, which enable a member of the National Association of Securities
Dealers, Inc. (“NASD”) to offer or sell shares of the Vanguard Funds;
(iv) Each Vanguard Fund is a no load or no sales charge fund; and
(v) Vanguard currently has and at all times pertinent hereto will have sufficient
financial resources, whether through a fidelity bond or otherwise, to meet all of its financial
obligations arising under this Agreement, including its obligations under Section 13 of this
Agreement.
(b) The Agent represents and warrants that:
(i) It is one or more of the following: (A) a broker-dealer registered under the
Exchange Act and a member in good standing of the NASD; (B) an investment adviser
registered under the Investment Advisers Act of 1940, as amended; (C) a bank or
trust company which is a member of the Federal Reserve System or is supervised and
examined by state or federal authorities having supervision over banks; (D) an
insurance company which is supervised and examined by state authorities having
supervision over insurance companies; or (E) a transfer agent or clearing agency
registered under the Exchange Act;
(ii) It has taken all actions legally necessary to authorize the execution and
delivery of this Agreement and the performance of its obligations hereunder, and this Agreement
has been duly executed and delivered by its authorized representative and constitutes its legal,
valid and binding obligation, enforceable against the Agent in accordance with its terms;
(iii) All orders for the purchase, redemption and exchange of shares of the Vanguard
Funds (“Orders”) which are received by the Agent from a Plan on a Business Day will be transmitted
by the Agent to Vanguard by the applicable cutoff time for Order transmission set forth in Section
6(c) of this Agreement;
(iv) It will not transmit any Order to Vanguard pursuant to this Agreement unless (A)
the Agent has received such Order from the Plan prior to the close of the New York Stock Exchange
(generally, 4:00 p.m. Eastern Time) (“Market Close”) on the Business Day immediately preceding the
date of transmission, and (B) such Order is for a tax-qualified defined contribution plan;
(v) It will not permit a Plan or participant to cancel or modify after Market Close
on a Business Day any Order received from such Plan or participant prior to Market Close on
such Business Day;
(vi) All Orders transmitted to Vanguard pursuant to this Agreement will have been
duly authorized by the applicable Plan;
(vii) With respect to all Orders transmitted to Vanguard pursuant to this Agreement, the
Agent will maintain, or cause to be maintained, records sufficient to document the truth of the
representations and warranties set forth in this Section 4(b); such records will be available to
Vanguard for inspection promptly upon request;
(viii) The Agent maintains policies and procedures that are designed to ensure compliance
with the requirements of Rule 22c-1 under the 1940 Act, applicable SEC and SEC staff
interpretations, and the terms of this Agreement, and the Agent is in compliance with such policies
and procedures;
(ix) The Agent currently has and at all times pertinent hereto will have sufficient
financial
resources, whether through a fidelity bond or otherwise, to meet all of its financial
obligations arising under this Agreement, including its obligations under Section 13 of this
Agreement;
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(x) In connection with the authorization in Section 1 of this Agreement, the Agent
represents and warrants to Vanguard that;
(A) The Agent has implemented an internal control structure and adopted written internal
control procedures that are reasonably designed to prevent and detect on a timely basis Orders
received by the Agent after Market Close from being aggregated with Orders received by the Agent
before Market Close, and to minimize errors that could result in late transmission of Orders to
Vanguard (“Internal Control Procedures”);
(B) The Agent will review, no less than annually, the adequacy of its Internal Control
Procedures and will change and modify them as necessary to maintain their adequacy; and
(C) Upon request by Vanguard, the Agent will provide Vanguard with a description of its
Internal Control Procedures and a certification from the Agent that they are adequate as of the
most recent review.
5. Obligations of Vanguard.
(a) Transactions Subject to this Agreement. Vanguard will accept Orders transmitted
by the Agent on behalf of the Plans in accordance with this Agreement. Vanguard will be
responsible for processing and executing any such Orders from the Agent in a timely manner.
(b) Performance of Duties. Vanguard will perform any and all duties, functions,
procedures and responsibilities assigned to it under this Agreement. Vanguard will maintain
facilities, equipment and skilled personnel sufficient to perform the foregoing activities and to
otherwise comply with the terms of this Agreement. Vanguard will conduct each of the foregoing
activities in a competent manner and in compliance with (i) all applicable laws, rules and
regulations, and (ii) the then-current prospectuses, statements of additional information
(“SAIs”), and policies of the Vanguard Funds.
(c) Accuracy of Information, Transmissions Through and Access to DV Platform. All
information provided by Vanguard to the Agent through the DV Platform and pursuant to this
Agreement will be accurate and complete. Vanguard will adopt, implement and maintain procedures
reasonably designed to ensure the accuracy of all transmissions through the DV Platform, and to
limit the access to, and the inputting of data into, the DV Platform to persons specifically
authorized by Vanguard.
(d) Trade Date. For all Vanguard Funds, Plan Orders will be accorded a trade date that
is the date of receipt of the Order by the Agent from the Plan or participant, subject to the
requirements set forth in Section 6 of this Agreement.
(e) Pricing Information. On every Business Day, Vanguard will transmit by 7:00 p.m.,
Eastern time, a file identifying each Vanguard Fund’s closing net asset value and public offering
price (if applicable) for that day and/or notification of no price for that day, to the Agent via a
transmission method mutually agreed to by the parties. Vanguard shall provide such information on a
best efforts basis taking into consideration any extraordinary circumstances arising at the
Vanguard Funds (e.g., natural disasters, etc.). The Agent shall not be entitled to rely on any
source of net asset value information other than such transmission by Vanguard.
(f) Confirmations. Vanguard shall transmit to the Agent by 8:30 a.m. Eastern time on
each Business Day a confirmation of any net purchase or redemption Orders for shares of the
Vanguard Funds with a trade date of the second preceding Business Day. However, on any Business Day
that is the first Business Day of the month, Vanguard shall transmit such confirmation by 11:00
a.m. Eastern time.
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(g) Monthly Statements. Vanguard shall provide to the Agent by the 15th
Business Day of each calendar month a statement or statements for the preceding calendar month
reflecting the shares of the Vanguard Funds held by the Plans as of the end of such preceding
month and all shareholder-related activities by the Plans in the Vanguard Funds during such
preceding month.
6. Obligations of the Agent.
(a) Performance of Duties. The Agent will perform any and all duties, functions,
procedures and responsibilities assigned to it under this Agreement. The Agent will maintain
facilities, equipment and skilled personnel sufficient to perform the foregoing activities and to
otherwise comply with the terms of this Agreement. The Agent will conduct each of the foregoing
activities in a competent manner and in compliance with all applicable laws, rules and
regulations.
(b) Accuracy of Information, Transmissions Through and Access to DV Platform. All
information provided by the Agent to Vanguard through the DV Platform and pursuant to this
Agreement will be accurate, complete and in the format prescribed by Vanguard. For each Plan
Order, the Agent will provide Vanguard with all information reasonably required by Vanguard to
establish and maintain such Order (and any subsequent adjustments to such Order). The Agent will
adopt, implement and maintain procedures reasonably designed to ensure the accuracy of all
transmissions through the DV Platform and to limit the access to, and the inputting of data into,
the DV Platform to persons specifically authorized by the Agent.
(c) Accepting and Transmitting Orders. As provided in Section 1, and in accordance
with the procedures set forth below, the Agent will act as the limited agent of Vanguard to
receive Orders by the Plans for purchase, redemption and exchange by the Plans of shares of the
Vanguard Funds.
(i) Receipt by the Agent of Participant-Level Transactions. The parties
understand and agree that the Agent may receive participant-level transactions in
various formats, including directions in writing, by computer magnetic tape,
diskette or electronic data transmission, through interactive voice response system,
or by any other accepted method for transmitting defined contribution plan data that
is adopted for the Plans. All participant-level transactions shall be received and
processed by the Agent in accordance with its standard transaction processing
procedures that apply to all investment options offered under the Plans. The Agent
shall maintain records sufficient to identify the date and time of receipt of all
participant-level transactions involving the Vanguard Funds and shall make such
records available upon request for examination by Vanguard or its designated
representative or, at the request of Vanguard, by appropriate governmental
authorities or self-regulatory organizations. Under no circumstances shall the Agent
change, alter or manipulate any participant-level transactions received by it in
good order.
(ii) Transmission by the Agent of Orders. Based on the participant-level
transactions and other authorized transactions from Plan fiduciaries received by the Agent prior to
Market Close on each Business Day, the Agent shall transmit to Vanguard via the DV Platform by 5:00
a.m. Eastern time on the following Business Day a file containing the net purchase or redemption
Order, in dollars, by each Plan (or in the aggregate for all Plans, if the parties have agreed in
advance) for shares of each Vanguard Fund for the preceding Business Day. Each transmission by the
Agent of a net purchase or redemption Order shall constitute a representation by the Agent that
such order was based solely on participant-level transactions and other authorized transactions
from Plan fiduciaries received by the Agent prior to the Market Close on the previous Business Day,
and that such Order included only and all such transactions so received by the Agent. The Agent
shall not transmit via the DV Platform a Plan redemption resulting in full liquidation of the
Plan’s account in a Vanguard Fund or a balance of less than $100 in the Plan’s account in a
Vanguard Fund (a “liquidating redemption”), but instead shall, not later than 4:00 p.m. Eastern
time on the trade date, either fax such Order to (000) 000-0000 or call the Agent’s designated
Vanguard operations team. Any attempted transmission of a liquidating redemption through the DV
Platform will be rejected by Vanguard.
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(iii) Transmission Format. All transmissions of files by the Agent to Vanguard via
the DV Platform shall conform to Vanguard’s specified file formats, which Vanguard shall provide
to the Agent within a reasonable time prior to the commencement of transmissions hereunder.
Vanguard reserves the right to change the specified file formats at any time, but shall provide
the Agent with no less than 30 days’ advance written notice of any such change.
(iv) Backup Files. The Agent shall maintain daily back-up computer tape files of
Orders transmitted to Vanguard under this Agreement, stored in an off-premises location at no cost
to Vanguard. The purpose of backup and recovery procedures is to permit Agent file recovery in the
event of disruption of normal processing.
(d) New Accounts. In order to establish a new account in the Vanguard Funds, the Agent
will submit account registration information to Vanguard on the Vanguard Institutional Investments
Group Account Registration Form. With respect to any omnibus accounts, or any other accounts which
the Agent controls, the Agent shall complete master account registration documentation for each
taxpayer identification number; that documentation shall apply to all identically registered
accounts to which the taxpayer identification numbers apply. The Agent may not transmit any Orders
to Vanguard via the DV Platform unless and until the Agent has established the accounts to which
such Orders relate as provided herein. As used herein, “new account” means an account with a
different registration than any existing account of the Agent.
(e) Redemption Fees. The Agent agrees that it will, where applicable, track, assess
and remit to Vanguard, for the benefit of the relevant Vanguard Funds, redemption fees incurred by
Plan participants as a result of transactions in Vanguard Funds, in accordance with the terms of
the Redemption Fee Procedures for Agents Servicing Defined Contribution Plans set forth in Exhibit
A attached to this Agreement, as such Exhibit may be modified by Vanguard from time to time in its
discretion.
(f) Purchase Fee for Vanguard Emerging Markets Stock Index Fund. The Agent agrees that it
will, where applicable, track, assess and remit to Vanguard, for the benefit of Vanguard Emerging
Markets Stock Index Fund, purchase fees incurred by Plan participants as a result of transactions
in Vanguard Emerging Markets Stock Index Fund, in accordance with the terms of the Vanguard
Emerging Markets Stock Index Fund Purchase Fee Procedures for Agents Servicing Defined Contribution
Plans set forth in Exhibit B attached to this Agreement, as such Exhibit may be modified by
Vanguard from time to time in its discretion.
(g) Frequent Trading Policy. CHOOSE ONE
OF THE FOLLOWING AND INITIAL ON BEHALF OF THE AGENT ON THE APPROPRIATE LINE.
Vanguard
Agent |
Vanguard Funds’ Frequent Trading Policy. The Agent agrees that it will apply the Vanguard Funds’ frequent trading policy to Plan participants investing in the Vanguard Funds through the Plans, in accordance with the terms of the Frequent Trading Policy Procedures for Agents Servicing Defined Contribution Plans set forth in Exhibit C attached to this Agreement, as such Exhibit may be amended by Vanguard upon reasonable advance written notice to the Agent. |
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Vanguard X Agent |
Agent’s Frequent Trading Policy. The Agent agrees that it will apply the frequent trading policy described in or attached as Exhibit C to this Agreement to Plan participants investing in Vanguard Funds through the Plans, as such Exhibit may be amended by the Agent upon reasonable advance written notice to Vanguard. | |
Currently Diversified Investment Advisors is monitoring frequent trading activity through our internal Frequent Trading Committee(Policy Attached). Market Timing Detection System programming to handle Vanguards frequent trading policy will be completed and in place by 7/1/06. At that time Diversified will apply the Vanguard Funds’ frequent trading policy. |
(h) Extraordinary Plan Events. The Agent is not authorized to accept as
Vanguard’s agent any purchase or redemption of shares in an amount which equals or exceeds the
“Large Transaction Amount” for a Vanguard Fund (as specified in Exhibit D attached to this
Agreement, as in effect from time to time), where such Order is the result of an “Extraordinary
Plan Event” of which the Agent is aware, unless the Agent has notified Vanguard of such Order, by
calling the Agent’s designated Vanguard operations team, as soon as practicable on the trade date
and in no event later than one hour prior to the Market Close on the trade date. For these
purposes, an “Extraordinary Plan Event” shall mean an event outside the normal operation of a Plan
such as an entire Plan moving into or out of the Agent’s account with Vanguard or a Plan asset
transfer or merger arising from a Plan sponsor’s merger, acquisition or divestiture. In addition,
in accordance with the prospectus of each Vanguard Fund, Vanguard reserves the right to refuse any
purchase Order which Vanguard, in its sole discretion, deems disruptive or detrimental to the
applicable Vanguard Fund. Vanguard reserves the right to revise Exhibit D at any time and will
provide 30 days’ advance written notice of such revision to the Agent.
(i) Delayed or In-Kind Settlement of Certain Redemptions. In connection with any
redemption Order
that equals or exceeds the applicable Large Transaction Amount for a Vanguard Fund set forth in
Exhibit D, Vanguard reserves the right to delay delivery of redemption proceeds for up to seven
days, to the extent permitted by applicable law or regulation, or to effect the redemption through
an in-kind distribution of securities. Vanguard reserves the right to revise Exhibit D at any time
and will provide 30 days’ advance written notice of such revision to the Agent.
(j) Admiral. Institutional and Institutional Plus Shares
(i) Admiral Shares. Certain Vanguard Funds identified on Exhibit E
attached to this Agreement offer a special share class known as Admiral Shares to qualifying
investors. Vanguard agrees to make Admiral Shares available to those Agent accounts with
Vanguard, that satisfy the then-current Admiral Shares Eligibility Requirements, as specified
in Exhibit E, which may be modified by Vanguard from time to time in its discretion, subject to
the conditions set forth below.
(A) The Agent shall be responsible for ensuring that only those accounts that satisfy the
then-current eligibility requirements receive and continue to hold Admiral Shares.
(B) Upon the request of Vanguard from time to time, the Agent will submit to
Vanguard a report listing (1) each Plan that owns Admiral Shares through the Agent, and (2) the
amount of each Vanguard Fund’s Admiral Shares held by the Agent for each such Plan (in dollars and
shares). This information will be provided separately for each Vanguard Fund and each account
maintained by the Agent. All such information will be kept confidential by Vanguard, will not be
disclosed to any unaffiliated third party and will be used solely for purposes of monitoring
compliance with the eligibility requirements of the Admiral Shares program.
(C) Vanguard and the Vanguard Funds reserve the right to discontinue
availability of Admiral Shares at any time and for any reason without prior notice.
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(ii) Institutional and Institutional Plus Shares. Certain Vanguard Funds
identified on Exhibit F attached to this Agreement offer special share classes known as
Institutional Shares and Institutional Plus Shares to qualifying investors. Vanguard agrees to
make Institutional and Institutional Plus Shares available to those Agent accounts with Vanguard,
that satisfy the then-current Institutional Shares or Institutional Plus Shares Eligibility
Requirements, as specified in Exhibit F, which Exhibit may be modified by Vanguard from time to
time in its discretion, subject to the conditions set forth below.
(A) The Agent shall be responsible for ensuring that only those accounts that satisfy the
then-current eligibility requirements receive and continue to hold Institutional Shares or
Institutional Plus Shares, as the case may be.
(B) Upon the request of Vanguard from time to time, the Agent will submit to Vanguard a
report listing (1) each Plan that owns Institutional Shares or Institutional Plus Shares through
the Agent, and (2) the amount of each Vanguard Fund’s Institutional Shares and/or Institutional
Plus Shares held by the Agent for each such Plan (in dollars and shares). This information will be
provided separately for each Vanguard Fund and each account maintained by the Agent. All such
information will be kept confidential by Vanguard, will not be disclosed to any unaffiliated third
party and will be used solely for purposes of monitoring compliance with the eligibility
requirements of the Institutional Shares and Institutional Plus Shares program.
(C) Vanguard and the Vanguard Funds reserve the right to discontinue availability of
Institutional Shares and/or Institutional Plus Shares at any time and for any reason without prior
notice.
(k) Closed Funds. On occasion, Vanguard may close to new or existing investors
one or more of the Vanguard Funds (“Closed Funds”) on terms or subject to conditions that may vary
from Closed Fund to Closed Fund.
(i) If, pursuant to the terms of a Closed Fund’s closure, such Closed Fund remains
available to Plans investing in the Closed Fund, then from and after the date on
which such Closed Fund is closed to new investors (as such date is determined by
Vanguard), the Agent will not:
(A) Open a new account in such Closed Fund, or
(B) Transmit an Order to purchase shares of such Closed Fund,
unless, in either case, the Plan for which such account is opened or Order is transmitted is
eligible to invest in such Closed Fund pursuant to the terms of the closure and, if
applicable, the aggregate amount invested in the Closed Fund by such Plan during the relevant
period does not exceed any maximum investment limitation imposed in connection with the fund
closing.
(ii) If a new account is opened in a Closed Fund or a purchase of shares in a Closed
Fund is requested in violation of this Section 6(k), Vanguard shall be authorized to cancel the
Order by means of which the new account was opened or the purchase was requested at any time and,
in the case of a new account, to terminate the account at any time. Any such cancellation and/or
termination shall be on a current-day basis, and Vanguard will return to the Agent the lesser of
(A) the amount initially invested in violation of paragraph (i) above or (B) the then-current value
of such investment.
(I) Advance Information. Vanguard will provide the Agent with reasonable notice of
any revisions to the Vanguard Funds’ prospectuses and/or SAIs that Vanguard believes would
affect the Agent’s performance of its duties and obligations pursuant to this Agreement. In
addition, from time to rime, the Vanguard Funds may implement policy changes that affect the
Agent’s performance of recordkeeping for a Plan. In order to allow the Agent a reasonable
amount of time to make any necessary adjustment to its
defined contribution plan
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record-keeping systems, Vanguard, in its sole discretion, may communicate such policy changes to
the Agent before transmitting this information to Vanguard Fund shareholders as a whole (“Advance
Information”). The Agent shall treat all Advance Information as confidential pursuant to Section
12 of this Agreement and prior to its being made public by Vanguard, shall use such information
solely for systems adjustment purposes. The Agent shall communicate Advance Information to its
own directors, officers and employees on a need to know basis, only. Under no circumstances shall
the Agent communicate Advance Information to any Plan, its sponsor, trustee or participants, or
to anyone else except as expressly permitted in this Section 6(1) or with Vanguard’s prior
written consent, until such information becomes publicly available.
(m) Tax Compliance and Reporting.
(i) Responsibilities of the Agent. The Agent shall be
responsible for obtaining all
information necessary in order to assure that all accounts in the Vanguard Funds are
established and maintained in compliance with applicable tax laws, rules and regulations. The
Agent shall comply in all respects with any and all applicable obligations relating to tax
reporting and withholding pursuant to the Internal Revenue Code of 1986, as amended (the “Code”),
or other applicable tax laws, rules and regulations, including without limitation such obligations
relating to Plan purchases and redemptions and any participant-level or beneficiary transactions.
The Agent shall promptly advise Vanguard or the Vanguard Funds of any matter that may affect the
responsibilities of the Vanguard Funds or Vanguard to Plans, participants or beneficiaries
pursuant to the Code or other applicable tax laws, rules and regulations. All information that is
received by the Agent from the Vanguard Funds or Vanguard for inclusion in Plan, participant or
beneficiary tax statements shall be reported to the Plans, participants or beneficiaries, as
applicable, accurately, completely and in a timely manner. The Agent also agrees to obtain and
maintain and, to the extent necessary, provide to any Vanguard Fund or Vanguard, for each account
in a Vanguard Fund, all forms or documents required by applicable laws, rules or regulations with
regard to any of the foregoing.
(ii) Tax Status of the Agent. Upon execution of this Agreement, the Agent will provide
Vanguard with a duly completed Internal Revenue Service (“IRS”) Form W-9 (Request for Taxpayer
Identification Number and Certification), or any updated or successor form, signed under penalties
of perjury. The Agent agrees to notify Vanguard of any changes in its tax status and, as
appropriate, to provide Vanguard with a new IRS Form W-9, or any updated or successor form.
(iii) Survival of Tax Obligations. As the Agent is responsible hereunder for
complying with all applicable laws, rules and regulations concerning the proper establishment and
continued maintenance of its accounts in the Vanguard Funds, including without limitation, IRS or
Code requirements regarding certified tax identification numbers, and compliance with all
applicable tax laws, rules and regulations relating to tax reporting and withholding, Vanguard and
the Vanguard Funds will not be responsible for compliance therewith. All obligations of the Agent
related to such tax compliance, including without limitation, compliance with all notice
obligations under IRS or Code requirements and payment of any and all related fines, interest,
penalties or tax, shall survive termination of the Agent’s accounts and this Agreement.
(iv) Settlement Procedures. If the Agent instructs Vanguard or a Vanguard Fund to remit
payments other than to the Agent as provided in Section 7(d) of this Agreement and Vanguard or the
Vanguard Fund accepts such instructions, the Agent will be responsible hereunder for complying with
all applicable tax laws, rules and regulations concerning such payment, including without
limitation any tax reporting and
withholding obligations under IRS or Code requirements.
(n) Plan Transactions and Restrictions.
(i) The Agent agrees that it will provide, not later than five Business Days after
receipt of a written request by Vanguard on behalf of a Vanguard Fund, the Taxpayer Identification
Number of any or all Plan(s) and or Plan participant(s) and the amount, date, name of investment
professional associated with the
Page 10 of 36
Plan or Plan participant (if any), and transaction type (purchase, redemption, transfer, or
exchange) of every purchase, redemption, transfer, or exchange of shares of such Vanguard Fund
held through an account
maintained by the Agent during the specific period covered by the request. Unless required by
applicable law, rule or regulation, Vanguard and the Vanguard Funds agree not to use the
information received under this Section for marketing or any other purpose not related to (A)
limiting or reducing abusive trading in shares issued by the Vanguard Funds or (B) collecting
purchase or redemption fees (if any).
(ii) The Agent agrees that it will execute written instructions from Vanguard on
behalf of a Vanguard Fund, including instructions to restrict or prohibit purchases or exchanges
of Vanguard Fund shares in specific accounts or by or on behalf of specific Plans and/or Plan
participants identified by such Vanguard Fund. Any such instructions by Vanguard shall include the
Taxpayer Identification Number or equivalent identifying number of the Plan(s) or Plan
participant(s) to which the instructions relate and the specific restriction(s) to be executed.
The Agent agrees that it will execute any such instructions as soon as reasonably practicable, but
not later than five Business Days after receipt of the instructions
by the Agent.
7. Settlement.
(a) Purchase
Orders. In the case of a net purchase Order, the Agent shall remit or
cause to be remitted to Vanguard the exact amount of funds to cover such Order by Federal Funds
wire, received by Vanguard by 4:00 p.m. Eastern time on the Business Day on which the file
containing the net purchase Order is transmitted to Vanguard (the “Settlement Date”). If the Agent
becomes aware that Vanguard may not receive a required wire transfer prior to the Market Close on
the Settlement Date, the Agent will promptly inform Vanguard and will cooperate with Vanguard to
ensure that Vanguard receives such payment as soon as reasonably possible. Notwithstanding the
immediately preceding sentence, if Vanguard does not receive a required wire transfer or a Federal
Reserve Reference Number prior to the Market Close on the appropriate Settlement Date, Vanguard
reserves the right to (i) charge the Agent interest on the amount of the delayed wire as provided
below or (ii) redeem the shares for which payment has not been received on any Business Day
subsequent to the appropriate settlement date if (A) Vanguard has notified the Agent by no later
than 12:00 noon Eastern time on the Business Day following the
Settlement Date (“S+ 1”) that
Vanguard has not received the delayed payment and (B) Vanguard has not received the delayed payment
by one hour prior to Market Close on S+1. For purposes of this Section 7, “Federal Reserve
Reference Number” shall mean a reference number issued by a Federal Reserve Bank that corresponds
to a particular transfer of funds.
(b) Redemption Orders. In the case of a net redemption Order, Vanguard shall remit to
the Agent the exact amount of funds to cover such order by Federal Funds wire, received by the
Agent by 4:00 p.m. Eastern time on the appropriate Settlement Date; provided, however, that if a
Plan account in a Vanguard Fund is redeemed in full
such that it will have a zero balance on the Settlement Date, Vanguard reserves the right to wire
the redemption proceeds within the time frame set forth Section 6(i) of this Agreement. If Vanguard
becomes aware that the Agent may not receive a required wire transfer prior to the Market Close on
the appropriate date, Vanguard will promptly inform the Agent and will cooperate with the Agent to
ensure that the Agent receives such payment as soon as reasonably possible. If the Agent does not
receive a required wire transfer prior to the Market Close on the appropriate date, Vanguard will
pay the Agent interest on the amount of the delayed wire as provided
below.
(c)
Interest
on Delayed Payment. In the event that a wire is delayed, the
interest owed shall be charged at the Federal Funds
“offered” rate as published by The
Wall Street Journal and shall accrue on the amount of the delayed payment from
the date due until the date paid.
Page 11 of 36
(d) Wire
Instructions.
(i) Vanguard:
Wire to: | HSBC Bank, New York | |||
FRB ABA 000000000 | ||||
For Credit to | Account: 000112046 | |||
In favor of: | Vanguard Incoming Wire Account | |||
Master Account # or Various Funds | ||||
For further credit to: |
||||
Daily Valuation Registration Name/Address |
(ii) Agent: Diversified Investment Advisors
Wire to: | FRB ABA # | |||
011001438 | ||||
For Credit to: | Bank Name Investors Bank And Trust | |||
Account # 00000000 | ||||
In favor of: | Account Name Diversified Investment Advisors |
|||
Registration Name Diversified | ||||
Investment Advisors |
8. Adjustments.
(a) Overpayments. In the event that either party makes an overpayment to
the other party in connection with a Plan Order, the party that has been overpaid will promptly
repay the other party the total amount of such overpayment upon receipt of notice of such
overpayment. Notwithstanding the foregoing, if a Plan or Plan participant has received cash in
excess of that to which it is entitled, the Agent will, when requested by Vanguard, and to the
extent practicable and permitted by law, debit or cause to be debited from the Plan’s account the
amount of such excess, but only to the extent of any cash in the account, and repay it to the
affected Vanguard Fund. Upon the request of Vanguard, and to the extent practicable, the Agent
shall provide Vanguard with the names of Plans or Plan participants and other relevant information
concerning the affected accounts to assist Vanguard in the collection of any such excess amount
not repaid to the Vanguard Funds.
(b) Processing Adjustments. Each Business Day the Agent and Vanguard will
reconcile their records so that an appropriate number of shares of each of the Vanguard Funds
is credited to the Agent’s accounts on behalf of the Plans invested in the Vanguard Funds.
(i) In the event of any error (other than a Pricing Error, as hereinafter
defined) or delay
with respect to the procedures outlined in this Agreement that is caused by Vanguard, Vanguard
shall make any adjustments on Vanguard’s accounting system necessary to correct such error or
delay and shall reimburse the Agent for any losses or reasonable costs incurred directly as a
result of the error or delay.
(ii) In the event of any error or delay in transmitting a Plan Order that is caused by
the Agent or any administrator or representative of a Plan, the following provisions will apply:
(A) Upon receipt from the Agent of documentation sufficient in Vanguard’s sole
discretion to establish the details of such Order and the time at which it was received from the
Plan or Plan participant by the Agent, Vanguard will correct its records to reflect the Plan Order
as transmitted to Vanguard by the Agent; and
Page 12 of 36
(B) The Agent will promptly reimburse the Plan, Vanguard and the
Vanguard
Funds for any losses or reasonable costs incurred directly as a result of the error or delay.
The Agent agrees that, insofar as Vanguard and the Vanguard Funds are concerned, such losses or
reasonable costs will include, at a minimum, any market or administrative costs associated with
effecting Plan Orders on an “as of” basis or canceling such Orders.
(iii) The Agent and Vanguard, respectively, each agree to provide the other prompt notice
of any errors or delays of the type referred to in this Section 8(b) and to use reasonable
efforts to take such action as may be appropriate to avoid or mitigate any costs or losses
resulting from such errors or delays.
(c) Pricing Errors. In the event of an error in the computation of a
Vanguard Fund’s net asset value per share which, in accordance with procedures adopted by the
Fund’s Board of Trustees consistent with views expressed by the SEC regarding appropriate error
correction standards, as shall be in effect or amended from time to time, requires adjustment to
Orders previously effected on behalf of a Plan (a “Pricing Error”), Vanguard shall notify the
Agent as soon as possible after discovery of the Pricing Error. Such notification may be oral, but
shall be confirmed promptly in writing. In such event, Vanguard shall reimburse the affected
Vanguard Fund for any loss (without taking into consideration any positive effect of such Pricing
Error) and shall make appropriate adjustments to the Agent’s accounts, which adjustments shall net
the impact of individual Plan participant gains and losses; this will result in either a net
payment to the Agent from Vanguard (in the event of net Plan participant losses) or from the Agent
to Vanguard (in the event of net Plan participant gains). In addition, in the event that the
Pricing Error causes the Agent to incur any direct costs for re-processing participant accounts
under a Plan, such as preparing and mailing revised statements, Vanguard shall reimburse the Agent
for all such reasonable costs upon receipt from the Agent of an invoice or other statement
documenting such costs in reasonable detail.
9. Contingency Procedures. In the case of any interruptions to the transmission or receipt
of Orders through the DV Platform, the Agent will submit Plan Orders to Vanguard in accordance
with the contingency procedures set forth in the Contingency Procedures set forth in Exhibit G
attached to this Agreement, as in effect from time to time.
10. Vanguard Fund Information.
(a) Vanguard will supply to the Agent upon request reasonably sufficient supplies
of the materials listed below for distribution to fiduciaries, participants and beneficiaries under
the Plans who hold Vanguard Fund shares, which distribution shall be arranged by the Agent to occur
immediately upon the effective date of the materials or as soon thereafter as practicable:
(i) All proxy or information statements prepared for circulation to shareholders of
record of a Vanguard Fund;
(ii) Annual and semi-annual reports; and
(hi) All updated prospectuses, supplements and amendments thereto.
(b) The Agent will timely deliver, or cause to be delivered, to fiduciaries, participants and
beneficiaries under the Plans all Vanguard Fund prospectuses, shareholder reports, and proxy
statements and related materials as required by applicable laws, rules or regulations, the rules
and regulations of any self-regulatory organization with jurisdiction over the Agent, and/or the
Agent’s agreement with the Plan.
(c) The Agent shall furnish, or shall cause to be furnished, to Vanguard or its designee, each
piece of sales literature or other promotional material prepared by or on behalf of the
Intermediary in which Vanguard or any Vanguard Fund is named, at least five Business Days prior to
its use. The Agent may use such material (i) in
Page 13 of 36
fewer than five Business Days if it receives the written consent of Vanguard, or (ii) after five
Business Days if Vanguard does not reasonably object to such use within five Business Days after
its receipt of such material. No such material shall be used if Vanguard reasonably objects to
such use within five Business Days after receipt of such material. With regard to any such sales
literature or promotional material furnished by the Agent to Vanguard, the Agent shall bear the
sole responsibility for complying with the content, approval, filing, and recordkeeping
requirements of NASD Conduct Rule 2210, if and to the extent applicable. Notwithstanding the
foregoing, the Agent may use, and Vanguard authorizes the Agent to use, the names or other
identifying marks of, and certain information about, Vanguard and the Vanguard Funds in fund fact
sheets containing Vanguard Fund-specific data furnished by Vanguard. Vanguard may withdraw the
authorization granted in this Section 10(c) as to any particular use of any such name or
identifying marks at any time (A) upon Vanguard’s reasonable determination that such use would
have a material adverse effect on the reputation or marketing efforts of Vanguard or a Vanguard
Fund, which determination may be due to the availability of updated or modified information
regarding a Vanguard Fund or Vanguard, or (B) if any of the Vanguard Funds cease to be available
to Plans through the Agent.
11. Use of Parties’ Names; No Publication of Terms.
(a) Neither Vanguard nor the Agent shall make public the terms and conditions of this
Agreement without the consent of the other party, which consent shall not be unreasonably
withheld; provided, however, that if public disclosure of such information is required by law,
such consent shall be deemed granted and the party required to disclose such information shall, if
practicable, notify the other party prior to such disclosure.
(b) Except as specifically permitted under this Agreement, without the other party’s prior
written consent, neither party to this Agreement shall acquire any right to use, nor shall use,
cause or permit use of the names, characters, artwork, designs, trade names, copyrighted
materials, trademarks or service marks of the other party, its related or subsidiary companies,
parent, employees, directors, shareholders, assigns, successors or licensees: (i) in any
advertising, promotional materials or activities, publicity, press release, customer list, or
public or private presentation or promotion; (ii) to express or to imply any endorsement of such
party or any of its affiliates or their respective offerings or services; or (iii) in any manner
other than expressly in accordance with this Agreement or any other applicable agreement between
the parties and/or any of their respective affiliates.
12. Proprietary Information and Privacy. Each party hereto acknowledges that
the identities of the other party’s customers (including, with respect to the Agent, for purposes
of this Section, Plans and Plan participants), information maintained by such other party regarding
those customers (“Customer Information”), and all computer programs and procedures developed by
such other party or such other party’s affiliates or agents in connection with such other party’s
performance of its duties hereunder constitute the valuable property of such other party. Each
party agrees that should it come into possession of any Customer Information, or any other
property, of the other party, pursuant to this Agreement or any other agreement related to services
under this Agreement, the party who acquired such information or property shall use its best
efforts to hold such information in confidence and refrain from using, disclosing, or distributing
any of such information or other property, except (a) as required or necessary to carry out the
obligations imposed by this Agreement, (b) with the other party’s prior written consent, or (c) as
required by law or judicial process. Each party agrees to comply, at a minimum, with all
applicable privacy laws, including those promulgated pursuant to Title V of the Xxxxx-Xxxxx-Xxxxxx
Act of 1999. Each party agrees to maintain physical, electronic and procedural safeguards
reasonably designed to protect the security, confidentiality, and integrity of and to prevent
unauthorized access to or use of, Customer Information. Each party acknowledges that any breach of
the foregoing agreements as to the other party would result in immediate and irreparable harm to
such other party for which there would be no adequate remedy at law and agrees that in the event of
such a breach, such other party will be entitled to equitable relief by way of temporary and
permanent injunctions, as well as such other relief as any court of competent jurisdiction shall
deem appropriate. Notwithstanding the foregoing, this
Section shall not prohibit either party from utilizing the other party’s Customer Information
for any purpose whatsoever, if and to the extent such Customer Information: (i) is or becomes a
matter of public knowledge through no fault of such
Page 14 of 36
party; or (ii) was in such party’s possession or known by it prior to receipt from such other
party; or (iii) was rightfully disclosed to such party by another person without restriction;
or (iv) is independently developed by such party without access to such other party’s Customer
Information.
13. Indemnification.
(a) Vanguard. Vanguard will indemnify and hold harmless the Agent, and each of the
Agent’s affiliates, divisions, subsidiaries, directors, officers, agents, employees and permitted
assigns, against and from any and all losses, damages, costs, charges, payments, claims,
liabilities and expenses (including reasonable attorney’s fees) arising out of or attributable to:
(i) Vanguard’s lack of good faith, negligence, or willful misconduct in carrying out its duties
and responsibilities relating to this Agreement; (ii) any breach of Vanguard’s representations and
warranties contained in this Agreement; and (iii) any breach by Vanguard of a material provision
of this Agreement. In addition to the foregoing, Vanguard will be liable for the losses and
reasonable costs described in Section 8(b)(i) of this Agreement.
(b) Agent. The Agent will indemnify and hold harmless Vanguard, the Vanguard
Funds, and each of their respective affiliates, divisions, subsidiaries, directors, officers,
agents, employees and permitted assigns, against and from any and all losses, damages, costs,
charges, payments, claims, liabilities and expenses (including reasonable attorney’s fees) arising
out of or attributable to: (i) the Agent’s lack of good faith, negligence, or willful misconduct
in carrying out its duties and responsibilities relating to this Agreement; (ii) any breach of the
Agent’s representations and warranties contained in this Agreement; (iii) any breach by the Agent
of a material provision of this Agreement; and (iv) Vanguard’s acceptance of any Order from the
Agent through the DV Platform. In addition to the foregoing, the Agent will be liable for the
losses and reasonable costs described in Section 8(b)(ii) of this Agreement.
(c) Notice and Opportunity to Defend. If any action, suit, proceeding, or
investigation is initiated, or any claim or demand is made, against any party indemnified hereunder
(an “Indemnified Party”) with respect to which such Indemnified Party may make a claim against the
other party (“Indemnifying Party”) pursuant to this Section 13, then the Indemnified Party will
give prompt written notice of such action, suit, proceeding, investigation, claim or demand to the
Indemnifying Party. Thereafter, the Indemnifying Party will have the opportunity, at its own
expense and with its own counsel, to defend or settle such action, suit, proceeding, investigation,
claim or demand; provided, however, that: (i) the Indemnifying Party will keep the Indemnified
Party informed of all material developments and events relating to such action, suit, proceeding,
investigation, claim or demand; (ii) the Indemnified Party will have the right to participate, at
its own expense in the defense of such action, suit, proceeding, investigation, claim or demand and
will cooperate as reasonably requested by the Indemnifying Party in the defense thereof; and (iii)
the Indemnifying Party will not settle such action, suit, proceeding, investigation, claim or
demand without the prior written consent of the Indemnified Party, which consent will not be
unreasonably withheld.
14. Role and Relationship of the Agent. The parties acknowledge and agree that the
services provided by the Agent under this Agreement are not the services of an underwriter,
principal underwriter, sub-distributor, or dealer of any Vanguard Fund within the meaning of the
Securities Act of 1933, as amended, or the 1940 Act. This Agreement does not grant the Agent any
right to purchase shares of any Vanguard Fund (although it does
not preclude the Agent from purchasing any such shares), nor does it constitute the Agent an agent
of Vanguard or any Vanguard Fund for purposes of selling shares of any Vanguard Fund to any dealer
or the public, except as
expressly stated in this Agreement as to the receipt of Orders from or on behalf of Plans. To the
extent the Agent is involved directly or indirectly in the purchase of shares of any Vanguard Fund
under this Agreement,
other than with respect to the acceptance of Orders as described in Section 1(a), such
involvement will be as agent of the Plans only.
15. Right to Inspect. With respect to all Orders transmitted to Vanguard pursuant
to this Agreement, the Agent will maintain records sufficient to document the truth of the
representations and warranties set forth in
Page 15 of 36
Section 4(b) of this Agreement, as well as the performance of the obligations of the Agent
set forth in this Agreement. The Agent agrees to promptly furnish Vanguard with such information
as Vanguard may reasonably request from time to time in order for Vanguard to verify the Agent’s
compliance with the provisions hereof (including, without limitation, periodic certifications
confirming such compliance and/or the Agent’s furnishing or making available for Vanguard’s
inspection records sufficient to document the Agent’s compliance with this Agreement).
16. Authorized Persons.
(a) For purposes of this Agreement, the Agent will designate “Authorized Persons” entitled
to act
on its behalf in connection with this Agreement. “Authorized Person” will mean any officer or
employee of the Agent designated by providing Vanguard with the following: (i) a properly
certified copy of a corporate resolution reflecting the vote of the Board of Directors of the
Agent authorizing the officer or employee, directly or indirectly, to act in connection with this
Agreement; and (ii) a specimen signature of such officer or employee. This requirement may be
satisfied by the Agent furnishing Vanguard with a completed Vanguard Corporate/Organization
Resolution Certificate. Vanguard shall be entitled to act upon all instructions received from such
Authorized Persons until it receives and has had a reasonable opportunity to act upon written
notice from the Agent that such persons are no longer authorized to act. Vanguard may disregard
any instructions not provided by an Authorized Person of the Agent.
(b) Except as set forth in this Agreement or as otherwise agreed upon in writing by
the parties, any communication or instruction made pursuant to this Agreement may be made orally,
provided such oral communication is promptly confirmed in writing by facsimile or electronic
transmission. The Agent is entitled to rely on any communications or instructions that it
reasonably believes were provided to it by Vanguard. Vanguard is entitled to rely on any
communications or instructions that it reasonably believes were provided to it by the Agent or its
Authorized Persons.
17. Commencement, Amendment and Termination.
(a) Commencement. Transactions between Vanguard and the Agent pursuant to this
Agreement will not commence until both parties have acknowledged in writing that all necessary
preliminary testing has been completed.
(b) Amendment. This Agreement may be modified or amended from time to time by mutual
written agreement of the parties; provided, however, that Vanguard in its sole discretion may
modify Exhibits D, E, F and G at any time upon 30 days’ advance written notice to the Agent; and
provided further, that Vanguard in its sole discretion may modify Exhibits A and B at any time upon
60 days’ advance written notice to the Agent. Exhibit C may be amended by the party whose frequent
trading policy is contained therein upon reasonable advance written notice to the other party.
(c) Termination. This Agreement will continue in effect until terminated by either
party by 60 days’ advance written notice to the other. Any such termination will not affect the
completion of any pending transactions or obligations, and will not affect the indemnities given
under this Agreement. Notwithstanding the foregoing, Vanguard shall have the right to terminate
this Agreement at any time without prior notice to the Agent in the event of excessive transactions
or other abusive investment practices, as determined by Vanguard in its sole discretion. Upon any
such termination, the Agent will immediately refrain from transmitting Orders to Vanguard through
the DV Platform.
18. Non-exclusivity. Each party acknowledges that the other may enter
into agreements similar to this Agreement with other parties for the performance of services similar
to those to be provided under this Agreement, unless otherwise agreed to in writing by the parties.
Page 16 of 36
19. Conflicting Agreements. This Agreement (including any Exhibits and Schedules
hereto) constitutes the entire agreement between the parties as to the subject matter hereof and
supersedes any and all agreements, representations and warranties, written or oral, regarding such
subject matter made prior to the time at which this Agreement has been executed and delivered by
the Agent and Vanguard, including, without limitation, any prior Daily Valuation Agency Agreement.
Nothing contained in this Agreement, however, will be construed to limit or restrict either
party’s compliance with any law, regulation or order to which the party is subject, or to prevent
the parties from supplementing this Agreement by agreeing to additional duties, obligations,
representations, warranties or higher standards of care with respect thereto.
20. Exhibits and Schedules. All Exhibits and Schedules attached to this Agreement, as
they may be amended from time to time, are by this reference incorporated into and made a part of this Agreement.
21. Assignment. Neither Vanguard nor the Agent may assign this Agreement without the prior
written consent of the other party, and any attempted assignment without such consent will be null and void.
22. Cooperation. The parties agree to cooperate with each other in any recordkeeping
or reporting necessary to fulfill any governmental or regulatory requirement. In addition, the
Agent agrees to provide Vanguard with any of the records described in Section 4(b)(vii)
promptly upon Vanguard’s request.
23. Governing Law. This Agreement will be governed by and its provisions will be
construed in accordance with the internal laws of the Commonwealth of Pennsylvania.
24. Severability. If any provision of this Agreement is held to be invalid, the remaining
provisions of this Agreement will continue to be valid and enforceable.
25. Waiver. The failure of a party to insist upon strict adherence to any provision of this
Agreement on any occasion will not be considered a waiver nor will it deprive such party of the
right thereafter to insist upon strict adherence to that provision or any other provision of this Agreement.
26. Notices. Any notice required or permitted hereunder will be in writing and will be
given by personal service, mail or facsimile to the other party at the address set forth below (or
such other address as the other party may specify by written notice to the first party). Notice
will be effective upon receipt if by mail, on the date of personal delivery (by private messenger,
courier service or otherwise), or upon receipt of facsimile, whichever occurs first, at:
Vanguard: |
The Vanguard Group, Inc. | |
000 Xxxxxxxx Xxxxxxxxx | ||
Xxxxxxx, XX 00000 | ||
Attention: Principal, Institutional Asset Management Operations | ||
Fax No.: (000) 000-0000 | ||
Copy to: |
The Vanguard Group, Inc. | |
Legal Department, V26 | ||
000 Xxxxxxxx Xxxx. | ||
Xxxxxxx, XX 00000 | ||
Attention: Xxxxxxx X. Xxxxxxxx | ||
Fax No.: (000) 000-0000 | ||
Agent: |
Diversified Investment Advisors | |
0 Xxxxxxxxxxxxxx Xxxx | ||
Xxxxxxxx, XX 00000 | ||
Attention Xxxxx Xxxxxxx (000)000-0000 |
Page 17 of 36
27. Anti-Money Laundering Policies. To the extent applicable, the Agent agrees to
comply with all anti-money laundering statutes, rules, regulations and guidance of government
and/or self-regulatory organizations, including but not limited to, cash and suspicious activity
reporting and recordkeeping requirements, and customer identification program requirements, as well
as creation and implementation of policies, procedures and internal controls in order to ensure
compliance. The Agent agrees that it will take reasonable steps to monitor investor transactions to
identify currency, cash equivalents, possible money laundering and other suspicious activity and to
report to government authorities reportable currency transactions, and where appropriate,
suspicious activity.
28. Force Majeure. In the event a party is unable to perform its obligations under
the terms of this Agreement because of acts of God, acts of terrorism, strikes, equipment failure
or damage reasonably beyond its control, or other causes reasonably beyond its control, such party
shall not be liable for damages resulting from such failure to perform or otherwise from such
causes.
Page 18 of 36
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on their
behalf by their duly authorized officers as of the date first written above.
THE VANGUARD GROUP, INC. |
||||
/s/ Xxxx X. Xxxxxx | ||||
By: Xxxx X. Xxxxxx | ||||
Title: | Principal | |||
AGENT Diversified Investment Advisors, Inc. |
||||
/s/ Xxx Xxxxxxxx | ||||
By: Xxx Xxxxxxxx | ||||
Title: | Vice President- Accounting | |||
Page 19 of 36
EXHIBIT A
REDEMPTION FEE PROCEDURES FOR AGENTS
SERVICING DEFINED CONTRIBUTION PLANS
SERVICING DEFINED CONTRIBUTION PLANS
A. Redemption Fee Procedures
1. Beginning on the effective date of this Agreement or a date mutually agreed by the
parties, the Agent
will assess a redemption fee on shares of each Vanguard Fund specified below redeemed by a Plan
participant by means of an exchange out of the Vanguard Fund within the specified holding period
after purchase of such shares by the Plan participant by means of an exchange into the Vanguard
Fund (the “Redemption Fee”). For purposes of tracking and assessing the Redemption Fee, all Plan
participant acquisitions of Vanguard Fund shares as a result of (a) an exchange into the Vanguard
Fund, (b) a participant-initiated asset transfer within a Plan, or (c) a participant-initiated
rollover shall be considered “purchases” (a “Purchase”), and all Plan participant dispositions of
Vanguard Fund shares as a result of an exchange out of the Vanguard Fund shall be considered
“redemptions” (a “Redemption”). For purposes of these procedures, “exchange out” means a
transaction in which proceeds from a redemption of Vanguard Fund shares in a Plan are used to
purchase another investment offered within the Plan.
2. The Redemption Fee holding period begins at the date of the Purchase, and the Redemption
Fee will be charged on Redemptions that occur before the end of the Vanguard Fund’s holding
period. In determining whether and to what extent the Redemption Fee applies to any particular
Redemption, a participant’s shares that are exempt from the Redemption Fee are redeemed first. The
Agent shall then use a first-in first-out method of accounting for Purchases and Redemptions,
meaning that a participant’s oldest shares are redeemed prior to more recently acquired shares.
3. The following transactions will not be considered Purchases or Redemptions, as
applicable, for purposes of these Redemption Fee Procedures:
(a) | Purchases of Vanguard Fund shares with Plan participant payroll or employer contributions: | ||
(b) | Distributions, loans, and in-service withdrawals from Plans; | ||
(c) | Redemptions or transfers of shares as part of a Plan termination or at the direction of a Plan; | ||
(d) | Purchases of shares by reinvestment of dividends or capital gain distributions; | ||
(e) | Rollovers to individual retirement accounts (IRAs); | ||
(f) | XXX conversions and recharacterizations; | ||
(g) | Re-registrations of shares within the same Vanguard Fund; | ||
(h) | Conversions from one share class to another in the same Vanguard Fund; | ||
(i) | Transactions in Section 529 College Savings Plan accounts; and | ||
(j) | Redemptions of shares to pay fund or account fees. |
4. Reallocation and rebalancing transactions completed by Plan participants, investment
advisors, or
investment advisory services will not be exempt from Redemption Fees.
5. Vanguard Fund Redemption Fee holding periods shall be calculated using calendar dates
and shall include trade dates.
6. The Agent shall be responsible for the calculation and remittance of the correct amount
of Redemption Fees.
7. The Redemption Fee shall be withheld from the redemption proceeds of each Redemption of
Vanguard Fund shares, and shall be remitted to Vanguard monthly, or more frequently as the parties
shall agree, as follows. Redemption Fees due as a result of transactions processed during each
calendar month shall be accumulated and
Page 20 of 36
remitted via federal Funds wire received by Vanguard no later than 4:00 p.m. Eastern time on
the fifth Business Day of the following calendar month in accordance with the wiring
instructions below:
Wire to:
|
Wachovia Bank NA Avondale, PA |
|
ABA:
|
000000000 | |
For Credit to:
|
Vanguard Cash Mgt. Disbursements Account | |
Account Number:
|
2000006155708 |
8. On the same Business Day as each wire transfer of Redemption Fees, the Agent shall
deliver an Excel
spreadsheet via e-mail to xxxxxxxxxxxxxx@xxxxxxxx.xxx indicating the allocation among
the Vanguard Funds of the fees remitted, which shall include the following information:
Ø |
Vanguard Fund number | |
Ø
|
Vanguard Fund name | |
Ø
|
CUSIP | |
Ø
|
Dollar amount of the Redemption Fee assessed for each Vanguard Fund |
Each such e-mail shall include the name and telephone number of an Agent contact for purposes of
any questions regarding the Redemption Fees remitted.
9. The Agent agrees to furnish Vanguard with such information as Vanguard may reasonably
request
from time to time in order for Vanguard to verify the Agent’s compliance with the terms of these
procedures, including, without limitation, periodic certifications confirming such compliance.
The Agent shall maintain records sufficient to identify the date and time of receipt of all
Purchase and Redemption transactions resulting in Redemption Fees and shall make such records
available upon request for examination by Vanguard or its designated representative or, at the
written request of Vanguard, by appropriate governmental authorities or self-regulatory
organizations.
B. Vanguard Funds that Charge Redemption Fees*
Redemption Fee | Holding Period | |||||
(applies to all listed | (applies to all listed | |||||
Fund Name | Fund Number | share classes) | share classes) | |||
Vanguard Capital Opportunity Fund |
0111 (Investor Shares) | 1% | Less than 1 year | |||
5111 (Admiral Shares) | ||||||
Vanguard Consumer Discretionary Index Fund |
5483 (Admiral Shares) | 2% | Less than 1 year | |||
Vanguard
Consumer Staples Index Fund |
5484 (Admiral Shares) | 2% | Less than 1 year | |||
Vanguard Convertible Securities Fund |
0082 (Investor Shares) | 1% (effective 9/15/2005) | Less than 1 year | |||
Vanguard Developed Markets Index Fund |
0227 (Investor Shares) | 2% | Less than 2 months | |||
Vanguard Emerging Markets Stock |
0533 (Investor Shares) | 0.5% | All redemptions | |||
Index Fund (see Exhibit B for purchase fee information) |
0239 (Institutional Shares) | |||||
Vanguard Energy Fund |
0051 (Investor Shares) | 1% | Less than 1 year | |||
0551 (Admiral Shares) | ||||||
Vanguard Energy Index Fund |
5480 (Admiral Shares) | 2% | Less than 1 year | |||
Vanguard European Stock Index Fund |
0079 (Investor Shares) | 2% | Less than 2 months | |||
0579 (Admiral Shares) | ||||||
0235 (Institutional Shares) | ||||||
Vanguard Financials Index Fund |
5486 (Admiral Shares) | 2% | Less than 1 year | |||
Vanguard Health Care Fund |
0052 (Investor Shares) | 1% | Less than 1 year | |||
0552 (Admiral Shares) | ||||||
Vanguard Health Care Index Fund |
5485 (Admiral Shares) | 2% | Less than 1 year | |||
Vanguard High-Yield Corporate Fund |
0029 (Investor Shares) | 1% | Less than 1 year |
Page 21 of 36
Redemption Fee | Holding Period | |||||
(applies to all listed | (applies to all listed | |||||
Fund Name | Fund Number | share classes) | share classes) | |||
0529 (Admiral Shares) | ||||||
Vanguard Industrials Index Fund |
5482 (Admiral Shares) | 2% | Less than 1 year | |||
Vanguard Information Technology Index Fund |
5487 (Admiral Shares) | 2% | Less than 1 year | |||
Vanguard Institutional Developed Markets Index Fund |
0234 (Institutional Shares) | 2% | Less than 2 months | |||
Vanguard
International Explorer TM Fund |
0126 (Investor Shares) | 2% | Less than 2 months | |||
Vanguard International Growth Fund |
0081 (Investor Shares) | 2% | Less than 2 months | |||
0581 (Admiral Shares) | ||||||
Vanguard International Value Fund |
0046 (Investor Shares) | 2% | Less than 2 months | |||
Vanguard Materials Index Fund |
5481 (Admiral Shares) | 2% | Less than 1 year | |||
Vanguard
Pacific Stock Index Fund |
0072 (Investor Shares) | 2% | Less than 2 months | |||
0572 (Admiral Shares) | ||||||
0237 (Institutional Shares) | ||||||
Vanguard Precious Metals & Mining Fund |
0053 (Investor Shares) | 1% | Less than 1 year | |||
Vanguard PRIMECAP Fund |
0059 (Investor Shares) | 1% | Less than 1 year | |||
0559 (Admiral Shares) | ||||||
Vanguard PRIMECAP Core Fund |
1220 (Investor Shares) | 1% | Less than 1 year | |||
Vanguard REIT Index Fund |
0123 (Investor Shares) | 1% | Less than 1 year | |||
5123 (Admiral Shares) | ||||||
3123 (Institutional Shares) | ||||||
Vanguard Selected Value Fund |
0934 (Investor Shares) | 1% | Less than 1 year | |||
Vanguard Tax-Managed Balanced Fund |
0103 (Investor Shares) | 1% | Less than 5 years | |||
Vanguard Tax-Managed Capital Appreciation Fund |
0102 (Investor Shares) | 1% | Less than 5 years | |||
5102 (Admiral Shares) | ||||||
0135 (Institutional Shares) | ||||||
Vanguard Tax-Managed Growth and Income Fund |
0101 (Investor Shares) | 1% | Less than 5 years | |||
5101 (Admiral Shares) | ||||||
0136 (Institutional Shares) | ||||||
Vanguard Tax-Managed International Fund |
0127 (Investor Shares) | 1% | Less than 5 years | |||
0137 (Institutional Shares) | ||||||
Vanguard Tax-Managed Small-Cap Fund |
0116 (Investor Shares) | 1% | Less than 5 years | |||
0118 (Institutional Shares) | ||||||
Vanguard Telecommunication Services Index Fund |
5488 (Admiral Shares) | 2% | Less than 1 year | |||
Vanguard Total International Stock Index Fund |
0113 (Investor Shares) | 2% | Less than 2 months | |||
Vanguard Utilities Index Fund |
5489 (Admiral Shares) | 2% | Less than 1 year |
* | The availability of funds may vary because of fund openings and closings or changes in minimum initial investments. |
Page 22 of 36
EXHIBIT B
VANGUARD EMERGING MARKETS STOCK INDEX FUND
PURCHASE FEE PROCEDURES FOR AGENTS
SERVICING DEFINED CONTRIBUTION PLANS
PURCHASE FEE PROCEDURES FOR AGENTS
SERVICING DEFINED CONTRIBUTION PLANS
1. Beginning on the effective date of this Agreement or a date mutually agreed upon by the parties,
the Agent will assess a .5% purchase fee on shares of Vanguard Emerging Markets Stock Index Fund
purchased by a Plan participant (the “Purchase Fee”). For purposes of tracking and assessing the
Purchase Fee, all participant acquisitions of shares as a result of (a) a purchase or an exchange
into Vanguard Emerging Markets Stock Index Fund, (b) a participant-initiated asset transfer into
Vanguard Emerging Markets Stock Index Fund, or (c) a participant-initiated rollover into Vanguard
Emerging Markets Stock Index Fund shall be considered “purchases” (a “Purchase”).
2. The following transactions will not be considered Purchases for purposes of these Purchase Fee
Procedures:
(a) Purchases of shares by reinvestment of dividends or capital gains distributions;
(b) Transfers or re-registrations within the fund; and
(c) Conversions from one share class to another in the fund.
3. The Purchase Fee shall be withheld from the settlement of each Purchase of Vanguard Emerging
Markets Stock Index Fund shares, and shall be remitted to Vanguard monthly, or more frequently as
the parties shall agree, as follows. Purchase Fees due as a result of transactions processed during
each calendar month shall be accumulated and remitted via Federal Funds wire received by Vanguard
no later than 4:00 p.m. Eastern time on the fifth Business Day of the following calendar month in
accordance with the wiring instructions below:
Wire to: |
Wachovia Bank NA | |
Avondale, PA | ||
ABA: |
000000000 | |
For Credit to: |
Vanguard Cash Mgt. Disbursements Account | |
Account Number: |
2000006155708 |
4. On the same Business Day as each wire transfer of Purchase Fees, the Agent shall deliver a
communication via e-mail to xxxxxxxxxxxxxx@xxxxxxxx.xxx indicating the amount of the Purchase Fees
remitted, which shall include the following information:
Ø 0533 (Fund number)
Ø Vanguard Emerging Markets Stock Index Fund (Name)
Ø 000000000 (CUSIP)
Ø Dollar amount of the Purchase Fee remitted
Each such e-mail shall include the name and telephone number of an Agent contact for purposes
of any questions regarding the Purchase Fees remitted.
5. The Agent agrees to furnish Vanguard with such information as Vanguard may reasonably request
from time to time in order for Vanguard to verify the Agent’s compliance with the terms of these
procedures, including, without limitation, periodic certifications confirming such compliance. The
Agent shall maintain records sufficient to identify the date and time of receipt of all Purchases
resulting in Purchase Fees and shall make such records available upon request for examination by
Vanguard or its designated representative or, at the written request of Vanguard, by appropriate
governmental authorities or self-regulatory organizations.
23 of 36
EXHIBIT C
FREQUENT TRADING POLICY PROCEDURES FOR AGENTS
SERVICING DEFINED CONTRIBUTION PLANS
SERVICING DEFINED CONTRIBUTION PLANS
A. Frequent Trading Policy Procedures
1. Beginning on the effective date of this Agreement or a date mutually agreed upon by the parties,
Plan participants who exchange any amount out of a Vanguard Fund must wait 60 calendar days before
exchanging back into the same Vanguard Fund. For purposes of the policy, “exchange out” means a
transaction in which proceeds from a redemption of shares of a Vanguard Fund in a Plan are used to
purchase another investment offered within the Plan.
2. This frequent trading policy will not apply to the following:
(a) | The Vanguard money market and short-term bond funds listed below; | ||
(b) | Purchases of shares with Plan participant payroll or employer contributions or loan repayments; | ||
(c) | Distributions, loans, and in-service withdrawals from a Plan; | ||
(d) | Redemptions of shares as part of a Plan termination or at the direction of a Plan; | ||
(e) | Purchases of shares by reinvestment of dividends or capital gains distributions; | ||
(f) | Share or asset transfers or rollovers; | ||
(g) | Individual retirement account conversions and recharacterizations; | ||
(h) | Re-registrations of shares in the same Vanguard Fund; | ||
(i) | Conversions from one share class to another in the same Vanguard Fund; | ||
(j) | Redemptions of shares to pay fund or account fees; | ||
(k) | Transactions in Section 529 College Savings Plan accounts; | ||
(l) | Transactions by certain approved institutional portfolios and asset allocation programs, as well as Vanguard Funds that invest in other Vanguard Funds; and | ||
(m) | VIPER® Shares of any Vanguard Fund. |
3. (a) The Agent agrees that it will provide, not later than five Business Days after receipt of a
written request by Vanguard on behalf of a Vanguard Fund, the Taxpayer Identification Number of any
or all Plan(s) and/or Plan participant(s) and the amount, date, name of investment professional
associated with the Plan or Plan participant (if any), and transaction type (purchase, redemption,
transfer, or exchange) of every purchase, redemption, transfer, or exchange of shares of such
Vanguard Fund held through an account maintained by the Agent during the specific period covered by
the request. Unless required by applicable law, rule or regulation. Vanguard and the Vanguard Funds
agree not to use the information received under this Section for marketing or any other purpose not
related to (i) limiting or reducing abusive trading in shares issued by the Vanguard Funds or (n)
collecting purchase or redemption fees (if any).
(b) The Agent agrees that it will execute written instructions from Vanguard on
behalf of a Vanguard Fund, including instructions to restrict or prohibit purchases
or exchanges of Vanguard Fund shares in
24 of 36
specific accounts or by or on behalf of specific Plans and/or Plan participants identified by such
Vanguard Fund. Any such instructions by Vanguard shall include the Taxpayer Identification Number
or equivalent identifying number of the Plan(s) or Plan participants) to which the instructions
relate and the specific restriction(s) to be executed. The Agent agrees that it will execute any
such instructions as soon as reasonably practicable, but not later than five Business Days after
receipt of the instructions by the Agent.
B. Vanguard Funds that are Exempt from the Frequent Trading Policy*
Fund Name | Fund Number(s) | |
Vanguard Admiral™ Treasury Money Market Fund |
0011 | |
Vanguard California Tax-Exempt Money Market Fund |
0062 | |
Vanguard Federal Money Market Fund |
0033 | |
Vanguard Limited-Term Tax-Exempt Fund |
0031 (Investor Shares) | |
0531 (Admiral Shares) | ||
Vanguard New Jersey Tax-Exempt Money Market Fund |
0095 | |
Vanguard New York Tax-Exempt Money Market Fund |
0163 | |
Vanguard Ohio Tax-Exempt Money Market Fund |
0096 | |
Vanguard Pennsylvania Tax-Exempt Money Market Fund |
0063 | |
Vanguard Prime Money Market Fund |
0030 (Investor Shares) | |
0066 (Institutional Shares) | ||
Vanguard Short-Term Bond Index Fund |
0132 (Investor Shares) | |
5132 (Admiral Shares) | ||
Vanguard Short-Term Federal Fund |
0049 (Investor Shares) | |
0549 (Admiral Shares) | ||
Vanguard Short-Term Investment-Grade Fund |
0039 ( Investor Shares) | |
0539 (Admiral Shares) | ||
0858 (Institutional Shares) | ||
Vanguard Short-Term Tax-Exempt Fund |
0041 (Investor Shares) | |
0541 (Admiral Shares) | ||
Vanguard Short-Term Treasury Fund |
0032 (Investor Shares) | |
0532 (Admiral Shares) | ||
Vanguard Tax-Exempt Money Market Fund |
0045 | |
Vanguard Treasury Money Market Fund |
0050 |
* | The availability of funds may vary because of fund openings and closings or changes in minimum initial investments. |
25 of 36
EXHIBIT D
LARGE TRANSACTION AMOUNTS
Fund | Ticker | Large Transaction | ||||||||||
Fund Name* | Number | Symbol | Amount | |||||||||
Vanguard 500 Index Fund (Investor) |
0040 | VFINX | $ | 1,000,000 | ||||||||
Vanguard 500 Index Fund (Admiral) |
0540 | VFIAX | 1,000,000 | |||||||||
Vanguard Admiral Treasury Money Market Fund |
0011 | VUSXX | 25,000,000 | |||||||||
Vanguard Asset Allocation Fund (Investor) |
0078 | VAAPX | 3,000,000 | |||||||||
Vanguard Asset Allocation Fund (Admiral) |
0578 | VAARX | 3,000,000 | |||||||||
Vanguard Balanced Index Fund (Investor) |
0002 | VBINX | 1,000,000 | |||||||||
Vanguard Balanced Index Fund (Admiral) |
0502 | VBIAX | 1,000,000 | |||||||||
Vanguard Balanced Index Fund (Institutional) |
0869 | VBAIX | 1,000,000 | |||||||||
Vanguard California Intermediate-Term Tax-Exempt Fund (Investor) |
0100 | VCAIX | 1,000,000 | |||||||||
Vanguard California Intermediate-Term Tax-Exempt Fund (Admiral) |
5100 | VCADX | 1,000,000 | |||||||||
Vanguard California Long-Term Tax-Exempt Fund (Investor) |
0075 | VCITX | 1,000,000 | |||||||||
Vanguard California Long-Term Tax-Exempt Fund (Admiral) |
0575 | VCLAX | 1,000,000 | |||||||||
Vanguard California Tax-Exempt Money Market Fund |
0062 | VCTXX | 1,000,000 | |||||||||
Vanguard Xxxxxxx Social Index Fund (Investor) |
0213 | VCSIX | 100,000 | |||||||||
Vanguard Xxxxxxx Social Index Fund (Institutional) |
0223 | VCSNX | 100,000 | |||||||||
Vanguard Capital Opportunity Fund (Investor) |
0111 | VHCOX | 250,000 | |||||||||
Vanguard Capital Opportunity Fund (Admiral) |
5111 | VHCAX | 250,000 | |||||||||
Vanguard Capital Value Fund |
0328 | VCVLX | 500,000 | |||||||||
Vanguard Consumer Discretionary Index Fund (Admiral) |
5483 | VCDAX | 100,000 | |||||||||
Vanguard Consumer Staples Index Fund (Admiral) |
5484 | VCSAX | 100,000 | |||||||||
Vanguard Convertible Securities Fund |
0082 | VCVSX | 250,000 | |||||||||
Vanguard Developed Markets Index Fund |
0227 | VDMIX | 250,000 | |||||||||
Vanguard Diversified Equity Fund |
0608 | VDEQX | 25,000 | |||||||||
Vanguard Dividend Growth Fund |
0057 | VDIGX | 1,000,000 | |||||||||
Vanguard Emerging Markets Stock Index Fund (Investor) |
0000 | XXXXX | 250,000 | |||||||||
Vanguard Emerging Markets Stock Index Fund (Institutional) |
0239 | VEMIX | 250,000 | |||||||||
Vanguard Energy Fund (Investor) |
0051 | VGENX | 500,000 | |||||||||
Vanguard Energy Fund (Admiral) |
0551 | VGELX | 500,000 | |||||||||
Vanguard Energy Index Fund (Admiral) |
5480 | VENAX | 100,000 | |||||||||
Vanguard Equity Income Fund (Investor) |
0065 | VEIPX | 2,000,000 | |||||||||
Vanguard Equity Income Fund (Admiral) |
0565 | VEIRX | 2,000,000 | |||||||||
Vanguard European Stock Index Fund (Investor) |
0079 | VEURX | 250,000 | |||||||||
Vanguard European Stock Index Fund (Admiral) |
0579 | VEUSX | 250,000 | |||||||||
Vanguard European Stock Index Fund (Institutional) |
0235 | VESIX | 250,000 | |||||||||
Vanguard Explorer Fund (Investor) |
0024 | VEXPX | 5,000,000 | |||||||||
Vanguard Explorer Fund (Admiral) |
5024 | VEXRX | 5,000,000 | |||||||||
Vanguard Extended Market Index Fund (Investor) |
0098 | VEXMX | 1,000,000 | |||||||||
Vanguard Extended Market Index Fund (Admiral) |
0598 | VEXAX | 1,000,000 | |||||||||
Vanguard Extended Market Index Fund (Institutional) |
0856 | VIEIX | 1,000,000 | |||||||||
Vanguard Federal Money Market Fund |
0033 | VMFXX | 25,000,000 | |||||||||
Vanguard Florida Long-Term Tax-Exempt Fund (Investor) |
0018 | VFLTX | 1,000,000 | |||||||||
Vanguard Florida Long-Term Tax-Exempt Fund (Admiral) |
0518 | VFLRX | 1,000,000 | |||||||||
Vanguard Global Equity Fund |
0129 | VHGEX | 500,000 | |||||||||
Vanguard GNMA Fund (Investor) |
0036 | VFILX | 10,000,000 | |||||||||
Vanguard GNMA Fund (Admiral) |
0536 | VFIJX | 10,000,000 | |||||||||
Vanguard Growth and Income Fund (Investor) |
0093 | VQNPX | 1,000,000 | |||||||||
Vanguard Growth and Income Fund (Admiral) |
0593 | VGIAX | 1,000,000 |
26 of 36
Fund | Ticker | Large Transaction | ||||||||||
Fund Name* | Number | Symbol | Amount | |||||||||
Vanguard Growth Index Fund (Investor) |
0009 | VIGRX | 1,000,000 | |||||||||
Vanguard Growth Index Fund (Admiral) |
0509 | VIGAX | 1,000,000 | |||||||||
Vanguard Growth Index Fund (Institutional) |
0868 | VIGIX | 1,000,000 | |||||||||
Vanguard Health Care Fund (Investor) |
0052 | VGHCX | 10,000,000 | |||||||||
Vanguard Health Care Fund (Admiral) |
0552 | VGHAX | 10,000,000 | |||||||||
Vanguard Health Care Index Fund (Admiral) |
5485 | VHCIX | 100,000 | |||||||||
Vanguard High-Yield Corporate Fund (Investor) |
0029 | VWEHX | 5,000,000 | |||||||||
Vanguard High-Yield Corporate Fund (Admiral) |
0529 | VWEAX | 5,000,000 | |||||||||
Vanguard High-Yield Tax-Exempt Fund (Investor) |
0044 | VWAHX | 1,000,000 | |||||||||
Vanguard High-Yield Tax-Exempt Fund (Admiral) |
5044 | VWALX | 1,000,000 | |||||||||
Vanguard Industrials Index Fund (Admiral) |
5482 | VINAX | 100,000 | |||||||||
Vanguard Inflation-Protected Securities Fund (Investor) |
0119 | VIPSX | 1,000,000 | |||||||||
Vanguard Inflation-Protected Securities Fund (Admiral) |
5119 | VAIPX | 1,000,000 | |||||||||
Vanguard Inflation-Protected Securities Fund (Institutional) |
1190 | VIPIX | 1,000,000 | |||||||||
Vanguard Information Technology Index Fund (Admiral) |
5487 | VITAX | 100,000 | |||||||||
Vanguard Institutional Developed Markets Index Fund |
0234 | VIDMX | 250,000 | |||||||||
Vanguard Institutional Index Fund (Institutional) |
0094 | VINIX | 1,000,000 | |||||||||
Vanguard Institutional Index Fund (Institutional Plus) |
0854 | VIIIX | 1,000,000 | |||||||||
Vanguard Institutional Total Bond Market Index Fund |
0337 | VITBX | 300,000 | |||||||||
Vanguard Institutional Total Stock Market Index Fund (Institutional) |
0870 | VITNX | 500,000 | |||||||||
Vanguard Institutional Total Stock Market Index Fund (Institutional Plus) |
0871 | VITPX | 500,000 | |||||||||
Vanguard Insured Long-Term Tax-Exempt Fund (Investor) |
0058 | VILPX | 1,000,0000 | |||||||||
Vanguard Insured Long-Term Tax-Exempt Fund (Admiral) |
0558 | VILQX | 1,000,000 | |||||||||
Vanguard Intermediate-Term Bond Index Fund (Investor) |
0314 | VBIIX | 1,000,000 | |||||||||
Vanguard Intermediate-Term Bond Index Fund (Admiral) |
5314 | VBILX | 1,000,000 | |||||||||
Vanguard Intermediate-Term Investment-Grade Fund (Investor) |
0071 | VFICX | 1,000,000 | |||||||||
Vanguard Intermediate-Term Investment-Grade Fund (Admiral) |
0571 | VFIDX | 1,000,000 | |||||||||
Vanguard Intermediate-Term Tax-Exempt Fund (Investor) |
0042 | VWITX | 1,000,000 | |||||||||
Vanguard Intermediate-Term Tax-Exempt Fund (Admiral) |
0542 | VWIUX | 1,000,000 | |||||||||
Vanguard Intermediate-Term Treasury Fund (Investor) |
0035 | VFITX | 1,000,000 | |||||||||
Vanguard Intermediate-Term Treasury Fund (Admiral) |
0535 | VFIUX | 1,000,000 | |||||||||
Vanguard International Explorer Fund |
0126 | VINEX | 1,000,000 | |||||||||
Vanguard International Growth Fund (Investor) |
0081 | VWIGX | 5,000,000 | |||||||||
Vanguard International Growth Fund (Admiral) |
0581 | VWILX | 5,000,000 | |||||||||
Vanguard International Value Fund |
0046 | VTRIX | 3,000,000 | |||||||||
Vanguard Large-Cap Index Fund (Investor) |
0307 | VLACX | 100,000 | |||||||||
Vanguard Large-Cap Index Fund (Admiral) |
5307 | VLCAX | 100,000 | |||||||||
Vanguard Large-Cap Index Fund (Institutional) |
0807 | VLISX | 100,000 | |||||||||
Vanguard XxxxXxxxxxxx Xxxxxxxxxxxx Xxxxxx Xxxx |
0000 | XXXXX | 1,000,000 | |||||||||
Vanguard XxxxXxxxxxxx Xxxxxx Xxxx |
0000 | XXXXX | 1,000,000 | |||||||||
Vanguard LifeStrategy Income Fund |
0723 | VASIX | 500,000 | |||||||||
Vanguard LifeStrategy Moderate Growth Fund |
0914 | VSMGX | 1,000,000 | |||||||||
Vanguard Limited-Term Tax-Exempt Fund (Investor) |
0031 | VMLTX | 1,000,000 | |||||||||
Vanguard Limited-Term Tax-Exempt Fund (Admiral) |
0531 | VMLUX | 1,000,000 | |||||||||
Vanguard Long-Term Bond Index Fund |
0522 | VBLTX | 200,000 | |||||||||
Vanguard Long-Term Investment-Grade Fund (Investor) |
0028 | VWESX | 5,000,000 | |||||||||
Vanguard Long-Term Investment-Grade Fund (Admiral) |
0568 | VWETX | 5,000,000 | |||||||||
Vanguard Long-Term Tax-Exempt Fund (Investor) |
0043 | VWLTX | 1,000,000 | |||||||||
Vanguard Long-Term Tax-Exempt Fund (Admiral) |
0543 | VWLUX | 1,000,000 | |||||||||
Vanguard Long-Term Treasury Fund (Investor) |
0083 | VUSTX | 1,000,000 | |||||||||
Vanguard Long-Term Treasury Fund (Admiral) |
0583 | VUSUX | 1,000,000 | |||||||||
Vanguard Massachusetts Tax-Exempt Fund |
0168 | VMATX | 500,000 | |||||||||
Vanguard Materials Index Fund (Admiral) |
5481 | VMIAX | 100,000 |
27 of 36
Fund | Ticker | Large Transaction | ||||||
Fund Name* | Number | Symbol | Amount | |||||
Vanguard Mid-Cap Growth Fund |
0301 | VMGRX | 50,000 | |||||
Vanguard Mid-Cap Index Fund (Admiral) |
5859 | VIMAX | 500,000 | |||||
Vanguard Mid-Cap Index Fund (Institutional) |
0864 | VMCIX | 500,000 | |||||
Vanguard Xxxxxx Growth Fund (Investor) |
0026 | VMRGX | 5,000,000 | |||||
Vanguard Xxxxxx Growth Fund (Admiral) |
0526 | VMRAX | 5,000,000 | |||||
Vanguard New Jersey Long-Term Tax-Exempt Fund (Investor) |
0014 | VNJTX | 1,000,000 | |||||
Vanguard New Jersey Long-Term Tax-Exempt Fund (Admiral) |
0514 | VNJUX | 1,000,000 | |||||
Vanguard New Jersey Tax-Exempt Money Market Fund |
0095 | VNJXX | 1,000,000 | |||||
Vanguard New York Long-Term Tax-Exempt Fund (Investor) |
0076 | VNYTX | 1,000,000 | |||||
Vanguard New York Long-Term Tax-Exempt Fund (Admiral) |
0576 | VNYUX | 1,000,000 | |||||
Vanguard New York Tax-Exempt Money Market Fund |
0163 | VYFXX | 1,000,000 | |||||
Vanguard Ohio Long-Term Tax-Exempt Fund |
0097 | VOHIX | 500,000 | |||||
Vanguard Ohio Tax-Exempt Money Market Fund |
0096 | VOHXX | 1,000,000 | |||||
Vanguard Pacific Stock Index Fund (Investor) |
0072 | VPACX | 100,000 | |||||
Vanguard Pacific Stock Index Fund (Admiral) |
0572 | VPADX | 100,000 | |||||
Vanguard Pacific Stock Index Fund (Institutional) |
0237 | VPKLX | 100,000 | |||||
Vanguard Pennsylvania Long-Term Tax-Exempt Fund (Investor) |
0077 | VPAIX | 1,000,000 | |||||
Vanguard Pennsylvania Long-Term Tax-Exempt Fund (Admiral) |
0577 | VPALX | 1,000,000 | |||||
Vanguard Pennsylvania Tax-Exempt Money Market Fund |
0063 | VPTXX | 1,000,000 | |||||
Vanguard Precious Metals & Mining Fund |
0053 | VGPMX | 1,000,000 | |||||
Vanguard Prime Money Market Fund |
0030 | VMMXX | 25,000,000 | |||||
Vanguard Prime Money Market Fund (Institutional) |
0066 | VMRXX | 25,000,000 | |||||
Vanguard PRIMECAP Core Fund |
1220 | VPCCX | 100,000 | |||||
Vanguard PRIMECAP Fund (Investor) |
0059 | VPMCX | 500,000 | |||||
Vanguard PRIMECAP Fund (Admiral) |
0559 | VPMAX | 500,000 | |||||
Vanguard REIT Index Fund (Investor) |
0123 | VGSLX | 500,000 | |||||
Vanguard REIT Index Fund (Admiral) |
5123 | VGSLX | 500,000 | |||||
Vanguard REIT Index Fund (Institutional) |
3123 | VGSNX | 500,000 | |||||
Vanguard Selected Value Fund |
0934 | VASVX | 1,000,000 | |||||
Vanguard Short-Term Bond Index Fund (Investor) |
0132 | VBISX | 2,000,000 | |||||
Vanguard Short-Term Bond Index Fund (Admiral) |
5132 | VBIRX | 2,000,000 | |||||
Vanguard Short-Term Federal Fund (Investor) |
0049 | VSGBX | 1,000,000 | |||||
Vanguard Short-Term Federal Fund (Admiral) |
0549 | VSGDX | 1,000,000 | |||||
Vanguard Short-Term Investment-Grade Fund (Investor) |
0039 | VFSTX | 1,000,000 | |||||
Vanguard Short-Term Investment-Grade Fund (Admiral) |
0539 | VFSUX | 1,000,000 | |||||
Vanguard Short-Term Investment-Grade Fund (Institutional) |
0858 | VFSIX | 1,000,000 | |||||
Vanguard Short-Term Tax-Exempt Fund (Investor) |
0041 | VWSTX | 1,000,000 | |||||
Vanguard Short-Term Tax-Exempt Fund (Admiral) |
0541 | VWSUX | 1,000,000 | |||||
Vanguard Short-Term Treasury Fund (Investor) |
0032 | VFISX | 1,000,000 | |||||
Vanguard Short-Term Treasury Fund (Admiral) |
0532 | VFIRX | 1,000,000 | |||||
Vanguard Small-Cap Growth Index Fund |
0861 | VISGX | 500,000 | |||||
Vanguard Small-Cap Growth Index Fund (Institutional) |
0866 | VSGIX | 500,000 | |||||
Vanguard Small-Cap Index Fund (Investor) |
0048 | NAESX | 1,000,000 | |||||
Vanguard Small-Cap Index Fund (Admiral) |
0548 | VSMAX | 1,000,000 | |||||
Vanguard Small-Cap Index Fund (Institutional) |
0857 | VSCIX | 1,000,000 | |||||
Vanguard Small-Cap Value Index Fund |
0860 | VISVX | 500,000 | |||||
Vanguard Small-Cap Value Index Fund (Institutional) |
0865 | VSIIX | 500,000 | |||||
Vanguard STAR Fund |
0056 | VGSTX | 10,000,000 | |||||
Vanguard Strategic Equity Fund |
0114 | VSEQX | 500,000 | |||||
Vanguard Target Retirement Income Fund |
0308 | VTINX | 500,000 | |||||
Vanguard Target Retirement 2005 Fund |
0302 | VTOVX | 500,000 | |||||
Vanguard Target Retirement 2015 Fund |
0303 | VTXVX | 500,000 | |||||
Vanguard Target Retirement 2025 Fund |
0304 | VTTVX | 500,000 | |||||
Vanguard Target Retirement 2035 Fund |
0305 | VTTHX | 500,000 |
Fund | Ticker | Large Transaction | ||||||
Fund Name* | Number | Symbol | Amount | |||||
Vanguard Target Retirement 2045 Fund |
0306 | VTIVX | 500,000 | |||||
Vanguard Tax-Managed Balanced Fund |
0103 | VTMFX | 100,000 |
28 of 36
Fund | Ticker | Large Transaction | ||||||
Fund Name* | Number | Symbol | Amount | |||||
Vanguard Tax-Managed Capital Appreciation Fund (Investor) |
0102 | VMCAX | 500,000 | |||||
Vanguard Tax-Managed Capital Appreciation Fund (Admiral) |
5102 | VTCLX | 500,000 | |||||
Vanguard Tax-Managed Capital Appreciation Fund (Institutional) |
0135 | VTCIX | 500,000 | |||||
Vanguard Tax-Managed Growth & Income Fund (Investor) |
0101 | VTGIX | 500,000 | |||||
Vanguard Tax-Managed Growth & Income Fund (Admiral) |
5101 | VTGLX | 500,000 | |||||
Vanguard Tax-Managed Growth & Income Fund (Institutional) |
0136 | VTMIX | 500,000 | |||||
Vanguard Tax-Managed International Fund (Investor) |
0127 | VTMGX | 250,000 | |||||
Vanguard Tax-Managed International Fund (Institutional) |
0137 | VTMNX | 250,000 | |||||
Vanguard Tax-Managed Small-Cap Fund (Investor) |
0116 | VTMSX | 500,000 | |||||
Vanguard Tax-Managed Small-Cap Fund (Institutional) |
0118 | VTSIX | 500,000 | |||||
Vanguard Telecommunication Services Index Fund (Admiral) |
5488 | VTCAX | 100,000 | |||||
Vanguard Total Bond Market Index Fund (Investor) |
0084 | VBMFX | 5,000,000 | |||||
Vanguard Total Bond Market Index Fund (Admiral) |
0584 | VBTLX | 5,000,000 | |||||
Vanguard Total Bond Market Index Fund (Institutional) |
0222 | VBTIX | 5,000,000 | |||||
Vanguard Total International Stock Index Fund |
0113 | VGTSX | 250,000 | |||||
Vanguard Total Stock Market Index Fund (Investor) |
0085 | VTSMX | 1,000,000 | |||||
Vanguard Total Stock Market Index Fund (Admiral) |
0585 | VTSAX | 1,000,000 | |||||
Vanguard Total Stock Market Index Fund (Institutional) |
0855 | VITSX | 1,000,000 | |||||
Vanguard Treasury Money Market Fund |
0050 | VMPXX | 25,000,000 | |||||
Vanguard U.S. Growth Fund (Investor) |
0023 | VWUSX | 7,000,000 | |||||
Vanguard U.S. Growth Fund (Admiral) |
0523 | VWUAX | 7,000,000 | |||||
Vanguard U.S. Value Fund |
0124 | VUVLX | 5,000,000 | |||||
Vanguard Utilities Index Fund (Admiral) |
5489 | VUIAX | 100,000 | |||||
Vanguard Value Index Fund (Investor) |
0006 | VIVAX | 1,000,000 | |||||
Vanguard Value Index Fund (Admiral) |
0506 | VVIAX | 1,000,000 | |||||
Vanguard Value Index Fund (Institutional) |
0867 | VIVIX | 1,000,000 | |||||
Vanguard Wellesley Income Fund (Investor) |
0027 | VWINX | 5,000,000 | |||||
Vanguard Wellesley Income Fund (Admiral) |
0527 | VWIAX | 5,000,000 | |||||
Vanguard Wellington Fund (Investor) |
0021 | VWELX | 10,000,000 | |||||
Vanguard Wellington Fund (Admiral) |
0521 | VWENX | 10,000,000 | |||||
Vanguard Windsor Fund (Investor) |
0022 | VWNDX | 10,000,000 | |||||
Vanguard Windsor Fund (Admiral) |
5022 | VWNEX | 10,000,000 | |||||
Vanguard Windsor II Fund (Investor) |
0073 | VWNFX | 10,000,000 | |||||
Vanguard Windsor II Fund (Admiral) |
0573 | VWNAX | 10,000,000 |
* | The availability of funds may vary because of fund openings and closings or changes in minimum initial investments. |
29 of 36
EXHIBIT E
ADMIRAL SHARES ELIGIBILITY REQUIREMENTS FOR AGENTS
SERVICING DEFINED CONTRIBUTION PLANS
SERVICING DEFINED CONTRIBUTION PLANS
Vanguard Funds offering Admiral Shares*:
Fund Number | Fund Name | Ticker Symbol | ||||
540 | Vanguard 500 Index Fund |
VFIAX | ||||
578 | Vanguard Asset Allocation Fund |
VAARX | ||||
502 | Vanguard Balanced Index Fund |
VBIAX | ||||
5100 | Vanguard California Intermediate-Term Tax-Exempt Fund |
VCADX | ||||
575 | Vanguard California Long- Term Tax-Exempt Fund |
VCLAX | ||||
5111 | Vanguard Capital Opportunity Fund |
VHCOX | ||||
5483 | Vanguard Consumer Discretionary Index Fund |
VCD AX | ||||
5484 | Vanguard Consumer Staples Index Fund |
VCSAX | ||||
551 | Vanguard Energy Fund |
VGELX | ||||
5480 | Vanguard Energy Index Fund |
VENAX | ||||
565 | Vanguard Equity Income Fund |
VEIRX | ||||
579 | Vanguard European Stock Index Fund |
VEUSX | ||||
5024 | Vanguard Explorer Fund |
VEXRX | ||||
598 | Vanguard Extended Market Index Fund |
VEXAX | ||||
5486 | Vanguard Financials Index Fund |
VFAIX | ||||
518 | Vanguard Florida Long-Term Tax-Exempt Fund |
VFLRX | ||||
536 | Vanguard GNMA Fund |
VFIJX | ||||
593 | Vanguard Growth and Income Fund |
VGIAX | ||||
509 | Vanguard Growth Index Fund |
VIGAX | ||||
552 | Vanguard Health Care Fund |
VGHAX | ||||
5485 | Vanguard Health Care Index Fund |
VHCIX | ||||
529 | Vanguard High- Yield Corporate Fund |
VWEAX | ||||
5044 | Vanguard High- Yield Tax-Exempt Fund |
VWALX | ||||
5482 | Vanguard Industrials Index Fund |
VINAX | ||||
5119 | Vanguard Inflation-Protected Securities Fund |
VAIPX | ||||
5487 | Vanguard Information Technology Index Fund |
VITAX | ||||
558 | Vanguard Insured Long-Term Tax-Exempt Fund |
VILQX | ||||
5314 | Vanguard Intermediate-Term Bond Index Fund |
VBILX | ||||
571 | Vanguard Intermediate- Term Investment-Grade Fund |
VFIDX | ||||
542 | Vanguard Intermediate-Term Tax-Exempt Fund |
VWIUX | ||||
535 | Vanguard Intermediate-Term Treasury’ Fund |
VFIUX | ||||
581 | Vanguard International Growth Fund |
VWILX | ||||
5307 | vanguard Large-Cap Index Fund |
VLCAX | ||||
531 | Vanguard Limited-Term Tax-Exempt Fund |
VMLUX | ||||
568 | Vanguard Long-Term Investment-Grade Fund |
VWETX | ||||
543 | Vanguard Long-Term Tax-exempt Fund |
VWLUX | ||||
583 | Vanguard Long-Term Treasury Fund |
VUSUX | ||||
5481 | Vanguard Materials Index Fund |
VMIAX | ||||
5859 | Vanguard Mid-Cap Index Fund |
VIMAX | ||||
526 | Vanguard Xxxxxx Growth Fund |
VMRAX | ||||
514 | Vanguard New Jersey Long-Term Tax -Exempt Fund |
VNJUX | ||||
576 | Vanguard New York Long-Term Tax-Exempt Fund |
VNYUX | ||||
572 | Vanguard Pacific Stock Index Fund |
VPADX | ||||
577 | Vanguard Pennsylvania Long-Term Tax-Exempt Fund |
VPALX | ||||
559 | Vanguard PRIMECAP Fund |
VPMAX | ||||
5123 | Vanguard REIT Index Fund |
VGSLX |
30 of 36
Fund Number | Fund Name | Ticker Symbol | ||||
5132 | Vanguard Short- Term Bond Index Fund |
VBIRX | ||||
549 | Vanguard Short-Term Federal Fund |
VSGDX | ||||
539 | Vanguard Short- Term Investment-Grade Fund |
VFSUX | ||||
541 | Vanguard Short-Term Tax-Exempt Fund |
VWSUX | ||||
532 | Vanguard Short- Term Treasury Fund |
VFIRX | ||||
548 | Vanguard Small-Cap Index Fund |
VSMAX | ||||
5102 | Vanguard Tax-Managed Capital Appreciation Fund |
VTCLX | ||||
5101 | Vanguard Tax-Managed Growth and Income Fund |
VTGLX | ||||
584 | Vanguard Total Bond Market Index Fund |
VBTLX | ||||
585 | Vanguard Total Stock Market Index Fund |
VTSAX | ||||
523 | Vanguard U.S. Growth Fund |
VWUAX | ||||
5489 | Vanguard Utilities Index Fund |
VUIAX | ||||
506 | Vanguard Value Index Fund |
VVIAX | ||||
527 | Vanguard Wellesley Income Fund |
VWIAX | ||||
521 | Vanguard Wellington Fund |
VWENX | ||||
5022 | Vanguard Windsor Fund |
VWNEX | ||||
573 | Vanguard Windsor II Fund |
V'WNAX |
* | The availability of funds may vary because of fund openings and closings or changes in minimum initial investments. |
Admiral Shares Eligibility Requirements
(a) For each Vanguard Fund, all purchases of Admiral Shares and any conversions from the
Investor class
of shares (“Investor Shares”) to Admiral Shares must be attributable to a Plan that has, or
immediately after the transaction
will have, a minimum of $100,000 invested in the Vanguard Fund through the Agent (a
“Qualifying Plan”);
(b) Assets beneficially owned by multiple Plans may not be aggregated to meet the $100,000
minimum
investment, except as approved by Vanguard in accordance with criteria established by
Vanguard;
(c) Assets beneficially owned by a Plan in the same Fund through multiple accounts may not
be
aggregated to meet the $100,000 minimum investment, except as approved by Vanguard in
accordance with criteria
established by Vanguard;
(d) Agents seeking Admiral Shares for other account arrangements should contact Vanguard for
eligibility
requirements;
(e) The Agent shall request a purchase of Admiral Shares, or a conversion from Investor Shares
to Admiral
Shares, on behalf of a Qualifying Plan by providing a written notification to Vanguard
identifying the Qualifying Plan and
the value of shares held in the relevant Vanguard Fund offering Admiral Shares; and
(f) In the event that a Plan holding Admiral Shares through the Agent no longer meets the
$100,000
minimum or no longer satisfies Vanguard’s criteria for aggregation, the Agent will
immediately direct Vanguard to
reclassify the appropriate amount of assets from Admiral Shares to Investor Shares within
the Agent’s Vanguard
accounts. In addition, Vanguard may, without direction from the Agent, reclassify the
appropriate amount of assets
from Admiral Shares to Investor Shares within the Agent’s Vanguard accounts, or exercise
any other rights set forth in
the applicable Vanguard Fund’s prospectus, with respect to a Plan holding Admiral Shares
through the Agent that no
longer meets the $100,000 minimum or no longer satisfies Vanguard’s criteria for
aggregation.
31 of 36
EXHIBIT F
INSTITUTIONAL AND INSTITUTIONAL PLUS SHARES
ELIGIBILITY REQUIREMENTS FOR AGENTS
SERVICING DEFINED CONTRIBUTION PLANS
ELIGIBILITY REQUIREMENTS FOR AGENTS
SERVICING DEFINED CONTRIBUTION PLANS
Vanguard Funds offering Institutional Shares:*
Fund Number | Fund Name | Ticker Symbol | ||
869
|
Vanguard Balanced Index Fund | VBAIX | ||
223
|
Vanguard Xxxxxxx Social Index Fund | VCSNX | ||
239
|
Vanguard Emerging Markets Stock Index Fund | VEMIX | ||
235
|
Vanguard European Stock Index Fund | VESIX | ||
856
|
Vanguard Extended Market Index Fund | VIEIX | ||
868
|
Vanguard Growth Index Fund | VIGIX | ||
1190
|
Vanguard Inflation-Protected Securities Fund | VIPIX | ||
234
|
Vanguard Institutional Developed Markets Index Fund | VIDMX | ||
94
|
Vanguard Institutional Index Fund | VINIX | ||
337
|
Vanguard Institutional Total Bond Market Index Fund | VITBX | ||
870
|
Vanguard Institutional Total Stock Market Index Fund | VITNX | ||
807
|
Vanguard Large-Cap Index Fund | VLISX | ||
864
|
Vanguard Mid-Cap Index Fund | VMCIX | ||
237
|
Vanguard Pacific Stock Index Fund | VPKIX | ||
66
|
Vanguard Prime Money Market Fund | VMRXX | ||
3123
|
Vanguard REIT Index Fund | VGSNX | ||
858
|
Vanguard Short- Term Investment-Grade Fund | VFSIX | ||
866
|
Vanguard Small-Cap Growth Index Fund | VSGIX | ||
857
|
Vanguard Small-Cap Index Fund | VSCIX | ||
865
|
Vanguard Small-Cap Value Index Fund | VSIIX | ||
135
|
Vanguard Tax-Managed Capital Appreciation Fund | VTCIX | ||
136
|
Vanguard Tax-Managed Growth and Income Fund | VTMIX | ||
137
|
Vanguard Tax-Managed International Fund | VTMNX | ||
118
|
Vanguard Tax-Managed Small-Cap Fund | VTSIX | ||
222
|
Vanguard Total Bond Market Index Fund | VBTIX | ||
855
|
Vanguard Total Stock Market Index Fund | VITSX | ||
867
|
Vanguard Value Index Fund | VIVIX |
* | The availability of funds may vary because of fund openings and closings or changes in minimum initial investments. |
Institutional Shares Eligibility Requirements
(a) For each Vanguard Fund, all purchases of Institutional Shares and any conversions from the
Investor class of shares (“Investor Shares”) or Admiral Shares to Institutional Shares must be
attributable to a Plan that has, or immediately after the transaction will have, a minimum of $5,000,000** invested in the
Vanguard Fund through the Agent (an “‘Institutional Qualifying Plan”):
(b) Assets beneficially owned by multiple Plans may not he aggregated to meet the
$5.000.000** minimum investment, except as approved by Vanguard in accordance with criteria established by Vanguard;
(c) Assets beneficially owned by a Plan in the same Fund through multiple accounts may
not be aggregated to meet the $5.000,000** minimum investment, except as approved by Vanguard in accordance with criteria established by Vanguard:
(d) Agents seeking Institutional Shares for other account arrangements should
contact Vanguard for eligibility requirements;
32 of 36
(e) The Agent shall request a purchase of Institutional Shares, or a
conversion from Investor Shares or
Admiral Shares to Institutional Shares, on behalf of an Institutional Qualifying Plan
by providing a written notification to
Vanguard identifying the Institutional Qualifying Plan and the value of shares held
in the relevant Vanguard Fund offering
Institutional Shares: and
(f) In the event that a Plan holding Institutional Shares through the Agent no longer
meets the $5,000,000**
minimum or no longer satisfies Vanguard’s criteria for aggregation, the Agent will
immediately direct Vanguard to
reclassify the appropriate amount of assets from Institutional Shares to Admiral
Shares or Investor Shares, as
appropriate, within the Agent’s Vanguard accounts. In addition, Vanguard may, without
direction from the Agent,
reclassify the appropriate amount of assets from Institutional Shares to Admiral
Shares or Investor Shares, as appropriate,
within the Agent’s Vanguard accounts, or exercise any other rights set forth in the
applicable Vanguard Fund’s prospectus
with respect to a Plan holding Institutional Shares through the Agent that no longer
meets the $5,000,000** minimum or
no longer satisfies Vanguard’s criteria for aggregation.
** | Required minimum for Vanguard Short-Term Investment-Grade Fund Institutional Shares is $50.000,000; for Vanguard Institutional Total Bond Market Index Fund Institutional Shares, $100,000,000; and for Vanguard Institutional Total Stock Market Index Fund Institutional Shares, $100,000,000. |
Vanguard Funds offering Institutional Plus Shares:
Fund Number | Fund Name | Ticker Symbol | ||
854
|
Vanguard Institutional Index Fund | VIIIX | ||
871
|
Vanguard Institutional Total Stock Market Index Fund | VITPX |
Institutional Plus Shares Eligibility Requirements
(a) For each Vanguard Fund, all purchases of Institutional Plus Shares and any
conversions from any other
class of shares to Institutional Plus Shares must be attributable to a Plan that has,
or immediately after the transaction will
have, the minimum amount specified in the relevant Vanguard Fund’s Institutional Plus
Shares prospectus invested in the
Vanguard Fund through the Agent (an “Institutional Plus Qualifying Plan”);
(b) Assets beneficially owned by multiple Plans may not be aggregated to meet the
required investment
minimum, except as approved by Vanguard in accordance with criteria established by
Vanguard;
(c) Assets beneficially owned by a Plan in the same Fund through multiple accounts may
not be
aggregated to meet the required investment minimum, except as approved by Vanguard in
accordance with criteria
established by Vanguard;
(d) Agents seeking Institutional Plus Shares for other account arrangements should contact
Vanguard for
eligibility requirements;
(e) The Agent shall request a purchase of Institutional Plus Shares, or a conversion
from any other class of
shares to Institutional Plus Shares, on behalf of an Institutional Plus Qualifying
Plan by providing a written notification to
Vanguard identifying the Institutional Plus Qualifying Plan and the value of shares
held in the relevant Vanguard Fund
offering Institutional Plus Shares: and
(f) In the event that a Plan holding Institutional Plus Shares through the Agent no
longer meets the required
investment minimum or no longer satisfies Vanguard’s criteria for aggregation, the
Agent will immediately direct
Vanguard to reclassify the appropriate amount of assets from Institutional Plus Shares
to Institutional Shares, Admiral
Shares, or Investor Shares, as appropriate, within the Agent’s Vanguard accounts. In
addition. Vanguard may, without
direction from the Agent, reclassify the appropriate amount of assets from
Institutional Plus Shares to Institutional Shares,
Admiral Shares or Investor Shares, as appropriate, within the Agent’s Vanguard
accounts, or exercise any other rights set
forth in the applicable Vanguard Fund’s prospectus with respect to a Plan holding
Institutional Plus Shares through the
Agent that no longer meets the required investment minimum or no longer satisfies
Vanguard’s criteria for aggregation.
33 of 36
EXHIBIT G
CONTINGENCY PROCEDURES
If the Agent is unable to transmit Orders to Vanguard through the DV Platform, the
following procedures shall be followed:
1. The Agent will notify Vanguard’s Support Center of the contingency situation by calling
(800) 950-
6667 and obtaining a problem ticket number.
2. The Agent will notify Recordkeeper Hotline of the contingency situation by leaving a
voice mail
message at (000) 000-0000.
3. The Agent will fax the Orders by 6:00 a.m. Eastern time to the following Vanguard
departments at the
numbers listed below:
(a) | IIC-Money Movement Unit (000) 000-0000 |
||
(b) | IAM-Daily Valuation Unit (000) 000-0000 |
4. Vanguard cannot guarantee trade date commitments if the Orders are not received by 6:00
a.m. Eastern time in good order. “Good order” shall mean that the following information is on the fax Order instructions:
Ø | Agent name | ||
Ø | Plan name | ||
Ø | Contact name | ||
Ø | Contact phone number between 6 a.m. and 9 a.m. Eastern time | ||
Ø | Current date | ||
Ø | Trade date | ||
Ø | Vanguard fund number | ||
Ø | Vanguard account number | ||
Ø | Purchase, redemption, rebalance redemption, rebalance purchase amount | ||
Ø | Purchase total, redemption total, rebalance redemption total, rebalance purchase total | ||
Ø | Total number of pages faxed, total number of trades submitted, total dollar amount of purchases submitted and total dollar amount of redemptions submitted (or net dollar amount of trades submitted). |
34 of 36
SECOND AMENDMENT TO THE DAILY VALUATION AGENCY AGREEMENT
THIS AMENDMENT, dated as of August 13, 2010, amends that certain Daily Valuation Agency Agreement
dated March 22, 2006, as previously amended (the “Agreement”) by and between The Vanguard Group,
Inc. (“Vanguard”) and Diversified Investment Advisors, Inc. (the “Agent”).
WHEREAS, the parties to the Agreement desire to amend the Agreement in order to provide for
certain trading on behalf of the Agent’s affiliated insurance companies, Transamerica Life
Insurance Company and Transamerica Financial Life Insurance Company;
WHEREAS, the parties hereto desire to make certain other amendments to the Agreement as set
forth herein; and
WHEREAS, any capitalized terms set forth in this Amendment that are not otherwise defined
shall have the meanings assigned to them in the Agreement.
NOW THEREFORE, the parties hereto hereby amend the Agreement in the following form:
1. | The Agreement is hereby amended by adding the following new Section 1(f): | ||
(f) Separate Account Recordkeeping. From time to time, the Agent’s affiliated insurance companies, Transamerica Financial Life Insurance Company, an Iowa insurance company (“TLIC”), and Transamerica Financial Life Insurance Company, a New York insurance company (“TFLIC”), may make available to the Plans group variable annuity contracts funded by separate accounts of TLIC and/or TFLIC that invest in shares of a Vanguard Fund (the “Separate Accounts”). Such Separate Accounts are an investment option made available to participants and beneficiaries under the Plans. Agent, as part of its participant accounting, record-keeping and administrative services on behalf of the Plans, shall accept authorized instructions pursuant to Section 1(b) to contribute or withdraw assets from the Separate Accounts. Agent, as part of its recordkeeping and administrative responsibilities under this Section 1, shall aggregate the transactions in the Separate Accounts and transmit such instructions to the Vanguard Funds as an aggregate plan-level trade from TLIC and/or TFLIC, as applicable. All other terms and conditions applicable to the Agent under the terms of the Agreement shall apply to such transactions from the Separate Accounts. | |||
2. | Section 10(c) is hereby deleted in its entirety and replaced with the following new Section 10(c): | ||
Diversified may prepare communications or disclosure materials (the “Materials”), based on a Vanguard Fund’s current prospectus and information supplied by national third party data providers and Vanguard under Section 10(a) above, for participants and beneficiaries of Plans that describe such Vanguard Fund in a format similar to that used for the other investment options offered by the Plans. With regard to any such communications or disclosure material prepared by the Agent, the Agent shall bear the sole responsibility for complying with the content, approval, filing, and recordkeeping requirements of NASD Conduct Rule 2210, if and to the extent applicable. The Agent may use, and Vanguard authorizes the Agent to use, the names or other identifying marks of, and certain information about, Vanguard and Vanguard Funds (collectively, the “Vanguard Marks”) | |||
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in the Materials. Notwithstanding the foregoing, the Agent acknowledges and agrees to the following: (i) the Agent shall not alter or modify the Vanguard Marks without Vanguard’s express prior written approval; (ii) the Agent shall use the Vanguard Marks only in the form and manner, and with all legends and notices, as specified by Vanguard, which Vanguard may periodically modify; (iii) the Agent shall use the Marks only for the purposes as described in this Agreement; and (iv) the Agent shall not engage, participate or otherwise become involved in any activity that dilutes, diminishes or tarnishes the reputation of the Vanguard Marks. The Agent acknowledges and agrees that Vanguard is the sole and exclusive owner of all right, title and interest in and to the Vanguard Marks. At the reasonable request of Vanguard, the Agent will provide Vanguard with a copy of the Materials showing use of the Vanguard Marks. Vanguard may withdraw the authorization granted in this Section 10(c) as to any particular use of the Vanguard Marks at any time if any of the Vanguard Funds cease to be available to Plans through the Agent or upon termination or expiration of this Agreement for any reason whatsoever. Upon such withdrawal of authorization, the Agent immediately will cease all use of the Vanguard Marks in any form or media and destroy all Materials containing the Vanguard Marks. | |||
3. | This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Amendment. | ||
4. | The Agreement, as amended, shall remain in full force and effect. |
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly
authorized officers effective as of the day and year first written above.
THE VANGUARD GROUP, INC. | DIVERSIFIED INVESTMENT | |||||||||
ADVISORS, INC. | ||||||||||
By:
|
/s/ Xxxx Xxxx | By: | Xxxxxxxxx X. Xxxxxxxx | |||||||
Name:
|
Xxxx Xxxx | Name: | Xxxxxxxxx Xxxxxxxx | |||||||
Title:
|
Principal | Title: | Vice President | |||||||
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