1
VANGUARD WORLD FUNDS --
VANGUARD U.S. GROWTH FUND
INVESTMENT ADVISORY AGREEMENT ADDENDUM
EFFECTIVE SEPTEMBER 1, 1998
This Addendum amends Section 7 of the Investment Advisory Agreement dated
April 1, 1993 between VANGUARD WORLD FUNDS (the "Fund," formerly known as
"Vanguard World Fund, Inc.") and LINCOLN CAPITAL MANAGEMENT COMPANY (the
"Adviser").
1. NEW FEE SCHEDULE. The Fund will compensate the Adviser according to the
following fee schedule:
BASIC FEE
ASSETS MANAGED ANNUAL RATE
-------------- -----------
First $25 million................................. 0.40%
Next $125 million................................. 0.35%
Next $350 million................................. 0.25%
Next $500 million................................. 0.20%
Next $1.5 billion................................. 0.15%
Next $12.5 billion................................ 0.10%
Over $15 billion.................................. 0.08%
2. NO EFFECT ON OTHER PROVISIONS. Except for the fee schedule revisions
described above, all provisions of the Investment Advisory Agreement dated April
1, 1993 remain in full force and effect.
ATTEST: VANGUARD WORLD FUNDS
--------------------------------------------- ---------------------------------------------
President, Chief Executive Officer Date
& Chairman of the Board
ATTEST: LINCOLN CAPITAL MANAGEMENT COMPANY
--------------------------------------------- ---------------------------------------------
Chief Executive Officer Date
& Managing Director
