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Commission and Fee Schedules

As of April 12, 2006

Standard charges apply to clients with up to$250,000 in total Vanguard assets. Discountsand other benefits are available to clients whoqualify and are enrolled in Vanguard® VoyagerService® (for clients with total Vanguard assetsof $250,000 up to $1 million) or VanguardFlagship™ Service (for clients with totalVanguard assets of $1 million or more, ofwhich $500,000 must be in Vanguard funds).Other discounts and fee waivers maybe available.

A separate commission is charged for eachsecurity bought or sold. This commission and fee schedule is subject to change.

For further information about our commissionand fee schedule—as well as about membershipin Voyager™ and Flagship Service—callVanguard Brokerage Services at 800-992-8327any business day from 8 a.m. to 8 p.m.,Eastern time.

Note: We can’t accept written instructions for trades.

Commission Schedule for Stocks and OptionsClient Group Standard1, 2 Voyager2 Flagship

StocksOnline: www.vanguard.com $25 or $0.025 per share, $22.50 or $0.0225 per First12trades: no commission.3

whichever is greater share, whichever is greater Subsequent trades: $8 each.

AutoBroker®: 800-992-8327 $40 or $0.05 per share, $36 or $0.045 per share, $30 or $0.0375 per share,whichever is greater whichever is greater whichever is greater

Associate assistance: 800-992-8327 $45 + $0.05 per share $40.50 + $0.045 per share $33.75 + $0.0375 per share

Stock priced less than $1 a share:Online: www.vanguard.com $20 + 2% of principal $20 + 2% of principal $20 + 2% of principal

Associate assistance and AutoBroker: 800-992-8327 $30 + 3% of principal $30 + 3% of principal $30 + 3% of principal

Options

Online: www.vanguard.com $30 + $1.50 per contract $30 + $1.50 per contract $30 + $1.50 per contract3

Associate assistance: 800-992-8327 $30 + $2.50 per contract $30 + $2.50 per contract $30 + $2.50 per contract

A separate commission applies for opening, closing, or exercising a position. Note: Option exercise and assignment require associateassistance. Associate-assisted commission rates for stocks apply.

Vanguard Brokerage Services A Division of VanguardMarketing Corporation, member of NASD and SIPCP.O. Box 1170Valley Forge, PA 19482-1170

Brokerage Account Maintenance Fee and Other Fees

Annual maintenance fee Standard: $30, charged annually.Voyager and Flagship: no charge.

Foreign securities $75 for each execution (not applicable to American Depositary Receipts) plus commission.

Limited partnerships (LPs) For private LPs, a $35 annual maintenance fee and, if reregistered, a $50 Vanguard Brokerage fee plusany third-party fees that we incur.

For private and public LPs that are held in a brokerage IRA and earn unrelated business taxable income($1,000 or more), a $200 tax-filing fee.

Note: Private LPs are illiquid. Vanguard Brokerage can hold, but not trade, private LPs in IRA accounts.

Wire transfers $20 from your brokerage account.

$5 from your settlement account (if less than $5,000).

Note: Your bank may charge for receiving wires from your brokerage or settlement account.

VIPER® Shares $50 per conversion of conventional Vanguard index fund shares to VIPER Shares. Flagship: no charge.(Fees may vary at other brokerage firms.)

VanguardAdvantage® Voyager fee: $30. Flagship: no charge. Also: insufficient funds ($20), stop payment ($15), checkbookreorder (Voyager: $9.95; Flagship: no charge), VanguardAdvantage Billpay® service (Voyager: $4.95 permonth; Flagship: no charge). Possibly, fees at automated teller machines not affiliated with PNC Bank.

Miscellaneous fees Other securities transaction fees may apply. Call us for additional information.

For more information, visit www.vanguard.com, or call 800-662-7447 for Vanguard funds and 800-992-8327 fornon-Vanguard funds offered through Vanguard BrokerageServices, to obtain a prospectus. Visit our website, call866-499-VIPER, or contact your broker to obtain a productdescription and prospectus for Vanguard VIPER Shares.Investment objectives, risks, charges, expenses, and otherimportant information are contained in these documents;read and consider them carefully before investing.

© 2006 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor. CMSCH 042006

1 A 10% discount from standard rates for 36–71 stock trades (except for stocks priced at less than $1 per share). Discounts apply to online, AutoBroker, orassociate-assisted trades. The first 35 qualifying trades can be made through any combination of online, AutoBroker, or associate-assisted trades duringa rolling 12-month period. Qualifying trades include stocks, options, bonds, CDs, and FundAccess funds.

2 A 25% discount from standard rates for 72 or more stock trades (except for stocks priced at less than $1 per share). Discounts apply to online, AutoBroker,or associate-assisted trades. The first 71 qualifying trades can be made through any combination of online, AutoBroker, or associate-assisted tradesduring a rolling 12-month period. Qualifying trades include stocks, options, bonds, CDs, and FundAccess funds.

3 No commissions will apply to the first 12 online trades in each calendar year to any combination of stocks (other than stocks priced at less than $1 a share), options, or transaction-fee mutual funds. The number of trades is limited to 12 per client, as identified by the primary Social Security number onthe account. Vanguard Brokerage reserves the right to terminate the 12 commission-free trades at any time for clients whose account activity can bedeemed improper.

Vanguard Brokerage Services®

Since 1983, Vanguard BrokerageServices has provided superior service and exceptional value to investors. Our clients enjoyonline, automated phone, andassociate-assisted access tostocks, exchange-traded funds,bonds, CDs, and options, plusthousands of funds from othermutual fund families. Standardservices include cost basisaccounting, comprehensivestatements, free dividendreinvestment, and many otherservices designed to maximizeinvestment convenience at areasonable cost.

World Wide Webwww.vanguard.com

Vanguard BrokerageServices800-992-8327

Commission Schedule for Bonds and CDs

Vanguard Brokerage Services may act as an agent, executing your order at cost plus a commission, or Vanguard Brokerage may act as aprincipal and add markups to purchase prices or subtract markdowns from sales prices. When we act as a principal for a primary market issue,Vanguard Brokerage receives a fee concession from the issuer. If a concession is not available, Vanguard Brokerage reserves the right to chargea commission.

Security Type New Issues Existing Issues

U.S. Treasury Associate assistance. Standard rate for auction Associate assistance. $1 per $1,000 face amount;orders: $25; Voyager: $15; Flagship: $0. $50 min., $125 max. ($40 for Flagship clients).

Online. Standard rate for auction orders: $10; Online. $0.75 per $1,000 face amount;Voyager: $0; Flagship: $0. $40 min., $75 max. ($40 for Flagship clients).

U.S. government agency No commission.* See table below.

Mortgage-backed securities $50 per transaction; GNMA minimum purchase, $50 per transaction; GNMA minimum purchase, $25,000. $25,000.

Corporate bonds No commission.* Unlisted (over-the-counter).See table below.

Listed. $25 + $2 per bond.

Municipal bonds $50 commission if a fee concession is not See table below.available; minimum purchase varies.

Certificates of deposit No commission.* Purchase. See table below.

Sale. $35 per transaction.

Commercial paper $50 per transaction; minimum purchase, $100,000. NA

Unit investment trusts NA Sale only. $35 per transaction.

Commission per $1,000 face amount for existing issues, where applicable.

$1,000–$49,000 $50 minimum($5 per $1,000)

$50,000 or more $500 maximum($3 per $1,000)

*Minimum purchase $10,000, subject to dealer minimum.

Note: Bond and CD prices are available at www.vanguard.com and are price indications only. Online prices for all secondary market bonds andCDs are before commissions.

1 Individual fund families may impose additional fees or charges for a specific fund or funds. Read the prospectus carefully before investing.2 Transaction-fee fund trades can be included in the 12 commission-free trades per calendar year available to Flagship clients. No commissions will applyto the first 12 online trades in each calendar year to any combination of stocks (other than stocks priced at less than $1 a share), options, or transaction-fee mutual funds. The number of trades is limited to 12 per client, as identified by the primary Social Security number on the account. VanguardBrokerage reserves the right to terminate the 12 commission-free trades at any time for clients whose account activity can be deemed improper.

3 If you buy $10,000 of a fund, your net total cost will be $10,035.4 If you sell $10,000 of a fund, your net total proceeds will be $9,965.5 If you exchange all shares of a fund for another fund in the same fund family and share class, the $35 transaction fee will be paid from your moneymarket settlement account.

Commission and Fee Schedule for FundAccess® Mutual Funds

No-Load Fund Transaction Fees1

No-transaction-fee Transaction fee None.(NTF) funds

Minimum initial investment For most funds, $3,000 for nonretirement accounts and $1,000 for IRAs.

Minimum additional investment $1,000 for any account type.

Redemption fee $50 minimum, or 1% of proceeds up to $250, for shares held less than six months. The six-month holding period begins on the settlement day ofthe transaction, which is ususally the next business day or three businessdays after the trade date. (The redemption fee is waived for sharestransferred from another brokerage firm or financial institution.)

Dollar-cost-averaging transactions No fee; minimum purchase, $100; minimum, two transactions.

Transaction-fee Transaction fee Purchase: $35 per trade regardless of order size.3

(TF) funds2

Sale: $35 per trade regardless of order size.4

Exchange: $35 per trade regardless of order size.5

Minimum initial and additional Typically based on amount listed in the fund’s prospectus.investments

Dollar-cost-averaging transactions $3 per transaction; minimum purchase, $100; minimum, two transactions.

Load Fund Charges and Fees

Class A shares Front-end load (purchase fee): Varies by fund or fund family and may be as high as 5.75%. Review the fund’s prospectus carefully before investing.

Discounts (breakpoints) may be available if you make a large purchase, already hold other mutual funds offered bythe same fund family (individually or combined with a spouse or other qualifying person), or commit to regularlypurchasing the fund’s shares.

Class B shares Back-end load or contingent deferred sales charge (redemption fee): Decreases to zero over a period of years.

Class C shares Back-end load or contingent deferred sales charge (redemption fee): Smaller than a Class B redemption fee, itdecreases to zero after one year.

All share classes Sales charges The schedule for a specific load fund may vary, perhaps significantly, from thegeneral description shown here. Check a fund’s prospectus for the details.

Fees Vanguard Brokerage charges no additional fee for a purchase, sale, or exchange ofany load fund offered through FundAccess.

Dollar-cost-averaging Vanguard Brokerage does not charge a fee, but sales charges imposed by the fund transactions still apply. Minimum transaction, $100; minimum, two transactions.

Commission and Fee Schedules

As of April 12, 2006

Standard charges apply to clients with up to$250,000 in total Vanguard assets. Discountsand other benefits are available to clients whoqualify and are enrolled in Vanguard® VoyagerService® (for clients with total Vanguard assetsof $250,000 up to $1 million) or VanguardFlagship™ Service (for clients with totalVanguard assets of $1 million or more, ofwhich $500,000 must be in Vanguard funds).Other discounts and fee waivers maybe available.

A separate commission is charged for eachsecurity bought or sold. This commission and fee schedule is subject to change.

For further information about our commissionand fee schedule—as well as about membershipin Voyager™ and Flagship Service—callVanguard Brokerage Services at 800-992-8327any business day from 8 a.m. to 8 p.m.,Eastern time.

Note: We can’t accept written instructions for trades.

Commission Schedule for Stocks and OptionsClient Group Standard1, 2 Voyager2 Flagship

StocksOnline: www.vanguard.com $25 or $0.025 per share, $22.50 or $0.0225 per First12trades: no commission.3

whichever is greater share, whichever is greater Subsequent trades: $8 each.

AutoBroker®: 800-992-8327 $40 or $0.05 per share, $36 or $0.045 per share, $30 or $0.0375 per share,whichever is greater whichever is greater whichever is greater

Associate assistance: 800-992-8327 $45 + $0.05 per share $40.50 + $0.045 per share $33.75 + $0.0375 per share

Stock priced less than $1 a share:Online: www.vanguard.com $20 + 2% of principal $20 + 2% of principal $20 + 2% of principal

Associate assistance and AutoBroker: 800-992-8327 $30 + 3% of principal $30 + 3% of principal $30 + 3% of principal

Options

Online: www.vanguard.com $30 + $1.50 per contract $30 + $1.50 per contract $30 + $1.50 per contract3

Associate assistance: 800-992-8327 $30 + $2.50 per contract $30 + $2.50 per contract $30 + $2.50 per contract

A separate commission applies for opening, closing, or exercising a position. Note: Option exercise and assignment require associateassistance. Associate-assisted commission rates for stocks apply.

Vanguard Brokerage Services A Division of VanguardMarketing Corporation, member of NASD and SIPCP.O. Box 1170Valley Forge, PA 19482-1170

Brokerage Account Maintenance Fee and Other Fees

Annual maintenance fee Standard: $30, charged annually.Voyager and Flagship: no charge.

Foreign securities $75 for each execution (not applicable to American Depositary Receipts) plus commission.

Limited partnerships (LPs) For private LPs, a $35 annual maintenance fee and, if reregistered, a $50 Vanguard Brokerage fee plusany third-party fees that we incur.

For private and public LPs that are held in a brokerage IRA and earn unrelated business taxable income($1,000 or more), a $200 tax-filing fee.

Note: Private LPs are illiquid. Vanguard Brokerage can hold, but not trade, private LPs in IRA accounts.

Wire transfers $20 from your brokerage account.

$5 from your settlement account (if less than $5,000).

Note: Your bank may charge for receiving wires from your brokerage or settlement account.

VIPER® Shares $50 per conversion of conventional Vanguard index fund shares to VIPER Shares. Flagship: no charge.(Fees may vary at other brokerage firms.)

VanguardAdvantage® Voyager fee: $30. Flagship: no charge. Also: insufficient funds ($20), stop payment ($15), checkbookreorder (Voyager: $9.95; Flagship: no charge), VanguardAdvantage Billpay® service (Voyager: $4.95 permonth; Flagship: no charge). Possibly, fees at automated teller machines not affiliated with PNC Bank.

Miscellaneous fees Other securities transaction fees may apply. Call us for additional information.

For more information, visit www.vanguard.com, or call 800-662-7447 for Vanguard funds and 800-992-8327 fornon-Vanguard funds offered through Vanguard BrokerageServices, to obtain a prospectus. Visit our website, call866-499-VIPER, or contact your broker to obtain a productdescription and prospectus for Vanguard VIPER Shares.Investment objectives, risks, charges, expenses, and otherimportant information are contained in these documents;read and consider them carefully before investing.

© 2006 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor. CMSCH 042006

1 A 10% discount from standard rates for 36–71 stock trades (except for stocks priced at less than $1 per share). Discounts apply to online, AutoBroker, orassociate-assisted trades. The first 35 qualifying trades can be made through any combination of online, AutoBroker, or associate-assisted trades duringa rolling 12-month period. Qualifying trades include stocks, options, bonds, CDs, and FundAccess funds.

2 A 25% discount from standard rates for 72 or more stock trades (except for stocks priced at less than $1 per share). Discounts apply to online, AutoBroker,or associate-assisted trades. The first 71 qualifying trades can be made through any combination of online, AutoBroker, or associate-assisted tradesduring a rolling 12-month period. Qualifying trades include stocks, options, bonds, CDs, and FundAccess funds.

3 No commissions will apply to the first 12 online trades in each calendar year to any combination of stocks (other than stocks priced at less than $1 a share), options, or transaction-fee mutual funds. The number of trades is limited to 12 per client, as identified by the primary Social Security number onthe account. Vanguard Brokerage reserves the right to terminate the 12 commission-free trades at any time for clients whose account activity can bedeemed improper.


Since 1983, Vanguard BrokerageServices has provided superior service and exceptional value to investors. Our clients enjoyonline, automated phone, andassociate-assisted access tostocks, exchange-traded funds,bonds, CDs, and options, plusthousands of funds from othermutual fund families. Standardservices include cost basisaccounting, comprehensivestatements, free dividendreinvestment, and many otherservices designed to maximizeinvestment convenience at areasonable cost.


Vanguard BrokerageServices800-992-8327


A Division of VanguardMarketing Corporation

The VanguardAdvantage® Account

A flexible and convenient cash management service

If you’re looking for a brokerage account that alsooffers cash management services, consider theVanguardAdvantage Account. Offered throughVanguard Brokerage Services, this exceptionalaccount offers checkwriting with no minimumdollar amount, a Visa® Gold debit card, online billpayment, and overdraft protection through amargin account.

You can even simplify your finances bytransferring assets you hold elsewhere to yourVanguardAdvantage Account. And you canreview your account information on one simplestatement—or online if you prefer.

Better yet, accountholders experience TheVanguard Difference. You’ll see it in everythingwe do at Vanguard. We focus only on your needsand on continuing our long record of serving allclients with integrity. We’re committed tokeeping costs as low as possible, providing ahigh level of service, and offering a wide range of sound financial products aimed at helping you meet your needs.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit InsuranceCorporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund.

A cash management servicewith The Vanguard Difference®

The VanguardAdvantage Account puts you in control

Our cash management service offers no-minimumcheckwriting and easy-to-use features that allow youto better manage your finances.

• Take advantage of our commitment to providecompetitive money market fund returns oncash balances.

• Access your account anywhere with a Visa Gold debit card.

• Pay your bills online with theVanguardAdvantage Billpay® service.

• Enjoy low-interest-rate overdraft protection(through an approved margin account thatcontains eligible securities).

• Expand your investment possibilities atVanguard. Hold individual stocks, ETFs, bonds,CDs, options, and even non-Vanguard mutualfunds through our FundAccess® program.

• Have regular payments deposited directly intoyour account automatically.

• Manage your account online—24 hours a day,seven days a week—at www.vanguard.com.

Take Advantage of these powerful cash management tools

The VanguardAdvantage Account is a convenient,flexible product that enhances your ability tomonitor and manage your assets. By opening aVanguardAdvantage Account, you’ll benefit from the following attractive features:

Higher interest.You get your choice of Vanguard’s low-cost moneymarket funds, which have consistently deliveredstrong performance. Over the past ten years, 100%of our money market funds have outperformed theaverage returns of competitive funds.*

Unlimited checkwriting. Write as many checks as you need and for anyamount. You can write checks for more than youraccount balance if you sign up for overdraft protection.

Online Billpay service.You can pay bills online using our secure Billpayservice. Pay each bill separately or enter severalpayments at once. You can even schedule paymentsmonths in advance for added peace of mind.

Overdraft protection. Apply for overdraft protection through a marginloan, secured by eligible stocks, bonds, and mutualfund shares.

*For the ten-year period ended March 31, 2005, Vanguard’s money market funds with at least a ten-year history (10 of 10 funds) have outperformed their Lipper-group averages; results will vary for other time periods. (Source: Lipper Inc.) Notethat the competitive performance data shown represent past performance, which is not a guarantee of future results, and thatall investments are subject to risks. For the most recent performance, visit our website at www.vanguard.com.

Direct deposit.You can arrange for direct deposit service into this account for recurring payments, such assalary, Social Security, or pensionchecks. Call 800-992-8327 and ask us to mail a direct depositapplication to you.

Broad investment choices. You can expand your investmentopportunities beyond Vanguard®

funds. Use this account to invest in individual stocks and bonds,options, ETFs, CDs—and any of 2,600 mutual funds (includingmore than 900 no-load fundswithout transaction fees) fromsome 300 companies throughour FundAccess program.

Visa Gold debit card. You can use your VanguardAdvantageAccount debit card at any ATMwordwide that displays the Visa orPlus® System logo. Vanguard nevercharges a fee for an ATM transaction,and all transactions from a PNC-affiliated bank are free. (There maybe a surcharge at other banks’ ATMs.)

Cost basis accounting.Track the capital gains and losses ofyour stocks and bonds online so thatyou can identify possible tax benefitsor liabilities.

Manage your accounts online.Register at Vanguard.com® tomanage all of your investmentsonline: Vanguard funds, stocks,bonds, and even other companies’mutual funds.

Gain control of your finances today. To open a VanguardAdvantageAccount, complete the application and return it in the postage-paidenvelope enclosed in this kit. If you need help completing the form,call Vanguard Brokerage Services at 800-992-8327 on business daysfrom 8 a.m. to 8 p.m., Eastern time. Additional information about allof our financial products and services is also available on our web-site at www.vanguard.com.

800-992-8327

flexibility


Vanguard Brokerage Services800-992-8327

FundAccess, The Vanguard Group, Vanguard,Vanguard.com, VanguardAdvantage,VanguardAdvantage Billpay, The VanguardDifference, Vanguard Brokerage Services,and the ship logo are trademarks of TheVanguard Group, Inc. Visa and Plus aretrademarks of Visa International ServiceAssociation. All other marks are the exclu-sive property of their respective owners.

Vanguard Brokerage ServicesA Division of Vanguard Marketing CorporationPost Office Box 1170Valley Forge, PA 19482-1170

© 2005 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor. VADAB 052005

For more information, visit www.vanguard.com, or call 800-662-7447 for Vanguardfunds and 800-992-8327 for non-Vanguard funds offered through VanguardBrokerage Services, to obtain a prospectus. Investment objectives, risks, charges,expenses, and other important information are contained in the prospectus; readand consider it carefully before investing.

1

Important: This account is offered only to clients with a valid U.S. street address—a post office box is not acceptable.

Use this form to upgrade an existing nonretirement account at Vanguard Brokerage Services to a VanguardAdvantage Account.Please print, preferably in capital letters and black ink.If you would like to have a paycheck or other recurring payment deposited automatically in your account, call us to have the direct depositapplication mailed to you.An annual account maintenance fee, in addition to any VanguardAdvantage Account fee, may apply. Please see the current Vanguard BrokerageServices Commission and Fee Schedules for details

Most forms, as well as booklets that provide details on our services, can be downloaded from our website at Vanguard.com®, or you can call us at800-992-8327 for assistance. Return this form in the enclosed postage-paid envelope or mail it to Vanguard Brokerage Services, P.O. Box 1170,Valley Forge, PA 19482-1170. For overnight or special delivery, mail to Vanguard Brokerage Services, 100 Vanguard Boulevard, Malvern,PA 19355-0741.

1. Your Existing Nonretirement Account at Vanguard Brokerage Services (Provide all applicable information.)

– Vanguard Brokerage Nonretirement Account Number

Name of Account Owner, Minor, Trustee, or Organization (first, middle initial, last)

– – –Social Security Number Employer Identification Number

Name of Joint Account Owner, Custodian, Agent, or Co-Trustee (first, middle initial, last)

– – –Social Security Number Employer Identification Number

2. Your Investment Profile (Complete all sections.)

1. Liquid net worth (cash, securities, etc.): $ , ,

2. Total net worth (excluding residence): $ , ,

3. Approximate annual income: $ , ,(Note to trustee: Indicate annual income of trust and applicable nontrust income.)

4. Indicate the number of dependents excluding account owners:

OR

OR

Vanguard Brokerage Services® (VBS®)A Division of Vanguard Marketing Corporation

Upgrade Your Vanguard® Brokerage Accountto a VanguardAdvantage® Account

VAACF

3. Cash Management Options

Choose only those features you want.

A. VanguardAdvantage Visa® Gold Debit Card

I would like to receive a VanguardAdvantage Visa Gold debit card. Use of the card is subject to the conditions listed in theVanguardAdvantage Account Services Agreement.

B. VanguardAdvantage Billpay®

I would like to sign up for VanguardAdvantage Billpay, an electronic bill payment service available through our secure website. Use of the Billpay service and fees associated with it is subject to the terms and conditions of the VanguardAdvantage Account ServicesAgreement.

C. Overdraft Protection Through a Margin Account

Important: If you have already been approved for margin in the Vanguard Brokerage account you are upgrading, you will automaticallyreceive overdraft protection. Do not complete this section.

Overdraft protection for transactions using your VanguardAdvantage checks, Visa Gold debit card, and Billpay is provided through a marginloan secured by eligible securities in your VanguardAdvantage Account. If the market value of the securities in your margin account declines,or the check, debit card, or Billpay transactions in your account result in an overdraft situation, you may be required to deposit more money orsecurities. If you do not do so, Vanguard Brokerage may be required to sell all or a portion of your assets.

I want to apply for overdraft protection and margin privileges. I have knowledge of and understand the risks associated with margin, andI recognize that this option is subject to the terms and conditions of the Margin Account Agreement.

I do not want to apply for overdraft protection and margin privileges.

D. Cost Basis Accounting Through Vanguard.com®

You will be automatically enrolled in our Cost Basis Accounting Service when your VanguardAdvantage Account is opened. To view the cost basis of your individual securities, you must be a registered user of Vanguard.com.

Choose the method of cost basis accounting you would like to have for your individual securities. (Check one.)

First-in, first-out. When you sell stocks or bonds, the securities that you have held the longest will be sold first.

Highest-cost. When you sell stocks or bonds, the securities with the highest cost will be sold first.

Note: If you do not select a method of accounting, your account will automatically default to the first-in, first-out method for individualsecurities. The average-cost method automatically applies to all mutual fund investments.

This service is made available in association with Pershing LLC, a member of the BNY Securities Group and a subsidiary of The Bank of NewYork Company, Inc. It is provided for general informational purposes only. You are responsible for maintaining accurate account records for yourtax returns. Neither Vanguard nor Pershing will give your information to the IRS, prepare your tax return, or advise you on which accountingmethod is best for your particular tax situation. For such information, we recommend you consult a qualified tax professional.

2

VAACF-page 2 of 3

For Vanguard Brokerage Use

Margin Approved By _____________________________________________

Margin Denied By ______________________________________________

Date _______________________________________________________

4. Signature of All Account Owners—YOU MUST SIGN BELOW

VanguardAdvantage Account Services Agreement

I consent and agree to be bound by all terms and conditions of the VanguardAdvantage Account Services Agreement in the Disclosures Booklet,and I acknowledge receipt of a copy of such agreement. I acknowledge that Vanguard reserves the right to revoke checkwriting and debit cardprivileges at any time without prior notice.

Note: I have read and accept the most recent Vanguard Brokerage Services Commission and Fee Schedules, which I agree may beamended by Vanguard Brokerage from time to time.

VanguardAdvantage Checkwriting Privileges

I acknowledge that the VanguardAdvantage Account allows me to write checks (subject to the conditions listed in the VanguardAdvantage AccountServices Agreement) to redeem any amount of my available balance. I further acknowledge that my name and address will appear on my checksexactly as they appear on my VanguardAdvantage Account registration, and that my check range will begin with number 101.

Important: Any existing checks for my money market settlement account should be destroyed when I receive my VanguardAdvantage checkbook.

VanguardAdvantage Checkwriting Signature Form

Please sign here. Important: All those listed as owners, custodians, trustees, or organization representatives—except minors—must signbelow exactly as the account is registered. Attach an additional sheet if necessary. All registered account owners must sign this application exactlyas the checks will be signed. Note: Only one signature is required on the checks, even if your VanguardAdvantage Account is set up to require morethan one signature. See Section 5 of the VanguardAdvantage Account Services Agreement for details.

Margin Agreement

Important: This applies to account owners who have applied for overdraft protection through margin on their accounts.I acknowledge receiving a copy of the Margin Account Agreement (“Agreement”) in the Disclosures Booklet. This Agreementcontains a predispute arbitration clause highlighted in paragraphs 22 and 23 on pages 30 and 31 of the Disclosures Booklet. Bysigning this application, I agree to be bound by the terms of the Agreement.

➤Date (month, day, year)

➤Date (month, day, year)

➤– –

S I G N A T U R E (joint owner, agent, co-trustee, or organization representative)

S I G N A T U R E (owner, custodian, trustee, or organization representative)

3

VAACF-page 3 of 3

For Vanguard Brokerage Use

–Brokerage Account Number Checking Account Number

DO NOT DETACH

– –

– –

VAACF 052005

© 2005 The Vanguard Group, Inc. All rights reserved. VAACF 052005

Vanguard, The Vanguard Group, VBS, VanguardAdvantage, VanguardAdvantage Billpay, Vanguard.com, Vanguard Brokerage Services, and the ship logo are trademarks of The Vanguard Group, Inc. Visa is a trademark of Visa International Service Association. All other marks are the exclusive property of their respective owners.

© 2005 The Vanguard Group, Inc. All rights reserved.Vanguard Marketing Corporation, Distributor. UNCLFD 062005

A caution about deposits to your money market fund settlement accountRecently purchased shares of your linked money market fund may not be immediately available to pay fortransactions in your Vanguard Brokerage Services® account. Effective May 1, 2005, Vanguard BrokerageServices may restrict your ability to trade in your brokerage account until the linked money market fundcollects payment for recent purchases into that fund.

It may take up to ten calendar days for funds from money market shares purchased by check or electronicbank transfer to become available for securities transactions. Wiring funds to purchase shares of thelinked money market fund may reduce the ten-calendar-day period for availability.

A Vanguard® Brokerage associate will be happy to answer any questions you may have. Call VanguardBrokerage Services at 800-992-8327 on business days from 8 a.m. to 8 p.m., Eastern time.Vanguard Brokerage Services is a division of VanguardMarketing Corporation, member of NASD and SIPC.

VanguardAdvantage® AccountDisclosures Booklet


Margin Account Agreement

Cost Basis Accounting Service

Keep this copy for your records.

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Checkwriting, Debit Card, ACH, and Related Services

This agreement (the “Agreement”) sets forth the definitive terms and conditions of the VanguardAdvantage Account Checkwriting, Visa® Gold Debit Card, Billpay, ACH,and related services (the “Services”) that are available through your VanguardAdvantageAccount. This Agreement is made by and among Vanguard Brokerage Services®

(Vanguard Brokerage); PNC Bank, Delaware; and you. By your enrollment in and use of your VanguardAdvantage Account, you agree to be bound by the terms of thisAgreement that are applicable to the Services that you use.

1. Definitions.

Unless the context otherwise requires, the capitalized terms used in this Agreementhave the meanings specified below:

“Account” means your VanguardAdvantage Account, which consists of (a) yourBrokerage Account, (b) your linked money market settlement account, and (c) anysecurities or other property or obligation from time to time included in yourVanguardAdvantage Account by Vanguard® Brokerage.

“ACH” means Automated Clearing House.

“ACH Transaction” means any transfer of funds processed through the ACH system.

“ATM” means automated teller machine.

“ATM Withdrawal” means a Card Transaction in which you receive money from anATM.

“Authorization” means a Card Transaction in which you authorize others to place ahold on your Available Balance to ensure future payment.

“Available Balance” means the available cash and sweep fund balances in yourAccount, as well as any available secured credit if you have a margin account,* butexcluding those balances that are subject to Vanguard Brokerage’s ten-business-dayhold or that have otherwise been placed on hold to ensure payment of previouslyauthorized Transactions.

“Bank” means PNC Bank, Delaware, a Delaware bank, or, as the context requires,PFPC Trust Company, a subsidiary of The PNC Financial Services Group, Inc.,which is responsible for administration of the banking services provided hereunder.

*If the market value of the securities in your margin account declines, or the Transactions in your account resultin an overdraft situation, you may be required to deposit more money or securities. If you are unable to do so,Vanguard Brokerage may be required to sell all or a portion of your pledged assets. You will also be subject tomargin interest as disclosed in your margin agreement. Margin trading involves greater risk than paying cashup front for your investment, is not suitable for all investors, and is subject to approval by Vanguard Brokerage.

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V A N G U A R D A D V A N T A G E A C C O U N T S E R V I C E S A G R E E M E N T

“Banking Day” has different meanings for ATM Withdrawals and for Cash Advances,Purchases, and Authorizations. A Banking Day may, as applicable, exclude bank orbrokerage holidays.

(1) For ATM Withdrawals, we consider there to be seven Banking Days eachweek for purposes of imposing security limits on the number and amount ofwithdrawals you can perform at an ATM. For these purposes, Banking Daysbegin at 12 a.m., Eastern time.

(2) For Cash Advances, Purchases, and Authorizations:(a) We consider there to be five Banking Days each week for purposes of

imposing security limits on the amount of Cash Advances, Purchases,and Authorizations you can perform. For these purposes, Banking Daysbegin at 6 a.m., Eastern time.

(b) We consider there to be six Banking Days each week for purposes ofimposing security limits on the number of Cash Advances, Purchases,and Authorizations you can perform. For these purposes, Banking Daysbegin at 6 p.m., Eastern time. The period from Friday at 6 p.m. toSunday at 6 p.m., Eastern time, is counted as one Banking Day.

“Billpay Service” means the electronic bill payment service offered by VanguardBrokerage, which is accessed exclusively by means of Vanguard Brokerage’s securewebsite.

“Billpay Transaction” means any transaction in which you use the Billpay Service toeffect payment to a payee.

“Brokerage Account” means the cash and/or margin account opened in your namewith Vanguard Brokerage.

“Business Day” means Monday through Friday, excluding federal holidays.Although Vanguard Brokerage’s or the Bank’s offices may be open on certain federalholidays, these days are not considered Business Days for purposes relating to thetransfer of funds.

“Card” means the VanguardAdvantage Account Visa Gold Card issued on yourAccount.

“Card Transaction” means any transaction in which you use the Card, the Cardnumber, and/or your PIN to obtain cash through a Cash Advance transaction, toobtain cash from an ATM, or in payment to a merchant for goods or services.

“Cash Advance” means a Card Transaction in which you receive money back from amerchant or financial institution. Cash Advances do not include ATM Withdrawals.

“Check,” “Checks,” “Checking” refer to checks drawn on the Bank.

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“Check Transaction” means any Transaction in which you use a Check to make apayment.

“Due Date” is the date reflected on your payee statement for which the payment isdue. It is not the late date or grace period.

“Electronic Funds Transfer” means any transfer of funds initiated or authorized byyou through an electronic payment system such as the ACH network.

“Payee” is the person or entity to which you wish a bill payment to be directed or isthe person or entity from which you receive electronic bills.

“Payment Account” is your VanguardAdvantage Account, from which all paymentsand Billpay Service fees will be automatically debited.

“Payment Instructions” is the information provided by you to Vanguard Brokeragefor a bill payment to be made to the Payee (such as, but not limited to, Payee name,Payee account number, and Scheduled Payment Date).

“PIN” means your personal identification number that is associated with your Card.

“Purchase” means a Card Transaction in which you purchase goods or services.

“Regulation E” means Regulation E (12 C.F.R. part 205) of the Board of Governorsof the Federal Reserve System.

“Scheduled Payment” is a payment that has been scheduled through the BillpayService but has not begun processing..

“Scheduled Payment Date” is the day you want your Payee to receive your billpayment and is also the day your Payment Account will be debited, unless theScheduled Payment Date falls on a non-Business Day, in which case it will beconsidered to be the previous Business Day.

“Services” means Checkwriting, Card, Billpay, ACH, and related services.

“Transaction” means any Check, Card, Billpay, or ACH Transaction.

“Unauthorized Transaction” means a Transaction made by someone without yourauthorization and from which you received no benefit. An Unauthorized Transactiondoes not include (a) a Transaction by a person to whom you furnished your Card,Card number, or PIN unless you have notified Vanguard Brokerage that Transactionsby such persons are no longer authorized and Vanguard Brokerage has had areasonable opportunity to act on such notice, (b) a Transaction made or authorized byyou with the intent to defraud, or (c) a Transaction made in error by us.

“Vanguard Brokerage” means Vanguard Brokerage Services, a division of VanguardMarketing Corporation, member of NASD and SIPC.

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“We,” “Us,” “Our” mean, as the context requires, Vanguard Brokerage and/or the Bank.

“You,” “Your,” “Accountholder” mean each person or entity who is a registeredowner of the Account.

2. How to Contact Us About Your Account.

2.1 Loss or Theft of Card, or Unauthorized Transactions. You must tellVanguard Brokerage at once if you believe your Card or Checks have been lost or stolen or if you believe an unauthorized person may know your PIN or your Billpay Service website password. Similarly, tell VanguardBrokerage if you believe any Unauthorized Transactions have been made to your Account, or if you believe that someone may attempt to use theServices without your consent or has transferred money without yourpermission. See Section 7 for more information about your rights andobligations with respect to Electronic Funds Transfers.

2.2 Errors or Questions About Your Account. Tell Vanguard Brokerageimmediately if you think your Account statement or a Transaction record is wrong or if you need more information about your Account or anyTransaction listed on the Account statement or Transaction record.

2.3 Contact Information. Call Vanguard Brokerage at 800-992-8327Business Days from 8 a.m. to 8 p.m., Eastern time (limited services are available at other times). Or write to Vanguard Brokerage at:

Vanguard Brokerage ServicesP.O. Box 1170Valley Forge, PA 19482-1170

3. General Features of the Services.

3.1 Available Balance.

3.1.1 Your Available Balance may fluctuate from day to day because it is dependent upon changes in the balance in your Account. TheAvailable Balance is reduced shortly after the Bank is notified of aTransaction, not when a sales draft or Cash Advance draft is paid.

3.1.2 You promise not to make a Transaction (such as issuing a Check,making a Card Transaction, or requesting a Billpay Transaction) that exceeds your Available Balance. If you make a Transaction thatexceeds your Available Balance, you will incur the insufficient fundsfee listed in the Vanguard Brokerage Services® Commission and FeeSchedules. If you attempt to make a Transaction that will exceed your Available Balance, the Transaction will normally be declined.

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3.2 Payment for Transactions.

3.2.1 On a daily basis, the Bank will notify Vanguard Brokerage of theTransactions on your Account that the Bank receives. VanguardBrokerage will make payments to the Bank on your behalf on eachBusiness Day that Vanguard Brokerage receives notice of theTransactions. Vanguard Brokerage will make payments for the charges in the following order of priority: free credit in yourVanguard Brokerage account, cash available in your VanguardBrokerage linked money market account, margin cash available.

3.2.2 You authorize Vanguard Brokerage to charge your Brokerage Account in order to pay for Transactions. Each Transaction shall be consideredto be your direction to us to charge or reduce your Available Balance.When you use your Card, the reduction to your Available Balanceoccurs immediately, and you understand that you have no right tostop payment on any Card Transaction. You understand thatAuthorizations will reduce your Available Balance by the amount ofthe Authorization even if the Authorization does not result in aTransaction. Note that an Authorization will reduce your AvailableBalance until the earlier of the completion of the Transaction inwhole or in part or the expiration of a time period specified by us.

3.2.3 If there is more than one person who is authorized to sign on theAccount, you authorize us to pay Card drafts or Checks on theauthority of any one of the signatures of the individuals identified on the appropriate account documentation—even if you havesigned documentation on file with us that states you requiremore than one signature to act on your Account. You alsoacknowledge that the Billpay Service may be established and anyBillpay Transaction may be requested at any time upon theauthorization of any one account owner or authorized signer. SeeSection 10 for more information about joint accounts.3.2.3.1 Unauthorized Use. You promise not to let any

unauthorized person make a Transaction, and you agree not to give or make available your PIN, password, or othermeans to access your Account or the Services to anyunauthorized individuals. You are responsible for allpayments you authorize using the Services. If you permit anunauthorized person to make a Transaction, or use any meansto access your Account, even if the amount of actual useexceeds the amount you authorized, you will be responsiblefor the full amount of all Transactions that result.

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3.3 Insufficient Funds; Overdraft Protection.

3.3.1 If the available cash and sweep fund balances in your Account areinsufficient to cover a Transaction, and you have not establishedoverdraft protection for your Account, Vanguard Brokerage mayinstruct the Bank to return the item, if a Check or BillpayTransaction, or decline the item, if a Card Transaction. In each case, the insufficient funds fee listed in the Vanguard BrokerageServices Commission and Fee Schedules will be debited from yourAccount. If a Transaction results in an overdraft situation and you have established overdraft protection by means of a margin account,you may be required to deposit more money or securities. If you areunable to do so, or if the Transaction exceeds your margin cashavailable, Vanguard Brokerage may be required to sell all or a portion of your pledged assets. You will also be subject to margin interest asdisclosed in your margin agreement.

3.4 Account Statements.

3.4.1 Vanguard Brokerage will send you an Account statement for everymonth in which you make a Transaction. In any event, you willreceive an Account statement at least quarterly. Your Accountstatement will include the following information:• For Card Transactions. The amount, location, Transaction date,

posting date, reference number, and merchant name (whenavailable).

• For Check Transactions. The Check number, amount, and dateof payment.

• For ACH Transactions. The reference number, a Transactiondescription, amount, and date of payment.

• For Billpay Transactions. Billpay Transactions will be reflected as either Check Transactions or ACH Transactions, dependingupon the form in which the payment is made to the Payee. BillpayTransactions paid by check will not include a Check number.

3.5 Foreign Transactions.

3.5.1 Foreign Transactions. These transactions are completed outside theUnited States through your Account. All debits to your Account willbe posted in U.S. dollars. Payments to Payees outside the UnitedStates or its territories through the Billpay Service are prohibited. SeeSection 4.4 for more information about Card Transactions made in aforeign currency.

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3.5.2 Foreign Transaction Fee. For each Foreign Transaction, Visacharges a Foreign Transaction fee (currently 1% of the Transactionamount), which will be included in the amount charged to yourAccount. This Visa charge applies whether or not there is a currencyconversion.

3.6 Fees. See the fees and charges associated with the Services that are listedin the Vanguard Brokerage Services Commission and Fee Schedules. Not includedare fees that may be charged by third parties. Any applicable fees will becharged regardless of whether you use the service during any billing cycle.You agree to pay such charges and authorize us to deduct the calculatedamount from your Account. Any other fees associated with your Accountwill continue to apply. You are responsible for any and all telephone accessfees and/or Internet service fees that may be assessed by your telephoneand/or Internet service provider.

4. Card Transactions.

4.1 Conveniences.

4.1.1 ATM Withdrawals. You can use your Card to receive cash atATMs displaying the Plus® System name and logo or at ATMsdisplaying the Visa name and logo.

4.1.2 Cash Advances. You can use your Card to receive money (CashAdvances) from your Account through financial institutions thathonor Cards bearing the Visa logo.

4.1.3 Purchases/Authorizations. You can use your Card to buy goods and services (Purchases) from merchants honoring Visa. You can alsouse your Card to authorize others to place a hold on your AvailableBalance to ensure future payment and to make balance inquiries.

4.2 Out-of-Network Surcharges. An out-of-network surcharge may beimposed for ATM Transactions and balance inquiries.

4.3 Cancellation of Card. The Card can be canceled by the Bank orVanguard Brokerage at any time without prior notice and will remain theproperty of the Bank. Without limiting the foregoing, your Card will becanceled effective with the closing of your Account.

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4.4 Foreign Currency. Card Transactions made in a foreign currency areconverted into U.S. dollar amounts by Visa, using its then current currencyconversion procedure and rate. At this time, the currency conversion rate isgenerally either a wholesale market rate or a government-mandated rate ineffect the day before the Transaction processing date. The currencyconversion rate used on the processing date may differ from the rate ineffect on the Transaction date or periodic statement posting date.

4.5 Restrictions on Certain Transactions.

4.5.1 You may not use the Checks, the Card, or the Billpay Service topurchase securities.

4.5.2 You may not use the Card for Internet gambling.

4.5.3 Use of the Card for illegal activities is prohibited.

5. Check Transactions. Important: If more than one person is authorized to sign onthe Account, you authorize us to pay Card drafts or Checks on the authority ofany one of the signatures of the individuals identified on the appropriate accountdocumentation—even if you have signed documentation on file with us thatstates you require more than one signature to act on your Account.

5.1 Request for Check Copies. Your original Checks will not be returned to you. However, the Bank retains a record of all Checks paid for at leastthree months following their cancellation in original form, and it retainscopies for at least seven years. At your request, we can provide a copy of a Check to you. A Check copy fee as listed in the Vanguard BrokerageServices Commission and Fee Schedules will be debited from your Account.

5.2 Insufficient Funds. If your Available Balance is insufficient to cover aCheck, Vanguard Brokerage may instruct the Bank to return the item.An insufficient funds fee as listed in the Vanguard Brokerage ServicesCommission and Fee Schedules will be debited from your Account.

5.3 Stop Payment Orders.

5.3.1 You can place a stop payment order on Checks as long as they have not yet been paid. A stop payment order fee as listed in theVanguard Brokerage Services Commission and Fee Schedules will bedebited from your Account. In order to effect a stop payment, youmust notify Vanguard Brokerage at 800-992-8327 of the Checknumber, exact amount of the Check, payee of the Check, date of theCheck, and your Account number.

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5.3.2 Neither Vanguard Brokerage nor the Bank will be responsible if it is not possible to stop payment on Checks because the required stoppayment information is not correct or is not entered on a timelybasis, or if you fail to comply with a request for any other reasonableinformation about the Check.

5.3.3 If the Bank fails to stop payment on a Check for whatever reason,Vanguard Brokerage may, without liability, delay recrediting yourAccount while the rights of the parties involved are determined,including the rights of the Bank. Generally, stop payment ordersbecome effective one Business Day after Vanguard Brokerage notifiesthe Bank. An oral stop payment order is effective for 14 days. If anoral stop payment order is promptly confirmed in writing, the stoppayment order will remain in effect for 180 days.

5.3.4 For instructions on how to make stop payment orders on preauthorizedACH payments, see Section 8.5.

6. Billpay Service. Important: If more than one person is authorized to sign on theAccount, you authorize us to establish the Billpay Service and process any BillpayTransaction at any time upon the authorization of any one account owner orauthorized signer identified on the appropriate account documentation—even ifyou have signed documentation on file with us that states you require morethan one signature to act on your Account.

6.1 Bill Payment Scheduling. Billpay Transactions begin processing fourBusiness Days prior to your Scheduled Payment Date. Therefore,Vanguard Brokerage will not permit you to select a Scheduled PaymentDate less than four Business Days from the current date. When schedulingpayments, you must select a Scheduled Payment Date that is no later thanthe actual Due Date reflected on your Payee statement unless the DueDate falls on a non-Business Day. If the actual Due Date falls on a non-Business Day, you must select a Scheduled Payment Date that is atleast one Business Day before the actual Due Date. Scheduled PaymentDates should be prior to any late date or grace period.

6.2 Billpay Service Guarantee. Due to circumstances beyond the control of Vanguard Brokerage and/or the Bank, particularly delays in handlingand posting payments by Payees or financial institutions, some transactionsmay take longer to be credited to your Account. We will bear responsibilityfor any late-payment-related charges up to $50 should a payment post afterits Due Date as long as the payment was scheduled in accordance with theguidelines described in Section 6.1 above.

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6.3 Payment Authorization and Payment Remittance.

6.3.1 By providing us with names and account information of Payees towhom you wish to direct payments, you authorize us to follow thePayment Instructions that we receive through the Billpay Service.In order to process payments more efficiently and effectively, we may edit or alter payment data or data formats in accordance withPayee directives.

6.3.2 When we receive a Payment Instruction, you authorize us to debityour Payment Account and remit funds on your behalf so that thefunds arrive as close as reasonably possible to the ScheduledPayment Date designated by you. You also authorize us to credityour Payment Account for payments returned to us by the UnitedStates Post Office or Payee, or payments remitted to you on behalfof another authorized user of the Billpay Service.

6.3.3 We will use our best efforts to make all your payments properly.However, we shall incur no liability and the Billpay ServiceGuarantee shall be void if we are unable to complete any paymentsinitiated by you because of the existence of any one or more of thefollowing circumstances:

• If, through no fault of ours, your Payment Account does notcontain sufficient funds to complete the Billpay Transaction orthe Billpay Transaction would exceed the credit limit of youroverdraft protection through a margin account, if any;

• The Billpay Service website is not working properly and youknow or have been advised by us about the malfunction beforeyou execute the Billpay Transaction;

• You have not provided us with the correct Payment Accountinformation, or the correct name, address, phone number, oraccount information for the Payee; and/or

• Circumstances beyond our control (such as, but not limited to,fire, flood, or interference from an outside force) prevent theproper execution of the Billpay Transaction and we have takenreasonable precautions to avoid those circumstances.

Provided none of the foregoing exceptions are applicable, if wecause an incorrect amount of funds to be removed from yourPayment Account or cause funds from your Payment Account to bedirected to a Payee that does not comply with your Payment

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Instructions, we shall be responsible for returning the improperlytransferred funds to your Payment Account, and for directing to theproper Payee any previously misdirected Billpay Transactions, and,if applicable, for any late-payment–related charges.

6.4 Payment Methods. We reserve the right to select the method in which toremit funds on your behalf to your Payee. These payment methods mayinclude, but may not be limited to, an electronic payment, an electronic-to-check payment, or a laser draft payment.

6.5 Payment Cancellation Requests. You may cancel or edit any ScheduledPayment (including recurring payments) by following the directions at the Billpay Service website. There is no charge for canceling or editing aScheduled Payment. Once we have begun processing a payment it cannotbe cancelled or edited; accordingly, a stop payment request must besubmitted.

6.6 Stop Payment Requests. Our ability to process a stop payment request will depend on the payment method and whether or not a check has cleared. We also may not have a reasonable opportunity to act on any stoppayment request after a payment has been processed. If you desire to stopany payment that has already been processed, you must contact VanguardBrokerage at 800-992-8327. Although we will make every effort toaccommodate your request, we will have no liability for failing to do so. Wemay also require you to present your request in writing within 14 days. Thecharge for each stop payment request will be the current charge for suchservice as in the Vanguard Brokerage Services Commission and Fee Schedules.

6.7 Prohibited Payments. Payments to Payees outside of the United States or its territories through the Billpay Service are prohibited.

6.8 Exception Payments. Tax payments and court-ordered payments may be scheduled through the Billpay Service; however, such payments arediscouraged and must be scheduled at your own risk. In no event shall we be liable for any claims or damages resulting from your scheduling of thesetypes of payments. The Billpay Service Guarantee as it applies to any late-payment–related charges is void when these types of payments arescheduled and/or processed by us. We have no obligation to research orresolve any claim resulting from an exception payment. All research andresolution for any misapplied, misposted, or misdirected payments will beyour sole responsibility.

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6.9 Failed or Returned Transactions; Overdraft Protection. In using the Billpay Service, you are requesting us to make payments for you fromyour Payment Account. If we are unable to complete a requested BillpayTransaction for any reason associated with your Payment Account (forexample, your Available Balance is insufficient to cover the BillpayTransaction), the Billpay Transaction may not be completed. In someinstances, you will receive a return notice from us. In such case, you agree that:

(a) You will reimburse us immediately upon demand the BillpayTransaction amount indicated in the return notice;

(b) For any amount not reimbursed to us within 15 days of the initialnotification, you will pay us a late charge equal to 1.5% monthlyinterest or the legal maximum, whichever rate is lower; and

(c) We are authorized to report the facts concerning the return to acredit-reporting agency.

If a Billpay Transaction results in an overdraft situation and you haveestablished overdraft protection by means of a margin account, you may berequired to deposit more money or securities in your Payment Account. Ifyou are unable to do so, or if the Billpay Transaction exceeds your margincash available, Vanguard Brokerage may be required to sell all or a portionof your pledged assets. You will also be subject to margin interest asdisclosed in your margin agreement.

6.10 Address or Payment Account Changes. It is your sole responsibility toensure that the contact information maintained in your user profile on theBillpay Service website is current and accurate. This includes, but is notlimited to, name, address, phone number(s), and e-mail address(es).Changes can be made either through the Billpay Service website or bycontacting Vanguard Brokerage at 800-992-8327. Any changes in yourPayment Account should also be made in accordance with the proceduresoutlined in the Service website’s Help area. All changes made are effectiveimmediately for scheduled and future payments paid from the updatedPayment Account information. We are not responsible for any paymentprocessing errors or fees incurred if you do not provide accurate PaymentAccount or contact information.

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6.11 Billpay Service Termination, Cancellation, or Suspension. In the eventyou wish to cancel the Billpay Service, you may have the ability to do sothrough the Billpay Service website, or you may contact VanguardBrokerage via one of the following.

6.11.1 Telephone us at 800-992-8327 Business Days from 8 a.m. to 8 p.m., Eastern time; or

6.11.1 Write to us at:Vanguard Brokerage ServicesP.O. Box 1170Valley Forge, PA 19482-1170

Any payment(s) we have already processed before the requestedcancellation date will be completed by us. All Scheduled Paymentsincluding recurring payments will not be processed once the BillpayService is cancelled. We may terminate or suspend service to you at anytime. Neither termination nor suspension shall affect your liability orobligations under this Agreement.

6.12 Payee Limitation. We reserve the right to refuse to pay any Payee towhom you may direct a payment. We will notify you promptly if we decideto refuse to pay a Payee designated by you. This notification is not requiredif you attempt to make a prohibited payment or an exception paymentunder this Agreement.

6.13 Returned Payments. In using the Billpay Service, you understand thatPayees and/or the United States Post Office may return payments to us forvarious reasons, including, but not limited to, Payee’s forwarding addressexpired, Payee account number not valid, Payee unable to locate account,or Payee account paid in full. We will use our best efforts to research andcorrect the returned payment and return it to your Payee, or void thepayment and credit your Payment Account. You may receive notificationfrom us in these events.

6.14 Information Authorization. Your enrollment in the Billpay Service may not be fulfilled if we cannot verify your identity or other necessaryinformation, or based upon a review of historical records relating to youraccount. In addition, you agree that we reserve the right to obtain financialinformation regarding your account from a Payee (for example, to resolvepayment posting problems or for verification).

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6.15 Bill Delivery and Presentment. This feature is for the presentment ofelectronic bills only, and it is your sole responsibility to contact your Payeesdirectly if you do not receive your bills or account statements. In addition,if you elect to activate one of the Billpay Service’s electronic bill options,you also agree to the following:

6.15.1 Information provided to the Payee. We are unable to update orchange your personal information, including, but not limited to,name, address, phone number(s), and e-mail address(es), with theelectronic Payee. Any changes will need to be made by yourcontacting the Payee directly. Additionally, it is your responsibility to maintain all usernames and passwords for all electronic Payeesites. You also agree not to use someone else’s information to gainunauthorized access to another person’s bill.

6.15.2 Activation. Upon your activation of the electronic bill delivery and presentment feature, we may notify the Payee of your request to receive electronic billing information. The timing of presentmentof your first electronic bill may vary from Payee to Payee and maytake up to 60 days, depending on the billing cycle of each Payee.Additionally, your ability to obtain a paper copy of your statement(s)is at the sole discretion of the Payee. While your electronic billdelivery and presentment feature is being activated, it is yourresponsibility to keep your accounts current. Each electronic Payee reserves the right to accept or deny your request to receiveelectronic bills.

6.15.3 Notification. We will use our best efforts to present all of yourelectronic bills promptly. In addition to our posting the bills on theBillpay Service website, the Payee may send an e-mail notification to the e-mail address you provide. It is your sole responsibility toensure that this information is accurate. In the event you do notreceive notification, it is your responsibility to periodically log on to the Billpay Service and check on the delivery of new electronic bills. The time for notification may vary from Payee to Payee. You are responsible for ensuring timely payment of all bills.

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6.15.4 Cancellation of electronic bill notification. Each electronic Payeereserves the right to cancel the presentment of electronic bills at anytime. You may cancel electronic bill presentment at any time. The time frame for cancellation of your electronic bill presentment mayvary from Payee to Payee, and may take up to 60 days, depending on the billing cycle of each Payee. We will notify your electronicPayee(s) as to the change in status of your account, but it is your soleresponsibility to make arrangements for an alternative form of billdelivery. We will not be responsible for presenting any electronicbills that are already in process at the time of cancellation

6.15.5 Nondelivery of electronic bill(s). You agree to hold us harmlessshould the Payee fail to deliver your bill(s) or statement(s). You are responsible for ensuring timely payment of all bills. Copies ofpreviously delivered bills must be requested from the Payee directly.

6.15.6 Accuracy and dispute of electronic bill. We are not responsible for the accuracy of your electronic bill(s). We are only responsible for presenting the information we receive from the Payee. Anydiscrepancies or disputes regarding the accuracy of your electronic bill summary or detail must be addressed with the Payee directly.

This Agreement does not alter any liability or obligations thatcurrently exist between you and your Payees.

6.16 Exclusions of Warranties; Limitation of Liability.

6.16.1 The Billpay Service website and related documentation areprovided “as is” without warranty of any kind, either express orimplied, including, but not limited to, the implied warranties ofmerchantability and fitness for a particular purpose.

6.16.2 This Section 6 constitutes our entire liability and your exclusiveremedy with respect to the Billpay Service. In no event will we beliable for any direct, indirect, special, incidental, consequential, orexemplary damages, including lost profits (even if advised of thepossibility thereof ) arising in any way out of the installation, use,or maintenance of the Billpay Service website.

7. Automated Clearing House Transfers and Other Funds Transfers.

7.1 Money can be credited to, or debited from, your Account because of ACHentries or because of other money transfer entries. These credits and debits are normally subject to additional rules of the money transfer system that processes them, such as the rules of the National Automated ClearingHouse Association and local ACH operating rules.

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7.2 In the case of an ACH credit entry to your Account, the credit isprovisional until the Bank receives final settlement through a FederalReserve Bank or otherwise receives payment as provided in Section 403(a)of Article 4A of the Uniform Commercial Code. The Bank is entitled to arefund of the credit entry if it does not receive final settlement or payment.In that case, the person who originally sent the credit entry will beconsidered to have not paid you.

7.3 In addition, unless required by applicable law, Vanguard Brokerage willgenerally not give you notice of the receipt of an entry by the Bank. Entrieswill, however, be included on your Account statement.

7.4 For instructions on how to make stop payment orders on preauthorized ACHpayments, see Section 8.5.

8. Additional Terms and Conditions of Electronic Funds Transfers. Some of yourTransactions may be Electronic Funds Transfers (for example, Card and ACHTransactions). These additional terms and conditions apply only to ElectronicFunds Transfers and only to the extent that Regulation E requires.

8.1 Limits on Dollar Amount of Transactions. The ATM you use may havelimits on the amount of cash that can be obtained at that machine. Theselimits may include transactional and daily limits. Separately, there is a $500(or your Available Balance, if less) maximum ATM Withdrawal limit perBanking Day. Sometimes a temporary $100 limit per Banking Day may beimposed for security purposes or when the Transaction volume in yourAccount exceeds normal conditions. There may be other limitations statedin this Agreement or in other agreements between you and VanguardBrokerage.

8.1.1 Unless a higher limit is authorized, there is a limit of $10,000 (or your Available Balance, if less) per Banking Day on your CardTransactions. ATM Withdrawals, Cash Advances, Purchases, andAuthorizations all count against this spending limit.

8.2 Limits on Frequency of Transactions. In addition to the dollar amountlimits, we reserve the right to impose a limit on the number of CardTransactions you can make on any Banking Day. For the purpose ofmaintaining security, we will not disclose that limit, except that you will be allowed to make at least five Card Transactions on any Banking Dayunder normal conditions.

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8.3 Retention of the Card. Your Card may be retained by any ATM,merchant, or participating financial institution if any of the followingconditions is met:• The PIN is wrong after three attempts (certain ATMs may limit you

to fewer attempts).• You exceed the limits on dollar amounts and/or frequency of

Transactions.• Your Card was reported lost or stolen.• Your Account has been closed.• Your Card has expired or was replaced.• The machine is not operating properly.• There are other legitimate business reasons.

8.4 Card Transaction Receipts. You will be given a receipt at the time youmake Card Transactions, except for Card Transactions you make bytelephone or mail. Receipts may not be provided for Card Transactionsperformed outside the United States. Card Transactions will also bereflected on your Account statement. See Section 8.6.3 for information onwhat to do if you believe a Transaction record is wrong.

8.4.1 Merchants generally maintain receipts of Card Transactions(excluding PIN-based transactions) for 12 months. If you callVanguard Brokerage, we will attempt to obtain copies of thereceipts. If we are able to, there may be a third-party charge forproviding the copies.

8.5 Stop Payment Orders of Preauthorized ACH Payments (other thanBillpay Transactions). If you have told Vanguard Brokerage to makeregular ACH payments out of your Account, you can stop these paymentsat any time. Simply call or write Vanguard Brokerage in time for us toreceive your request three Business Days or more before the payment isscheduled to be made (our phone number and address are provided inSection 8.6.4). If you call, we may also require you to put your request inwriting and get it to us within 14 days after your call. See Section 6.6 forinformation on stop payment requests for Billpay Transactions.

8.5.1 Liability for Failure to Stop Payment of Preauthorized ACHTransfers. If you order Vanguard Brokerage to stop one of theseACH payments three Business Days or more before the transfer is scheduled and we do not do so, we will be liable for your lossesor damages.

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8.6 Problem Prevention and Resolution.

8.6.1 Taking a few simple steps can help prevent many problems. Toprotect your Account and limit your liability, we recommend that you:• Do not provide anyone with your PIN or Billpay password.• Do not write your PIN on your Card.• Do not carry your PIN and Card together in your wallet.• Do not tell anyone your PIN or Billpay password—not even

someone from the Bank or Vanguard Brokerage.

8.6.2 Loss or Theft of Card, or Unauthorized Transactions. You must tell Vanguard Brokerage at once if you believe your Card has beenlost or stolen or if you believe an unauthorized person may know your PIN or Billpay Service website password. Calling VanguardBrokerage immediately is the best way to keep your possible lossesdown. You could lose all the funds in your Account (plus yourmaximum overdraft line of credit). If you tell Vanguard Brokeragewithin two Business Days after you learn of the loss or theft of yourCard, PIN, or password, you can lose no more than $50 if someoneused your Card, PIN, or password without your permission.

If you do not tell Vanguard Brokerage within two Business Days after you learn of the loss or theft of your Card, PIN, or password,and Vanguard Brokerage can prove it could have stopped someonefrom using your Card, PIN, or password without your permission if you had told us, you could lose as much as $500.

8.6.3 Inaccurate Account Statement. If you think your Accountstatement or Transaction record is wrong, if they show Transactionsyou did not make, or if you need more information about yourAccount or any statement, let Vanguard Brokerage know at once.If you do not notify Vanguard Brokerage within 60 days after theAccount statement was mailed to you, you may not get back anymoney you lose after 60 days if Vanguard Brokerage can prove that it could have stopped someone from taking the money had younotified us in a timely manner. If there was a good reason (such as a long trip or a hospital stay) that kept you from telling us, we willextend the time period.

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8.6.4 Notification Methods.

8.6.4.1 Calling Vanguard Brokerage is the quickest way to alert usto a problem. You can reach us at 800-992-8327 BusinessDays from 8 a.m. to 8 p.m., Eastern time (limited servicesare available at other times).

8.6.4.2 We may, however, request that you also notify us of yourcomplaint or question in writing within ten Business Days.Our mailing address is:

Vanguard Brokerage ServicesP.O. Box 1170Valley Forge, PA 19482-1170

Vanguard Brokerage will need all of the following information:• Your name, your Account number, your address, and the

date of the Transaction.• A description of the error or Transaction in question,

explaining as clearly as possible why you believe it is anerror or why you need more information.

• The dollar amount of the Transaction and, if different,the amount of the suspected error.

8.6.5 Timing of the Error Resolution Process. Except as otherwisestated in this Agreement, we will determine within ten BusinessDays after Vanguard Brokerage hears from you whether an erroroccurred and will correct any error promptly. If we need more time,however, we may take up to 45 calendar days to investigate yourcomplaint or question. In this event, Vanguard Brokerage willgenerally recredit your account within ten Business Days for theamount you think is in error so that you will have the use of themoney during the time it takes us to complete our investigation. IfVanguard Brokerage asks you to put your complaint or question inwriting and does not receive it within ten Business Days, we neednot recredit your account or may reverse any credit previously madeto your Account.

8.6.5.1 For Foreign Transactions. For Transactions initiatedoutside the United States, the applicable time period for investigations is 90 calendar days instead of 45 calendar days.

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8.6.5.2 For Point-of-Sale Transactions. For Point-of-SaleTransactions (that is, Purchases and Cash Advances), theapplicable time period for investigations is 90 calendar daysinstead of 45 calendar days.

8.6.5.3 For New Accounts. For Accounts that have been open for 30 calendar days or less, the applicable time periods for actions stated in Section 8.6.5 are 20 Business Daysinstead of 10 Business Days and 90 calendar days instead of 45 calendar days.

8.6.5.4 For Notification of the Findings. In any case, VanguardBrokerage will tell you the results within three BusinessDays after we complete our investigation. If VanguardBrokerage decides that there was no error, we will reversethe applicable credit and send you a written explanation.You may ask us for copies of the documents that we used in the investigation.

8.7 The Bank’s and Vanguard Brokerage’s Liability for Failure toComplete Transactions.

8.7.1 If we do not complete an Electronic Funds Transfer to or from your Account on time or in the correct amount according to thisAgreement, we will be liable for your losses or damages. However,there are some exceptions. Neither the Bank nor VanguardBrokerage will be liable if any of the following apply:• Through no fault of ours, you do not have a sufficient Available

Balance to make the Transaction.• Any ATM, other device, Card, Billpay Service website, or

computer system was not working properly and you knew aboutthe breakdown when you started the Transaction.

• The ATM or other device you are using for the Transaction doesnot have enough cash.

• Your Account is frozen (for example, because of a court order or other similar reason), and we are not permitted to make theTransaction.

• Circumstances beyond our control (such as a fire or flood) prevent the Transaction, despite the reasonable precautions thatwe have taken.

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• You fail to enter your correct PIN after the maximum number of attempts permitted.

• You fail to use the ATM, other device, Card, Billpay Servicewebsite, or computer system in accordance with instructions.

• We have limited or have refused to complete Card, ACH, orBillpay Transactions for security reasons.

• We have reason to believe that the requested Transaction isunauthorized.

8.7.2 There may be additional exceptions that are stated elsewhere in thisAgreement or in your other agreements with Vanguard Brokerage orthat you are otherwise notified of by the Bank or VanguardBrokerage. Neither the Bank nor Vanguard Brokerage will beresponsible for any person’s actions in refusing to honor or acceptyour Card or in taking possession of your Card. In any case, we willbe liable only for actual proven damages if the failure to make theTransaction results from a bona fide error by us despite ourprocedures to avoid such errors.

8.8 Preauthorized Credits. If you have arranged to have direct deposits made to your Account at least once every 60 days from the same personor company, the person or company making the deposit should notify youevery time they send us the money.

9. Confidentiality.

9.1 Vanguard Brokerage and the Bank will not reveal any information to thirdparties (other than each other) about your Account and your Transactionsexcept (1) where it is necessary for completing your Transaction or providingany related card benefits to you, (2) to verify the existence and condition ofyour Account for a third party, such as a credit bureau, merchant, or Payee,(3) to comply with laws or with orders of subpoenas of government agenciesor courts, (4) if you give us written permission, (5) to other persons andentities in order to resolve disputes arising from Transactions, or (6) in thecircumstances covered by Vanguard’s Privacy Policy, included in thisDisclosures Booklet and as updated or amended from time to time.

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10. Joint Accounts.

10.1 If this is a joint Account, unless you notify Vanguard Brokerage otherwiseand provide such documentation as Vanguard Brokerage requires, yourAccount shall be held by you jointly with rights of survivorship. Each jointtenant irrevocably appoints the other as attorney-in-fact to take all actionon his or her behalf and to represent him or her in all respects inconnection with this Agreement. We shall be fully protected in actingupon the instructions of either of you; in sending confirmation advice,notices, or other communications to either of you; or in otherwise dealingwith either of you.

Each of you shall be liable, jointly and individually, for any amounts due tous pursuant to this Agreement, whether incurred by either or both of you.

10.2 If “you” shall consist of more than one individual, the obligations of all such persons under this Agreement shall be joint and several. Each jointAccountholder has authority, acting individually and without notice to theother Accountholder, to deal with us as fully and completely as if each isthe sole Accountholder. We are authorized to follow the instructions of any joint Accountholder. We are not responsible for determining the purpose or propriety of an instruction we receive from any Accountholder or for the disposition of payments or deliveries among joint Accountholders.Any notice we send to one Accountholder will be deemed notice to allAccountholders.

11. Miscellaneous.

11.1 Scope and Transferability. This Agreement shall cover all aspects of yourAccount described herein and shall inure to the benefit of our successorswhether by merger, consolidation, or otherwise, and assigns, and we maytransfer your Account to our respective successors and assigns, and thisAgreement shall be binding upon your heirs, executors, administrators,successors, and assigns.

11.2 Extraordinary Events. To the fullest extent allowable under law, we arenot responsible, and you agree not to hold us liable, for losses causeddirectly or indirectly by conditions beyond our control, including, but notlimited to: war, natural disaster, terrorism, government restriction, exchangeor market rulings, strikes, interruptions of communications or dataprocessing services, news or analysts’ reports, market volatility, ordisruptions in orderly trading on any exchange or market.

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11.3 Nature of Obligations. The obligations of Vanguard Brokerage and theBank are set forth in this Agreement. Neither the Bank nor VanguardBrokerage is liable for the obligations of the other.

11.4 Waiver, Assignment, and Notices. Neither our failure to insist at anytime upon strict compliance with this Agreement or with any of the termshereof nor any continued course of such conduct on our part shallconstitute or be considered a waiver by us of any of our rights or privilegeshereunder. Any assignment of your rights and obligations hereunder oryour interest in any property held by or through Vanguard Brokeragewithout obtaining the prior written consent of an authorized representativeof Vanguard Brokerage shall be null and void. Notices and othercommunications (including, without limitation, margin calls) delivered,faxed, sent by express delivery service, or mailed to the address provided byyou shall, until Vanguard Brokerage has received notice in writing of adifferent address, be deemed to have been personally delivered to you.

11.5 Separability. If and to the extent any term or provision herein is or shouldbecome invalid or unenforceable, then (1) the remaining terms andprovisions hereof shall be unimpaired and remain in full force and effect,and (2) the invalid or unenforceable provision or term shall be replaced by aterm or provision that is valid and enforceable and that comes closest toexpressing the intention of such invalid or unenforceable term or provision.

11.6 Headings. The headings of the provisions hereof are for ease of referenceonly and shall not affect the interpretation or application of thisAgreement or in any way modify or qualify any of the rights or obligationsprovided for hereunder.

11.7 Recording Conversations and Monitoring ElectronicCommunications. For our mutual protection, you understand, agree, andexpressly consent to our electronic recordation of any of your telephoneconversations with us and to our monitoring of your electroniccommunications with us, including but not limited to e-mail and facsimiletransmission.

11.8 Termination of Account/Agreement. Vanguard Brokerage, the Bank,or you may terminate this Agreement, including the use of Checks, Cards,or other Services, if applicable, at any time. You shall remain responsible for authorized charges that arise before or after termination. In the event of termination for whatever reason, you shall promptly destroy all Cardsand unused Checks. Failure to do so may result in a delay in VanguardBrokerage complying with your instructions regarding the disposition of assets.

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11.9 Representations and Amendments. You agree that we shall have theright to amend this Agreement at any time by sending notice of theamendment to you. An amendment shall be effective as of the date weestablish. If we make any changes to this Agreement that will affect youadversely (by increasing costs or liability to you, or limiting access to yourAccount), we will notify you prior to the change as required by law. Thechange will automatically become effective unless, prior to the effectivedate, you notify us of your intention to terminate your Account privileges.We reserve the right to make emergency changes for security reasons,without prior written notice to you. You understand that additionalrestrictions may apply to the Services and that additional documentationmay be required by applicable law or our policies and procedures. You agreeto promptly comply with any such restrictions and requests for additionaldocuments.

11.10 Governing Law. This Agreement shall be governed by the laws of theCommonwealth of Pennsylvania, except that all Transactions shall begoverned by and construed under the laws of the State of Delaware,without regard to principles of conflicts of law.

11.11 Priority of Agreements. In the event of any conflict between thisAgreement and any other agreement you have with Vanguard BrokerageServices with respect to your Account, including the VanguardAdvantageAccount Application and the Terms and Conditions of the Billpay Servicewebsite, this Agreement will control. Notwithstanding the foregoing, inthe event of any conflict between this Agreement and the Vanguard MarginAccount Agreement, the Margin Account Agreement will control as tomatters covered by such agreement.


25

Margin Account Agreement

To: Pershing LLC (“you” or “Pershing”)

In consideration of your accepting and carrying for the undersigned one or moreaccounts introduced to you by Vanguard Brokerage Services (VBS®), a division ofVanguard Marketing Corporation, which is intended to have the benefit and is athird-party beneficiary of this Agreement, the undersigned agrees as follows:

1. Role of Pershing

You are carrying the accounts of the undersigned as Clearing Broker pursuant toa clearing agreement with VBS. Until receipt from the undersigned of writtennotice to the contrary, you may accept from VBS, without inquiry orinvestigation, (i) orders for the purchase or sale of securities and other property on margin or otherwise, and (ii) any other instructions concerning said accounts.Notices to the undersigned concerning margin requirements or other mattersrelated to the undersigned’s accounts usually will go through VBS, althoughdirect notice to the undersigned with duplicate notice to VBS may occur ifmarket conditions, time constraints, or other circumstances require it. You shallnot be responsible or liable for any acts or omissions of VBS or its employees. Theundersigned understands that you provide no investment advice, nor do you giveadvice or offer any opinion with respect to the suitability of any transaction ororder. The undersigned understands that VBS is not acting as the agent ofPershing, and the undersigned agrees that the undersigned will in no way holdPershing; its other divisions or affiliates; or their officers, directors, and agentsliable for any trading losses incurred by the undersigned.

2. Applicable Rules and Regulations

All transactions for the undersigned shall be subject to the constitution, rules,regulations, customs, and usages of the exchange or market and its clearing house,if any, where executed by you or your agents, including your subsidiaries andaffiliates.

3. Definitions

For purposes of the agreement, “securities, commodities, and other property” asused herein shall include, but not be limited to, money, securities, andcommodities of every kind and nature, and all contracts and options relatingthereto, whether for present or future delivery.

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M A R G I N A C C O U N T A G R E E M E N T

4. Lien

All securities, commodities, and other property of the undersigned that you mayat any time be carrying for the undersigned, or that may at any time be in yourpossession or under your control, shall be subject to a general lien and securityinterest in your favor for the discharge of all the undersigned’s indebtedness andother obligations to you, without regard to your having made any advances inconnection with such securities and other property and without regard to thenumber of accounts the undersigned may have with you. In enforcing your lien,you shall have the discretion to determine which securities and property are to besold and which contracts are to be closed.

5. Liquidation

If, in your discretion, you consider it necessary for your protection to requireadditional collateral, or in the event that a petition in bankruptcy or forappointment of a receiver is filed by or against the undersigned, or an attachmentis levied against the accounts of the undersigned, or in the event of death of theundersigned, you shall have the right to sell any or all securities, commodities, andother property in the accounts of the undersigned with you, whether carriedindividually or jointly with others; to buy any or all securities, commodities, andother property that may be short in such accounts; to cancel any open orders; andto close any or all outstanding contracts, all without demand for margin oradditional margin, notice of sale or purchase, or other notice or advertisement.Any such sales or purchases may be made at your discretion on any exchange orother market where such business is usually transacted, or at public auction orprivate sale, and you may be the purchasers for your own account. It beingunderstood that a prior demand, or call, or prior notice of the time and place ofsuch sale or purchase shall not be considered a waiver of your right to sell or buywithout demand or notice.

6. Payment of Indebtedness Upon Demand and Liability for Costs of Collection

The undersigned shall at all times be liable for the payment upon demand of anydebit balance or other obligations owing in any of the accounts of theundersigned with you. The undersigned shall be liable to you for any deficiencyremaining in any such accounts in the event of the liquidation thereof, in wholeor in part, by you or by the undersigned. The undersigned shall make payments ofsuch obligations and indebtedness upon demand. The undersigned will pay thereasonable costs and expense of collection of the debit balance, recovery ofsecurities, and any unpaid deficiency in the accounts of the undersigned with you,including, but not limited to, attorneys’ fees incurred and payable or paid by you.

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7. Pledge of Securities

All securities, commodities, and other property now or hereafter held, carried, ormaintained by you in your possession in any of the accounts of the undersignedmay be pledged and repledged by you from time to time, without notice to theundersigned, either separately or in common with other such securities,commodities, and other property for any amount due in the accounts of theundersigned, or for any greater amount, and you may do so without retaining toyour possession or control for delivery a like amount of similar securities,commodities, or other property.

8. Margin Requirements, Credit Charges, and Credit Investigation

The undersigned will at all times maintain such securities, commodities, andother property in the accounts of the undersigned for margin purposes as youshall require from time to time, and the monthly debit balances or adjustedbalances in the accounts of the undersigned with you shall be charged, inaccordance with your practice, with interest at a rate permitted by the laws of thestate of New York. It is understood that the interest charge made to theundersigned’s account at the close of a charge period will be added to the openingbalance for the next charge period unless paid.

The undersigned acknowledges receipt from VBS of the disclosure statement,which explains the conditions under which interest can be charged to theaccounts of the undersigned, the annual rate of interest, how debit balances aredetermined, and the methods of computing interest.

You may exchange credit information about the undersigned with others. Youmay request a credit report on the undersigned, and, upon request, you will statethe name and address of the consumer reporting agency that furnished it. If youextend, update, or renew the undersigned’s credit, you may request a new creditreport without telling the undersigned.

9. Communications

Communications may be sent to the undersigned at the current address of the undersigned, which is on file at your office, or at such other address as the undersigned may hereafter give you in writing or through VBS. Allcommunications so sent, whether by mail, telegraph, messenger, or otherwise,shall be deemed given to the undersigned personally, whether actually received or not.

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M A R G I N A C C O U N T A G R E E M E N T T

10. Scope and Transferability

This Agreement shall cover individually and collectively all accounts that theundersigned may open or reopen with you, and shall inure to the benefit of yoursuccessors, whether by merger, consolidation, or otherwise and assigns, and youmay transfer the accounts of the undersigned to your successors and assigns. ThisAgreement shall be binding upon the heirs, executors, administrators, successors,and assigns of the undersigned.

11. No Non-Investment Advice

The undersigned acknowledges that you will not provide the undersigned withany legal, tax, or accounting advice, that your employees are not authorized togive any such advice, and that the undersigned will not solicit or rely upon anysuch advice from you or your employees whether in connection with transactionsin or for any of the accounts of the undersigned or otherwise. In making legal,tax, or accounting decisions with respect to transactions in or for the accounts ofthe undersigned or any other matter, the undersigned will consult with and relyupon its own advisors and not you, and you shall have no liability therefor.

12. Extraordinary Events

You shall not be liable for loss caused directly or indirectly by governmentrestrictions, exchange or market rulings, suspension of trading, war, strikes, orother conditions beyond your control.

13. Representations as to Capacity to Enter Into Agreement

The undersigned, if an individual, represents that the undersigned is of full ageand that unless otherwise disclosed to you in writing, the undersigned is not anemployee of any exchange; or of any corporation of which any exchange owns amajority of the capital stock; or of a member firm or member corporationregistered on any exchange; or of a bank, trust company, or insurance company; orof any corporation, firm, or individual engaged in the business of dealing either asa broker or as a principal in securities, bills of exchange, acceptances, or otherforms of commercial paper. The undersigned further represents that no oneexcept the undersigned has an interest in the account or accounts of theundersigned with you.

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14. Joint and Several Liability—Jointly Owned Accounts

If the undersigned shall consist of more than one individual, their obligationsunder this Agreement shall be joint and several. The undersigned have executedthe Joint Account Agreement and made the election required therein. Pursuantto that Agreement, you may, but are not required to, accept instructions from anyjoint party.

15. Options Transactions

If at any time the undersigned shall enter into any transaction for the purchase orsale of an option contract, the undersigned hereby agrees to abide by the rules ofany national securities association, registered securities exchange, or clearingorganization applicable to the trading of option contracts and, acting alone or inconcert, will not violate the position or exercise limitation rules of any suchassociation or exchange or of the Options Clearing Corporation or other clearingorganization.

16. Severability

If any provision or condition of this Agreement shall be held to be invalid orunenforceable by any court, or by any regulatory or self-regulatory agency orbody, such invalidity or unenforceability shall attach only to such provision orconditions. The validity of the remaining provisions and conditions shall not beaffected thereby, and this Agreement shall be carried out as if any such invalid orunenforceable provision or condition were not contained herein.

17. Headings Are Descriptive

The heading of each provision hereof is for descriptive purposes only and shallnot be deemed to modify or qualify any of the rights or obligations set forth ineach such provision.

18. Non-Individual Certification

If this is an agreement for a trust, other fiduciary account, or other non-individualaccount, the undersigned hereby certifies and represents that the use of a marginaccount and specifically the borrowing, lending, or pledging of assets as describedherein is in accordance with and authorized by the provisions of the trustinstrument or applicable law governing the trust or entity.

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19. Liability

You shall not be responsible to provide the undersigned at any time withinformation concerning cash or stock dividends, stock splits, corporate actions,or any other information, advice, guidance, or recommendation with respect to an order by the undersigned to purchase or sell securities.

20. Assignment of Pershing’s Rights Under This Agreement to VBS

The undersigned agrees that any rights that Pershing has under this Agreement,including but not limited to the right to collect any debit balance or otherobligations owing in any of the accounts of the undersigned, may be assigned toVBS so that VBS may collect from the undersigned independently or jointly withPershing or enforce any other rights granted to Pershing under this Agreement.

21. Modification of Agreement

VBS or Pershing may at any time modify these terms and conditions, and other agreements affecting the use of the account of the undersigned, and theundersigned agrees to be bound by the versions of such documents as modified.

22. Arbitration Disclosures—This Agreement contains a predispute arbitration clause. Bysigning an arbitration agreement the parties agree as follows:

• All parties to this Agreement are giving up the right to sue each other incourt, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.

• Arbitration awards are generally final and binding; a party’s ability to have a court reverse or modify an arbitration award is very limited.

• The ability of the parties to obtain documents, witness statements andother discovery is generally more limited in arbitration than in courtproceedings.

• The arbitrators do not have to explain the reason(s) for their award.• The panel of arbitrators will typically include a minority of arbitrators who

were or are affiliated with the securities industry.• The rules of some arbitration forums may impose time limits for bringing

a claim in arbitration. In some cases, a claim that is ineligible for arbitrationmay be brought in court.

• The rules of the arbitration forum in which the claim is filed, and anyamendments thereto, shall be incorporated into this Agreement.


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23. Agreement to Arbitrate Controversies

It is agreed that any controversy between or among the undersigned, Pershing,and VBS, or any of them, arising out of Pershing’s or VBS’s business or thisAgreement, shall be submitted to arbitration before the New York StockExchange, Inc., or, if the transaction took place on another exchange, then to that exchange or the NASD Regulation, Inc., as the undersigned may elect and in accordance with the rules obtaining of the selected organization. Arbitrationmust be commenced by service upon the other party of a written demand forarbitration or a written notice of intention to arbitrate, therein electing thearbitration tribunal. In the event the undersigned does not make such electionwithin five (5) days of such demand or notice, then the undersigned authorizesPershing or VBS to do so on behalf of the undersigned. No person shall bring aputative or certified class action to arbitration, nor seek to enforce any predisputearbitration agreement against any person who has initiated in court a putativeclass action; or who is a member of a putative class who has not opted out of theclass with respect to any claims encompassed by the putative class action until:(i) the class certification is denied; (ii) the class is decertified; or (iii) the customeris excluded from the class by the court. Such forbearance to enforce an agreementto arbitrate shall not constitute a waiver of any rights under this Agreementexcept to the extent stated herein.

24. The Laws of the State of New York Shall Govern

This Agreement and its enforcement shall be governed by the laws of the State of New York without giving effect to its conflict of laws provisions.

25. Loan Consent

By signing this Agreement, the undersigned acknowledges that securities notfully paid for by the undersigned may be loaned to you or loaned out to othersand that while such securities are loaned, the undersigned may be waiving rightsto vote such shares.

26. Shareholder Vote of Loaned Securities

In the event the undersigned’s securities have been loaned by Pershing on therecord date of a shareholder vote involving those securities, the undersignedagrees that the undersigned’s vote may be reduced to reflect the total amount of the undersigned’s securities loaned by Pershing.

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Cost Basis Accounting Service

You will be automatically enrolled in our Cost Basis Accounting Service when yourVanguardAdvantage Account is opened. As a part of this service, the cost basis for anycorporate actions (such as stock splits and mergers) that affect the securities you ownwill be tracked and updated on an ongoing basis.

To view the cost basis of your individual securities, you must be a registered user of ourwebsite, Vanguard.com®. Once you log on at www.vanguard.com, you will be able toview your gains and losses. You can use this service for securities already in youraccount and for securities you transfer to Vanguard from another firm, but you willhave to enter the cost basis information yourself.

You have a choice of cost basis accounting methods for your individual securities:• First-in, first-out. When you sell stocks or bonds, the securities that you have

held the longest will be sold first.• Highest-cost. When you sell stocks or bonds, the securities having the highest

cost will be sold first.

If you do not select a cost basis accounting method, we will use our default method—first-in, first-out—when you sell individual securities from your account. We use theaverage cost single category method for the sale of all mutual fund investments.

Note the following:

• This service is made available in association with Pershing LLC.• The service is provided for general information purposes only. You are responsible

for maintaining accurate account records for your tax returns.• Neither Vanguard nor Pershing will give your information to the IRS, prepare your

tax return, or advise you on which accounting method is best for your particular taxsituation. For help in these matters, we recommend that you consult a qualified taxprofessional.


Toll-Free Information800-992-8327

Text Telephone for the Hearing Impaired800-643-7999

The Vanguard Group, Vanguard,Vanguard Brokerage Services,VanguardAdvantage, Vanguard.com,VBS, and the ship logo aretrademarks of The Vanguard Group.Visa and Plus are trademarks of VisaInternational Service Association. All other marks are the exclusiveproperty of their respective owners.

Since 1983, Vanguard Brokerage Services hasprovided superior service and exceptional value to investors. Our clients enjoy online, automatedphone, and associate-assisted access to stocks,exchange-traded funds, bonds, CDs, and options,plus thousands of funds from other mutual fundfamilies. Standard services include cost basisaccounting, comprehensive statements, freedividend reinvestment, and many other servicesdesigned to maximize investment convenience at a reasonable cost.

Vanguard Brokerage ServicesA Division of Vanguard Marketing Corporation, Member of NASD and SIPCPost Office Box 1170Valley Forge, PA 19482-1170

© 2005 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor. VAADBD 052005

For more information, visit www.vanguard.com, or call 800-662-7447 for Vanguard funds and 800-992-8327 for non-Vanguard funds offeredthrough Vanguard Brokerage Services, to obtain a prospectus. Investmentobjectives, risks, charges, expenses, and other important information arecontained in the prospectus; read and consider it carefully before investing.

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