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October15,2012

DearPotentialProvider:

TheMassachusettsPensionReservesInvestmentManagementBoard(PRIM)isrequestingproposals
fromfirmsinterestedinprovidingActiveDomestic(U.S.)Small/Mid(SMID)MarketCapitalization(Cap)
orActiveDomestic(U.S.)SmallCapEquityInvestmentManagementServices.

The procurement officer for this RFP is Ms. Sarah N. Samuels, CFA. To be considered for selection,
candidates must respond to the Request for Proposals (RFP) by submitting an electronic copy of its
response via email to ssamuels@mapension.com received by 3:00 p.m. ET on Friday, November 16,
2012.Inaddition,oneoriginalandonehardcopyoftheresponseshouldbesentto:

Ms.SarahN.Samuels,CFA
InvestmentOfficerPublicMarkets
PensionReservesInvestmentManagementBoard
84StateStreet,SecondFloor
Boston,MA02109

Further instructions for response submission are included in the RFP. Questions concerning the RFP
mustbesubmittedtoandreceivedbytheprocurementofficernolaterthan3:00p.m.ETonMonday,
October22,2012.

WeappreciatethetimeandeffortrequiredtorespondtothisRFP.Welookforwardtoyourresponse.

Sincerely,

MichaelG.Trotsky,CFA
ExecutiveDirector

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TableofContents

Description Page
I. ScopeofServices 4
II. BackgroundInformation 4
III. SelectionProcessandSelectionCriteria 7
IV. MinimumQualifications 7
V. RFPSpecifications 8
VI. TimeTable 10
VII. Questionnaire 11
VIII. FeeProposal 22
IX. RepresentationsandWarranties 23



Exhibits

Description Page
A PRIMsStrategicAssetAllocationandCurrentInvestmentManagers 27
B PRIMEmployeeOrganizationalChart 33
C MembersofthePRIMBoardandCommittees 37
D PRIMBoardOperatingTrustAgreement 39
E PRIMandPERACDisclosureForms 55
F PortfolioDataRequestsSpreadsheet 61
G SampleInvestmentManagementAgreement 63
H PRIMInvestmentPolicy 81

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REQUESTFORPROPOSALS(RFP)

ActiveDomestic(U.S.)Small/Mid(SMID)MarketCapitalization(Cap)orActive
Domestic(U.S.)SmallCapEquityInvestmentManagementServices

October15,2012



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I. SCOPEOFSERVICES.
The purpose of this Request for Proposals (RFP) is to solicit proposals from qualified investment
managers to manage an equity portfolio focused on Active Domestic (U.S.) Small/Mid (SMID) Market
Capitalization(Cap)orActiveDomestic(U.S.)SmallCapEquityInvestmentManagementServices.Upto
$1 billion in total may be allocated to active management in the above mentioned subasset classes.
Respondentswithmultipleproductsareinvitedtoapply.Respondentsmaysubmitresponsesformore
thanonemandate,butseparateresponsesmustbereceivedforeachproductsubmitted.

The selected respondent, upon execution of the contract, shall perform and provide the following, as
requestedbyPRIM,andsubjecttoMassachusettslawandpolicies:

1. UnderstandandactinaccordancewithPRIMsinvestmentpolicies.
2. Assist in the creation and be responsible for the management of a separate account invested in
equitysecurities.
3. Conductindepthanalysisofsecuritiespriortoinclusionintheportfolio.
4. Outperform the benchmark chosen by PRIM. The overall U.S. SMID Cap Equity investment pool
benchmarkwillbetheRussell2500Indexbutindividualmanagersand/orstrategiesmayhaveother
benchmarksdeterminedtobemoreappropriatefortheirinvestmentstrategy.
5. AdvisePRIMandappropriatestaffonequityrelatedissues.
6. Develop and implement rigorous and thorough risk management practices to ensure that risk is
managedandmeasuredasappropriateforthegoalsofPRIM.
7. ReconciletothecustodianmonthlyandprovidethereconciliationtoPRIMstaff.
8. MeetallofPRIMsreportingandcommunicationrequirements.
A. ProvidePRIM,appropriatestaffandconsultantwithreportsinaformatasrequested.
B. RespondpromptlytoperiodicquestionsfromPRIMoritsdesignees.
C. Meet,inpersonortelephonically,attherequestofPRIMstaff.(Atleast,oneannualreviewin
personinBoston).
D. AllowPRIMstafftoconductoneannualonsiteportfolioreview.
E. Submitmonthlytransactionstatementswithintwoweeksofeachcalendarmonthend.

ll.BACKGROUNDINFORMATION.

1. LegalStructureofPRIM.
PRIMwascreatedin1983bytheCommonwealthofMassachusettstoprovideandmanagethePension
Reserves Investment Trust (PRIT) Fund. The PRIT Fund was created to invest the assets of the State
Employees and State Teachers Retirement Systems. Many local retirement systems also invest their
pensionassetsinthePRITFund.

The mission of the PRIT Fund is to ensure that current and future pension benefit obligations are
adequatelyinvestedinacosteffectivemanner.PRIMseekstomaximizethetotalreturnoninvestments
withinacceptablelevelsofriskforapublicpensionfund.AsofJune30,2012,thePRITFundhadnet
assetstotalingapproximately$50billion.ThecurrentassetallocationtargetsaredescribedinExhibitA.

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PRIMisgovernedbyaninememberboardoftrustees.Thetrusteesinclude:(1)theGovernor,exofficio,
orhisdesignee;(2)theStateTreasurer,exofficio,orhisdesignee,whoshallserveasChairofPRIM;(3)a
private citizen, experienced in the field of financial management, appointed by the State Treasurer;
(4)anemployeeorretiree,whoisamemberoftheStateTeachersRetirementSystem,electedbythe
membersofsuchsystem,foratermofthreeyears;(5)anemployeeorretiree,whoisamemberofthe
StateEmployeesRetirementSystem,electedbythemembersofsuchsystemforatermofthreeyears;
(6)theelectedmemberoftheStateRetirementBoard;(7)oneoftheelectedmembersoftheTeachers
RetirementBoardchosenbythemembersoftheTeachersRetirementBoard;(8)apersonwhoisnotan
employee or official of the Commonwealth appointed by the Governor; and (9)a representative of a
publicsafetyunionappointedbytheGovernor.Appointedmembersserveforatermoffouryears.

The ninemember board of trustees has the authority to employ an Executive Director, outside
investment managers, custodians, consultants and others as it deems necessary; to formulate policies
andprocedures;andtotakesuchotheractionsasnecessaryandappropriatetomanagetheassetsof
thePRITFund.AsofJune30,2012,thePRITFundhadnetassetstotalingapproximately$50billion.

ThePRIMBoardhasestablishedfouradvisorycommittees:Investment,AdministrationandAudit,Real
Estate & Timber, and Compensation. These committees are generally comprised of several Board
membersandalsoprivatecitizenswithinvestmentand/orrelevantbusinessexpertise.Themajorityof
committeerecommendationsarepresentedtotheBoardforapproval.ThePRIMorganizationalchartis
in Exhibit B,andalistingofthemembersofthePRIMBoard,InvestmentCommittee,RealEstateand
TimberCommittee,AdministrationandAuditCommittee,andCompensationCommitteecanbefoundin
ExhibitC.

2.LegislativeMandate.
PRIM is governed by Massachusetts General Laws (MGL), Chapter 32, Sections 22 and 23 (web link:
http://www.malegislature.gov/Laws/GeneralLaws/PartI/TitleIV/Chapter32/Section23) and oversees the
PRITFundunderthetermsofPRIMsOperatingTrustdatedJuly15,1988andamendedonSeptember
22,1998(attachedasExhibitD).ThemembersoftheBoard,inconjunctionwiththeExecutiveDirector,
who serves at the pleasure of the Board, determine significant policies and decisions concerning the
administrativeandinvestmentoperationsofPRIMandthePRITFund.

3.MGLChapter268A.
The Massachusetts Conflict of Interest Law (web link: http://www.mass.gov/ethics/lawsand
regulations/conflictofinterestinformation/conflictofinterestlaw.html) applies to all PRIM staff and
volunteers.

4.Chapter30A,Sections1825.
TheMassachusettsOpenMeetingLaw(MGLChapter30A,Sections1825,weblink:
http://www.mass.gov/ago/governmentresources/openmeetinglaw/) ensures transparency in public
policy deliberations. The Open Meeting Law requires, with some exceptions, that meetings of public
bodiessuchasPRIMbeopentothepublic.Italsoseekstobalancethepublicsinterestin1)observing
thedeliberationsofpublicofficialswith2)thegovernmentsneedtomanageitsoperationseffectively
andefficiently.

5.Tobacco,SudanandIranDivestiture.

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OnOctober7,1997,theMassachusettslegislatureenacted,andtheGovernorsignedintolaw,Chapter
199oftheActsof1997,whichforbidsthePRITFundfrompurchasingsecuritiesofanycompanywhich
derivesmorethan15percentofitsrevenuesfromthesaleoftobaccoproducts.Thelegislationalso
required that the PRIT Fund divest itself of all such securities within three years. PRIM provides
investmentmanagerswithaquarterlylistingoftheserestrictedsecurities.

On November 2, 2007, the Massachusetts legislature enacted, and the Governor signed into law,
Chapter 151 of the Acts of 2007, which forbids the PRIT Fund from purchasingthe securities of
companiesdeterminedtobedoingbusinessintheSudan.ThelegislationrequiredthatthePRITFund
divestitselfofallsuchsecuritieswithin12months.PRIMprovidesinvestmentmanagerswithaquarterly
listingoftheserestrictedsecurities.

OnAugust4,2010,theMassachusettslegislatureenacted,andtheGovernorsignedintolaw,Chapter
232 of the Acts of 2010, which forbids the PRIT Fund from purchasingthe securities of companies
determinedtobedoingbusinessinIran.ThelegislationrequiredthePRITFundtodivestitselfofallsuch
securities within 12 months. PRIM provides investment managers with a quarterly listing of these
restrictedsecurities.

6.PRIMsAdvisors.
OutsideadvisorsareengagedfortheirparticularexpertiseandretainedtoassistPRIMinareassuchas
general portfolio strategy and investments, real estate, and private markets. Callan is PRIM's general
consultant, NEPC is PRIMs asset allocation consultant, CliffWater Associates is PRIMs hedge fund
consultant,HamiltonLaneistheprivateequityconsultant,andTheTownsendGroupistherealestate
andtimberconsultant.KPMGisthePRITFundsRealEstate,TimberandHedgeFundofFundsauditor.
Deloitte provides general tax services. BNY Mellon is the PRIT Fund's custodian and is responsible for
providingrecordkeepingandanalyticperformancevaluationsfortheFund.

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III. SELECTIONPROCESSANDSELECTIONCRITERIA.

ProposalswillbeevaluatedbyanevaluationcommitteewhichmayincludemembersofthePRIMBoard,
itsadvisorycommittees,staff,andothers.Respondentsmaybeinvitedtointerviewwiththeevaluation
committee. The evaluation committee will present its results to the Investment Committee. The
InvestmentCommitteewillthenpresentafinalrecommendationtothePRIMBoardforapproval.

Thecommitteewillevaluatetherespondentsqualificationsbasedonthefollowingcriteria:

1. Stabilityandgeneralexperienceofthefirm.

2. ExperienceandstabilityoftheproposedteamdedicatedtoPRIM.

3. Investmentphilosophyandprocess.

4. Theproductsreturnandriskcharacteristics.

5. Clientreferences.

6. Feeproposal.


IV. MINIMUMQUALIFICATIONS.

All Proposals must demonstrate that the respondent meets the following minimum qualifications.
Failure of a Proposal to demonstrate that it meets these minimum qualifications will result in the
Proposalsrejection.

1. The firm must be an investment advisor registered with the SEC or otherwise exempt from
registration.Ifexempt,therespondentmustexplainthenatureoftheirexemptionfromregistration.

2. Theproduct(s)musthaveatleastacontinuousthreeyearperformancetrackrecordincompliance
with GIPS performance presentation standards as of September 30, 2012. Simulated performance
recordswillnotbeaccepted.

3. TheinvestmentteamonthePRIMaccountmustbethesameteamwhoseperformancetrackrecord
issubmitted.

4. The responding firm must have at least $250 million in assets under management in the subject
product,or$750millionacrossactiveSMIDandSmallCapEquityproductsasofSeptember30,2012.

5. The responding firm must have been continuously operating as an investment management
organizationforatleastthreeyearsasofSeptember30,2012.

6. TherespondingfirmmustdemonstratetheabilitytoofferPRIMaseparateaccountstructureforthis
mandate.

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V. RFPSPECIFICATIONS.

1. DeadlineforProposals.
Proposals, including all attachments, must be delivered electronically via email to
ssamuels@mapension.com, received by 3:00 p.m. ET on Friday, November 16, 2012 (the Proposal
Deadline). Any Proposal received after the Proposal Deadline will not be considered. The email
subject header mustbeinthefollowingformat:PRIMUSSmall/SMIDCapRFPResponseNameof
RespondingFirm.

In addition, one original and one copy of the Proposal must be delivered by 3:00 p.m. ET on Friday,
November16,2012totheprocurementofficeraslistedbelow:

Ms.SarahN.Samuels,CFA
InvestmentOfficerPublicMarkets
PensionReservesInvestmentManagementBoard
84StateStreet,SecondFloor
Boston,MA02109

In addition, please email your proposal to to the following representative of PRIMs longonly
consultant:

Ms.MildredViqueira
SeniorVicePresident
CallanAssociates
massprimsmallsmid@callan.com

All electronic documents submitted must be 10MB or smaller in size. If necessary, the respondent
shouldseparatetheRFPsubmissionintomultipleemailstoensurethatthe10MBsizerequirementis
met.TherespondentisresponsibleforensuringthatacompleteelectronicRFPresponseisreceived
priortotheProposalDeadline.

Thequestionsand/orrequestsmadeinthisRFPshouldbeduplicatedintheirentiretyinthesubmitted
response,witheachquestion/requestfollowedbyananswerorresponse.

FaxedtransmissionsareNOTacceptable.

CopiesofthisRFPcanbeobtainedelectronicallyfromthePRIMwebsiteatwww.mapension.com.

2. RequiredEnclosuresandAttachments.

A. CoverLetter.
Proposalsmustbeaccompaniedbyacoverletter,whichwillbeconsideredanintegralpartof
theProposal,andwhichshallbesignedbyatleastoneindividualwhoisauthorizedtobindthe
respondent contractually. This cover letter must include: (a) the respondents name, address,
telephone number and email address; (b) the name of the primary contact for PRIM; (c) a
statementtotheeffectthattheProposalisanirrevocableoffer;and(d)anexecutivesummary
consistingofnotmorethan3onesidedpageswhichsummarizesthecontentsoftheProposal.
B. ResponsestoMinimumQualifications(SectionIV).

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The respondent must describe in sufficient detail how the firm meets the minimum
qualifications.

C. ResponsestoQuestions(SectionVII).

D. RepresentationsandWarranties.
The Representations and Warranties contained in Section IX hereof, signed by an authorized
representativeoftherespondent.

E. DisclosureStatement.
AttachedtothisRFPasExhibitEaretwoDisclosureStatements,oneforPRIMandoneforthe
PublicEmployeeRetirementAdministrationCommission(PERAC).Eachrespondentsubmittinga
Proposalmustcompletethetwodisclosureformsandsubmitbothasattachments.

F. FeeProposal.
EachresponsemustincludeaFeeProposal(SectionVIII).

G. FormADV.
ThefirmmustsubmititsfullFormADV(PartsIandII).

3. PublicRecord.
InaccordancewithMGLChapter66,Section10andChapter4,Section7(26)(h),allmaterialssubmitted
in response to this RFP are public records and as such are subject to requests for disclosure of public
records.

4. Waiver/CureofMinorInformalities,ErrorsandOmissions.
PRIMreservestherighttowaiveorpermitcureofminorinformalitiesand/orerrorsand/oromissions
priortotheselectionoffinalists,andtoconductdiscussionswithanyrespondentandtotakeanyother
measures with respect to this RFP in any manner to serve the best interests of PRIM and its
beneficiaries.

5. CommunicationswithPRIM.
Respondents,potentialrespondents,ortheirrepresentativesshouldnotcontactPRIMafterOctober15,
2012(includingPRIMstaff,membersofthePRIMadvisorycommittees,membersofPRIM,oremployees
of the Massachusetts Treasury), other than the procurement officer listed above. In addition,
respondentsshouldnotdiscussthisRFPwithanyemployeeofPRIMscustodian,managers,consultants,
legalcounsel,orotheradvisorsorpersons/entitieshavingcontractsorotheraffiliationswithPRIM.
FAILURETOOBSERVETHISRULEISGROUNDSFORDISQUALIFICATION.

6. QuestionsRegardingthisRFP.
AllquestionsconcerningthisRFPmustbedeliveredtotheprocurementofficer,SarahN.Samuels,CFA
via email by 3:00 p.m. ET on Monday, October 22, 2012 (the "Question Deadline") at
ssamuels@mapenison.com. Questions received in accordance with this section will be answered and
circulatedbyemailtoallrespondentswhohaveproposedaquestionorwhohaverequestedbyemaila
copyofsubmittedquestionsandPRIMsresponses.
7. IncurringCosts.
PRIMisnotresponsibleforanycostsincurredbyarespondentinrespondingtothisRFP.

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8. Withdrawal/IrrevocabilityofResponses.
RespondentsmaywithdrawandresubmitProposalspriortotheProposalDeadline.Nowithdrawalsor
resubmissionswillbeallowedaftertheProposalDeadline.

9. RejectionofResponses;Cancelation.
PRIM reserves the right in its sole discretion to reject any response, as well as the right to reject all
responsessubmittedinresponsetothisRFP,andtocancelandrescindtheprocurementatanytime,for
anyreasonorfornoreason.

VI. TIMETABLE.

PRIMReservestherighttomodifythefollowingtimetable:

IssuanceofRFP: October15,2012

RFPQuestionDeadline: October22,2012;3:00p.m.ET

RFPResponseDeadline: November16,2012;3:00p.m.ET

NotificationofFinalists(Tentative): WeekofJanuary28,2013

Evaluationcommittee WeekofFebruary11,2013
Interviews:(Tentative)**

InvestmentCommittee March19,2013
Interviews:(Tentative)**

PRIMBoardMeeting: April2,2013
(Tentative)**

Projected May1,2013
CommencementDate:

**Interviews,ifnecessary,aretobeheldinBostonatPRIMsoffices.

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VII.QUESTIONNAIRE.

RESPONDENT:

ADDRESS:



TELEPHONE#:

FACSIMILE#:

EMAILADDRESS:

CLIENTCONTACT:

SIGNED:

Name(print):

Title:

Date:

Pleaseindicateclearlywhichproductyourfirmissubmitting:

_________U.S.SMIDCapCore _________U.S.SmallCapCore

_________U.S.SMIDCapGrowth _________U.S.SmallCapGrowth

_________U.S.SMIDCapValue _________U.S.SmallCapValue

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1.SCOPEOFSERVICES.
TherespondentmustdescribeinsufficientdetailbelowhowtheScopeofServicesinSectionIwillbe
accomplished.

2.ORGANIZATION.
A. Indicateyourfirmsfiduciaryclassification:
_____Bank
_____InsuranceCompany
_____RegisteredInvestmentAdvisor(InvestmentAdvisorsActof1940)
_____AffiliateofFiduciary
_____(NameandClassification)
_____Other(Pleaseexplain)

B. Pleaseprovideabriefhistoryofthefirm.Include:

1) themonthandyearofSEC1940Actregistration,

2) themonthandyearthefirmbeganmanagingsubjectproductportfolios,

3) themonthandyearthefirmbeganmanagingsubjectproductportfoliosforU.S.taxexempt
clients

C. Whatisyourfirmscompetitiveadvantage?Isitsustainable?Whyorwhynot?

D. Firmstructure:

1) Whatisyourfirmslegalbusinessstructure?

i. Ifownedbyanotherfirm,whatpercentageoftheparentcompanysrevenuedoesyour
firm contribute? Indicate how the percentage of revenue has changed over the life of
thearrangementorthelast10years.

ii. Include any affiliated companies, joint ventures, and other entities that contribute in
somewaytoyourfirmsinvestmentandoperationalmanagement.

iii. List all firm owners, whether they are individuals, employees, or partnerships and
percentageownershipheldbyeach.

iv. Provideanorganizationalchart.

2) Describeanymaterialdevelopmentsinyourorganization(changesinownership,personnel,
business,etc.)overthepastthreeyearsindetail.

3) Are there any structural or financial engineering changes contemplated in the next year
(e.g.,ownership,mergerandacquisitions,products,etc.)?Ifyes,pleaseexplain.

E. Pleaselistthetotalnumberofemployeesineachfunctionalarea:

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PortfolioManagement
Research
RiskManagement
Marketing
Trading
Administration
ClientService
Other(Specify)
Total

F. Describe U.S. Dollar amounts of coverage for SECrequired (17g1) fidelity bonds, errors and
omissionscoverageandanyotherfiduciarycoverage,whichyourfirmcarries.Listtheinsurance
carrierssupplyingthecoverage.

G. Overthepastfiveyears,hasyourorganizationoranyofitsaffiliatesorparent,oranyofficeror
principalbeeninvolvedinanybusinesslitigation,regulatoryorlegalproceedings?Ifso,provide
adetailedexplanationandindicatethecurrentstatusoftheseproceedings.

H. Describeindetailanypotentialconflictsofinterestyourfirmmayhaveinthemanagementof
this account. Include any activities of affiliated or parent organizations, brokerage activities,
investment banking activities, or any past or current relationships with PRIM Board members,
PRIMCommitteemembersand/orPRIMinvestmentstaff.Includeanyotherpertinentactivities,
actions, or relationships not specifically outlined in this question. Also disclose any business
relationship with PRIMs consultants, which include Callan, The Townsend Group, Hamilton
Lane,Cliffwater,NEPC,andFXTransparency.

I. Has your organization contracted with a third party organization to market and/or develop
investmentproductsforinstitutional,taxexemptclientsoverthelastthreeyears?

J. Doyouhaveadisasterrecoveryplaninplaceshouldyourfacilitiesbecomeinoperativebecause
offire,earthquake,flood,etc.?Pleasedescribe.

K. DoesyourfirmhaveacurrentSAS70Audit?PleaseprovidethelatestSAS70Auditresults.

3.ASSETSUNDERMANAGEMENT(AUM).
A. Pleaseanswerthefollowingquestionsbycompletingthetablebelow:

1) TotalfirmwideAUMincludewhatpercentageareinstitutionalassets.

2) TotaldomesticequityAUMincludewhatpercentageareinstitutionalassets.

3) TotalsubjectproductAUMincludewhatpercentageareinstitutionalassets.

4) Total assets in subject product broken out by vehicle type (i.e. separate accounts,
commingled,mutualfundsorother).

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5) Total number of accounts in subject product broken out by vehicle type (i.e. separate
accounts,commingled,mutualfundsorother).

12/31/200 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 9/30/2012
6
A.1
A.2
A.3
A.4
A.5

B. Listthe5largestU.S.taxexemptclients(includingpublicandERISAfundclients)investedinthe
subjectproduct:

ClientName InceptionDate MarketValue(9/30/2012)




C. Listallclients(withAUM)gainedorlostinthesubjectproductoverthepastthreeyearsasof
9/30/2012.

D. Whataretheminimumandmaximumaccountsizesyouwillacceptforaseparateaccountinthe
subjectproduct?

E. What is the largest, average and smallest separate account size you currently manage in the
subjectproduct?

F. Pleasedescribetheobjectivesofyourfirmwithrespecttofuturegrowthinthesubjectproduct.
Please describe plans to add additional resources in portfolio management, research, trading,
clientservice,andtechnology.

G. What is the optimum total asset size and number of client accounts for the subject product?
Why?

H. DoyouhaveacaponAUMonthisparticularproduct?

I. What advantages and disadvantages does your current size present to achieving superior
performanceresultsinthefuture?

J. Provide the client name, address, phone number, contact name, title and account type (e.g.
definedbenefit,definedcontribution,endowment)ofthreeaccountsthathaveterminatedtheir
relationshipwithyouinthesubjectproductoverthepastthreeyears.

K. Provide the client name, address, phone number, contact name, title and account type (e.g.
definedbenefit,definedcontribution,endowment)ofthreeaccountsthathaveinvestedinthe
subjectproductoverthepastthreeyears.

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4.PROFESSIONALSTAFF.
Provide a list of the professionals who will service the PRIM account, as detailed in the following
table.Pleaseincludeportfoliomanagers,analysts,traders,andclientserviceprofessionals.
Years Associatedwith
Years at #of U.S.taxexempt $ Degrees/ Sponsoring
Name Title Experience Firm Location Accounts accounts? AUM Designations Body/School

A. Providebiographies,nolongerthanonepage,oneachofthepersonslistedinthetableabove.
Pleaseincludeprioremploymenthistory.

B. Describeyourinternaltrainingproceduresforportfoliomanagers,traders,andresearchanalysts.

C. Describethecompensationstructureforyourfirmsportfoliomanagersandresearchanalysts,
includingincentives,bonuses,performancebasedcompensation,andequityownership.

D. Discussanyturnoverofprofessionalsdirectlyinvolvedinthesubjectproductduringthepastfive
years.

5.INVESTMENTPHILOSOPHY.
A. Briefly describe your investment philosophy for the proposed strategy and how that has
evolved.

1) Whatmarketanomalyorinefficiencyareyoutryingtocapture?

2) Whydoyoubelievethisphilosophywillbesuccessfulinthefuture?

3) Howdoyouexpectittoevolveinthefuture?

4) Provideanyevidenceorresearchthatsupportsthisbelief.

5) Howhasitchangedsincetheinceptionoftheproduct?

6) Under what, if any, circumstances would you deviate from the disciplines associated with
thisphilosophy?

7) Describetheinvestmentenvironmentsinwhichyouexpectyourstrategyto:

i. Outperformthebenchmark/stylepeers.

ii. Underperformthebenchmark/stylepeers.

B. Whattimeframeisbuiltintoyourinvestmentphilosophy?Overwhattimehorizonwouldyou
expectyourstrategytomeetperformanceobjectives?

C. Describethestrategyssectorandregionalconstraints?

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1) Is there a sector or industry in which you believe your firm has a particular edge? If yes,
pleaseelaborate.

2) Are there any sectors or industries that you strategically choose not to invest in? If yes,
pleasedescribewhy.

3) Arethereanycountriesorregionsyoubelieveyourfirmhasaparticularedge?Ifyes,please
elaborate.

4) Are there any countries or regions that you strategically choose not to invest in? If so,
pleasedescribewhy.

D. List any other portfolio constraints with regard to geography, emerging markets, industry,
marketcap,liquidity,percentownershipofacompany,ADRs/foreignstocks,etc.

E. Howmanystocksaretypicallyrepresentedinyourentireportfolio?

1) Doyouhaveaminimum/maximumnumberofholdings?

2) What were the fewest/most holdings ever held in the portfolio? Indicate the appropriate
dates?
3) Howareindividualpositionweightsdetermined?

4) Whatisthemaximumpositionsizeatcostandatmarketvalueforanyindividualposition?
Haveyoueverviolatedthisconstraint?

F. Whatistheannualturnoverrateforthisstrategy?Inwhatenvironmentwouldyouexpectthis
tochange?Providetheannualturnoversinceinception,commentingonanyoutlierswithinthat
period.

G. Howdoyouviewmarkettiming?Cashholdings?Howiscashusedintheportfolio?Providethe
yearendcashlevelsfortheportfoliosinceinceptionofthestrategy.

H. Overthelastthreeyears,whatpercentofyourperformanceattributionwouldyouattributeto
thefollowing?

1) Stockselection/sectorattribution/interaction.Pleaselistinteractionseparately.

2) Topdown(thematic/macro)/bottomup.

3) Marketcap.Ifmarketcapisoneofthecontributingfactorstoalphageneration,please
provideattributionbymarketcap.

4) Momentum.

5) Beta.

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6) Other(pleasedescribe).

6.INVESTMENTPROCESS.
Providea(detailed)descriptionofyourinvestmentdecisionprocessincludingbutnotlimitedtothe
following:

A. Whatistheinitialuniverse?

B. Describe any systematic ranks/filters to narrow the universe? List and describe the common
characteristicsofpurchasecandidates.

C. Pleaseexplainyourfirmsresearchprocess.

1) Provide a description of any fundamental security analysis and the members of the team
responsible.

i. Howimportantarecompanyvisitsinthisprocess?

ii. Wheredotheytakeplace?

iii. Please, provide a description of sources of information used to conduct fundamental
research,includingsellsideanalysts,companyvisits,financialstatements,etc.

2) Provide a description of any quantitative security analysis and the members of the team
responsible.

3) Provide a description of all the alpha sources besides stock selection, such as industry or
macro,size,style,momentum,betaetc.,andthosewhoareresponsibleforthesedecisions.

4) Describeanyriskmanagementoroptimizationtoolsortechniquesutilizedforresearchand
portfolioconstruction.

5) State the location(s) where such research is carried out and what specific research is
conductedateachlocation.

6) Pleaseprovideanexampleofaresearchreport.

D. Describethecompositionoftheinvestmentteamandtheirresponsibilitiesandhowtheyfitinto
theprocess.

1) Whoisultimatelyresponsibleforimplementingtheinvestmentprocess?

2) Describethemechanicsofthedecisionmakingprocessforbuydecisions.

i. Ifteambased,pleasedescribehowtheteammakesdecisions.

ii. Doanymembershavevetopower?

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iii. Whohasultimateresponsibilityforallbuy/selldecisions?

3) Describethedecisionmakingprocessforselldecisions.

i. Do you have stoploss procedures in place? If yes, describe the details. If no,
explainyourmethodologyregardingstocksthatdropsignificantlyinprice.

ii. List the three largest percentage losers currently in the portfolio and explain the
investmentthesisforeach.

iii. Whenwouldyourfirmdeviatefromitsselldisciplines?

E. Doyousetpricetargetsforallinvestments?Ifyes,doyoueverholdasecuritybeyondtheinitial
pricetarget?Explain.

F. Whatuniquefeaturesofyourinvestmentprocessdoyoufeeladdthemostvalueovertime?

G. Istheinvestmentprocessconsistentfromaccounttoaccount(i.e.,modelportfolio)?Describe
how individual accounts are managed (by individual portfolio managers, by a team or by a
committee). Do account/portfolio managers have discretion to invest outside of the model
portfolio?Pleasedetailthisdiscretion.

H. Describehowyourproductwouldassimilateanewallocationofcapital.

I. Haveyoumadeanymeaningfulpermanentortemporarychangestoyourinvestmentprocessin
thestrategyyouareproposing?

J. Provide a complete list and a brief description of both internal and external systems/data
sources used by your firm in each of the following: database/screening, research, portfolio
management,andcompliance?

1) Howisthisresearchincorporatedintoyourinvestmentprocess?

2) Howlonghaseachsystembeeninplace?

K. Indicate whether your firms investment capabilities were developed inhouse or acquired. If
thelatter,indicatewhenthisoccurred.

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7.TRADING.
A. Are portfolio managers responsible for their own trading or is there a dedicated trader
associatedwiththegroup?

B. Whatisthesizeofyourtradingdepartmentandtheexperienceofeachtrader?

C. Whatistheaveragecostpersharetraded?

D. Discussyourtradingprocess.Whataspectsdoyoufeelareunique?Doyouemployaninternal
costmonitoringsystem?

E. Pleaselistyourtradingsystemsandthepercentageoftradescompletedthrougheach.

F. Doclientsdirecttrades?Ifso,whatpercentagesoftradesaredirectedbyclients?

G. Onceatradeismade,howaretradesallocatedamongstaccounts?

H. Howareaccountrestrictionsaddressed?

I. Does your firm have an affiliated brokerage firm? If so, would your firm ever direct trades
throughtheaffiliatedbrokeragefirm?Underwhatcircumstancesandforwhatreasonswould
yourfirmdoso?

J. Doesyourfirmengageinsoftdollararrangements?Ifso,pleasedescribeyourfirmssoftdollar
policiesandtheservicescurrentlyprovidedbysoftdollars.

K. What percentage of trades executed were tied to soft dollar relationships for the three years
endingJune30,2012?

8.PERFORMANCE.
A. Providetheprimarybenchmarkforthisstrategy.Arethereanyotherbenchmarksthatyouthink
areappropriatetouse?

B. Has the primary benchmark been used since the inception of the strategy? If not, please
explain.

C. Provide an annual performance attribution analysis since inception or past 3 years which
includesasectoranalysis.Includereasonsforsignificantout/underperformanceandpleasebe
thorough.

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9.OPERATIONSANDBACKOFFICE.
A. ProvidealistoftheoperationsandbackofficeprofessionalswhowillservicethePRIMaccount
ifcontractedwith:

Title& Yearsof Yearsat Degrees/ Sponsoring
Name Responsibilities Location Experience Firm Designations Body/School


B.Provide biographies, no longer than one page, of each of the persons listed in Question 9.A.
Pleaseincludetheirprioremploymenthistory.

C. Describeyourinternaltrainingproceduresforprofessionalsonthebackofficeoperationsteam.

D. Whatpersonnelororganizationalimprovementsareplannedoverthenextthreetofiveyears?

E. Whatpersonnelororganizationalimprovementsareplannedoverthenextthreetofiveyears?

F. Provide an organizational chart that diagrams the different operations functions dedicated to
theproductarea.

G. Describethecompensationandincentiveprogramforoperationsprofessionalsdirectlyinvolved
inthesubjectproduct.

H. Discussanyturnoveroperationsprofessionalsdirectlyinvolvedinthesubjectproductduringthe
pastfiveyears.

10.COMPLIANCE/INTERNALCONTROLSTRUCTURE.
A. Provideadetailedsummaryofyourfirmscompliance/internalcontrolstructure.Identifysenior
orkeypersonnelinthefirmscomplianceprocess.

B.Doesyourfirmmaintainacodeofethics?Ifso,pleaseattach.

1) IsyourfirmcompliantwiththeCFAInstituteAssetManagerCodeofProfessionalConduct?
Ifnot,discussyourfirm'sreasonsforchoosingnottocomply.
http://www.cfainstitute.org/ethics/codes/assetmanager/Pages/index.aspx

C. During the past five years, has the firm been subject to any governmental regulatory or law
enforcementagencysinvestigation,examination,orotherproceedingdirectlyinvolvingthefirm,
its owners, or employees other than such examination or other proceedings as are routinely
conductedintheordinarycourseofthefirmsbusiness?

D. During the past five years, has the firm been subject to any litigation alleging fraud, breach of
fiduciaryduty,orotherwillfulmisconduct?

E. Doesthefirmconductperiodicriskassessment?ProvideacopyofSAS70ifavailable,orother
internalcontrolreviewdocumentation,preferablypreparedbyanindependentthirdparty.

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F. Providecopiesofthefirmsmostrecentauditedfinancialstatementsandauditorsmanagement
letter.

G. Has your firm ever violated a client guideline? If so, please describe the violation and the
resolution.

11.CLIENTSERVICE.
A. Which of your firms offices would service this account? What services would specifically be
providedbywhichoffice?Whereistheportfoliomanagerofthesubjectproductlocated?

B. Pleasedescribeandprovideanorganizationalchartfortheclientserviceteam.

C. Pleaseprovidebiographiesforeachmemberoftheclientserviceteamwhowouldbeassignedto
thisaccount.

12. REQUIREDDATA.
A. CallanQuestionnaire.
RespondingfirmsmustcompleteCallansquestionnaireanddatabasewithinformationrelated
tothesubjectproduct.PleasecontactLymunJungatjung@callan.comtoobtainthenecessary
questionnaireanddatabaseinformation.

B. PRIMDataRequests.
COMPLETE THE TABLES IN EXHIBIT F, ATTACHED VIA THE LINK BELOW. This spreadsheet can
also be found at the PRIM Board website at http://www.mapension.com/aboutprim/work
withus/requestforproposals/. ENTER THIS INFORMATION IN THE EXCEL WORKBOOK AND
SUBMITITWITHYOURRESPONSE.PLEASEDONOTCHANGETHEWORKBOOKFORMAT.Where
performance information is requested, please provide performance on a total return basis
GROSSOFALLFEESANDMANAGEMENTCOSTS.Indicateifreturnsarenetorgrossofcustody
costs. Use Global Investment Performance Standards (GIPS) or, if different, indicate explicitly
how they differ. Indicate whether the subject performance is the composite performance or
thatofthecommingledaccountvehicle.

Exhibit F

Exhibit Description
F.1 Marketcapitalizationdistributionbycalendaryear.
F.2 Performanceattributionbymarketcapbycalendaryear.
F.3 Monthlyperformanceofsubjectproductsinceinception.
F.4 Quarterlysubjectproductreturns,AUM,andmedianmarketcapitalization.
F.5 Completelistofportfolioholdingsasof6/30/2012.
F.6 Largest&Smallest10Holdings.
F.7 Quarterlyactiveshare(activeshareisdefinedinspreadsheet).
F.8 Portfoliocharacteristics.
F.9 Calendaryearreturnsofsubjectproduct.
F.10 Annualizedreturnsofsubjectproduct.
F.11 Annualizedstandarddeviationofsubjectproduct.
F.12 Performance attribution of subject product vs. the primary subject product index.
Was the attribution analysis calculated internally or externally? If internal, please

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describeindetailthemethodologyusedtocalculateit.Ifexternal,pleasenameyour
serviceprovider.
F.13 Listofsecuritiesinwhichyourfirmownsmorethan5%offloat(insubjectproduct
andfirmwide).
F.14 GIPS Composite Disclosure, including gross return, net return, benchmark return,
numberofaccounts,compositedispersion,compositemarketvalue,totalfirmassets.
Pleasecommentoncompositedispersion.

VIII.FEEPROPOSAL.

Pleasedescribeyourfeeproposalforthisengagement.Pleaseincludedetailsonthefollowingelements,
ifappropriate:

1. Assetbasedfeebreaks.

2. Performancefees.

Assumeaminimalinitialfundingof$50million.

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IX. REPRESENTATIONSANDWARRANTIES.

All respondents are required to submit an executed copy of the following Representations and
Warranties.

A. The respondent warrants that, if engaged by PRIM, it will not delegate, without prior approval by
PRIM,itsresponsibilitiestoathirdparty.

B. Respondent warrants that it has completed, obtained, and performed all registrations, filings,
approvals,authorizations,consentsorexaminationsrequiredbyanygovernmentorgovernmental
authorityforactstobeperformedinprovidingtoPRIMtheservicessoughtbythisRFP.

C. Respondent warrants that it will agree to the provisions of the Agreement which are set forth in
ExhibitGtothisRFP.Ifthereareprovisionsoftheagreementthatareofconcern,pleasehighlight
thoseareasforfurtherdiscussion.

D. RespondentwarrantsthatitmeetsalloftheMinimumQualificationsstatedinSectionIVofthisRFP.

_____________________________
Signature

_____________________________
PrintName

_____________________________
Title

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EXHIBITS

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EXHIBITA

PRIMsStrategicAssetAllocationand
CurrentInvestmentManagers

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1. PRIMsStrategicAssetAllocation

LongTermTarget Active/Passive
AssetClass
Allocation
GlobalEquity 43% 35%/65%
U.S.Equity 19% 16%/84%
U.S.LargeCap 15% 20%/80%
U.S.SMIDCap 4% 0%/100%
DevelopedNonU.S.Equity 17% 50%/50%
EmergingMarketsEquity 7% 50%/50%

CoreFixedIncome 13% 55%/45%

ValueAddedFixedIncome 10% 100%/0%
HighYield 1.5% 100%/0%
BankLoans 1.5% 100%/0%
EmergingMarketsDebtUSD 1% 100%/0%
EmergingMarketsDebtLocalCurrency 2% 100%/0%
DistressedDebt 4% 100%/0%

PrivateEquity 10%

RealEstate 10%

Timber/NaturalResources 4%

HedgeFunds 10%

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2. CurrentInvestmentManagers

GLOBALEQUITY
USDOMESTICEQUITY INTERNATIONALEQUITY EMERGINGMARKETSEQUITY
INTECH BallieGifford AshmoreEMM
PIMCO MarathonAssetManagement GMO
SSGARussell2500Passive MondrianInvestment T.RowePrice
SSGAS&P500Passive SSGAMSCIWorldexUSIMIPassive Wasatch
Acadian
SSGAMSCIEMEIMIPassive

FIXEDINCOME
COREFIXEDINCOME VALUEADDEDFIXEDINCOME
Inflation Emerging
Core HighYield BankLoans DistressedDebt
Linked Markets
BlackRock BlackRockTIPS
Fidelity Ashmore ING OaktreeCapital
Passive (Passive)
BlackRock
Angelo,Gordon&
Loomis InflationLinked Loomis PIMCO EatonVance
Co.LP
Bonds
TrustCompanyof
PIMCO Shenkman Investec
theWest
AccessCapital WayzataInvestment
StoneHarbor
ETI Partners
Community
Capital
Pictet AvenueCapital
Management
ETI
AFLCIOHITETI Centerbridge
SummitPartners

REALESTATE&REITS TIMBER/NATURALRESOURCES(NR)
AEW Timber PublicNR PrivateNR
Quantum
JPMorganInvestment ForestInvestment Jennison
Energy
Management Associates Associates
Partners
T.Rowe TenaskaCapital
TAAssociates TheCampbellGroup
Price Management
Denham
INVESCORealEstate
Capital
LaSalleInvestment

Management
INVESCO(REIT)
RREEF(REIT)
Urdang(REIT)
EuropeanInvestors(REIT)
NewBostonFundETI
CanyonJohnsonUrban

FundsETI
IntercontinentalReal

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EstateETI
HEDGEFUNDS
PAAMCO* Elliott
Anchorage Glenview
Arrowgrass Highfields
Ascend Indus
BlueCrest KingStreet
BrevanHoward OchZiff
Brigade PershingSquare
Capula Samlyn
ClarenRoad Taconic
DavidsonKempner Winton
York
*HedgeFundofFunds,targetis15%oftotalHedgeFundallocation.

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PRIVATEEQUITY
AdventInternational Clayton,Dubilier&Rice GTCR Nash,Sell&Partners SummitVentures

AlchemyPartners CodeHennessey&Simmons H.I.G.Capital NauticPartners TAAssociates/Advent


HancockVenture NewEnterprise TechnologyCrossover
AltaCommunications CommonwealthBioventures
Partners Associates Ventures
Harborvest TenaskaCapital
AmericanSecurities Cornerstone NordicCapital
Partners Management
Hellman& OaktreeCapital
AngeloGordon CrossroadsCapital TexasPacificGroup
Friedman Management
OdysseyInvestment
APAXPartners&Co. CVCCapital HighlandCapital TheCypressGroup
Partners
ApolloManagement
Davis,TuttleVenturePartners IndexVentures Olympus TheVistaTroup
Co.
InsightVenture
AustinVentures DenhamCapitalManagement OneLibertyVentures ThomaBravo
Partners
Institutional ThomaCresseyEquity
AvenueCapital DominionVentures OnexPartners
VenturePartners Partners
BainCapital DLJMerchantBanking InterWestPartners PAIEurope ThomasH.LeeCompany
PermiraAdvisers
BatteryVentures ElDoradoVentures J.H.Whitney TourquestPartners
Limited
EquitableCapital Joseph,Littlejohn
BerkshirePartners,LLC Polaris TowerbrookCapital
Management &Levy
BetaManagement ProvidenceEquity TridentCapital
EssexWoodlands Kelso&Company
Partners Partners Management
KeytoneCapital QuadC
TheBlackstoneGroup EthosPrivateEquity TrustCompanyoftheWest
Partners Management,Inc.
KohlbergKravis QuantumEnergy
BostonVentures ExponentPartners UnionSquareVentures
Roberts&Co. Partners
KPSCapital RembrandtVenture VantagePointVenture
Bridgepoint FH&Co.
Partners Partners Partners
BrownBrothers FidelityManagementTrust
LandmarkPartners RichlandVentures VestarEquityPartners
Harriman&Co. Company
M/CVenture
Candover FirstReserveCorporation SAIFPartners VistaEquityPartners
Partners
CapitalResource MadisonDearborn SchroderVentures WayzataInvestment
FlagshipVentures(ETI)
Partners CapitalPartners LifeSciences Partners
Massachusetts
SCPPrivateEquity
CarlyleGroup ForstmannLittle&Co. Technology Weintraub
Management
Development
Welsh,Carson,Anderson&
CastileVentures(ETI) Frontenac MenloVentures SentryFinancial
Stowe
Centerbridge
FXEquity MFA SherbrookCapital WestonPresidio
Associates
MontaguPrivate SmithManagement WestViewCapital
CharlesRiver GenstarCapitalPartners
Equity Company Management
CharlesbankCapital MontreuxEquity SouthernCalifornia
GildeBuyoutPartners WilliamBlair&Co.
Partners Partners Ventures
CharterhouseGroup Golder,Thoma,Cressey MorganHolland SparkCapital WillisStein&Partners
Narragansett SpectrumEquity
ChequersCapital GoresTechnologyGroup XenonPrivateEquity
Capital Partners

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EXHIBITB

PRIMEmployeeOrganizationalChart

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ExecutiveDirector
ChiefInvestmentOfficer
MichaelG.Trotsky,CFA
August18,2010

ExecutiveAssistant
SamanthaWong
October4,2010

ChiefInvestmentOfficer GeneralCounsel SeniorClientServiceOfficer SeniorRiskManagementOfficer ChiefFinancialOfficer


MichaelG.Trotsky,CFA ChristopherJ.Supple PaulW.Todisco DavidM.Gurtz,CPA,CFA ThomasA.Hanna,CPA
August18,2010 July26,2011 November5,1984 January31,2008 May22,2000

Deputy DirectorofPrivate
Senior Senior DirectorofFinance Financial
ChiefInvestmentOfficer Senior
InvestmentOfficer RiskManagementOfficer andManagerofHuman InvestmentAccounting&
PublicMarkets and InvestmentOfficer InvestmentOfficer ReportingManager
DonaldR.Payne Resources ManagerInformationSystems
RealEstateandTimberland HedgeFunds QingmeiLi,CPA
DirectorofStrategicInitiatives PrivateEquity DeborahCoulter,CPA
TimothyV.Schlitzer November6,2006 AnthonyJ.Falzone
HannahGilliganCommoss OPEN OPEN August18,2011
March21,2005 August1,2012 January3,2006
August2,2004

InvestmentOfficer InvestmentOfficer ManagerofClientReportingand


SeniorInvestmentOfficer CashManagement SeniorFinancialAnalyst
PublicMarkets RealEstateandTimberland
PrivateEquity JenniferL.Cole EileenA.Molloy
SarahN.Samuels,CFA JohnF.LaCara July22,2002
OPEN August4,2008 February11,2002
June27,2011

InvestmentAnalyst
PublicMarkets ManagerofInvestment
InvestmentOfficer Reporting SeniorFinancialAnalyst
MichaelCarritte
PrivateEquity andSystemsAdministrator CatherineM.Hodges
October13,2011
ScottL.Hutchins Yisroel"Izzy"Markov,CPA March8,2004
January4,2010 February16,1998

InvestmentOfficer FinancialAnalyst OfficeAdministrator


PrivateEquity VeronicaWilliams AlyssaSmith
PeonyK.Keve,CFA,CAIA January9,2006 February17,2004
July21,2008

ComplianceAnalyst AdministrativeAssistant
EllenM.Hennessy AccountingandCommunications
April30,2012 OPEN

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EXHIBITC

MembersofthePRIMBoardandCommittees

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Treasurerordesignee(Chair) TreasurerStevenGrossman
Governorordesignee GregoryR.Mennis,CFA
Treasurersprivatecitizenappointee AlexanderE.Aikens,III,Esq.
Governorsprivatecitizenappointee AnthonyE.Hubbard
Governorspublicsafetyunionappointee DanaA.Pullman
TeachersRetirementBoardsElectedMember DennisJ.Naughton
StateRetirementBoardsElectedMember TheresaF.McGoldrick,Esq.
MemberelectedbyTeachers RobertL.Brousseau
MemberelectedbyStateEmployees PaulE.Shanley,Esq.

InvestmentCommittee Audit&AdministrationCommittee
TreasurerStevenGrossman TreasurerStevenGrossman
MichaelEven,CFA RobertL.Brousseau,Chair
ConstanceM.Everson,CFA TheresaF.McGoldrick,Esq.
EdwardW.Kane TheodoreC.Alexiades
PaulE.Shanley,Esq. PatrickE.Brock
GlennP.Strehle,CFA KarenE.Gershman,CPA
TimothyL.Vaill ShantiA.Fry
ReneM.Landers,Esq.
MicheleA.Whitham,Esq.

RealEstateCommittee CompensationCommittee
TreasurerStevenGrossman TreasurerStevenGrossman
AlexanderEAikens,III,Chair RobertL.Brousseau
JillS.Hatton,CRE PatrickE.Brock
GarlanMorse,Jr.CRE ShantiA.Fry
WilliamF.McCall,Jr. RuthanneFuller
PeterF.OConnell MicheleA.Whitham,Esq.
JackLutz,PhD

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EXHIBITD

PRIMOperatingTrustAgreement
asofSeptember22,1998

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PENSIONRESERVESINVESTMENTMANAGEMENTBOARD

AmendedandRestatedOperatingTrust

THISDECLARATIONOFTRUSTmadethis22nddayofSeptember,1998byJosephD.Malone,AngeloA.
Amato, Robert Brousseau, James B. G. Hearty, Glenn M. Johnson, George F. McSherry, Vikki L. Pryor and
Ralph White, the present duly authorized and acting members of the Pension Reserves Investment
ManagementBoard(PRIMBoard),beinghereinafterreferredtoastheTrustees;

WITNESSETH:

WHEREAS, PRIM has been charged by its enabling legislation, G.L.c.3223(2A), with the general
supervision of the investment and management of the Pension Reserves Investment Trust Fund (PRIT
Fund)establishedundertheprovisionsofG.L.c.3222(8);

WHEREAS, PRIM is authorized and required by G.L.c.3223(2A)(e)(i) to act as Trustees for each
retirementsystemthatparticipatesinthePRITFund;and

WHEREAS, PRIM is further authorized and required by G.L.c.3223(2A)(e)(i) to adopt a declaration of


trustsettingforththedutiesandobligationsofPRIM;

NOW,THEREFORE,theTrusteesestablishthisoperatingtrustandagreeanddeclarethattheywillhold,
administer and manage the PRIT Fund and all money and property received or purchased by them as
Trusteeshereunderuponthefollowingterms,conditionsandtrusts:

ARTICLE1
NAME;PURPOSEOFTRUST;APPLICABLELAW

SECTION 1.1. Name. This Declaration of Trust is hereby designated as the PENSION RESERVES
INVESTMENTMANAGEMENTBOARDOPERATINGTRUST.

SECTION1.2.Purpose.ThisDeclarationofTrustisestablished,operatedandmaintainedexclusivelyfor
the management, investment and reinvestment in one trust portfolio of the PRIT Fund and moneys or
property, or both, contributed thereto by various Participating Systems and other Purchasing Systems or
otherwise.

SECTION1.3.EffectofTrust.WithrespecttoanymoneysorpropertytransferredtothePRITFundbyany
Participating System or invested by any Purchasing System, the Board of such Participating or Purchasing
SystemandallpersonsinterestedthereinshallbeboundbytheprovisionsofthisDeclarationofTrust(asthe
samemaybeamendedfromtimetotime).

SECTION1.4.ApplicableLawandRegulations.TheTrusteesshalladministerthePRITFundhereunderat
alltimesinconformitywiththeprovisionsofG.L.c.32,specifically,andwiththelawsandregulationsofthe
CommonwealthofMassachusetts,generally.TheprovisionsofthisDeclarationofTrustshallbegovernedby
andconstruedandadministeredaccordingtothelawsoftheCommonwealthofMassachusetts.

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ARTICLE2
DEFINITIONS

Whenever used in this instrument, unless the context otherwise requires or specifically provides, the
followingtermsshallbedefinedasfollows:

SECTION 2.1. Board means the person or persons who control the investments of a Participating
System (other than the State Employees Retirement System and the Teachers Retirement System) or
PurchasingSystemandwhohavetheauthoritytotransferownershipandcontrolofalloftheassetsofsuch
systemto,ortoinvestanyportionoftheassetsofsuchsystemin,thePRITFund.

SECTION2.2.BusinessDaymeansanydaywhichisnotaSaturday,aSunday,alegalholidayoraday
upon which by applicable law a national banking association is authorized to be closed to the public for
regularbankingbusinessduringordinarybusinesshoursandis,infact,soclosed.

SECTION 2.3. Commonwealths Pension Liability Fund means the Commonwealths Pension Liability
FundestablishedbyG.L.c.3222(8)(e).

SECTION 2.4. Expenses mean the reasonable and necessary expenses incurred by the Trustees in
managing the Trust Fund hereunder, including, without limitation, custody fees, investment management
fees, trading commissions, attorneys fees, accountants fees, staff salaries, office rents and all expenses
incidentthereto.

SECTION2.5.FiscalYearmeansthetwelvemonthsbeginningJuly1andendingJune30.

SECTION 2.6. Participating System means the State Employees Retirement System; the Teachers
RetirementSystem;oranyotherretirementsystemauthorizedtocontributemoneysandpropertytothe
PRIT Fund, and which in fact transfers title and control of all its assets to PRIM in accordance with the
provisionsofG.L.c.3222(8)(c).

SECTION2.7.PRIMBoardmeanstheindividualsdescribedinG.L.c.3223(2A)(a)servingfromtimeto
timeasmembersofthePensionReservesInvestmentManagementBoard.

SECTION 2.8. Purchasing System means any retirement system, other than a Participating System,
authorizedtopurchasesharesinthePRITFundwhichdoesinfactpurchasesuchshares.

SECTION 2.9. PRIT Fund means the Pension Reserves Investment Trust Fund established under
G.L.c.3222(8).

SECTION2.10.Securitiesinclude,withoutlimitation,bonds,debentures,notes,certificatesandother
evidences of indebtedness, whether or not in registered form, and common and preferred stocks and all
other forms of certificates representing an interest or participation in any enterprise, whether or not
incorporated.

SECTION2.11.TrusteesmeanPRIMmembersintheircapacityasTrusteesunderthisDeclarationof
Trust.AllPRIMBoardmembersservingfromtimetotimeshallbeTrusteesunderthisDeclarationofTrust.

SECTION2.12.TrustFundmeansallfunds,moneysandpropertyreceived,heldandmanagedbythe
TrusteeshereunderandforthepurposeshereofissynonymouswithPRITFund.

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SECTION2.13.ValuationDatemeans,inthecaseoftheCapitalFundandanyseparateaccountthereof
establishedhereunder,anybusinessdayordaysastheTrusteesmayfromtimetotimedesignate,andinthe
caseoftheCashFund,eachbusinessday.

ARTICLE3
ESTABLISHMENTOFINVESTMENTFUNDS

SECTION3.1.SeparateInvestmentFunds.TheTrustFundshallconsistoftwoinvestmentfunds,tobe
knownastheCapitalFundandtheCashFund.EachoftheseFundsshallbeseparatelyheld,managed,
administered,valued,invested,reinvested,distributed,accountedforandotherwisedealtwith.References
totheTrustFundshallbedeemedtorefertoboththeCapitalFundandtheCashFund,andeachofthem.

SECTION3.2.InvestmentsoftheCapitalFund.TheTrusteesshallinvestandreinvesttheassetsofthat
part of the Trust Fund known as the Capital Fund in accordance with the standards set forth in this
instrumentandasrequiredbyapplicablelaw.

SECTION3.3.InvestmentsoftheCashFund.TheTrusteesshallreceive,maintainandinvestcashdeposits
onatemporarybasisintheCashFundinsuchawayastomeettheliquidityrequirementsofthevarious
systems,inaccordancewiththestandardssetforthinthisinstrumentandasrequiredbyapplicablelaw.To
theextentnotneededforcurrentorfutureliquidityrequirements,theTrusteesmayusefundscreditedto
the account of any system to purchase (on an appropriate Valuation Date) Units of Participation in the
CapitalFundoroneormoreseparateaccountsthereoffortheaccountofsuchsystem.

SECTION3.4SeparateAccountsoftheCapitalFund.ThebeneficialinterestintheCapitalFundmaybe
dividedintosuchseparateaccounts(Accounts)thereofastheTrusteesshallfromtimetotimecreateand
establish.TheTrusteesshallhavefullpowerandauthority,intheirsolediscretion,tocreateandestablish
(andtochangeinanymanner)anyAccount,toabolishanyoneormoreAccounts,andtotakesuchother
action with respect to any Accounts as the Trustees may deem desirable. Each Account established
hereunder shall be a separate component of the assets of the Capital Fund, and the holders of Units of
Participation representing the beneficial interest in the assets of that Account shall be considered Unit
HoldersofsuchAccount.WithoutlimitingtheauthorityoftheTrusteestoestablishanddesignatefurther
Accounts, there are hereby established and designated the following ten Accounts: General Allocation
Account(theinvestmentsinwhichmayconsistinwholeorinpartofUnitsofotherAccounts,otherthanthe
StateEmployeesandTeachersSeparateAccount),DomesticEquityAccount,InternationalEquityAccount,
FixedIncomeAccount,EmergingMarketsAccount,RealEstateAccount,RealEstateCoreProgramAccount,
Alternative Investment Account, Alternative Investments Vintage Year Account and State Employees and
Teachers Separate Account. Such Accounts, and any further Accounts which may from time to time be
establishedanddesignatedbytheTrustees,shallhavethefollowingattributes:

(a) Assets Belonging to an Account. Any portion of the Trust Fund allocated to a particular
Account,andalldepositsreceivedbytheTrustfortheacquisitionofUnitsofsuchAccount,together
with all assets in which such deposits are invested or reinvested, all interest, dividends, income,
earnings,profitsandgainstherefrom,andproceedsthereof,includinganyproceedsderivedfrom
the sale, exchange or liquidation of such assets, and any funds or payments derived from any
reinvestmentofsuchproceedsinwhateverformthesamemaybe,shallbeheldbytheTrusteesin
trust for the benefit of the holders of Units of Participation of that Account and shall irrevocably
belongtothatAccountforallpurposes,andshallbesorecordeduponthebooksofaccountforthe
TrustFund,andtheUnitHoldersofsuchAccountshallnothave,andshallbeconclusivelydeemedto

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have waived, any claims to the assets of any Account of which they are not Unit Holders. Such
deposits,assets,interest,dividends,income,earnings,profits,gainsandproceeds,togetherwithany
GeneralItemsallocatedtothatAccountasprovidedinthefollowingsentence,arehereinreferredto
collectively as Account Assets of such Account. In the event that there are any assets, income,
earnings, profits, and proceeds thereof, funds or payments which are not readily identifiable as
belongingtoanyparticularAccount(collectivelyGeneralItems),theTrusteesshallallocatesuch
GeneralItemstoandamonganyoneormoreoftheAccountsestablishedanddesignatedfromtime
totimeinsuchmannerandonsuchbasisasthey,intheirsolediscretion,deemfairandequitable;
and any General Items so allocated to a particular Account shall belong to and be part of the
AccountAssetsofthatAccount.EachsuchallocationbytheTrusteesshallbeconclusiveandbinding
forallpurposes.

(b)LiabilitiesofanAccount.TheassetsbelongingtoeachparticularAccountshallbecharged
with the liabilities in respect of that Account and all expenses, costs, charges and reserves
attributabletothatAccount,andanygeneralliabilities,expenses,costs,chargesorreservesofthe
Trust Fund which are not readily identifiable as pertaining to any particular Account shall be
allocatedandchargedbytheTrusteestoandamonganyoneormoreoftheAccountsestablished
anddesignatedfromtimetotimeinsuchmannerandonsuchbasisastheTrusteesintheirsole
discretion deem fair and equitable. Each allocation of liabilities, expenses, costs, charges and
reservesbytheTrusteesshallbeconclusiveandbindingforallpurposes.

ARTICLE4
PARTICIPATIONANDWITHDRAWAL

SECTION4.1.AcceptanceofDeposits.TheparticipationofanyParticipatingSystemorPurchasingSystem
intheTrustFundshallbesubjecttoalltheprovisionsofthisDeclarationofTrust.Alldepositsacceptedfrom
any such system or otherwise, together with the income therefrom, shall be held, managed and
administeredpursuanttothisDeclarationofTrust.

SECTION4.2.ConditionsofParticipation.ExceptwithrespecttotheStateEmployeesRetirementSystem
and the Teachers Retirement System, participation in or investment in the Trust Fund shall be upon the
followingtermsandconditions:

(a) On or before January l of each year, the Trustees shall notify each retirement system
authorizedtoparticipateintheTrustFundortopurchasesharesintheTrustFundofsuchsystems
options to participate or invest in the Trust Fund. Such notice shall be accompanied by the most
recent financial statement of the Trust Fund, a description of the rights and duties of PRIM if
participationorpurchaseiselectedandacopyofthisDeclarationofTrust.

(b) Any such retirement system may elect to participate by vote of its Board, subject to the
approvalofthelegislativebodyandchiefexecutiveofficeroftheapplicablegovernmentalunitin
accordancewiththeprovisionsofG.L.c.3222(8)(c).

(c) AfterthedecisionoftheBoardofaretirementsystemtoparticipatehasbeenapprovedand
suchsystemhasbecomeaParticipatingSystem,thedecisiontoparticipatemaynotberevokedfor
five(5)years.SuchrevocationshallbecomeeffectiveonthefirstValuationDatewhichoccurssix(6)
monthsafterPRIMreceivesnotificationofsuchBoardsdecision.

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(d) The Trustees shall accept deposits from Participating Systems to the Trust Fund on such
ValuationDatesasthisinstrumentsetsforthorastheTrusteesmaydetermine.

(e) TheTrusteesmayrequiresuchcertificationastheydeemacceptablethatalloftheassetsof
aParticipatingSystemhavebeentransferredintotheTrustFundinconformitywiththeprovisionsof
G.L.c.3222(8)(c).

(f) A retirement system that does not elect to become a Participating System may elect to
purchaseunitsofparticipationherein,byvoteofitsBoard.TheTrusteesshallacceptdepositsfrom
PurchasingSystemsonsuchdaysastheTrusteesmaydetermine.

SECTION4.3.AllocationofDeposits.DepositsfromPurchasingSystemsandfromParticipatingSystems
otherthantheStateEmployeesRetirementSystemandtheTeachersRetirementSystemshallbeallocated
tosuchAccountorAccountsotherthantheStateEmployeesandTeachersSeparateAccountasmaybe
designated by the Board of such Purchasing System or Participating System and in the absence of such a
designation shall be allocated to the General Allocation Account. The assets of the State Employees
RetirementSystemandTeachersRetirementSystemshallbeallocatedtosuchAccountorAccountsasthe
Trusteesmay,intheirsolediscretion,determine.

SECTION4.4.CommonwealthsPensionLiabilityFund.TheCommonwealthsPensionLiabilityFundshall
includeallassetsoftheStateEmployeesRetirementSystemandtheTeachersRetirementSystemexcept
for the Annuity Savings Fund, the Annuity Reserve Fund and the Expense Fund of each such system. The
Trustees shall account for the Commonwealths Pension Liability Fund as a portion of the PRIT Fund in
accordancewiththeprovisionsofG.L.c.3222(8)(e).

SECTION 4.5. Participation Based on Current Valuation. Each participation, purchase, redemption or
withdrawal shall be made upon the basis of the value of the Trust Fund and its Units of Participation,
determined as of a Valuation Date in the manner set forth in the following provisions of this instrument.
UnitsofParticipationshallbepurchasedbyParticipatingorPurchasingSystemsupondepositintheTrust
FundandshallberedeemedfromsuchsystemsuponwithdrawalfromtheTrustFund.

SECTION4.6.PaymentsuponIssueandRedemptionofUnitsofParticipation.

(a) On the payment by a Participating System or a Purchasing System in cash or in kind, or


partlyincashorpartlyinkind,tothesatisfactionofandinthediscretionoftheTrustees,intothe
TrustFundofanamountequaltothetotalvalueoftheUnitstobeissued,theTrusteesshallissueto
suchSystemUnitsofParticipation.

(b) UponredemptionofUnitsofParticipationbyaParticipatingSystemoraPurchasingSystem,
theTrusteesshallpaytosuchsystemanamountequaltothetotalvalueoftheUnitsredeemed.
SuchpaymentshallbeincashunlesstheTrustees,intheirdiscretion,determineitappropriateto
makepaymenttosuchsysteminkindorpartlyincashandpartlyinkindandunlesstheBoardof
suchsystemagreestoacceptPaymentinkindorpartlyincashandpartlyinkind.

SECTION4.7.ProcedureforRedemptionsandWithdrawals.

(a) TheBoardofeachParticipatingSystemotherthantheStateEmployeesRetirementSystem
andtheTeachersRetirementSystemshallnotifytheTrusteesoftheamountsneededforthefunds
ofsuchSystemforsuchSystemsnextfiscalyearnolaterthanninety(90)daysbeforethestartof

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thenextfiscalyear.TheTrusteesshalldevelopascheduleoftransferstobemadetosaidsystems
duringthenextfiscalyearandnotifythesystemsofthatschedulenolaterthanthirty(30)daysprior
tothestartofthenextfiscalyear.TheTrusteesshalltransfersuchamountsinaccordancewithsaid
scheduleduringthecourseofsaidfiscalyear.

(b) If any request is made by any such Board in excess of or as a supplement to the annual
amountreportedundersubparagraph(a)ofthisSection4.7,suchBoardshallcertifytotheTrustees
the purpose of such excess or supplemental request. The Trustees shall approve or deny such
requestwithinthirty(30)daysofreceiptofsuchrequest.Ifsuchrequestisapproved,distributionof
theamountrequestedshallbemadeonthenextValuationDateofthefundfromwhichwithdrawal
isbeingmade.TheTrusteesmaydenysuchrequestonlyif(i)(A)thereisinsufficientliquidityinthe
Trust Fund to meet such request and projected reasonable liquidity requirements and (B) the
amountofsuchrequest,addedtotheaggregateamountofsimilarsuchrequestsforthesameyear,
equalsmorethantenpercent(10%)oftheannualamountreportedundersubparagraph(a)ofthis
Section4.7or(ii)ifthepurposeofsuchdistributionwouldbecontrarytoanyprovisionofG.L.c.32.
NotwithstandingtheforegoingoranyotherprovisionofthisDeclarationofTrusttothecontrary,the
Trustees shall not be required to approve a request for a withdrawal from the Alternative
Investments Vintage Year Account unless and to the extent there has been a cash liquidation or
distributioninrespectofoneormoreassetsallocatedtosaidaccount.

(c) On or before December 15 of each year, in accordance with the provisions of


G.L.c.3222(7)(b),theStateBoardofRetirementandtheTeachersRetirementBoardshallcertifyto
the Trusteestheamountsnecessarytobedistributedandpaidfortheensuingfiscalyearforthe
PensionFundandtheSpecialFundforMilitaryServiceCreditoftheStateEmployeesRetirement
System and the Teachers Retirement System, respectively. All amounts required by each such
PensionFundandeachsuchSpecialFundforMilitaryServiceCreditshallbeprovidedbydistribution
fromtheCommonwealthsPensionLiabilityFund.

(d) TheBoardofeachPurchasingSystemmayfromtimetotimemakerequestsoftheTrustees
forpaymentsandwithdrawals.TheTrusteesshallapproveordenysuchrequestwithinthirty(30)
daysofreceiptofsuchrequest.Ifsuchrequestisapproved,distributionoftheamountrequested
shallbemadeonthenextValuationDateofthefundfromwhichwithdrawalisbeingmade.The
TrusteesmaydenysuchrequestonlyifthereisinsufficientliquidityintheTrustFundtomeetsuch
requestandprojectedreasonableliquidityrequirements.InthecaseoftheAlternativeInvestments
Vintage Year Account, the foregoing sentence shall be construed not to require the Trustees to
approve a withdrawal request unless and to the extent there has been a cash liquidation or
distributioninrespectofoneormoreassetsallocatedtosaidaccount.

ARTICLE5
UNITSOFPARTICIPATION;VALUATIONOFUNITS

SECTION5.1.DivisionIntoUnits.ThebeneficialinterestofeachParticipatingSystemandeachPurchasing
SystemintheCapitalandCashFundsoranyAccountestablishedhereundershallberepresentedbyUnits.
EachUnitofeachsuchFundorAccountshallbeofequalvaluetoeveryotherUnitofsuchFundorAccount,
and each Unit of each such Fund or Account shall be without priority or preference one over the other
exceptthatfollowingtheestablishmentofseparateAccountswithintheCapitalFundeachUnitoftheCapital
Fundwillnotbeofequalvalue,althougheachUnitofanyoneAccountshallalwaysbeofequalvaluetoall
otherUnitsofsuchAccount.TheTrusteesshallevidenceownershipofUnitsintheTrustFundbykeeping

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booksinwhichshallbeclearlyrecordedthenumberofUnitsofeachsuchFundorAccountstandingtothe
creditofeachParticipatingorPurchasingSystem.TheTrusteesshallnotissueanycertificatesofsuchUnits.
The Trustees may from time to time divide or combine Units of the Capital Fund or Cash Fund or any
Account,oranyofthem,intoagreaterorlessernumber,providedthattheproportionateinterestofeach
ParticipatingorPurchasingSystemineachsuchFundorAccountisnottherebychanged.Fractionalsharesof
Unitsmaybecreditedtoparticipantaccounts.

SECTION 5.2. Determination of Unit Values. On each prescribed Valuation Date (or each additional
Valuation Date designated by the Trustees) and, with respect to each Account established pursuant to
Section 3.4, on the effective date of the establishment of such Account, the Trustees shall determine the
valueoftheCapitalFundortheCashFundoranyAccount,oranyofthem,andtheUnitsofsuchFund,or
FundsorAccountsorAccountsinthemannerhereinafterdescribed.EachvaluationoftheCapitalFundor
anyAccountshallbecompletedassoonaspracticablefollowingeachValuationDate.Eachvaluationofthe
CashFundshallbecompletedpriortotheopeningoftheFundforadmissionsandwithdrawalsonthenext
ValuationDate.

ARTICLE6
CAPITALFUNDANDACCOUNTS;VALUATIONOFUNITS

SECTION 6.1. Valuation of Assets of the Capital Fund and each Account. The Trustees shall use the
followingmethodinthevaluationoftheassetsoftheCapitalFundandeachAccount:

(a) Securities listed on the New York Stock Exchange, the American Stock Exchange or other
securityexchangesorintheNationalAssociationofSecuritiesDealersAutomatedQuotationsystem
oranyothernationallyrecognizedsystemshallbevaluedattheirclosingsalepricesontheValuation
Date. If no sale has been reported for the Valuation Date, the last published sale or the mean
betweenthelastrecordedbidandaskedprices,whicheveristhemorerecent,shallbeused.Ifsuch
valueshallbeunavailableorifintheopinionoftheTrusteesthevaluethusobtainedmaynotfairly
indicatetheactualmarketvalue,thesecurityshallbevaluedasoftheValuationDatebyareputable
broker or investment banker selected by the Trustees. If fair market value is not readily
determinablebyanyofthesemeans,thevalueofsuchsecurityshallbedeterminedingoodfaithby
theTrustees.Unlistedsecuritiesshallbevaluedeitherbytakingthemeanbetweenthemostrecent
publishedbidandaskedprices,orbyaveragingquotationsasoftheValuationDateobtainedfrom
dealers, brokers or investment bankers approved by the Trustees or, if unavailable, by any other
reasonablemethodapprovedbytheTrusteesingoodfaith.

(b) Forthepurposeofsubparagraph(a)ofthisSection6.1,theTrusteesmayrely,assufficient
evidence,uponreportsofsaleandbidandaskedprices,andoverthecounterquotations,appearing
in any newspaper of general circulation published in Boston, Massachusetts, or in New YorkCity,
New York, or in any financial periodical or quotation service approved by the Trustees or in the
recordsofsecuritiesexchangesorbrokers.

(c) Asecuritypurchased,andawaitingpaymentagainstdelivery,shallbeincludedforvaluation
purposes as a security held, and the cash accounts of the Trust Fund shall be adjusted by the
deduction of the purchase price, including brokers commissions and other expenses of the
purchase.

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(d) Asecuritysoldbutnotdeliveredpendingreceiptofproceedsshallbevaluedatthenetsales
priceafterdeductingtradingcommissionsandotherexpensesofthesale.

SECTION 6.2. Valuation of Units of Participation of Capital Fund and Each Account. The value on any
Valuation Date of each unit of participation into which the Capital Fund, prior to the establishment of
separate Accounts, and each Account, after the establishment of separate Accounts, is divided, shall be
determinedbydividingthethenvalueofthenetassetsoftheCapitalFundandeachAccount,asthecase
maybe,(suchnetassetsbeingthevalueoftheassetsofsuchFundorAccountlesstheliabilitiesofsuchFund
orAccount)bythenumberofunitsintowhichtheCapitalFundandeachAccount,asthecasemaybe,is
thendivided.Indeterminingsaidunitvalues,thereshallbeincludedintheCapitalFundandeachAccount,as
thecasemaybe,unitstoberedeemedasofthatvaluationdate,andthereshallbeexcludedtherefromunits
tobeissuedasofthatdate.

ARTICLE7
CASHFUND;VALUATIONOFUNITS;
PROVISIONSREGARDINGCASHFUNDDISBURSEMENTS

SECTION7.1.ValuationofAssetsoftheCashFund.TheTrusteesshallusethefollowingmethodinthe
valuationoftheassetsoftheCashFund:

(a) Securitiesshallbevaluedattheiramortizedcost(whichshallmeanthegrosspriceatwhich
suchsecuritiesarepurchasedfortheCashFund,includingtraderscommissionsandallotherfees,
chargesandexpensesofsuchpurchase),whetherpurchasedatpar,atadiscountoratapremium.

(b) Asecuritypurchasedandawaitingpaymentagainstdeliveryshallbeincludedforvaluation
purposesasasecurityheld,andthecashaccountsoftheCashFundshallbeadjustedbydeducting
thepurchasepriceofsuchsecurity.

(c) Asecuritysoldbutnotdeliveredpendingreceiptofproceedsshallbevaluedatitssaleprice.

SECTION7.2.ValuationofUnitsofParticipationofCashFund.ThevalueonanyValuationDateofeach
UnitintowhichtheCashFundisdividedshallbedeterminedbydividingthethenvalueofthenetassetsof
theCashFund(suchnetassetsbeingthevalueoftheassetsofsuchFundlesstheliabilitiesofsuchFund)by
thenumberofunitsintowhichtheCashFundisthendivided.

SECTION7.3.DisbursementofNetIncomeofCashFund.Tofacilitatethedisbursementofaccruedbut
uncollectedincomerequiredtobecreditedtotheaccountsofandpaidouttoParticipatingorPurchasing
Systems, the cash principal of the Cash Fund may be used by the Trustees to the extent they deem
necessary, and if the equivalent of any such accrued but uncollected income shall be disbursed to a
ParticipatingorPurchasingSystemashereinrequired,andthereaftersuchaccruedincomeshallnotactually
be collected by the Trustees, the Trustees shall have the right to charge to and recover from each
ParticipatingorPurchasingSystemtheamountthereofdisbursedtosuchParticipatingorPurchasingSystem.

ARTICLE8
ALLOCATIONOFSTATEAPPROPRIATIONS

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SECTION8.1.StateAppropriations.Allamountswhichmaybeappropriatedpursuanttotheprovisionsof
G.L.c.3222BeachfiscalyearanddepositedtothePRITFundpursuanttotheprovisionsofG.L.c.3222(8)(b)
shall be allocated to and among the accounts of the State Employees Retirement System, the Teachers
RetirementSystemandtheotherParticipatingSystems(butnotanyPurchasingSystems)asprovidedinthis
Article8.

SECTION 8.2. Entitlement to Allocable Share. No Participating System shall be entitled to such an
allocationunlessitwasaParticipatingSystemonJuly1(orthefirstbusinessdayinJuly,asthecasemaybe)
ofthefiscalyearwithrespecttowhichsuchappropriationshallhavebeenmade.Exceptasprovidedinthe
nextsentence,allocationofsuchamountsamongsuchParticipatingSystemsshallbeproportionatetothe
fairmarketvalueoftheassetsoftheTrustFundcreditedtotheaccountofeachsuchParticipatingSystemas
ofsuchJuly1(orsuchfirstbusinessdayinJuly),providedthat,forpurposesofsuchallocation,theamountof
thecombinedassetsoftheStateEmployeesRetirementSystemandtheTeachersRetirementSystemshall
be deemed not to exceed One Billion Six Hundred Twentyfour Million Two Hundred Two Thousand Six
HundredandSeventyeightDollars($1,624,202,678).ParticipatingSystemswhichaccepttheprovisionsof
G.L.c.3222Dshallbeentitledtoanallocationequaltothegreaterof(i)theamountproducedbyapplication
oftheprecedingsentenceor(ii)theamountthesystemwouldbeentitledtobyapplicationofthepension
funding grant allocation provisions contained in G.L.c.3222D(4)(c), provided that any such Participating
SystemwhichelectedtoparticipateinthePRITFundonorbeforeJanuary1,1988shallbeentitledtoan
allocationequaltothesumoftheamountsdescribedinclauses(i)and(ii)above,andprovided,further,that
ParticipatingSystemsthatdidsoelecttoparticipateonorbeforesuchdateshallreceiveeitheranallocation
oftheappropriationdescribedinSection8.1orapensionfundinggrant,butnotboth.

SECTION 8.3. Time and Method of Allocation. Any amounts so appropriated and deposited with the
TrusteesduringthecourseofafiscalyearshallbeallocatedratablytotheaccountsofallsuchParticipating
SystemsuponreceiptbythecreditingofadditionalUnitsofParticipationtoeachsuchParticipatingSystem.

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ARTICLE9
RIGHTS,POWERSANDDUTIESOFTRUSTEES

SECTION 9.1. Management and Ownership of Assets. The Trustees shall have exclusive control and
managementoftheTrustFundhereunder.TitletoallassetsoftheTrustFundshallatalltimesbeconsidered
vestedintheTrusteesinafiduciarycapacity.NoParticipatingorPurchasingSystemshallbedeemedtohave
a severable ownership in any individual asset of the Trust Fund, but each such system shall have an
undividedinterestintheFundsandAccountstowhichitsdepositshavebeenallocatedandshallsharewith
theothersintheincome,profitsandlossesthereofasprovidedherein.

SECTION9.2.RightsandPowers.InexercisingitsexclusiverighttomanageandcontroltheTrustFund,
theTrusteesshallhavethefollowingrightsandpowers,ineachcasetobeexercisedorexercisablefromtime
totime,intheiruncontrolleddiscretion,withoutnoticetoanyParticipatingorPurchasingSystem:

(a) To retain indefinitely any investment made by them and any property, real or personal,
transferredtothembyanyParticipatingorPurchasingSystemandtoinvestandreinvestinstocks,
sharesandobligationsofcorporations,ofunincorporatedassociations(including,butnotlimitedto,
capitalinvestmentsinjointventuresandlimitedpartnerships),trustsandinvestmentcompanies,or
inacommontrustfund,orinanyotherkindofpersonal(tangibleorintangible)orrealproperty,
suchinvestmentstobeinsuchamounts,uponsuchtermsandofsuchcharacterastheTrusteesmay
deemadvisable;subject,however,totherestrictionsonanddirectionsconcerninginvestmentsset
forth in G.L.c.3223(2A)(h) and the fiduciary standards of care and prudence set forth in
G.L.c.3223(3);provided,however,thattheCashFundshallconsistprimarilyofmoneymarketfunds
orshorttermobligations,including,bywayofillustrationandnotoflimitation,bonds,bills,notes,
certificatesofdeposit,depositsatinterest,bankersacceptances,saleandrepurchaseagreements
and other evidences of indebtedness of the United States, instrumentalities of the United States,
statesorterritoriesoftheUnitedStatesandpoliticalsubdivisionsthereof(includingauthoritiesor
otherpublicentities)andcorporations;

(b) Subject to the provisions of G.L.c.3223(2A)(h), to lend money to such borrowers as the
Trusteesmaydeemdesirable;

(c) To buy, exchange, sell, give options and make contracts for such consideration and upon
suchtermsastocreditorotherwiseastheTrusteesmaydeemdesirable;

(d) To hold bonds, shares or other securities or property in bearer form orinthenameofa
nominee;

(e) Tosueandbesued,topleadandbeimpleadedandtocompromise,submittoarbitrationor
payanyclaimormatterofdifference;

(f) To maintain an office in the city of Boston in accordance with the provisions of
G.L.c.3223(2A)(j);

(g) To vote directly or to give general or special proxies or powers of attorney for voting or
acting with respect to shares or securities, which may be discretionary and with power of
substitution; to deposit shares or securities with, or transfer them to, protective committees or
similarbodies;tojoinin,voteuponandactinanymannerthattheTrusteesdeemappropriatewith

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respect to any reorganization, merger or consolidation; and to pay assessments or subscriptions


calledforinconnectionwithsharesorsecuritiesheldbythem;

(h) To employ investment counsel (on a discretionary or recommendation basis), custodians,


brokers,accountants,auditors,agentsandattorneys;

(i) To keep any or all of the trust property in any place or places in the Commonwealth of
Massachusettsorelsewhereorwithadepositoryorcustodianatanysuchplaceorplaces;

(j) To execute assignments, notes, contracts or otherinstrumentsinwriting,whetherornot


underseal,incidenttoanyoftheTrusteespowers;

(k) To combine part or all of the Trust Fund for investment purposes with other funds of (i)
plansthatmeettherequirementsofSection401(a)oftheInternalRevenueCode(Code)thatare
exemptfromtaxunderSection501(a)oftheCode,or(ii)governmentalplansdescribedinSection
414(d)oftheCodeorgovernmentalunitsdescribedinSection818(a)(6)oftheCode,andpermitted
by existing or future rulings under the Code to pool their respective funds in a group trust (the
provisionsofanysuchgrouptrustshallbedeemedapartofthisDeclarationofTrustwithrespectto
anysuchinvestmentorreinvestment);

(l) To accept and receive in trust, andcombinewiththeTrustFund,fundsfromanysource,


publicorprivate,bygift,grant,bequestorotherwise;and

(m)Todoallotheractsintheirjudgmentnecessaryordesirablefortheproperadministrationof
theTrustFundorwithrespecttotheinvestment,dispositionorliquidationofanyassetsoftheTrust
Fund,althoughthepowertodosuchactsisnotspecificallysetforthherein.

SECTION9.3.Expenses.TheTrusteesshallpayExpensesfromtheincomeoftheTrustFund.Expenses,in
the discretion of the Trustees, may be assessed against the assets of the Trust Fund as a percentage of
incomecollectedortheaggregatefairmarketvalueofallassetsmanagedhereunder,oranycombination
thereof.

SECTION 9.4. Trustees Compensation. Except as otherwise provided by law, the Trustees shall be
entitled to no compensation for management and supervision of the Trust Fund or for fulfilling their
responsibilities as Trustees hereunder, although they shall be reimbursed for their actual and necessary
expenses.

SECTION 9.5. Executive Director; Trust Staff and Employees. In accordance with the provisions of
G.L.c.3223(2A)(f),(g),theTrusteesshallemployanExecutiveDirectorwhoshallserveattheirpleasure.The
ExecutiveDirectorshall,withtheTrusteesapproval:

(a) plan, direct, coordinate and execute administrative and executive functions in conformity
withpoliciesanddirectivessetbytheTrustees;

(b) employprofessionalandclericalstaffasnecessary;

(c) reporttotheTrusteesonalloperationsunderhiscontrolandsupervision;

(d) prepareanannualbudgetforreviewbytheTrustees;and

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(e) undertakeanyotheractivitiesnecessarytoimplementthepoweranddutiesoftheTrustees
hereunder.

SECTION9.6.Books.TheTrusteesshallkeepfullrecordsandbooksofaccount.TheTrusteesaccounts
shallbekeptonanaccrualbasisoronacashbasis,intheTrusteesdiscretion,providedthatnochangein
accountingmethodshallbemadeduringthecourseofafiscalyear.

SECTION 9.7. Audit. The Trustees shall at least once each year cause an independent certified public
accountanttoaudittheTrustFund.AcopyofthereportofsuchauditshallbefurnishedtoeachParticipating
orPurchasingSystem.

SECTION9.8.StatementsandAccounts.TheTrusteesshallcausestatementsofassetsandtransactions
tobepreparedanddistributedtoeachParticipatingorPurchasingSystem.Annually,withinninety(90)days
afterthecloseoftheTrustFundsfiscalyear,theTrusteesshallfurnishawrittenaccountoftheoperationof
the Trust Fund for the preceding fiscal year to the Board of each Participating or Purchasing System. Any
Board to which an account of the Trustees is furnished may approve such account by an instrument in
writingdeliveredtotheTrustees.IfobjectionstospecificitemsinsuchaccountarefiledwiththeTrustees
withinsixty(60)daysaftertheaccounthasbeenfurnishedandtheTrusteesbelievesuchobjectionstobe
valid,theTrusteesmayadjusttheaccountinsuchmannerastheydeemequitableunderthecircumstances.
EachBoardtowhichtheTrusteesfurnishanaccountshallbenotifiedbytheTrusteesofanyadjustmentsso
made.If

(a) allBoardstowhichsuchaccountoftheTrusteesisfurnishedapprovesuchaccount,or

(b) no objections to specific items in such account are filed by any Board with the Trustees
withinsixty(60)daysaftertheaccounthasbeenfurnished,or

(c) objections to specified items in such account are filed with the Trustees within sixty (60)
daysaftertheaccounthasbeenfurnished,andtheTrusteesgivenonoticeofanyadjustmenttothe
accountwithinonehundredandfifty(150)daysaftersuchaccounthasbeenfurnished,

thenandinanyofsaidevents,theaccountoftheTrustees,withrespecttoallmatterscontainedtherein(as
originallyfurnishedifnoadjustmentwasmade,orasadjustedifanadjustmentwasmade),shallbedeemed
tohavebeenapprovedbyallParticipatingandPurchasingSystems.

SECTION 9.9. Annual Report. In addition to the statements and accounts described in Section9.8, the
Trustees shall annually, on or before May 1 (or such later date as may be set by the Public Employee
RetirementAdministrationCommission)filewiththeClerksoftheHouseofRepresentativesandtheSenate
andwiththesecretaryoftheBoardofeachParticipatingSystem,onaformprescribedbysaidCommission,a
swornstatementofthefinancialconditionoftheTrustFundasofDecember31ofthepreviousyear.

SECTION 9.10. Fiduciary Bonds. No bond, surety or security shall be required of any Trustee or any
employeeoftheTrustFundunlesstheTrustees,intheirsolediscretion,determinebondingofanyemployee
tobeappropriate.

SECTION9.11.TrusteeLiability.NoTrusteeshallbeliableforanyactoromissionofanyotherTrustee.
Each Trustee shall be liable only for his own breaches of fiduciary duty, acts of willful dishonesty and
intentionalviolationsoflaw.

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SECTION9.12.ThirdParties.NoonedealingwiththeTrusteeshereunderneedinquireintothevalidityof
anything the Trustees may purport to do or need see to the application of any money paid or property
transferredtoorupontheorderoftheTrustees.

SECTION9.13.ActionbyMajority.InaccordancewiththeprovisionsofG.L.c.30A11A1/2,amajorityof
theTrusteesmayact.

SECTION9.14.TrusteesDiscretion.WhenevertheTrusteesaregivendiscretion,suchdiscretionshallbe
exercisedandexercisablesolelybythemandshallnotbesubjecttocontrol,whetherornottheparticular
provisionprovidingforsuchdiscretionsostates.

SECTION9.15.FiduciaryStandardsforAction.InaccordancewiththeprovisionsofG.L.c.3223(3),the
TrusteesshalldischargetheirdutiesfortheexclusivepurposeofprovidingbenefitstotheParticipatingor
PurchasingSystems(andtherebytosuchsystemsmembersandbeneficiaries)withthecare,skill,prudence
and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and
familiarwithsuchmatterswoulduseintheconductofanenterpriseoflikecharacterandwithlikeaimsand
bydiversifyingtheinvestmentsoftheTrustFundsoastominimizetheriskoflargelossesunlessunderthe
circumstancesitisclearlyprudentnottodoso.

SECTION9.16.FiduciaryStandardsforSelectionofInvestmentCounsel.TheTrusteesshall,tothebestof
their ability and in a manner consistent with sound investment policy, engage as investment counsel
individualsorfirmswhosubscribetoacodeofprofessionalethicssuchasTheInstituteofCharteredFinancial
AnalystsCodeofEthicsandStandardsofProfessionalConduct.

SECTION 9.17. Conduct of Trustees. The provisions of G.L.c.268A relating to the conduct of public
employeesshallapplytoeachoftheTrustees.InaccordancewiththeprovisionsofG.L.c.3223(2A)(b),with
respecttoinvestmentsmadebytheTrustees,therequirementsofG.L.c.268Ashallbemetifthefollowing
procedure is complied with. If any Trustee has an interest or involvement in any investment which the
Trusteesproposetomake,thentheTrusteesmaymakesuchinvestmentif:

(a) suchTrusteediscloseshisinterestorinvolvementinadvancetotheotherTrustees;

(b) suchdisclosureiscontemporaneouslyrecordedintheminutesoftheTrustees;and

(c) such Trustee abstains from participating in any particular matter (as defined in
G.L.c.268A1)relatingtosuchinvestment.

ARTICLE10
AMENDMENT

SECTION10.1.Amendments.ThisDeclarationofTrustmaybeamendedfromtimetotimebyawritten
instrument signed and approved by a majority of the Trustees and filed with the Clerks of the House of
RepresentativesandtheSenate,subjecttotheapprovaloftheCommitteeonPublicServiceinaccordance
withtheprovisionsofG.L.c.3223(2A)(e)(i).NoticeofanysuchamendmentshallbefurnishedtotheBoardof
eachParticipatingandPurchasingSystemassoonaspracticable.

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ARTICLE11
MISCELLANEOUSPROVISIONS

SECTION11.1.AgentforProcess.TheTrusteesshallbedeemedtorepresentallpersons,naturalorlegal,
havinganinterestintheTrustFundforthepurposeofalljudicialproceedingsaffectingtheTrustFundorany
assetthereof,andonlytheTrusteesneedbemadeapartytoanysuchaction.TheTrusteesshallgivenotice
totheAttorneyGeneraloftheCommonwealthofanysuchproceedings.

SECTION11.2.DefinitionofWords.Feminineorneuterprovisionsshallbesubstitutedforthoseofthe
masculine form, and the plural shall be substituted for the singular, or vice versa, in any place or places
hereinwherethecontextmayrequiresuchsubstitutionorsubstitutions.

SECTION 11.3. Headings. Any paragraph or clause headings used throughout this instrument and any
amendment to this instrument are for convenience and reference only, and the words contained therein
shallinnowaybeheldtoexplain,modify,amplifyoraidintheinterpretation,constructionormeaningofthe
provisionsofthisinstrumentoranyamendmenttothisinstrument.

SECTION 11.4. Records. The Trustees acknowledge that the trust is a public trust, and through the
ExecutiveDirectorandhisdesigneestheTrusteesshallkeepaccurateanddetailedrecordsofitstransactions
hereunder,andallitsaccounts,booksandrecordsrelatingtheretoshallbeopenatallreasonabletimesto
publicinspection(subjecttoprovisionsofG.L.c.66A).

SECTION11.5.EffectiveDate;AmendmentofPriorTrustAgreement.ThisDeclarationofTrustshallbe
effective upon its approval by the Committee on Public Service in accordance with the provisions of
G.L.c.3223(2A)(e)(i).ThisDeclarationofTrustshallconstituteanamendmentandcompleterestatementof,
anduponsuchapprovalshallsupersede,thatcertainDeclarationofTrustmadeonSeptember17,1996by
Joseph D. Malone, John J. McGlynn, James B. G. Hearty, Daniel ONeil, Joseph DeLorey, Glenn Johnson,
RobertBrousseauandRalphWhite,thethendulyauthorizedandactingmembersofPRIM.

INWITNESSWHEREOF,theundersignedTrusteeshaveexecutedthisinstrumentasofthe22ndday
ofSeptember,1998.

/s/JosephD.Malone,
/s/GlennJohnson,
/s/AngeloA.Amato,
/s/RobertBrousseau,
/s/JamesB.G.Hearty,
/s/GeorgeF.McSherry,
/s/VikkiL.Pryor
/s/RalphWhite

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EXHIBITE
PRIMandPERACDisclosureForms

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(Thispageintentionallyleftblank.)

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COMMONWEALTHOFMASSACHUSETTS
PENSIONRESERVESINVESTMENTMANAGEMENTBOARD

DISCLOSURESTATEMENT

FIRM: _________________________
ADDRESS: _________________________
_________________________
_________________________

Firmsseekingtoprovideinvestmentmanagementorconsultingservices(theengagement)
to the Commonwealth of Massachusetts Pension Reserves Investment Management Board
(PRIM)mustcompleteadisclosurestatementprovidingcompleteandaccurateresponsesto
the questions below. Firms selected to provide investment management or consulting
services to PRIM have a continuing obligation to update responses to these questions, in
writing, immediately upon any change to such responses. The questions in this Disclosure
Statementshouldbereadbroad,andanyperceivedambiguityshouldberesolvedinfavorof
disclosure.AnyquestionsconcerningthedisclosuresrequiredshouldbedirectedtothePRIM
BoardsExecutiveDirector.

1. Describe in detail your firms organization structure, and identify any controlling
stockholders, parents, subsidiaries, affiliates, partners, general partners, or principals (all
suchindividualsorentitieshereinaftercollectivelyreferredtoasthefirm.)

2. Identify any relationship of the firm, its joint ventures, consultants, lobbyists,
subcontractors,agents,orplacementagentsthatrelateinanywaytotheengagement.

3. Asidefromtheengagement,describeanyservicesprovidedbythefirmtoPRIM.

4. Aside from the services described in response to question no. 3, above, describe any
servicesprovidedbythefirmtotheOfficeoftheTreasureroranytrust,board,commission
or authority of which the Treasurer is a member or trustee. (A list of such entities is
attached.)

5. Asidefromtheservicesdescribedinresponsetoquestionnos.3and4,above,describeany
servicesprovidedbythefirmtotheCommonwealthofMassachusettsoranyofitspolitical
subdivisions.

6. Didorwillthefirmprovideorshare,agreetoprovideorshare,orarrangetoprovideor
share any compensation or benefit, direct or indirect, to any individual or entity for
assistingthefirmin:

a) obtainingtheengagement;or,

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b) performingtheservicesrequiredbytheengagement.

Iftheanswertoquestionno.6isyes,provideforeachtheindividualorentity

a) thenameandaddressofsuchindividualorentity;
b) adescriptionoftheassistanceprovided;and
c) thecompensationorbenefit.

7. Does the firm have any ongoing relationship, arrangement or agreement with any
individualorentitywithrespecttosharingcompensationforservicesto:

a) PRIM;
b) any trust, board, commission, or authority of which the Treasurer is a member or
trustee;or
c) Massachusettsoritspoliticalsubdivisions?

Iftheanswertoquestionno.7isyes,provideforeachsuchindividualorentity

a) thenameandaddressofsuchindividualorentity;
b) adescriptionoftherelationship,arrangementoragreement;and,
c) thecompensationshared.

Signedunderthepainsandpenaltiesofperjuryonthisdayof_______________,2012.

Name:

Title:

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TreasurersPrincipalBoards,CommissionsandAuthorities

1) FinanceAdvisoryBoardM.G.L.c.6,s978

2) StateComptrollersAdvisoryBoardM.G.L.c.5A,s2

3) InvestmentAdvisoryCouncilM.G.L.c.10,s5B

4) StateRetirementBoardM.G.L.c.10,s18

5) StateLotteryCommissionM.G.L.c.10,s23

6) EmergencyFinanceBoardM.G.L.c.10,s47

7) BoardofBankIncorporationM.G.L.c.26,s5

8) WaterPollutionAbatementTrustM.G.L.c.29,s2

9) PensionReservesInvestmentManagementM.G.L.c.32,s23(2A)

10) MassachusettsConventionCenterAuthorityChapter190oftheActsof1982ss3148



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PERACDisclosure

PleaseobtainthePERACdisclosureformatthefollowingwebsite,fillitout,andsubmit
togetherwiththeCOMMONWEALTHOFMASSACHUSETTSPENSIONRESERVESINVESTMENT
MANAGEMENTBOARDdisclosureform:
http://www.mass.gov/perac/forms/0803disclosurestatementconsultants.pdf

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EXHIBITF
PortfolioDataRequestsSpreadsheet

Exhibit F

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EXHIBITG

SampleInvestmentManagementAgreement

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INVESTMENTMANAGEMENTAGREEMENT

THIS AGREEMENT, dated as of [date], is made by and between the Pension Reserves Investment
Management Board ("PRIM"), as trustee of the Pension Reserves Investment Trust (PRIT), and
[manager](the"Manager").

Introduction. Under Massachusetts General Laws, Chapter 32, Section 23, PRIM has general
supervisionoftheinvestmentandreinvestmentofthePRITFundcreatedbyChapter32,Section22of
suchlaws.PRIThasbeenestablishedforthepurposeofdepositing,investinganddisbursingamounts
set aside to meet further liabilities of various public retirement systems in Massachusetts. PRIM is
responsible for the administration of PRIT and enters into this Agreement appointing the Manager as
investment manager of certain assets of PRIT pursuant to its authority under Massachusetts General
Laws,Chapter32,Section23,subdivision(2A),paragraph(e),clause(iii).

1. AppointmentoftheManagerasInvestmentManager.PRIMherebyappointsandretainsthe
Manager, and the Manager agrees to serve as investment manager, upon and subject to the terms
hereof, beginning at the opening of business on [date] (the Effective Date) and continuing until this
Agreement is terminated in accordance with the terms hereof. The Manager hereby accepts
appointment as such investment manager and agrees to provide services in accordance with (a) this
Agreement,and(b)theinvestmentobjectivesandinvestmentguidelinessetforthinScheduleAhereto
(the Investment Objectives and Guidelines). The Investment Objectives and Guidelines may be
modifiedfromtimetotimebyPRIM,uponatleastthirty(30)dayspriorwrittennoticetotheManager.
Subjecttosuchpolicies,theManagershalluseitsbesteffortstoincreasethevalueoftheAccountby
causingtheassetsintheAccounttobeinvestedandreinvestedfromtimetotime.

2. TheAccount. The responsibilities and duties of theManagerarelimitedtotheassetsofthe


accountdesignatedbyPRIM(the"Account"),whichassetswillbeonlyaportionoftheassetsofPRIT.
Fromtimetotime,PRIMmaytransferotherassetsofPRITtotheAccountorwithdrawanyassetsfrom
the Account upon written notice to the Manager. Nothing in this Agreement will constitute a
commitment by PRIM to maintain any minimum amount of assets in the Account. The Manager also
shallfurnishtoPRIMnecessaryassistanceinthepreparationofallreportsrelatingtotheAccountnow
orhereafterrequiredbyapplicablelaw.

3. InvestmentObjectivesandGuidelines.TheManagerwillhavefullresponsibilitytoinvestand
reinvest the Account, principally in marketable small/mid (SMID) cap domestic equity securities in
accordancewiththeInvestmentObjectivesandGuidelines,andincompliancewiththeOperatingTrust
ofPRIMandallapplicablelawsandregulations.

4. DiscretionaryAuthority.TheManagershallhaveonlythosepowerssetforthintheOperating
TrustofthePensionReservesInvestmentManagementBoard,asamended,whichpowersareexplicitly
grantedtotheManagerbyPRIMinthisAgreementand,withrespecttotheassetsoftheAccount,all
powers which are not so granted shall be exercised only by PRIM. Pursuant to Section 9.2(h) of the
OperatingTrust,PRIMauthorizestheManagertoinvesttheAccountinaccordancewiththeInvestment
Objectives and Investment Guidelines set forth in Schedule A. PRIM reserves the right to control and
investallcashbalancesthatmayexistintheAccount,andtheCustodian(asdefinedinSection6)will
informPRIMastotheneedfororavailabilityofcashasaresultofsecuritiestransactions.Incarrying
out its responsibilities as investment manager, and subject to this Section 4, and the Investment
ObjectivesandGuidelines,theManagerwillhavefullandcompletediscretiontodirectandmanagethe

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investmentandreinvestmentofassetsintheAccountwithfullandexclusivepowerandauthority(a)to
buy,sell,exchange,convertandotherwisetradeinanysecuritiesastheManagermayselectand(b)to
establish and maintain and deal through accounts with one or more securities brokerage firms as the
Managermayselect.Inmakingallsuchselections,theManagerwill,bearinginmindthebestinterests
oftheAccount,useitsbesteffortstoobtainfortheAccountthemostfavorablenetpriceandexecution
available.PRIMreservestherighttospecifythatanypartofthesecuritiestransactionsfortheAccount
be directed by the Manager to securities brokerage firms that meet requirements or participate in
programs or initiatives specified by PRIM. Consistent with Massachusetts General Laws, Chapter 32,
Section 23, subdivision (2A)(h), in selecting brokerage firms, the Manager will use its best efforts to
benefitandexpandtheeconomicclimateoftheCommonwealthofMassachusetts,includingbyutilizing
brokeragefirmswithintheCommonwealth,solongasthisisconsistentwithitsdutiesandobligations
hereunder.

5. Confidentiality. The Manager will maintain in strictest confidence the investment advice and
informationitfurnishestoorreceivesfromPRIMortheCustodian(asdefinedinSection6)inconnection
with this Agreement; provided, however, that the Manager will be permitted to disclose or
communicatetoaproperpartyanyinformationreceivedfromPRIMortheCustodianordevelopedby
the Manager under the terms of this Agreement, if such disclosure or communication is necessary to
carry out the purposes of this Agreement or is required by law. Before such disclosure or
communication, the Manager, unless prohibited by law, will notify PRIM of the information to be
disclosedorcommunicatedandthepartytowhomthatinformationwillbedisclosedorcommunicated.
The terms of this paragraph shall not be interpreted so as to prevent the Manager from providing
investment advice to other clients who share comparable investment objectives with PRIM, or to
prohibittheManagerfromutilizingtheManagersinvestmentexperienceorperformancewithrespect
totheAccountonanundisclosedbasisforuseincompositeperformancepresentations.TheManager
hereby approves of periodic reports by PRIM and its staff of the Managers investment program and
investment results hereunder, recognizing that such reports may be public records available to the
mediaandthepublic.

6. Custody of Account Assets. PRIM has entered into an Agreement with BNY Mellon to act as
custodianforallassetsofPRITbeingmanagedbyinvestmentmanagers,includingwithoutlimitationany
cashwhichmaybeintheAccountfromtimetotime,andnoassetsoftheAccountmaybedeliveredor
paidtotheManager.Theentityservingassuchcustodianfromtimetotimeishereinreferredtoasthe
Custodian. The Manager will furnish to the Custodian, with a copy to PRIM, a list of the Managers
personnelwhoareauthorizedtogiveinstructionstotheCustodianwithrespecttotheAccount,andwill
forthwithuponanychangeinsuchpersonnelfurnishanamendedlisttotheCustodian,withacopyto
PRIM.TheCustodianwillmaintainseparaterecordsfortheAccount,andtheManageragreestofurnish
totheCustodianallinformationreasonablynecessarytomaintainsuchrecords.TheManagershallhave
noresponsibilityorliabilitywithrespecttotheacts,omissionsorotherconductoftheCustodian.PRIM
reservestherighttochangetheCustodianuponthirty(30)daysnoticetotheManager.

7. StatementofAccount;Valuation;Reports.TheManagershallkeepfullandcompleterecordsof
alltransactionswithrespecttotheAccountandwill,attheendofeachmonthduringthetermofthis
Agreement,renderastatementthereoftoPRIMtogetherwithaportfolioanalysisoftheAccountand
performancecomparisonsrelatedthereto,andalistingofapplicabletransactioncostsincludingbrokers
usedandcommissionspaid,ifany,tobrokersandtheaveragecentsperunitfortrades.TheManager
shallalsofurnishtoPRIMsuchadditionalreportswithrespecttotheAccountasPRIMshallreasonably
request from time to time, including the information set forth in Schedule C hereto (Investment

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Manager Compliance reports). On a monthly basis, no later than the seventh business day, the
ManagershallalsodelivertotheCustodianareportofalltransactionsintheAccountduringtheprior
monthandalistingofeachinvestmentintheportfolioanditsnetassetvalueattheendofsaidmonth.
The Manager shall also from time to time, but no less than semiannually, attend meetings (which, in
PRIMs sole discretion, may be by telephone conference) with PRIM to discuss the Account and the
investmentoutlook.

PRIM shall cause the Custodian to provide the Manager with an appraisal of the assets in the
Accountasofthelastbusinessortradingdayofeachmonth,togetherwithatransactionstatementfor
the month listing all transactions occurring during the month as well as opening and closing cash
balances. This statement will be rendered on a trade date basis and include any accrued income
calculations.TheManagershallberesponsibleforreconciliationoftheAccountwiththeCustodianona
monthlybasis,andshallpromptlynotifyPRIMofallunresolvedmaterialdifferences.

The Manager shall promptly notify PRIM in writing (1) of any change in the Managers
representations in this Agreement during the term of this Agreement; (2) of any change in the senior
management and key investment professionals, or material changes in ownership of the Managers
organization; (3) of any change in the senior portfolio management team of the Account; (4) of any
change in approach to the management of the Account; (5) of any other material change in the
Managersbusinessactivitiesorcircumstances,includingchangesaffectingtheManagersequitycapital;
(6)ofanyactiontakenbytheManagerthatiscontrarytoorinconsistentwiththisAgreement,including
the Investment Objectives and Investment Guidelines set forth in Schedule A; and (7) of the
commencement by any governmental regulatory or law enforcement agency of any investigation,
examinationorotherproceedingdirectlyinvolvingtheManager,itsowners,oremployees,exceptsuch
investigations,examinationsorotherproceedingsasareroutinelyconductedintheordinarycourseof
theManagersbusiness.

8. Fees and Expenses. The Manager will be entitled to receive from PRIM as complete
compensation for services rendered hereunder the fees set forth in Schedule B hereto. The Fee
Schedulemaybemodifiedbymutualagreementofthepartiesinwriting.SuchfeeswillbepaidbyPRIM
atthetimesandinthemannerspecifiedintheFeeSchedule,andwillbeproratedfromtheEffective
Date.TheManagerwillnotbepaidorreimbursedforanyexpensesexcepttotheextentpermittedby
PRIMinwriting.IntheeventthattheManagercurrentlyoratanytimeduringthecontinuationofthis
Agreementperformssimilarservicesforotherclientswithasimilardollarlevelofassetsataloweror
morefavorablefeeschedule,theManagerwillpromptlynotifyPRIMofsucharrangement.

9. ServicesNotExclusive.TheservicesoftheManageranditspersonneltobeprovidedunderthis
Agreement are not exclusive, and the Manager may provide services to others and engage in other
activities,buttheManagerwillallocatesuchpersonnelanddevotesucheffortsasarenecessaryforitto
carry out its duties under this Agreement. The Manager may give advice and take action in the
performanceofitsdutieswithrespecttoanyofitsclientswhichmaydifferfromtheadvicegiven,orthe
timingornatureofactiontaken,withrespecttotheAccount,solongastheManageradherestoapolicy
ofallocatinginvestmentopportunitiestotheAccountoveraperiodoftimeonafairandequitablebasis
relative to other clients. NothinginthisAgreementshallimposeupontheManageranyobligationto
purchaseorsellfortheAccountanysecurityorotherpropertywhichtheManagerpurchasesorsellsfor
itsownaccountortheaccountofanyotherclientif,intheopinionoftheManager,suchtransactionor
investmentappearsunsuitable,impracticableorundesirablefortheAccount.

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10. Procedures.Alltransactionswillbeconsummatedbypaymentto,ordeliveryby,PRIM,orsuch
otherpartyasPRIMshallhavedesignatedinwritingastheCustodian.InstructionsoftheManagerto
PRIM and/or the Custodian will be made in writing (or by such electronic means as the Manager and
PRIMand/ortheCustodianmayestablishandmaintainfromtimetotime).TheManagerwillinstructall
brokersordealersexecutingordersonbehalfoftheAccounttoforwardtoPRIMand/ortheCustodian
copiesofallbrokerageconfirmationspromptlyafterexecutionoftransactions.TheManagershallhave
fullandcompletediscretiontoestablishaccountswithoneormoresecuritiesbrokersastheManager
may select. The Manager shall not be responsible for any acts or omissions by any such broker or
brokers,orthirdparties.TheManagerisherebyauthorizedtocombineordersonbehalfoftheAccount
withordersonbehalfofotherclientsoftheManager.AssetforthinSection4,theManagerwilluseits
besteffortstoobtainthemostfavorablenetpriceandexecutionavailableonsecuritiestradedforthe
Account.

11. PersonsAuthorizedtoActfortheManager.TheManagerwillfromtimetotimecertifytoPRIM
thenameofthepersonorpersonsauthorizedtoactonitsbehalfandwillgivePRIMaspecimenofhisor
their signatures. Any person so certified will be an authorized representative of the Manager for
purposesofthisAgreementandhisauthoritytoactonbehalfoftheManagerwillcontinueuntilnotice
tothecontraryisgivenbytheManagerandreceivedbyPRIM.

12. Persons Authorized to Act for PRIM. PRIM may from time to time designate any person or
persons to act on its behalf in giving instructions, directions, notices or other communications to the
ManagerandwillcertifythenameofsuchpersonorpersonstotheManagerandgivetheManagera
specimen of his or their signatures. The authority of any such person to act on behalf of PRIM will
continueuntilnoticetothecontraryisgivenbyPRIMandreceivedbytheManager.Alloralinstructions
shallbepromptlyconfirmedinwriting.

13. Proxies. PRIM will vote all proxies for securities held in the Account. The Manager shall, in
conjunctionwithPRIMandtheCustodian,developprocedurestofacilitatethetimelyexercisebyPRIM
oftheserights.

14. Representations by the Manager. The Manager represents and warrants that it is registered
and in good standing as an investment adviser pursuant to the Investment Advisers Act of 1940, as
amended, and that it has completed, obtained or performed all other registrations, filings, approvals,
authorizations,consentsorexaminationsrequiredbyanygovernmentorgovernmentalauthorityforthe
performanceoftheactscontemplatedbythisAgreement.TheManagerwilldeliverdocumentationof
such compliance annually or as PRIM may reasonably request. PRIM acknowledges receipt of Parts I
andIIoftheManagersFormADV,andtheManager'sDisclosureStatement,asrequiredbyRule2043
undertheInvestmentAdvisersActof1940,notlessthan48hourspriortothedateofexecutionofthis
Agreement.

15. Termination.ThisAgreementmaybeterminatedatanytimebyPRIMuponwrittennoticeto
the Manager of such termination, and by the Manager upon thirty days written notice to PRIM,
effective as of the date set forth in such notice. Any termination of this Agreement shall be without
paymentofanypenaltybyPRIM.

A pro rata determination of fees, if appropriate, will be made for any quarter in which this
Agreementhasbeenterminated.Anyperformancefeeowedbutstilldueattimeofterminationwillbe

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paidovertheremainingtimeandinaccordancewiththeestablishedpayoutscheduleasprovidedforin
ScheduleB.

PRIMmayalsoatanytimewithoutpriornoticedirecttheManagertoceaseactivitywithrespectto
theAccount,provided,however,thatalltradesexecutedbutnotsettledpriortosuchdirectionshallbe
settled.UponterminationtheManagershallcooperatewithPRIMtotransferthesecuritiesandother
assetsintheAccountandontheeffectivedateoftheterminationofthisAgreementorasclosetosuch
dateasisreasonablypossible,theManagershallprovidePRIMwithafinalreportcontainingthesame
informationasprovidedinthemonthlyreportsprovidedpursuanttoSection7.

16. FiduciaryStatusoftheManager;Chapter268A.Withrespecttotheperformanceofitsduties
andresponsibilitieshereunderfortheAccount,theManageracknowledgesthatitisa"fiduciary"within
themeaningofChapter32oftheMassachusettsGeneralLaws.TheManagerwilldischargeitsduties
and responsibilities under this Agreement in accordance with the fiduciary standards of conduct and
other requirements as they apply to the Manager. The Manager is advised of the existence of
Massachusetts General Laws, Chapter 268A (the Massachusetts "Conflict of Interest" statute), and is
expectedtoactandperformitsdutiesinaccordancewithsuchprovisions.TheManageracknowledges
thatPRIMhasdeliveredacopyofChapters32and268AoftheMassachusettsGeneralLawsascurrently
ineffecttotheManager.

17.Liability.TheManagershallnotbeliablefortheselectionoftheInvestmentObjectives
andGuidelinesbutshallberesponsibleforthemanagementoftheAccountinaccordancetherewithand
withsuchotherinstructionsasPRIMmayprovidefromtimetotime.Inadditiontothoserequirements
set forth in Section 16, at all times the Manager shall exercise the care, skill, prudence, and diligence
underthecircumstancesthenprevailingthataprudentexpertactinginalikecapacityandfamiliarwith
such matters would use in the conduct of an enterprise of like character and with like aims. The
ManagershallhavenoresponsibilitywhatsoeverforthemanagementofanyotherassetsofPRITand
the Manager shall have no duty, responsibility, or liability in connection with the operation or the
administrationofPRIT.TheManagershallnotbesubjecttoliabilityforanyact,omissionormistakeof
judgmentinthecourseof,orconnectedwith,theperformanceofitsresponsibilitieshereunder,except
for its own negligence, willful misconduct or lack of good faith. Nothing herein shall be construed to
waiveanyliabilitythattheManagerhasunderapplicablefederalorstatesecuritieslaws,orERISA.No
obligationoftheManager,underthisAgreementorotherwise,shallbebindingpersonallyuponanyof
the shareholders, officers, agents, employees or trustees of any trust which the Manager may have
established.

18. Authority. Each of the parties to this Agreement represents that it is duly authorized and
empowered to execute, deliver and perform this Agreement, that such action does not materially
conflict with or violate any provision of law, rule or regulation, contract, deed of trust, or other
instrumenttowhichitisapartyortowhichanyofitspropertyissubject,andthatthisAgreementisa
validandbindingobligation,enforceableagainstsuchpartyinaccordancewithitsterms.

19. Bonding.TheManageragreestomaintainduringthetermofthisAgreementanyfidelitybond
withrespecttotheassetsoftheAccountwhichitwouldhavetomaintaintosatisfySection412ofERISA
andtheregulationsthereunderifPRIMorPRITweresubjecttothetermsofERISA.

20. Soft Dollar and Other Arrangements. On an ongoing basis not less than annually, the
ManagerwillidentifyandprovideawrittendescriptiontoPRIMofallsoftdollararrangementsthatit

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maintains with respect to the Account or with brokers or dealers which execute transactions for the
Account. Prior to the commencement of the active management of the Account, and periodically
thereafter,butnolessoftenthanannually,theManagershallprovidePRIMwithawrittendescriptionof
allarrangementswiththirdpartiesandotherindividuals,entities,brokersormoneymanagementfirms
who have or may receive or share in the payment of fees for services in connection with securing or
continuingthisAgreement.

21. Confirmations. The Manager will arrange to have brokers who effect transactions for the
AccountsendtotheCustodianconfirmationsofpurchasesandsales.UponwrittenrequestofPRIM,the
Manager will arrange to have copies of any of the foregoing sent to any other persons designated by
PRIM.

22. Communication. Any approvals, instructions, directions, notices or other communications


(other than oral instructions described in Section 12) pursuant to this Agreement will be mailed or
delivered:

a) toPRIMat:

PensionReservesInvestmentManagementBoard
84StateStreet,Suite250
Boston,Massachusetts02109
Attention:MichaelG.Trotsky,CFA,ExecutiveDirector


b) totheManagerat:

[manager]

c) totheCustodianat:

BNYMellon
135SantilliHighway
AIM0260313
Everett,MA02149

Eitherpartymaychangetheaddressfornoticesorothercommunicationstoitbywrittennoticeto
the other stating the new address. PRIM may change the name and address for notices or other
communicationstotheCustodianbywrittennoticetotheManager.Noticesfromeitherpartytothe
otherwillbeeffectivewhenreceivedbytheaddressee.

23. Assignment,etc.TheManagerwillnotassignthisAgreementwithoutthepriorwrittenconsent
of PRIM. This Agreement constitutes the entire Agreement of the parties with respect to its subject
matterandmayonlybeamendedbyawrittenamendmentsignedbybothparties.

24. Headings;Attachments.Headingsareforconvenienceonly,andthetextofthisAgreementwill
governtherightsandobligationsoftheparties.EachoftheAttachmentsheretoisincorporatedherein
byreference.CapitalizeditemsusedhereinhavethesamemeaningsasinthisAgreement.

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25.DisputedMatters.WithrespecttoanycontroversyordisputearisingoutofthisAgreement,
interpretationofanyoftheprovisionshereof,ortheactionsoftheManagerorPRIMhereunder,eachof
the parties consents to the nonexclusive jurisdiction of all of the federal and state courts in the
CommonwealthofMassachusetts,agreesthatvenuewithrespecttoanyactioninsuchCommonwealth
shalllieexclusivelyinSuffolkCounty,Massachusetts,andwaivesanydefenseofforumnonconveniens;
provided,however,thatatthesoleelectionofPRIM,anysuchcontroversyordisputeshallbesubmitted
toarbitrationbeforetheAmericanArbitrationAssociationundertheCommercialArbitrationRulesthen
obtainingofsaidAssociation,sucharbitrationtobeheldinBoston,Massachusetts,andjudgmentupon
anyawardthusobtainedmaybeenteredinanycourthavingjurisdictionthereof.Inanysucharbitration
each party to the arbitration shall bear its own expenses, including expenses of attorneys, financial
expertsandotherwitnesses;anyarbitrationfeesandexpensesofthearbitratorsshallbedividedequally
betweenthedisputingparties.Serviceofprocessoneitherpartyshallbedeemedeffectiveifmadein
themannerprescribedforthegivingofnoticeinSection22.

26. MassachusettsLaw.ThisAgreementwillbeconsideredtobeaninstrumentmadeundersealin
the Commonwealth of Massachusetts and it will be construed and the rights and obligations of the
partiesdeterminedinaccordancewiththelawsofsaidCommonwealth,withoutgivingeffecttoconflicts
oflawsprinciples.

IN WITNESS WHEREOF, the Manager and PRIM have executed this Agreement asofthedatefirst
abovewritten.

PENSIONRESERVESINVESTMENT
MANAGEMENTBOARD
BY:_____________________________
MichaelG.Trotsky,CFA,ExecutiveDirector

[manager]
BY:______________________________
NAME:___________________________

TITLE:___________________________

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[Manager]

ScheduleA:ProposedInvestmentObjectivesandGuidelines
(ActiveUSSMIDCapEquity)

(Specificguidelineswillbecustomizedwithmanagers)

I. InvestmentObjectives

TheManagersperformancebenchmarkistheRussell2500Index.

[Tobecustomizedtostrategy]

II. InvestmentGuidelines

A. AuthorizedInvestments

[Tobecustomizedtostrategy]

B. SpecificInvestmentGuidelines

[Tobecustomizedtostrategy]

C. PortfolioCharacteristics

[Tobecustomizedtostrategy]

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[Manager]

ScheduleB:FeeSchedule

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[Type text]

[Manager]

ScheduleC:ManagerComplianceReport

ComplianceCertification

InadditiontotherequirementsofParagraph7oftheInvestmentManagementAgreement,
assoonaspracticableatthecloseofeachcalendarquarter,theManagershallcertifytoPRIM
that:

1. theManagerhasnotdeviatedfromtheInvestmentGuidelinessetforthintheInvestment
ObjectivesandGuidelines(ScheduleAtotheInvestmentManagementAgreement);

2. the Manager has not deviated from the requirements of Massachusetts General Laws,
chapter 32, section 23, concerning certain investments relating to South Africa and
NorthernIreland,Iran,tobaccoandSudan.

If the Manager is unable to provide either of the certifications outlined above, the Manager
shallprovidePRIMwithadetailedwrittenexplanation.

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[Manager]

ScheduleD:MonthlyReconciliationProcedure

The Manager shall strike a monthly reconciliation with PRIMs Custodian. This Schedule
describes the reconciliation procedure that Manager will follow with respect to PRIMs
Account.

Theattachmentsareasfollows:

A. MonthlyReconciliationSchedule.Thisschedule(Attachment1)detailsthetimetablethat
mustbefollowedeachmonth.

B. Reconciliation Form. This is the form (Attachment 2)forreconcilingwithCustodian.The


formmustbefilledoutcompletely,withsupportingdataasnecessary.Theformcomprises
anumberofreconciliationelements(shares,CUSIPnumber,income,etc.).

ReconciliationsarecompletedwhentheManagerhasaccomplishedthefollowingsteps:

1. reconciled both the CUSIP and share number for each security position with
thoseshownontheCustodiansrecords;
2. compared Custodians prices on each security to Managers prices and
challenged Custodians prices on securities (if any) that exceed the Managers
internalpricingtolerances;
3. reconciled portfolio income for the period with that shown on Custodians
records;
4. notedmethodologydifferencesonthereconciliationform;
5. resolvedalldifferenceswithCustodianwithinatoleranceoflessthanorequalto
twentyfivebasispoints(0.25%);and
6. updatedtheManagersrecordstoreflectallcorrectionsnecessary.

C. MethodologySchedule.ThislistsvariousmethodsbywhichCustodianarrivesatthefinal
net asset value of a portfolio. If methodology differences consistently result in portfolio
marketvaluesoutsidethemonthlytenbasispointtolerance,itmaybenecessarytoreferto
this schedule to determine the source of the problem. In all cases of conflicting
methodologies,Custodiansmethodologywillgovern.

D. Monthly Performance Report. Once the accounting reconciliation has been completed,
Attachment4,theformatforaperformancecomparison,mustbecompletedandfaxedto
the Custodian contact shown on this Attachment. Custodian Analytics will compare the
Managersreturntotheirreturnsand,intheeventthedifferencebetweentheManagers

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returnandtheCustodianreturnisexcessive,CustodianwillcontacttheManagertoresolve
suchdiscrepancies.

InordertoadheretothetimetablesetforthinAttachment1,theManagerwillneedtohave
theCustodiansonlinesysteminstalledintheManagersoperationsareasothatreconciliation
can be performed electronically. The Manager will be required to use the custodians online
application to download the custodians information into the Excelbased reconciliation form
(Attachment2).TheManagerwillthenaddtheirowndata,calculatedifferences,completethe
reconciliationandexplainsignificantvariancesormethodologydifferencesatthesecuritylevel
and,ifapplicable,intheaggregateasdescribedabove,andinaccordancewiththetimeframes
outlinedinAttachment1.IftheManagerdoesnotalreadyhavetheCustodiansonlinesystem
in its operations group, the Manager should contact the Custodians investment manager
servicesarea.

InadditiontotheManagerscontactsattheInvestmentManagerServicesareaofCustodian,all
the Managers operations personnel involved with the reconciliation process should be given
thenameofPRIMsclientserviceofficeratCustodian(PRIMwillsupplythename,telephone
numberandemailaddressofthisindividualtotheManager).ThesupervisoroftheManagers
operations area should call or email this individual immediately with the names of the
Managers operations personnel who work on the PRIM reconciliation, a description of their
roles,andtheirtelephonenumbers.

Payment of the Managers fee is shall be contingent upon the Manager reconciling with the
Custodianasprovidedabove.

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ATTACHMENT1

PRIM
PUBLICMARKETSINVESTMENTMANAGER
MONTHLYRECONCILIATIONSCHEDULE

Firstbusinessday:PRIMsendsexpenseaccrualinformationtoCustodianforinput.

Secondbusinessday:Custodiansendspreliminarynetassetvaluedatatopublic
markets managers via online system or other electronic means
(Availablethemorningofthirdbusinessday).

Thirdbusinessday: Public markets managers perform preliminary reconciliation of


netassetvalueusingsummarydataononlinesystem.

Fifth Business day: Public markets managers complete and return to Custodian
preliminaryreconciliationsofnetassetvalueasperAttachment2.

Seventh business day: Public markets managers and Custodian resolve any
discrepancies, as per Attachment 2. Public markets managers
complete and return to Custodian Attachment 5, Monthly
PerformanceReport.

Tenthbusinessday: Custodiannotifiesmanagersthatallaccountsarefinalandallinfo
isavailableonlineonWorkbenchforthemtopullasneeded.

Eleventh business day: Public markets managers and Custodian complete final
performance reconciliation. Public markets managers advise
PRIM by fax that both the final account reconciliation and the
performancereportarecomplete.

Twelfthbusinessday:CustodianAnalyticsissuesfinalperformancereports.


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The PRIT Month-End Pre-Reconciliation


Spreadsheet
ACCOUNT NAME: 0
ACCOUNT NUMBER: 0
FOR MONTH ENDING: Januar y 0, 1900

CATEGORY MELLON MANAGER DIFFERENCE

A.) HOLDINGS - COST - - - 0


B.) HOLDINGS - MARKET - - - 0
C.) PENDING TRADES - - - 0
D.) PENDING FX CONTRACTS RECEIVABLE - - - 0
E.) PENDING FX CONTRACTS - PAYABLES - - - 0
F.) INCOME RECEIVABLE - - - 0
G.) CURRENCY BALANCES - - - 0
H.) MANAGER FEE ACCRUALS - - - 0

NET ASSET VALUE (Stated in USD): $ - $ - $ -


(B+C+D+E+F+G+H)

MELLON FINAL NAV: $ -


EXPLANATION OF VARIANCE: 0
0

INVESTMENT MANAGER SIGNOFF: 0

MELLON GSS SIGNOFF: 0

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ATTACHMENT3

METHODOLOGYDIFFERENCES

I. Pricing

The Manager should address questions regarding pricing challenges to PRIMs


ClientServiceOfficerattheCustodian.

II. Amortization.

Custodianaccruesinterestonbondsanddoesnotamortize.

III. Tradedatevs.settlementdateaccounting.

Custodianreflectsallholdingsasoftradedate.

IV. Exchangerates.

Custodian uses RT12 (Reuters 12 Noon London time, last trading day of the
month)exchangeratestoestablishthedollarpriceofnondollarsecurities.

V. Postingofdividendsandinterest.

Custodianreflectsdividendandinterestincomeasofexdate.
Custodian accrues interest income daily based on the parameters of the fixed
incomeinstrument.

VI. Computationofrealizedgainandloss.

Custodiancalculatestheaveragecostofeachsecurityintheportfolioanduses
thisasabasisfromwhichtocomputetherealizedgainorlossontheposition.

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ATTACHMENT4

PENSIONRESERVESINVESTMENTMANAGEMENT
MonthlyPerformanceInformation

TO: [Custodian] PHONE#:


FAX#:

FROM: Phone#:

COMPANY: Fax#:

SSBFUND:

MONTH:

PriorMonth CurrentMonth
MonthEndMarketValue:
NetCashFlow(Contributions/Withdrawals)
PortfolioManagementFee

Rate of Rate of
Return Return
GrossofFees NetofFees
InvestmentResults:
CurrentMonth
YeartoDate

Comments(MajorFlows,Correctionstopriormonthvaluesorreturns):

THISCOMPLETEDDOCUMENTMUSTBERECEIVEDBYCUSTODIANNOLATERTHANTHE
END OF THE SEVENTH BUSINESS DAY AFTER MONTH END, IN ORDER FOR
RECONCILIATIONTOBECOMPLETE.

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(Thispageintentionallyleftblank.)

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EXHIBITH
PRIMInvestmentPolicy

PleasegotothelinkbelowtoseetheInvestmentPolicy:
http://www.mapension.com/investments

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