Vertically transmitted endophytes are discovered by means of studying seed transmitted fungi, and such studies are scarce (Gallery et al., 2007). Neotyphodium endophytes and some Epichloë species (e.g. E. festucae Leuchtm., Schardl and M.R. Siegel, and E. sylvatica Leuchtm. and Schardl) are vertically transmitted to host progeny by means of seed infection. Close to 100% of the seeds produced by an infected plant contain fungal mycelium near the embryo and in the aleurone layer