Common use of Procedure Steps Clause in Contracts

Procedure Steps. ITG’s fair value model (FVM) will be used for all international equity securities in Federated Funds. The fair value procedure will be implemented when a significant (i.e. 0.5% or greater) change in either of two fair value triggers occurs. BNY will monitor the triggers on a daily basis as follows: a) The first trigger incorporates two Nikkei 225 futures contracts (Bloomberg codes: NIA Index and NXA Index). The former is the most recent contract trading in Singapore and the latter is the most recent contract trading in Chicago. The starting point for this trigger is 1:00 AM EST/2:00 AM EDT (or the print closest to 1am/2am) using the Singapore contract, and the closing point is measured at 4:00 PM EST/EDT (or the print closest to 4pm) using the Chicago contract. The following chart details the appropriate triggers in the event one or more of the above markets is closed. Singapore (NIA Index) / Chicago (NXA Index) Japanese Stock Market Open / Open Open / Closed Closed / Open Closed / Closed Open NIA/NXA (from 1-2am to 4PM); 1-2am depending on Japanese close GLOBEX S&P 500 (from Japanese close to 4 PM) - Symbol SPA Index or ESA Index NXA (from 4AM to 4PM) GLOBEX S&P 500 (from Japanese close to 4 PM) - Symbol SPA Index or ESA Index Closed NXA (from prior day’s 4PM to current 4PM) GLOBEX S&P500 (from prior day’s 4PM to current 4PM) - Symbol SPA Index or ESA Index NXA (from prior day’s 4PM to current 4PM) GLOBEX S&P 500 (from prior day’s 4 PM to current 4 PM) - Symbol SPA Index or ESA Index b) The second trigger captures the move of the S&P 500 from 11:30 AM EST/EDT (1st print of the 11:30am SPX Index QR screen in Bloomberg) to 4:00 PM EST/EDT (Bloomberg SPX Index QR screen printed a few minutes past 4:00pm, but no later than 4:05pm). Copies of the daily screen printouts used above in a) and b) will be maintained by BNY. BNY will call the GET (see Exhibit I for current list of contacts) by 4:15 PM EST/EDT to have them indicate whether or not FVM is to be activated. If both or either trigger is met, and the GET decides NOT to activate FVM, the GET will advise BNY not to activate FVM and will provide a reason for the decision that was made. BNY must document the reason in the ITG FVM Log sheet. The GET may also monitor the triggers throughout the course of the day as they perform their normal trading activities. Although BNY is responsible for monitoring the triggers, if the GET notices that the triggers have been met and BNY has not called to activate FVM by 4:30 PM EST/EDT, the GET may place a call to BNY to review the triggers and determine whether or not to activate FVM. When the GET determines that FVM is to be activated, BNY will do the following: a) Call Fund Treasury as soon as the decision to fair value is determined. BNY will also contact Fund Treasury if the decision is made not to fair value. i. Fund Treasury will then immediately contact the other service provider that services international funds (State Street Bank) to provide instructions as to whether or not to invoke Fair Value. Fund Treasury will maintain a log to track when the calls are received from BNY and when notification is provided to State Street Bank. b) Send an email to Fund Treasury confirming that FVM will be implemented for that day. c) Although Fair Valuation Worksheets are not required, BNY will be required to complete the ITG FVM log sheet on the day that the fair value procedure is activated. The GET will also keep a file of screen prints from their live market data sources to validate the implementation. d) The PAs will obtain the fair market value factors from ITG and proceed with adjusting the Post-Close Securities’ market values prior to determining the fund’s final net asset value (NAV) for the day. e) The PAs will prepare a schedule that details the following information: i. The market values for the Post-Close Securities (prior to adjustment); ii. The fair market value factors; iii. The market values adjusted for the FVM factor and iv. The fund’s net asset value (NAV) before and after the adjustment. f) The PAs will provide the schedule from (e) above the next business day to Fund Treasury and the appropriate portfolio manager.

Procedure Steps. ITG’s fair value model (FVM) will be used for all international equity securities in Federated Funds. The fair value procedure will be implemented when a significant (i.e. 0.5% or greater) change in either of two fair value triggers occurs. BNY SSB will monitor the triggers on a daily basis as follows: a) The first trigger incorporates two Nikkei 225 futures contracts (Bloomberg codes: NIA Index and NXA Index). The former is the most recent contract trading in Singapore and the latter is the most recent contract trading in Chicago. The starting point for this trigger is 1:00 AM EST/2:00 AM EDT (or the print closest to 1am/2am) using the Singapore contract, and the closing point is measured at 4:00 PM EST/EDT (or the print closest to 4pm) using the Chicago contract. The following chart details the appropriate triggers in the event one or more of the above markets is closed. Singapore (NIA Index) / Chicago (NXA Index) Japanese Stock Market Open / Open Open / Closed Closed / Open Closed / Closed Open NIA/NXA (from 1-2am to 4PM); 1-2am depending on Japanese close GLOBEX S&P 500 (from Japanese close to 4 PM) - Symbol SPA Index or ESA Index NXA (from 4AM to 4PM) GLOBEX S&P 500 (from Japanese close to 4 PM) - Symbol SPA Index or ESA Index Closed NXA (from prior day’s 4PM to current 4PM) GLOBEX S&P500 (from prior day’s 4PM to current 4PM) - Symbol SPA Index or ESA Index NXA (from prior day’s 4PM to current 4PM) GLOBEX S&P 500 (from prior day’s 4 PM to current 4 PM) - Symbol SPA Index or ESA Index b) The second trigger captures the move of the S&P 500 from 11:30 AM EST/EDT (1st print of the 11:30am SPX Index QR screen in Bloomberg) to 4:00 PM EST/EDT (Bloomberg SPX Index QR screen printed a few minutes past 4:00pm, but no later than 4:05pm). Copies of the daily screen printouts used above in a) and b) will be maintained by BNYSSB. BNY SSB will call the GET (see Exhibit I for current list of contacts) by 4:15 PM EST/EDT to have them indicate whether or not FVM is to be activated. If both or either trigger is met, and the GET decides NOT to activate FVM, the GET will advise BNY SSB not to activate FVM and will provide a reason for the decision that was made. BNY SSB must document the reason in the ITG FVM Log sheet. The GET may also monitor the triggers throughout the course of the day as they perform their normal trading activities. Although BNY SSB is responsible for monitoring the triggers, if the GET notices that the triggers have been met and BNY SSB has not called to activate FVM by 4:30 PM EST/EDT, the GET may place a call to BNY SSB to review the triggers and determine whether or not to activate FVM. When the GET determines that FVM is to be activated, BNY SSB will do the following: a) Call Fund Treasury as soon as the decision to fair value is determined. BNY SSB will also contact Fund Treasury if the decision is made not to fair value. i. Fund Treasury will then immediately contact the other service provider that services international funds (State Street BankBank of New York Mellon) to provide instructions as to whether or not to invoke Fair Value. Fund Treasury will maintain a log to track when the calls are received from BNY SSB and when notification is provided to State Street BankBank of New York Mellon. b) Send an email to Fund Treasury confirming that FVM will be implemented for that day. c) Although Fair Valuation Worksheets are not required, BNY SSB will be required to complete the ITG FVM log sheet on the day that the fair value procedure is activated. The GET will also keep a file of screen prints from their live market data sources to validate the implementation. d) The PAs will obtain the fair market value factors from ITG and proceed with adjusting the Post-Close Securities’ market values prior to determining the fund’s final net asset value (NAV) for the day. e) The PAs will prepare a schedule that details the following information: i. The market values for the Post-Close Securities (prior to adjustment); ii. The fair market value factors; iii. The market values adjusted for the FVM factor and iv. The fund’s net asset value (NAV) before and after the adjustment. f) The PAs will provide the schedule from (e) above the next business day to Fund Treasury and the appropriate portfolio manager.