Exhibit e(xvi) under Form N-1A
Exhibit 1 under Item 601/Reg. S-K
Amendment to
Distributor's Contract
between
Federated Funds with Class B Shares
and
Federated Securities Corp.
This Amendment to the Distributor's Contract ("Agreement") dated
October 24, 1997, between those Federated Funds with Class B Shares
listed on the Exhibit to the Agreement ("Fund") and Federated
Securities Corp. ("Service Provider") is made and entered into as of
the 1st day of June, 2001.
WHEREAS, the Fund has entered into the Agreement with the Service
Provider;
WHEREAS, the Securities and Exchange Commission has adopted
Regulation S-P at 17 CFR Part 248 to protect the privacy of individuals
who obtain a financial product or service for personal, family or
household use;
WHEREAS, Regulation S-P permits financial institutions, such as
the Fund, to disclose "nonpublic personal information" ("NPI") of its
"customers" and "consumers" (as those terms are therein defined in
Regulation S-P) to affiliated and nonaffiliated third parties of the
Fund, without giving such customers and consumers the ability to opt
out of such disclosure, for the limited purposes of processing and
servicing transactions (17 CFR ss. 248.14) ("Section 248.14 NPI"); for
specified law enforcement and miscellaneous purposes (17 CFR ss. 248.15)
("Section 248.15 NPI") ; and to service providers or in connection with
joint marketing arrangements (17 CFR ss. 248.13) ("Section 248.13 NPI");
WHEREAS, Regulation S-P provides that the right of a customer and
consumer to opt out of having his or her NPI disclosed pursuant to 17
CFR ss. 248.7 and 17 CFR ss. 248.10 does not apply when the NPI is
disclosed to service providers or in connection with joint marketing
arrangements, provided the Fund and third party enter into a
contractual agreement that prohibits the third party from disclosing or
using the information other than to carry out the purposes for which
the Fund disclosed the information (17 CFR ss. 248.13);
NOW, THEREFORE, the parties intending to be legally bound agree
as follows:
1. The Fund and the Service Provider hereby acknowledge that the
Fund may disclose shareholder NPI to the Service Provider as agent
of the Fund and solely in furtherance of fulfilling the Service
Provider's contractual obligations under the Agreement in the
ordinary course of business to support the Fund and its shareholders.
2. The Service Provider hereby agrees to be bound to use and
redisclose such NPI only for the limited purpose of fulfilling its
duties and obligations under the Agreement, for law enforcement and
miscellaneous purposes as permitted in 17 CFR xx.xx. 248.15, or in
connection with joint marketing arrangements that the Funds may
establish with the Service Provider in accordance with the limited
exception set forth in 17 CFR ss. 248.13.
3. The Service Provider further represents and warrants that, in
accordance with 17 CFR ss. 248.30, it has implemented, and will
continue to carry out for the term of the Agreement, policies and
procedures reasonably designed to:
o insure the security and confidentiality of records and NPI of
Fund customers,
o protect against any anticipated threats or hazards to the
security or integrity of Fund customer records and NPI, and
o protect against unauthorized access to or use of such Fund
customer records or NPI that could result in substantial harm
or inconvenience to any Fund customer.
4. The Service Provider may redisclose Section 248.13 NPI only to:
(a) the Funds and affiliated persons of the Funds ("Fund
Affiliates"); (b) affiliated persons of the Service Provider
("Service Provider Affiliates") (which in turn may disclose or use
the information only to the extent permitted under the original
receipt); (c) a third party not affiliated with the Service Provider
of the Funds ("Nonaffiliated Third Party") under the service and
processing (ss.248.14) or miscellaneous (ss.248.15) exceptions, but only
in the ordinary course of business to carry out the activity covered
by the exception under which the Service Provider received the
information in the first instance; and (d) a Nonaffiliated Third
Party under the service provider and joint marketing exception
(ss.248.13), provided the Service Provider enters into a written
contract with the Nonaffiliated Third Party that prohibits the
Nonaffiliated Third Party from disclosing or using the information
other than to carry out the purposes for which the Funds disclosed
the information in the first instance.
5. The Service Provider may redisclose Section 248.14 NPI and
Section 248.15 NPI to: (a) the Funds and Fund Affiliates; (b)
Service Provider Affiliates (which in turn may disclose the
information to the same extent permitted under the original
receipt); and (c) a Nonaffiliated Third Party to whom the Funds
might lawfully have disclosed NPI directly.
6. The Service Provider is obligated to maintain beyond the
termination date of the Agreement the confidentiality of any NPI it
receives from the Fund in connection with the Agreement or any joint
marketing arrangement, and hereby agrees that this Amendment shall
survive such termination.
WITNESS the due execution hereof this 1st day of June, 2001.
Federated Funds with Class B Shares
(listed on the Exhibit to the Agreement)
By: /s/ Xxxx X. XxXxxxxxx
------------------------------------------
Name: Xxxx X. XxXxxxxxx
Title: Secretary
Federated Securities Corp.
By: /s/ Xxxxx X. Xxxxxx
------------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Executive Vice President
