Exhibit (h)(vii) under Form N-1A
Exhibit (10) under Item 601/Reg. S-K
EXHIBIT 1
TO SHAREHOLDER SERVICES AGREEMENT
FOR CLASS B SHARES OF
THE INVESTMENT COMPANIES
1. The Shareholder Services Agreement for Shares of the
Investment Companies on behalf of the portfolios (individually referred to
as a "Fund" and collectively as "Funds") and the classes of shares
("Classes") listed on the attached Schedule A dated October 24, 1997 among
Federated Securities Corp. ("Principal Servicer"), Federated Shareholder
Services ("Class Servicer") and the Investment Companies is hereby made
applicable on the terms set forth herein to the Class B Shares of the
above-referenced Funds. In the event of any inconsistency between the
terms of this Exhibit and the Shareholder Services Agreement, the terms of
this Exhibit shall govern.
2. In connection with the Services to be rendered to holders of
Class B Shares of each Fund, the Principal Servicer and Class Servicer
agree that the Principal Servicer shall retain and compensate the Class
Servicer for its Services in respect of the Class B Shares of the Fund on
one of the following alternative basis as the Principal Servicer shall
elect:
ALTERNATIVE A3: The Principal Servicer shall pay the
Class Servicer a dollar amount as set forth on Schedule A per
Class B Commission Share (as defined in the Principal
Shareholder Servicer's Agreement) of the Fund. Class Servicer
agrees that upon receipt of such payment (which shall be
deemed to be full and adequate consideration for an
irrevocable service commitment (the "Irrevocable Service
Commitment") of Class Servicer hereunder), Class Servicer
shall be unconditionally bound and obligated to either: (1)
provide the Services in respect of such Commission Share and
all other Shares derived therefrom via reinvestment of
dividends, free exchanges or otherwise for so long as the same
is outstanding or (2) in the event the Class Servicer for the
Class B Shares is terminated by the Investment Company, to
arrange for a replacement Class Servicer satisfactory to the
Investment Company to perform such services, at no additional
cost to the Fund.
ALTERNATIVE B4: If Alternative A is not elected, the
Principal Servicer shall pay the Class Servicer twenty five
basis points (0.25%) per annum on the average daily net asset
value of each Class B Share of the Fund monthly in arrears.
The Class Servicer agrees that such payment is full and
adequate consideration for the Services to be rendered by it
to the holder of such Class B Share.
3. In the event pursuant to paragraph 2 above, Alternative A has
been elected and the Class Servicer is terminated as Class Servicer for
the Class B Shares of the Fund, the Class Servicer agrees to pay to any
successor Class Servicer for the Class B Shares of the Fund any portion of
the excess, if any, of (A) the Servicing Fees received by it hereunder in
respect of Class B Shares of the Fund plus interest thereon at the percent
as set forth on Schedule A per annum minus (B) the costs it incurred
hereunder in respect of the Class B Shares of the Fund prior to such
termination.
IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be executed by their officers designated below as of the day
and year first above written.
Attest: FEDERATED SECURITIES CORP.
By: /s/ Xxxxxx X. Xxxxx By: /s/ Xxxxx X. Xxxxxx
-------------------------------- -----------------------------
Title: Assistant Secretary Title: Vice President
---------------------------- ---------------------------
Attest: FEDERATED SHAREHOLDER SERVICES
By:/s/ Xxxxxx X. Xxxxx By: /s/ Xxxxx X. Xxxxxx
-------------------------------- -----------------------------
Title: Assistant Secretary Title: Vice President
---------------------------- ---------------------------
Attest: INVESTMENT COMPANIES
(listed on Schedule A)
By: /s/ S. Xxxxxxx Xxxxx By: /s/ Xxxx X. XxXxxxxxx
------------------------------- ------------------------------
Title: Assistant Secretary Title: Executive Vice President
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3 [for Class B Shares where Financial Institution (i.e., Broker) is being
paid an extra 1.50 per share up front and no trailer) and Distribution
Fees and Servicing Fees are being sold by Principal Servicer]
4 [for Class B Shares where Financial Institution (i.e., Broker) is being
paid a trailer) and Distribution Fees but not the Servicing fees are being
sold by the Principal Servicer]
