Exhibit d(xi) under Form N-1A
Exhibit 10 under Item 601/Reg. S-K
Federated Equity Funds
INVESTMENT SUB-ADVISORY CONTRACT
THIS AGREEMENT is made between Federated Investment Management Company, a
Delaware statutory trust (hereinafter referred to as "Adviser") and Federated
Global Investment Management Corp., a Delaware corporation (hereinafter referred
to as "Sub-Adviser").
WITNESSETH:
That the parties hereto, intending to be legally bound hereby
agree as follows:
1. Sub-Adviser hereby agrees to furnish to Adviser in its
capacity as investment adviser to the portfolios of the Federated
Equity Funds ("Trust") designated from time to time on the exhibits to
this Agreement (each, a "Fund"), such investment advice, statistical
and other factual information, as may from time to time be reasonably
requested by Adviser for the Fund which may be offered in one or more
classes of shares ("Classes"). Both Adviser and Sub-Adviser are
registered as investment advisers under the Investment Advisers Act of
1940.
2. For its services under this Agreement, Sub-Adviser shall
receive from Adviser an annual fee, as set forth in the exhibit(s)
hereto.
The Sub-Adviser may from time to time and for such periods as it
deems appropriate, reduce its compensation (and, if appropriate, assume
expenses of the Fund or Class of the Fund) to the extent that the
Fund's expenses exceed such lower expense limitation as the Sub-Adviser
may, by notice to the Trust on behalf of the Fund, voluntarily declare
to be effective.
3. This Agreement shall begin for each Fund on the date that
the parties execute an exhibit to this Agreement relating to such Fund
and shall continue in effect for the Fund for two years from the date
of its execution and from year to year thereafter, subject to the
provisions for termination and all of the other terms and conditions
hereof if: (a) such continuation shall be specifically approved at
least annually by the vote of a majority of the Trustees of the Trust,
including a majority of the Trustees who are not parties to this
Agreement or interested persons of any such party (other than as
Trustees of the Trust) cast in person at a meeting called for that
purpose; and (b) Adviser or Sub-Adviser shall not have notified the
Trust in writing at least sixty (60) days prior to the anniversary date
of this Agreement in any year thereafter that it does not desire such
continuation with respect to the Fund.
4. Notwithstanding any provision in this Agreement, it may be
terminated at any time without the payment of any penalty: (a) by the
Trustees of the Trust or by a vote of a majority of the outstanding
voting securities (as defined in Section 2(a)(42) of the Investment
Company Act of 1940 ("Act") of the Fund on sixty (60) days' written
notice to Sub-Adviser; (b) by Sub-Adviser or Adviser upon 120 days'
written notice to the other party to this Agreement.
5. This Agreement shall automatically terminate:
(a) in the event of its assignment (as defined in the
Act); or
(b) in the event of termination of the Investment
Advisory Contract for any reason whatsoever.
6. So long as both Adviser and Sub-Adviser shall be legally
qualified to act as an investment adviser to the Fund, neither Adviser
nor Sub-Adviser shall act as an investment adviser (as such term is
defined in the Act) to the Fund except as provided herein and in the
Investment Advisory Contract or in such other manner as may be
expressly agreed between Adviser and Sub-Adviser.
Provided, however, that if the Adviser or Sub-Adviser shall
resign prior to the end of any term of this Agreement or for any reason
be unable or unwilling to serve for a successive term which has been
approved by the Trustees of the Trust pursuant to the provisions of
Paragraph 3 of this Agreement or Paragraph 6 of the Investment Advisory
Contract, the remaining party, Sub-Adviser or Adviser as the case may
be, shall not be prohibited from serving as an investment adviser to
such Fund by reason of the provisions of this Paragraph 6.
7. This Agreement may be amended from time to time by
agreement of the parties hereto provided that such amendment shall be
approved both by the vote of a majority of Trustees of the Trust,
including a majority of Trustees who are not parties to this Agreement
or interested persons, as defined in Section 2(a)(19) of the Act, of
any such party at a meeting called for that purpose, and, where
required by Section 15(a)(2) of the Act, by the holders of a majority
of the outstanding voting securities (as defined in Section 2(a)(42) of
the Act) of the Fund.
8. The services furnished by the Sub-Adviser hereunder are not
to be deemed exclusive and the Sub-Adviser shall be free to furnish
similar services to others so long as its services under this Agreement
are not impaired thereby.
9. Sub-Adviser agrees to maintain the security and
confidentiality of nonpublic personal information (NPI") of Fund
customers and consumers, as those terms are defined in Xxxxxxxxxx X-X,
00 XXX Part 248. Adviser agrees to use and redisclose such NPI for the
limited purposes of processing and servicing transactions; for specific
law enforcement and miscellaneous purposes; and to service providers or
in connection with joint marketing arrangements directed by the Fund,
in each instance in furtherance of fulfilling Adviser's obligations
under this Agreement and consistent with the exceptions provided in 17
CFR Sections 248.14, 248.15 and 248.13, respectively.
Exhibit A
Federated Equity Funds
Federated Communications Technology Fund
Investment Sub-Advisory Contract
For all services rendered by Sub-Adviser hereunder, Adviser shall
pay Sub-Adviser a Sub-Advisory Fee equal to 0.45% of the average daily
net assets of the above-mentioned portfolio managed by the
Sub-Adviser. The Sub-Advisory Fee shall be accrued Daily, and paid
Daily as set forth in the Investment Advisory Contract dated June 1,
1995.
This Exhibit duly incorporates by reference the Investment
Sub-Advisory Contract.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed on their behalf by their duly authorized officers, and
their corporate seals to be affixed hereto this 1st day of December,
2003.
Federated Investment Management
Company
By: /s/ J. Xxxxxxxxxxx Xxxxxxx
--------------------------------
Name: J. Xxxxxxxxxxx Xxxxxxx
Title: Chairman
Federated Global Investment
Management Corp.
By: /s/ Xxxxx X. Xxxxxxxxx
--------------------------------
Name: Xxxxx X. Xxxxxxxxx
Title: President
