Exhibit h(vi) under N-1A
Exhibit 10 under 601/Reg SK
SHAREHOLDER SERVICES AGREEMENT
THIS AGREEMENT, is made as of the 24th day of October, 1997, by and between
those Investment Companies on behalf of the Portfolios (individually referred to
herein as a "Fund" and collectively as "Funds") and Classes of Shares
("Classes") listed on Schedule A to Exhibit 1, as it may be amended from time to
time, having their principal office and place of business at Federated Xxxxxxxxx
Xxxxx, Xxxxxxxxxx, XX 00000-0000 and who have approved this form of Agreement
and Federated Securities Corp.("FSC"), a Pennsylvania Corporation, having its
principal office and place of business at Federated Investors Tower, Pittsburgh,
Pennsylvania 15222-3779 and Federated Shareholder Services, a Delaware business
trust, having its principal office and place of business at Federated Investors
Tower, Pittsburgh, Pennsylvania 15222-3779 ("FSS"). Each of the Exhibits hereto
is incorporated herein in its entirety and made a part hereof. In the event of
any inconsistency between the terms of this Agreement and the terms of any
applicable Exhibit, the terms of the applicable Exhibit shall govern.
1. FSC as Principal Servicer (Principal Servicer") hereby contracts with
FSS to render or cause to be rendered personal services to shareholders and/or
the maintenance of accounts of shareholders of each Class of the Funds to which
this Agreement is made applicable by an Exhibit hereto ("Services"). In addition
to providing Services directly to shareholders of the Funds, FSS is hereby
appointed the Investment Companies' agent to select, negotiate and subcontract
for the performance of Services. FSS hereby accepts such appointment. FSS agrees
to provide or cause to be provided Services which, in its best judgment (subject
to supervision and control of the Investment Companies' Boards of Trustees or
Directors, as applicable), are necessary or desirable for shareholders of the
Funds. FSS further agrees to provide the Investment Companies, upon request, a
written description of the Services which FSS is providing hereunder. The
Investment Companies, on behalf of the Funds and each Class subject hereto
consents to the appointment of FSS to act in its capacity as described herein
and agrees to look solely to FSS for performance of the Services.
2. The term of the undertaking of FSS to render services hereunder in
respect of any Class of any Fund and the manner and amount of compensation to be
paid in respect thereof shall be specified in respect of each Class of the Funds
to which this Agreement is made applicable by an Exhibit hereto. FSS agrees to
look solely to the Principal Servicer for its compensation hereunder.
3. This Agreement shall become effective in respect of any Class of Shares
of a Fund upon execution of an Exhibit relating to such Class of the Fund. Once
effective in respect of any Class of shares, this Agreement shall continue in
effect for one year from the date of its execution, and thereafter for
successive periods of one year only if the form of this Agreement is approved at
least annually by the Board of each Investment Company, including a majority of
the members of the Board of the Investment Company who are not interested
persons of the Investment Company ("Independent Board Members") cast in person
at a meeting called for that purpose.
4. Notwithstanding paragraph 3, this Agreement may be terminated as follows:
(a) By any Investment Company as to any Fund at any time, without the
payment of any penalty, by the vote of a majority of the Independent Board
Members of any Investment Company or by a vote of a majority of the outstanding
voting securities of any Fund as defined in the Investment Company Act of 1940
on sixty (60) days' written notice to the parties to this Agreement;
(b) automatically in the event of the Agreement's assignment as defined in
the Investment Company Act of 1940; and
5. FSS agrees to obtain any taxpayer identification number certification
from each shareholder of the Funds to which it provides Services that is
required under Section 3406 of the Internal Revenue Code, and any applicable
Treasury regulations, and to provide each Investment Company or its designee
with timely written notice of any failure to obtain such taxpayer identification
number certification in order to enable the implementation of any required
backup withholding.
6. FSS shall not be liable for any error of judgment or mistake of law or
for any loss suffered by any Investment Company in connection with the matters
to which this Agreement relates, except a loss resulting from willful
misfeasance, bad faith or gross negligence on its part in the performance of its
duties or from reckless disregard by it of its obligations and duties under this
Agreement. FSS shall be entitled to rely on and may act upon advice of counsel
(who may be counsel for such Investment Company) on all matters, and shall be
without liability for any action reasonably taken or omitted pursuant to such
advice. Any person, even though also an officer, trustee, partner, employee or
agent of FSS, who may be or become a member of such Investment Company's Board,
officer, employee or agent of any Investment Company, shall be deemed, when
rendering services to such Investment Company or acting on any business of such
Investment Company (other than services or business in connection with the
duties of FSS hereunder) to be rendering such services to or acting solely for
such Investment Company and not as an officer, trustee, partner, employee or
agent or one under the control or direction of FSS even though paid by FSS.
This Section 6 shall survive termination of this Agreement.
7. No provision of this Agreement may be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by the party
against which an enforcement of the change, waiver, discharge or termination is
sought.
8. FSS is expressly put on notice of the limitation of liability as set
forth in the Declaration of Trust of each Investment Company that is a
Massachusetts business trust and agrees that the obligations assumed by each
such Investment Company pursuant to this Agreement shall be limited in any case
to such Investment Company and its assets and that FSS shall not seek
satisfaction of any such obligations from the shareholders of such Investment
Company, the Trustees, Officers, Employees or Agents of such Investment Company,
or any of them.
9. The execution and delivery of this Agreement have been authorized by the
Trustees of FSS and signed by an authorized officer of FSS, acting as such, and
neither such authorization by such Trustees nor such execution and delivery by
such officer shall be deemed to have been made by any of them individually or to
impose any liability on any of them personally, and the obligations of this
Agreement are not binding upon any of the Trustees or shareholders of FSS, but
bind only the trust property of FSS as provided in the Declaration of Trust of
FSS.
10. Notices of any kind to be given hereunder shall be in writing
(including facsimile communication) and shall be duly given if delivered to any
Investment Company at the following address: Federated Xxxxxxxxx Xxxxx,
Xxxxxxxxxx, XX 00000-0000, Attention: President and if delivered to FSS at
Federated Xxxxxxxxx Xxxxx, Xxxxxxxxxx, XX 00000-0000, Attention: President.
11. This Agreement constitutes the entire agreement between the parties
hereto and supersedes any prior agreement with respect to the subject hereof
whether oral or written. If any provision of this Agreement shall be held or
made invalid by a court or regulatory agency decision, statute, rule or
otherwise, the remainder of this Agreement shall not be affected thereby.
Subject to the provisions of Sections 3 and 4, hereof, this Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective successors and shall be governed by Pennsylvania law; provided,
however, that nothing herein shall be construed in a manner inconsistent with
the Investment Company Act of 1940 or any rule or regulation promulgated by the
Securities and Exchange Commission thereunder.
12. This Agreement may be executed by different parties on separate
counterparts, each of which, when so executed and delivered, shall be an
original, and all such counterparts shall together constitute one and the same
instrument.
13. This Agreement shall not be assigned by any party without the prior
written consent of the parties hereto. Nothing in this Section 13 shall prevent
FSS from delegating its responsibilities to another entity to the extent
provided herein.
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.
Investment Companies (listed on Schedule A)
Attest: /s/ S. Xxxxxxx Xxxxx By: /s/ Xxxx X. XxXxxxxxx
Title: Assistant Secretary Title: Executive Vice President
Federated Shareholder Services
Attest:/s/ Xxxxxx X. Xxxxx By: /s/ Xxxxx X. Xxxxxx
Title: Assistant Secretary Title: Vice President
Federated Securities Corp.
Attest: /s/ Xxxxxx X. Xxxxx By: /s/ Xxxxx X. Xxxxxx
Title: Assistant Secretary Title: Vice President
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
Federated Capital Income Fund
Class B Shares
-------- 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]
s
