In my application, I use a user's email and password to log them into 
another site.  That is, I am a 3rd party service.  I plaster a nice big 
"it's all in cleartext so do this at your own risk" sign, but for my own 
safety I do not keep the password past the session.  This is obviously 
annoying to users and I'd like to change that, but the way I read the 
Distribution Agreement, I'm not allowed to.  Am I interpreting it correctly?

If the users provide you with, or your Product accesses or uses, user 
names, passwords, or other login information or personal information, you 
must make the users aware that the information will be available to your 
Product, and you must provide *legally adequate privacy notice and 
protection* (*I have no idea what makes for legally adequate notice*) for 
those users. Further, your Product may only use that information for the 
limited purposes for which the user has given you permission to do so. If 
your Product *stores personal or sensitive information provided by users, 
it must do so securely* (*I have to send the password across the wire in 
cleartext... no idea how to store it securely*) and only for *as long as it 
is needed* (*I clear the information when the user leaves the app... this I 
want to change*). But *if the user has opted into a separate agreement with 
you* (*does putting up the "at your own risk" sign constitute a separate 
agreement?"*) that allows you or your Product to store or use personal or 
sensitive information directly related to your Product (not including other 
products or applications) then the terms of that separate agreement will 
govern your use of such information. 

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