IDENTIFICATION SERVICES AMENDMENT
This Customer Identification Services Amendment (this "Amendment") amends,
as of the [ ] day of [ , 2006] (the "Effective Date"), the Transfer Agency
Services Agreement, dated as of [ , 2006,] between Aquila Three Peaks High
Income Fund (the "Fund") and PFPC Inc. ("PFPC") (the "Agreement").
For valuable consideration, the receipt and sufficiency of which the
parties hereto hereby acknowledge, the Fund and PFPC hereby agree as follows:
Section 1 (Addition of CIP Services section to the Agreement). As of the
Effective Date, the Agreement shall be amended by the addition of the following
as the new final section of the agreement:
"CIP Services. To help the Fund comply with its Customer
Identification Program (which the Fund is required to have under
regulations issued under Section 326 of the USA PATRIOT Act) PFPC will
do the following:
(a) Implement procedures under which new accounts in the Fund are not
established unless PFPC has obtained the name, date of birth (for
natural persons only), address and government-issued
identification number (collectively, the "Data Elements") for
each corresponding Customer (as defined in 31 CFR 103.131).
(b) Use collected Data Elements to attempt to reasonably verify the
identity of each new Customer promptly before or after each
corresponding new account is opened. Methods may consist of
non-documentary methods (for which PFPC may use unaffiliated
information vendors to assist with such verifications) and
documentary methods (as permitted by 31 CFR 103.131), and may
include procedures under which PFPC personnel perform enhanced
due diligence to verify the identities of Customers the
identities of whom were not successfully verified through the
first-level (which will typically be reliance on results obtained
from an information vendor) verification process(es).
(c) Record the Data Elements and maintain records relating to
verification of new Customers consistent with 31 CFR
103.131(b)(3).
(d) Regularly report to the Fund about measures taken under (a)-(c)
above.
(e) Provide annually or upon the reasonable request of the Fund a
certification that PFPC has, to the best of its knowledge,
complied with its obligations under this Amendment.
(f) If PFPC provides services by which prospective Customers may
subscribe for shares in the Fund via the Internet or telephone,
work with the Fund to notify prospective Customers, consistent
with 31 CFR 103.(b)(5), about the Fund's CIP.
(g) Set forth on a separate fee schedule compensation amounts due for
these CIP Services.
Notwithstanding anything to the contrary, and without expanding the
scope of the express language above, PFPC need not collect the Data
Elements for (or verify) prospective customer (or accounts) beyond the
requirements of relevant regulation (for example, PFPC will not verify
customers opening accounts through NSCC) and PFPC need not perform any
task that need not be performed for the Fund to be in compliance with
relevant regulation.
The Fund hereby represents and warrants that each of the portfolios
serviced by PFPC, and each legal entity of which such portfolio is a
part, has, and will at all times during which this Agreement is in
effect maintain in place, a written agreement with each such other
portfolio and entity, under which all such parties may rely upon the
Customer Identification Programs of any other with respect to
prospective investors who are then existing customers of such other.
Given such inter-company (or inter-fund) agreement(s), PFPC need not
perform steps (a)-(f) above with respect to any subscriber who is then
a customer of any other fund within the same "fund family" as the
Fund."
Section 2 (General provisions). This Amendment contains the entire
understanding between the parties with respect to the services contemplated
hereby. Except as expressly set forth herein, the Agreement shall remain
unaffected hereby.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their duly authorized officers, as of the day and year first above
written.
Aquila Three Peaks High Income Fund
By: __________________________________________
Name:
Title:
PFPC INC.
By: ________________________________________
Name:
Title:
