Exhibit (h)(5)
CUSTOMER IDENTIFICATION SERVICES AMENDMENT
This Customer Identification Services Amendment (the "Amendment") amends,
as of the 1st day of October 2003 (the "Effective Date"), the Transfer Agency
and Services Agreement, dated as of January 1, 2003, between The Galaxy 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:
1. Customer Identification Program Services. As of the Effective Date, the
Agreement shall (without any further action by either of the parties hereto) be
amended by the addition of the following new provision:
"Customer Identification Program Services. To help the Fund comply
with its Customer Identification Program ("CIP") (which the Fund is
required to have under regulations issued under Section 326 of the USA
PATROIT 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) Determine whether new Customers appear on any lists of known or
suspected terrorist organizations provided by any government
agency consistent with 31 CFR 103.131 (b)(4).
(e) Regularly report to the Fund about measures taken under (a)-(d)
above.
(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 103.131(b)(5), about the Fund's CIP.
(g) Set forth on a separate fee schedule compensation amounts due to
PFPC for providing 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 Customers (or accounts) beyond
the requirements of relevant regulations (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 regulations.
The Fund on behalf of each of its investment portfolios hereby agrees
that PFPC need not perform steps (a)-(g) above with respect to any
subscriber who is then a Customer of any other portfolio of the Fund,
and that such Customers do not have exchange privileges with any other
legal entity.
PFPC hereby represents and warrants that (i) that it has implemented
an anti-money laundering program and (ii) will certify annually to the
Fund that it does perform the CIP services for the Fund described
above.
2. General. 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.
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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.
THE GALAXY FUND
By: /s/ Xxxxxx X. Xxxxxxx
----------------------
Name: Xxxxxx X. Xxxxxxx
Title:
PFPC INC.
By: /s/ Xxxxx X. Xxxxxx
--------------------
Name: Xxxxx X. Xxxxxx
Title: Sr. Vice President
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[Letterhead of PFPC, Inc.]
October 1, 2003
The Galaxy Fund
Xxx Xxxxxxxxx Xxxxxx
Xxxxxx, XX 00000
Re: Customer Identification Services Fees
Dear Sir/Madam:
This letter constitutes our agreement with respect to compensation to be
paid to PFPC Inc. ("PFPC") solely for Customer Identification Services provided
under of the Transfer Agency and Services Agreement dated January 1, 2003
between The Galaxy Fund ("you" or the "Fund") and PFPC (the "Agreement"), as
amended. The Fund will pay PFPC fees, as follows:
- $2.25 per customer verification
- $.02 per month per search result stored
- $10,000 one time set-up fee*
*The $10,000 one time set up fee will only be charged if and when the Fund has a
direct shareholder account opened on PFPC's mainframe transfer agent system.
The fees described above are in addition to, and in no way affect, other
fees to which the parties hereto have agreed (or in the future agree) with
respect to the Agreement and related services.
If the foregoing accurately sets forth our agreement and you intend to be
legally bound thereby, please execute a copy of this letter and return it to us.
Very truly yours,
PFPC INC.
By: /s/ Xxxxx Xxxxxx
----------------
Name: Xxxxx Xxxxxx
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Title: Sr. Vice-president/Managing Director
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Agreed and accepted:
THE GALAXY FUND
By: /s/ Xxxx X. Xxxxxx
------------------
Name: Xxxx X. Xxxxxx
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Title: Vice President
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